Allison Transmission Holdings, Inc. (NYSE: ALSN) experiences a surge in its stock on the US charts during the pre-market session today. The latest check reveals Allison’s stock trading at $74.99, marking a 21.86% increase. ALSN’s stock closed the previous session at $61.54, showing a decline of 2.05%. After yesterday’s financial announcement, Allison’s stock surged before market opening.
Allison (ALSN) reported fourth-quarter net sales increased by 8% over 2022 to reach a record $3.04 billion for 2023. Its diluted EPS during the reported quarter increased 34% from the previous year to a record $7.40. Strong demand in key markets drove Allison to a historic year, marked by its best-ever fourth-quarter sales.
In 2023, ALSN showcased operational commitment, with Adjusted Free Cash Flow up by 37% and EBITDA margin rising by 180 basis points year-on-year. Allison adhered to a clear capital allocation plan, repurchasing $260 million of common stock—approximately 6% of outstanding shares—and raising dividends for the fourth consecutive year.
With increased earnings and a reduction in share count, ALSN reports a record full-year Diluted EPS of $7.40 per share. Due to resilient demand in its largest end markets, the company anticipates another record revenue year for 2024, as Allison continues to realize its investments and expand addressable markets.
Quarterly net sales amount to $775 million. Year-over-year results are driven by a 14 percent increase in net sales in the North America On-Highway end market, primarily due to continued strength in customer demand for Class 8 vocational and medium-duty trucks. Sales also grow by 34 percent in the Defense end market, primarily due to increased demand for Tracked and Wheeled vehicle applications.
Moreover, ALSN sees a 31 percent increase in net sales in the Outside North America Off-Highway end market, primarily driven by higher demand in the mining sector. The quarterly net income stands at $170 million, with diluted EPS at $1.91. Operating activities generated $238 million in net cash flow, and adjusted EBITDA reached $277 million. Adjusted free cash flow for the quarter amounted to $186 million.
