Allison Transmission Holdings Inc. reported second quarter 2025 net sales of $814 million, a slight decrease of 0.2% year-over-year from $816 million in Q2 2024. Despite the flat revenue, diluted EPS for the quarter reached $2.29, an increase of 7.5% year-over-year.
Net income for the quarter was $195 million, up from $187 million in Q2 2024, and Adjusted EBITDA increased 4% year-over-year to $313 million, with an Adjusted EBITDA margin of 38.5%. These results were driven by continued strength in the Defense end market and record quarterly net sales in the Outside North America On-Highway end market.
However, Allison revised its full-year 2025 guidance downwards, with net sales now expected in the range of $3,075 million to $3,175 million, net income between $640 million and $680 million, and Adjusted EBITDA between $1,130 million and $1,180 million. This revision is attributed to current end market conditions, anticipated acquisition-related expenses, and expected favorable cash income tax impacts from the One Big Beautiful Bill Act, despite maintaining the midpoint of the implied Adjusted EBITDA margin guidance.
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