Allison Transmission Hldgs Inc Stock Price, News & Analysis

Allison Transmission Holdings Inc. (NYSE: ALSN) has increased its quarterly dividend from $0.19 to $0.21 per share, reflecting strong financial performance and commitment to shareholder returns. The dividend payment is set for March 18, 2022, for shareholders on record as of March 7. Additionally, the Board authorized a further $1 billion for stock buybacks, raising the total repurchase authorization to $4 billion. Future dividends will depend on the company's financial health and operations.

Allison Transmission announces the production launch of its next generation electronic controls platform, developed in collaboration with multiple OEM partners. This platform enhances commercial vehicle functionality through advanced communications, functional safety, cybersecurity, and over-the-air programming capabilities. The first vehicles, including walk-in vans from Freightliner Custom Chassis Corporation, are set to enter full production by spring 2023. Allison aims for all OEM partners to transition by January 2023, supporting its 1000 to 4000 Series product portfolio and electrified propulsion solutions.

Allison Transmission is experiencing significant growth in the global defense market, partnering with OEMs from countries including Germany, South Korea, and the United States. In 2021, these collaborations led to multiple defense contracts across Asia, Europe, and the Middle East. Key projects include the Boxer multi-role armored vehicle and K9 Thunder self-propelled howitzer. Allison's innovative products like the Next-Generation Electrified Transmission highlight their commitment to customer-focused, technologically advanced solutions.

Allison Transmission Holdings Inc. (NYSE: ALSN) reported strong fourth-quarter results with net sales of $644 million, a 20% increase year-over-year, and net income of $118 million, up 97%. Full-year net sales reached $2,402 million, marking a 15% increase, while net income was $442 million, up 48%. The company repurchased $513 million of shares in FY2021. Looking ahead, Allison anticipates net sales between $2,625 million and $2,775 million for 2022, driven by recovery and demand across global markets.

Allison Transmission has announced the delivery of electric hybrid-equipped buses to Southern Nevada Transit Coalition in Laughlin, Nevada. The new buses utilize Allison's H 40 EP electric hybrid propulsion system, enhancing fuel efficiency by up to 25% and reducing CO₂ emissions. Later this year, Allison's next-generation eGen Flex will be integrated into the fleet, allowing electric-only travel for up to 10 miles. This innovation is expected to benefit the environment and improve transit operations in the area.

Allison Transmission has successfully delivered the first FracTran transmissions to several industry partners, enhancing their hydraulic fracturing operations.

This innovative product is estimated to generate an additional $100 million in annual revenue for Allison's Off-Highway markets. The FracTran offers unmatched reliability, with a lifespan of up to 25,000 hours, and can deliver up to 3,500 horsepower without hardware modifications. This next-gen solution underlines Allison's commitment to sustainability and efficiency in the energy sector.

Allison Transmission has announced the integration of its 3414 Regional Haul Series™ transmission into Volvo's VNL trucks, marking a significant advancement in their heavy-duty vehicle offerings. This fully automatic transmission promises improved fuel economy of up to 8%, faster acceleration by 25%, and is the lightest in its class. The strategic partnership with Volvo is expected to generate a $100 million growth opportunity in annual revenue. The 3414 RHS is a drop-in solution for existing models and comes with a robust warranty of five years or 750,000 miles.

Michael Dick, Senior VP of Operations & Purchasing at Allison Transmission (NYSE: ALSN), announced his retirement effective March 11, 2022. Dick contributed significantly to manufacturing efficiencies and operational excellence during his 15-year tenure. Rafael Basso will take over as VP of Operations following Dick's retirement, while Teresa van Niekerk remains VP of Purchasing and Supplier Quality. Both Basso and van Niekerk are long-serving employees, with Basso having 22 years at Allison and van Niekerk 9 years. The transition aims to maintain Allison's operational success and leadership in vehicle propulsion solutions.

Allison Transmission Holdings (NYSE: ALSN) will hold its fourth quarter and full year 2021 financial results conference call on February 16 at 5:00 p.m. ET. CEO David S. Graziosi and CFO G. Frederick Bohley will discuss the company's financial performance. A press release with financial results will be issued after market close on the same day. A live webcast will be available on the company's investor relations page, with a replay accessible from February 16 to February 23. Allison specializes in vehicle propulsion solutions for various commercial and defense vehicles.