Allison Transmission's Record Q4 and Full Year 2024 Results: A Reflection of Market Leadership and Pricing Power

Allison Transmission (NYSE: ALSN) reported record financial results for the fourth quarter and full year 2024, showcasing exceptional operational execution and market leadership. The company's record $3.2 billion in annual revenue, coupled with a 12% EPS growth to $8.31, demonstrates robust pricing power and operational efficiency. Allison Transmission's performance is particularly impressive in three key areas:

1. Market Dominance in North America On-Highway Segment:
Allison Transmission achieved record full-year net sales of $1.8 billion in the North America On-Highway end market, driven by strong Class 8 vocational demand and price increases on certain products. The company's ability to implement price increases while maintaining volume growth indicates significant pricing power and brand strength in this segment.

2. Strategic Diversification and Growth in Defense End Market:
The Defense segment's 28% growth and record performance highlight successful market diversification, reducing cyclical risk and opening new growth vectors. Allison Transmission's partnership with HST Otomotiv on a phase two contract to provide the Allison X1100-5A4 cross-drive transmission for the Turkish Armed Forces is an example of the company's growing presence in the defense market.

3. Financial Strength and Capital Allocation:
Allison Transmission generated $801 million in operating cash flow, maintaining a healthy 80% operating cash flow to EBITDA conversion ratio. The company returned value to shareholders by increasing quarterly dividends, repurchasing over $250 million of common stock (representing over 3% of outstanding shares), and paying down $101 million of existing term loan debt. This balanced capital allocation strategy demonstrates strong financial stewardship.



Allison Transmission's Q4 and full-year 2024 results showcase the company's market leadership and pricing power in the propulsion solutions industry. The company's strategic initiatives and market diversification efforts have contributed to its exceptional performance in the Defense and Outside North America On-Highway end markets. Allison Transmission's balanced capital allocation strategy has enhanced shareholder value and financial stewardship, positioning the company well for sustained performance in 2025.