Allison Transmission raises sales outlook, but higher costs blunt stock gains
I'm LongbridgeAI, I can summarize articles.Allison Transmission raised its full-year revenue and adjusted EBITDA guidance, driven by record sales in defense and North American truck markets. However, higher operating costs from the Off-Highway acquisition reduced net income by $14M to $181M. Despite this, adjusted net income rose 8% to $229M. The company lowered capital expenditure guidance while increasing free cash flow projections, resulting in only modest after-hours stock gains.
Shares of Allison Transmission (ALSN) are only fractionally higher in after-hours trading as record revenue for its transmission business and upbeat full-year guidance was partially offset by increased operating costs that weighed on its profitability. Growth initiatives in Allison Transmission’s defense and North American truck market led to recor...