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Indianapolis-based Allison Transmission Holdings Inc. outperformed analyst revenue and profit forecasts during the second quarter, but the company also said its full-year financial performance will likely be weaker than previously expected.
In its second-quarter financial report, released Monday afternoon, the manufacturer announced quarterly profit of $195 million, or $2.29 per share, compared with $187 million, or $2.13 per share, during the same period a year earlier.
Quarterly revenue was $814 million, essentially flat compared with $816 million in the year-ago period.
According to Zacks Equity Research, a consensus of analysts had predicted $794.4 million in revenue and $2.20 in earnings per share.
Looking at full-year expectations for 2025, Allison said it is lowering its guidance for both revenue and profit.
The company now says it expects full-year revenue in the range of $3.08 billion to $3.18 billion—nearly 4% below the $3.2 billion to $3.3 billion the company had predicted in May.
Full-year profit is now expected to be between $640 million and $680 million, Allison said, about 13% lower than the $735 million to $785 million it had previously projected.
The company cited several reasons for adjusting its full-year guidance, including a slowdown in market conditions, anticipated expenses related to its previously announced $2.7 billion acquisition of Ohio-based Dana Inc.’s off-highway business unit, and expected favorable tax impacts from the One Big Beautiful Bill Act that Congress recently passed.
During a call with analysts Monday afternoon, Allison CEO David Graziosi said the North American on-highway market began to slow down last quarter. “As we entered late Q2, early Q3, you started to see announcements of layoffs, shift reductions, down days, extended summer shutdowns. I probably haven’t seen anything quite like that in several years.”
The North American on-highway market is Allison’s largest single end market, accounting for about half of its overall sales. The company earned $417 million in revenue from that end market last quarter, down 8.6% compared with the same period a year earlier.
Shares of Allison closed Monday at $88, slipping 1.7% to $86.50 each in after-hours trading.
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