ALSN - Earnings call transcript Q2 2024 | Allison Transmission Holdings, Inc.

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Operator

Good afternoon. Thank you for standing by. Welcome to Allison Transmission's Second Quarter 2024 Earnings Conference Call. My name is Diego, and I will be your conference call operator today. [Operator Instructions] As a reminder, this conference call is being recorded. like Executive the Investor Director now to call Relations. would Bolles, Jacalyn of Instructions] I to conference turn over [Operator Treasury and Please Jackie. go ahead,

Jacalyn Bolles

joining Executive quarter Chief Treasurer. Diego. for are With Operating Dave you, Good Officer, Chair and Financial Fred afternoon you Thank and Bohley, our Chief Chief afternoon, me this and our and earnings XXXX for second Graziosi, conference Officer; call. Officer thank us our

on the a will afternoon's available As X. this presentation A allisontransmission.com. webcast conference be August call Relations this in Investor replay reminder, call, through this of section are of available

year As including statements underlying Slide of for based those our second today. more set one of XX, known earnings statements report vary many forward-looking should expectations. or noted current risks to on forward-looking forth the release, and Form those These these in the incorrect, prove materially remarks Should of presentation, XXXX our ended on annual factors. from on are general express quarter or results contain risks, we actual other assumptions estimates X press unknown today December may or subject materialize our economic uncertainties XX-K XXXX, or and

of X SEC. remarks as presentation, defined In noted on by non-GAAP financial addition, as Slide some our the contain of the today measures

earnings attached XXXX find can quarter appendix an as to measures release. the reconciliations our the GAAP second You of and comparable the to non-GAAP measures most presentation to financial press

each analyst. participation p.m. one from take on will Time. Today's the just set call In order at is opportunities to maximize end Eastern to X:XX question call,

for Please the the turn to presentation of X call Slide agenda.

prior will XXXX guidance. commencing will and the review today's our updates with recent our update performance Q&A. During financial on Dave an full business, across review year announcements Fred our second to to Bohley quarter XXXX close call,

turn I'll to Fred. call the over Now

G. Bohley

record vocational revenue and leading we outside for of Closing pleased to thank our execute Jackie. joining the improved markets, line record year, out report quarterly XXXX. in Thank the for quarter American Demand million intensified the are in half defense second first continue as you and results On-Highway objectives. Class American to of during afternoon, of end $XXX us. vehicles Year-over-year $XXX we quarter, X end on you, our million Good the On-Highway revenue top were our also North by market. of increases North growth to for

Year-over-year $XXX in in Please principally increase a X% to for certain demand summary. in of driven for the American on for tracked year-over-year end X XXXX increase XX% turn in strength from medium-duty same further presentation products. trucks vocational improved XXXX end the X million. our was principally net The price applications. the results led by market. increased On-Highway The were of by North record vehicle by defense Class demand Slide a QX increase was the increase period by a sales and Year-over-year in increases performance sales to and net driven vehicles market, increased XX%

offset end On-Highway second demand improved Asia a America sales outside and in North increases the America in in products, in market outside were results end year-over-year record price principally The market. our in certain Finally, North by higher by lower was increase on driven quarter net demand Europe. partially On-Highway by

million by partially price manufacturing The increased million, by driven the offset profit was increase in for net increase million profit gross the an of on Gross certain in was $XX XXXX. same higher $XXX sales, expense. quarter $XXX products for period increases from and principally

pension in by gross Net charge principally The lower mark-to-market net, plan expense second administrative XXXX. the offset marketable general securities. defined expenses incurred driven income million, the selling, $XXX from same higher lower unrealized was and quarter and benefit by million adjustments in quarter for partially an for was and $XX interest of XXXX settlement profit, period increase the a increase noncash

$XXX $XXX profit. EBITDA the the by to for principally in EBITDA higher was Adjusted million was million quarter XXXX. compared driven increase The gross for same in adjusted period

Diluted period in XX% same XXXX. per from increased share the earnings

Second driven net quarter net and by presentation. lower EPS overview performance detailed and can outstanding. market was be the found financial end by of XXXX shares higher of of X $X.XX Slides income and A our total sales X QX on

summary. flow gross Slide million compared the the requirements. funding net working X by principally profit, presentation lower quarter was income offset of partially for was period cash $XXX Adjusted turn in the performance XXXX. to million taxes to cash XXXX for QX increase the The Please driven cash by capital same flow $XXX higher free for and higher

credit During the share a repurchased facility dividend We of million of available quarter, common ended of over with of revolving and X.Xx, $X.XX million $XX second paid $XXX and quarter the net cash million ratio $XXX commitments. we our stock. per leverage of the

and to long-dated debt In flexible, covenant-light continue we a addition, maintain structure.

the Slide Please turn guidance. to presentation of the update our to for XXXX X

a earnings As our Allison we in cash North full result and raising end America market, On-Highway flow. to $X.XXX billion. year net sales of expects strength billion the the be of guidance our in $X.XXX to are ongoing range for revenue,

of million net of income million, $X.XXX sales $X.XXX in range of adjusted Allison's net adjusted range operating $XXX activities $XXX million in million, XXXX to to we and EBITDA to to expenditures the $XXX million range In net range cash in $XXX in of flow in range cash the million million by guidance, $XXX capital billion, billion $XXX $XXX of million. the addition free the the provided to $XXX to anticipate

for the update and over an recent turn announcements. Dave I'll now to call on you, Thank

David Graziosi

and was in newly responsibilities join Operating Fred on his Chief In June, me at the role of Fred. new you, congratulating position Thank created Officer. to Please Fred Allison. early appointed

XX-year Over the a end Allison, our career demonstrated our his leadership has and of deep Fred at and exceptional course of understanding company markets.

current tradition new this transition. opportunities step in of an extensive position, and roles into begun continuing CFO, to his to for search innovation Fred with to enhancing has in Fred excellence. Allison our for our a order and smooth ensure excited meet a to new the continue ability are We serve ahead

Before Series moving announcements, current take for market. to like in North projects spending the led demand our environment these for On-Highway for in to roughly are America. moment products. Class seeing series in to share Funding on X our and has vehicles, would recent vehicles unprecedented and in end infrastructure With I North XX% discuss to America we Allison vocational other XXXX extraordinary demand at a XXXX On-Highway XXXX locational

manage to we at being our throughput. in meet but to demand, made supply not investments improve manufacturing that capacity, increasing also production this only have order elevated said, With In and chain opportunities, without operations the not to the rate diligently committed remains and meeting company near-term market by the been position for scale investments growth. evaluating to while Allison long-term demanded has challenges.

the and middle capital a companies Through the on gain to in digitation EnerTech's of announced emerging capital to May, models in second the connectivity, focused $XX other to during autonomy partnership, a of is space. arm, firm of electrification, through EnerTech quarter. we on network technologies Capital Allison Capital announcements development large In access million invest announced commitment EnerTech recently technologies Ventures. venture are venture sectors. in the Moving this advancing that high-tech our business the will we and mobility

innovation work organizations to increase like-minded to investors We across are our while solutions. pipeline efforts and accelerating our mobility eager with commercial and collaborate

opportunities year, market widebody the $XXX Last announced mining of revenue addressable export as resizing dump the to increased incremental of we in annual expanded, opportunity our million opportunity.

Southeast first between fully the in and rooted partnership, our mining LGMG Asia. recently Body strategic tests announced will and in offering new Allison to This our crossover global in in as been integrated South We this partnership automatic a equipment expanding ongoing Wide quality collaboration product are a wide-body commitment vehicle, LGMG, time Series America with we location, the Allison The strategic expand trucks. mining Through partnership notes presence. shared Dump excited our to this is has our prominent currently dump larger use XXX-ton Allison in transmissions XXXX for provide XXX-ton Chinese field transmission LGMG's into manufacturer. with and

form strategic support pleased continued are our partnership new We a to to collaboration.

highlighted delivery The outside Korea adoption in South equipment truck, fully since growth Hyundai experiencing in truck Series Mighty our last share a market, milestone top-selling is South Also quick the XX,XXX Hyundai and XXXX America week, Mighty automatic transmission. XXXX. gains we our significant our opportunity North of light-duty with with market and in On-Highway Korea's launch

years, past Over to grown X Allison Hyundai the nearly the shares in XX%. Mighty has its

look Allison Hyundai end equipped tremendous We and our vehicles to in collaboration by Mighty our America On-Highway OEM are outside customers. of further with North partnerships and market growth forward delighted through success the the

up-cycle, amidst programs defense well $XXX increased of outlook revenue and opportunities through U.S. For on globally uncertainties defense Defense. Department domestically target annual our the market, capitalize United maintain increased as internationally realization defense our sales as investments and end modernization States the international million of of with and through we we for as through geopolitical both

our In our the XXXX in MX MX, selected of with revenue forward defense new variant annual year. expansion business program Booker cross-drive million term, proven addition growth Allison and the incremental for U.S. MX was look XXXX to which XXXX portfolio opportunity last the the is MXX further in medium-weight $XXX Army's an uprated introduction product to our near the The of transmission. we of

IFV combat one signing Fighting for the vehicles, the most BAE CVXX CVXXs new of Last Hägglunds, programs, various producers the successful XXXX nearly XXXX has XXX Infantry contracts of Republic propulsion in BAE the our X,XXX begin expected production approximately tracked are announced Slovakia IV Vehicle solution. IFE with in to to won XXXX. utilizing propulsion vehicles Hägglunds MX provide week, by or countries Europe, [ solution we contract and recently CVXX ongoing a for while Czech currently, with new Mk Allison of Europe's Systems' in operated ] Systems'

Systems' Hägglunds for Allison support Allison long-term BAE IFV other existing further in assures This for growth agreement while globally. pursues between fleet, and programs opportunities CVXX the

new a deliver to designed for product excited Mk are IV We CVXX the vehicle. uniquely

trust missions, execute in While international of nations opportunities this defense XXXX the toughest end introduction our MX market. and their the expansion supporting enhances present portfolio further to vehicle who for numerous Allison's

our as to evolve, remain portfolio committed markets of we products needs designed a offering Finally, the customers. of to meet

Cummins their XX-liter XXXN with natural Just our and with announced validate test transmission. engine gas partnership Series our XXXX this to week, paired we

completed improvements successfully efficiency with in testing fuel a already XXXX over has and reported based XXXN has XX,XXX Sandman, California cement hauling the performance. vehicle of Sandman Series miles transmission. engine bulk in and fleet significant

battery multiple transmissions natural Allison fuel-agnostic, with and compare sources, fully meaning and diesel are electric cell hybrid including electric. automatic hydrogen, they fuel and energy gas,

efficiency. and continues an and Cummins with their increasing leading adopting alternative as We industry the reduce to adapt immediate stringencies. to further customers OEMs carbon fuel sacrificing engines emission solution fleets partnering to to look footprint without As more productivity are forward help

second the summary, only results come. of the notable business, our In quarter demonstrate opportunities strong Allison's but not growth performance to current

We delivering continue in to the to improve invest capital and growth brand promise our returning to on our in order while to our the achieve works. way world business ambitions, shareholders

concludes prepared This the remarks. open please our for Diego, questions. call

Operator

[Operator question Thein with Instructions] first Tim comes Raymond Our James. from

Timothy Thein

Very deserved. the well Fred, announcement. on congrats

G. Bohley

you. Thank

Timothy Thein

Yes.

the So just of out thinking for you've back year. the through as guidance the to of laid -- the question relates half kind the

look that quarter you XX%. second the the -- imply flat and EBITDA at the of it if at So for incremental I of under was the would the for generation in essentially flow-through guidance And back the year-over-year. look half is midpoint as just revenue EBITDA year, EBITDA

that mix benefit as there to a the kind anticipate -- you persist? in being Or just need doesn't -- some meet do inefficiencies for and was think maybe of Just question should arise is of So above? about color quarter you stretch year the maybe the neither the on costs some we in framework year? back the of or the this demand back higher of half the to the half how a

G. Bohley

of -- in is the currently, have you came extremely we as with normal more strong. seasonality. half it's Sure, Tim. about And This if think modeled Fred. things QX modeled back The XXXX,

little a first what's the second half QX of between driving in half. the That's year. got and we've lighter difference the primarily margin So back half

Operator

comes question Melius with next Rob Our Research. Wertheimer from

Robert Wertheimer

-- else America and do we sell Is end getting But North the chain up? long-haul the did. supply than that kind I never on that of On-Highway. is bodies you kind the leading how built market driven? America kind what better you or a dump maybe know lot of guys trucks is obviously, excesses saw your strength. in lot segments constraints whatever of that kind or uptick chart, loosening peaks There's vocational what On-Highway? the of a to And guess, I I'm curious And strength the in that? North is on that going the in Is to. fundamental pie mean about But stuff

David Graziosi

Thank that question. for Dave. it's you Rob,

to are number suffered pretty of question, on the of and mentioned areas. calls. you recent vocational, production to So go we've lack your than this factors if COVID a But back near-term there probably other more answer

the and cycle COVID, post in other without was was the was infrastructure coming funding you were So being clear it an as vehicles. demand bill up terms signed of provided, into

So working demand. a production very of a through through you're period very the period working vehicle industry high now in is -- of soft

you So very aged have demand. an with underlying fleet high

the through a where a workforce number same workers COVID, experienced have time, -- number from of you of a At you've more perspective, is what retirements as and know, labor has you drivers. the seen specifically shed

retired. are whereas perspective, used some an with fleets to now from drivers per So could use manuals Those se. equipment

vehicle coming into of the pretty but a also driver significant overall change base. So not in vehicles in only a you're looking uptick the in shortage demographics demand, the at

seeing to we're through, so start combination speak, the its way market. drive the So to

that that in results, fact terms and linehaul expect, of market other vehicle here is. by post start I business, we producing Thus, the as can to really And you right emphasis gap they're now, as down as to this address been catch The comments up you'd but normalized but to vehicles to you're deliver softness, already OEM other that the do, with with cover recently you demand want. assume and people would is a level. they're backlog with seeing say, only the to I certainly what the made to going have I the the they more demand, real would think had that COVID, that much refer

around the we been the believe that for mentioned and do I of improvement -- chain constraints do we vocational, other in such. there's call, some necessarily significant supply builders not on body we specifically not as April As -- believe

issue So lead times a to as and extended, to degree continue be well. a that's labor

I provide, the they going vehicles process will necessarily of that enough. a because se, much of So believe, in can't terms bit higher per governor fast a just

relative So our reasonably is see through April call, we work We'll way again second we to here the high year and level of of it expectation we on as of the Fred's what comments, XXXX. a about demand presents talked as get into our the earlier the balance half. laid

pretty least at OEMs this the more recent at think for a public start by stout QX ones vocational. of books relative order -- on I decent point, and the the comments some to would indicate QX

Operator

And our next question comes from Ian Zaffino with Oppenheimer.

Ian Zaffino

been on be you've we're for of of into I think I believe the up they're would Question color. some I price Good that On-Highway contracts. on getting necessarily kind taking of And negotiation. not lot now a contracts. know season. those

what being mark-to-market? going as maybe So some there get you those us on feel contracts of going color maybe kind far how what's as give on to kind you're how you maybe positioned that, and feel is -- the to of or environment into

G. Bohley

Fred. it's Ian,

trucks, fewer level seen contracts last costs us under in to products earlier XXXX. earnings at years. puts saves, our All inflation maintenance our XX% situation of there business in in transmission our price. that, value of And vehicles. are a getting delivers, that On-Highway productivity And size Over that And we amount couple fewer Obviously, up increased amount is are now. day, the in American value. significant North been proposition the able predating available for of a on elevated. have mentioned, as of calls, to delivering of OEMs those costs right significant pricing value price we the all we've the the where cost, the more very have we've the look As multiyear is high the a is effect, drivers, a in product

So value we do we're price anticipate that the in delivering. XXXX, pursuing to relative

our on I to It's early the OEMs. and we based of still go rather marketplace that positioned delivering for And demand is value product for price. the most to suspect meaningful our in wire, down negotiations achieve will feel well the with negotiations very the the product would but

Operator

next Castillo Our Morgan Angel with question from Stanley. comes

Angel Castillo Malpica

you just role. on Fred, join the new let congratulating in me

to Dave, wanted back. just go

a take the baked were if the I in guide year and like full the the quarter. gave back sounds It of wanted you seasonality for of a about think half and and good recall of You that to assumptions the into of just seeing second some on step the correctly, you're mentioned a slowdown second half, dynamics On-Highway of fourth guide. vocational. But color lot kind kind kind in kind the

But just of least supply that to run able kind would you meet given dynamics at it full be kind high about, just meet the to to vocational try this trying you of pent-up out seem should that. chain that continue the and talked demand to to of level continued demand

what second So of you're of cause areas more the vocational more explain you any could maybe line half, hearing weakness. if versus of kind we're that where kind a bit slowdown help haul kind or like just something the would in little exposed to given

David Graziosi

that Angel, thanks for question.

X% to upon -- typical So in looking business, fourth the second with businesses, terms given course, build X at of you're with just most quarter, calendar of the holidays production least quarter, Allison comment less days. in at half, seasonality, the Fred's the

if of because So quarter of lack a will, you that production results normally the in fourth days. softer,

year. not the a the see second to quarter fourth started those tracking results. necessarily was the last really I numbers, That into think, was at of elevate year, you last half unusual QX look in to really when started It we case in pickup of as know, vocational you because

relative a expect in your lack talked production a To on is regardless It's just of call of days. about last quarter and we that now that seasonality, the more bit, we fact normalized this of the certainly see to terms demand. question, fourth we a

in we significant some that in of is change with quarter. to a be the seasonality unless if So you schedules, would there fourth dealt will, expect

guess, more demand. less Other things drive, that to I or can certainly drive attempt

mentioned, at order pretty completely relative As this our to full QX understanding I vocational. is full are stage, if books for not

I in. about remarks, as a doing can I'm there's we you market team prepared So demand. to filled is, meet we sure But that think when we're as be everything to QX, the in think reality some mentioned the

the outside components. I would supplied also relative isn't to perfectly market of offer, Allison

the part those drive into So of other question trucks. has is the these continue to to all to market can -- have that's answer build supply but other components to the your the the the we market,

I it's it during COVID, say would than of sporadically but issue an So level some less of certainly do was you disruptions. see

a we level supplier challenges. that broad can think that as right OEMs But the a constraints terms best that particular those always the the talked vocational are is work through some fourth are work that into I much enough to we're unplanned short their they expect but has create broader market to. the in just displacing with of demand I always unplanned, to fortunate pretty to pop that again, quarter, seasonality and answer up, some share situations those there's robust through do of of certainly subject

Operator

Our next question comes from Tami Zakaria with JPMorgan.

Tami Zakaria

Very impressive results.

to earlier follow congrats about So to an the on guide. team. question I wanted the up

But So seems guide in almost X% about of up, revenues it, year-over-year ] back [ like still basis points. XXX half. the assumes call the midpoint margin down EBITDA the

a if if sales modeled so EBITDA I were up would at to flat bit. modeling, margin flat And are least I have

mix guide that conservatism? headwinds you So is such? just pressure cost makes are Or guide any you margin as or this seeing

G. Bohley

midpoint, on that top it's really at we at the When obviously, the we a made through movement Tami, $XX our to million. you level, up increased with of guide guide $XX Fred. dropped million EBITDA look line million. that EBITDA at $XX guide,

a XX% drop-through guide. guide So to

takes fourth Does robust. favorable. Demand bit the top certainly to the what out a of what this will puts raw like. year, was like. more look would quarter. and the incremental be month. drop-throughs there's that continue look here we As little We Certainly, the the balance half more hold. second look talked We've off modeled We've could seen normal come materials about line to to certainly a

Operator

Junk Luke from comes Baird. with question next Our

Luke Junk

to just at line top high just the major level. you segments hoping the flow updated could through on Fred, guidance the a

specialty. versus of gave puts how you I'm In much North guidance terms given thinking I half allow could growth the maybe back any Asia supply defense chain vocational dynamics of of about but variances America in quarter, in year, original guess beyond the some then takes in and of On-Highway, outside and the [indiscernible] terms headwinds the America Europe. in growth into you the maybe North the and in fourth also

G. Bohley

Luke. Thanks, initial that guide. Fred. -- we we is publish provide when and The market detail this guide in obviously And

that And America, I'm when not that specifics. to to On-Highway then So with in February, being we in looking North vehicles down look out across But America to it's to numbers produced. those outside going you get is back safe North fewer came demand when say stronger. the

We been America have we our driving the On-Highway. XX% are, of outside what's performance challenges will North North that be had that's challenge and to up good that the and America. team traction very is this point at light continue for initial with Asia, a full Europe in the meet. be guide even year-to-date year where that, But real to expect we'd outside I in suggested performance

in, to through, the on significant demand work work I continuing think piece throughput parts have our we and continue From to through, that the a manufacturing supply getting we the a facilities. through chain, side getting defense

in run currently we ramp we'll pace the But which we at demand. So challenge how see up balance. to the a for have certainly, it's

like a be parts we and From we half. market. that standpoint, a ran But look other it, a with half records as see looking was we lot the service parts, equipment support from end going first we comp the knew at to do first second half first half difficult service in the a

Operator

with question next Revich Sachs. Our Goldman Jerry comes from

Jerry Revich

congratulations. Yes. Fred,

G. Bohley

Jerry. Thanks,

Jerry Revich

just you a can that your the moment cost we Fred, ago. -- comment talk So about made

just wouldn't if point the material where some at between material about the half just mind, and margin pricing we year-over-year absorption, spoke You tailwind a the And we relative could you quarter see are starting a back understand performance costs? costs bridge moving in from Are pieces the to so cost to we maybe decline. guide?

G. Bohley

were interesting. that it's some took was cost, From from our offset a the lower commodity value-add increases supply We since we while had saw Jerry, a we in cost. So it's neutral to a and with quarter, but that. we -- been chain, material

From a we've standpoint, price the cost in little $XX a got million quarter. over in price

points. So [ basis XXX cost ] was up million material flat. was $XX cost Manufacturing and

So sort type kind when through, you pull Allison, of a normal for XX%. high of drop-through that

I think there's going still to that skilled Dave just I comments be continue manufacturing for, I the earlier think, the for the attract all from it's value-add mean, labor challenge made industrial by on employees. companies, pressure and suppliers, with to call. a recruit driven

of that From potentially off. see I quarter. lot continue moved quite a could we obviously, in the see things move a the it's to materials a economy, raw that, can bit softening throughout standpoint, think roll we But

the So year. as current balance we're at we're of looking commodity at it for and modeling prices modeling kind it, the of it

Operator

with comes And Menges question our Kyle from next Citigroup.

Kyle Menges

to for curious, Class suppose capacity. vocational, your given are outside could building visibility chain you demand from was there's is do you enough more supply idea And entertaining so? I just control are seeing capacity? there the constraints sounds X I that of it that other robust of potentially like keep you're the adding

Just that? how are about thinking you

David Graziosi

the for question. Dave. thank It's Kyle, you

capital would if say, building are of plants we question to comments, capacity, is prepared your the not, in briefly I if mentioned our products enhance investments in On-Highway down or some will. breaking It you we making new that We're So comes some answer and some to cetera, with suppliers. lines, well assembly our our That is goes the no. footprint. really of et as constraints for house as existing transmission to

perspective, that you only in So timed chain, in on within not get footprint, to that months from the it, X of will next, also our if depending call an some will, operating the own investments supply over XX making frankly, it's equipment. we're but here

thing comes those as labor can though you inherent operational -- other are really or some back in more if shifts of inefficiencies But there will. availability you those that The it certainly strategies. portions add, shifts, of is to

efficient would at So looking a, really of say, we're all to operation. to I come more that back

I rate. to would what also capacity cases base running referred in the certain we a north with of offer lean supply as

high drive through. very to generating supplemental You're additional cost that capacity

So gets a investments to more, what to we to type back consider of some get lean break of constraints those capacity it and would to a the be rate.

Allison our is some the and investments as as would to normally that inside operational of supply well of maintenance are made also very best what and further refer base. excellence. terms those breed at and terms sustainment upgrading We're in do being Allison as team are as The we opportunities both looking implementing So we broadly, performance capital. of of in

So the terms actual continue sustainment. capital we to It's improving on focused of also expand in output.

cetera. So units per hour, et

But the around in that of comment retain beyond scrap back kind it, some come products some made really it's recruit, that quality Fred And from members to need Allison. to our attract have these very continuing to team of engaged of of but So and is skills shift terms to to the produce our global in customers with do expect to the production. that rates, name that, you team that. our footprint, we have rebalance capability the

Operator

Wertheimer question with our And from Research. Melius next comes Rob

Robert Wertheimer

Dave, in manual your the still, with that I response, take transmission fading idea I about whole haven't share, time. market eventually upside, asked mentioned XX% on XX% about you know, the you And long kind an a don't guess, your a we to that's of you if market. bit, I high think even but

in don't that asked material you have? a long, it time. is I'm manual? mostly lies. that And you Is that gaining traction part a part AMT of is, question long fading? balance I've just is AMT The not where sure

David Graziosi

question. Rob, for thank you that

enjoy stated, we as extremely automatic think over I which has worked significant you to that defined very as advantages power reach would know, -- interrupted transmission, transmission, has point. the as or And the market over a team AMT. do, The fully So high be decades diligently you manual any share. an

as as high which of duty vocational. severe addressable as are Focus that the continued a as we percentage at well least to within manuals, is shift market. shrink The such is, market, vehicles spaces dense

of that manuals applications. duty AMTs where heavy have, do very very have start you years, a been for displacing at not cycles service rugged feature effective number or

amount at to very, adequate grow So because you drivers my stage. done those on comment earlier your gearboxes ways, manual job not have manuals looking drivers, point, to always position. look do to But at to for I ways have the trained at this we continue I AMTs think, the displacing our think share a of

at share non-Allison and natural segments. seeing market cycles is the it's and duty attrition of again So our gain really for AMT a that you're expense manuals

Operator

of I'll that closing our now turn And back call. for concludes over floor this Graziosi to David question-and-answer comments. the portion

David Graziosi

thank Thank your you for in your and you, Allison evening. participating interest today's and on call. for Enjoy continued Diego,

Operator

concludes a good Thank may you. today's parties disconnect. And day. All that call. Have

Allison Transmission (ALSN) 25 Jul 242024 Q2 Earnings call transcript