Allison(ALSN) - 2024 Q2 - Earnings Call Presentation

Q2 2024 Financial Performance - Net sales increased by 4% to $816 million, driven by strength in North America On-Highway, Defense, and Outside North America On-Highway end markets[12, 16] - Gross profit increased by 3% to $394 million, due to price increases and higher net sales, partially offset by higher manufacturing expenses[12, 16] - Net income increased by 7% to $187 million, driven by higher gross profit, lower selling, general and administrative expenses, and lower net interest expense[12, 16] - Adjusted EBITDA increased by 5% to $301 million, primarily driven by higher gross profit[12, 15] - Diluted earnings per share increased by 11% to $2.13, driven by higher net income and lower total shares outstanding[12, 16] Q2 2024 Sales by End Market - North America On-Highway net sales increased by 15% to $456 million, driven by demand for Class 8 vocational vehicles and medium-duty trucks[12, 14] - Defense net sales increased by 30% to $43 million, driven by increased demand for Tracked vehicle applications[12, 14] - Outside North America On-Highway net sales increased by 4% to $128 million, driven by higher demand in Asia[12, 14] - North America Off-Highway net sales decreased by 96% to $1 million, driven by lower demand in the energy sector[14] - Service Parts, Support Equipment & Other net sales decreased by 8% to $166 million, driven by lower demand for North America service parts and aluminum die cast components[14] Cash Flow Performance - Net cash provided by operating activities increased by 21.3% to $171 million, driven by lower cash income taxes and higher gross profit[17] - Adjusted Free Cash Flow increased by 23.0% to $150 million, driven by higher net cash provided by operating activities[17] 2024 Guidance Update - The company is increasing full year 2024 net sales guidance to a range of $3,090 million to $3,170 million[19, 20] - The company is increasing full year 2024 net income guidance to a range of $650 million to $700 million[19, 20] - The company is increasing full year 2024 adjusted EBITDA guidance to a range of $1,085 million to $1,145 million[19, 20] - The company is increasing full year 2024 adjusted free cash flow guidance to a range of $590 million to $640 million[19, 20]