INDIANAPOLIS - Allison Transmission Holdings Inc. (NYSE:ALSN), a global provider of commercial and defense vehicle propulsion solutions, has announced a quarterly cash dividend of $0.25 per share on its common stock. The dividend for the third quarter of 2024 is payable on November 27 to shareholders of record as of November 18.
The company stated that future dividend payments will remain at the discretion of its Board of Directors, depending on various factors including the company's financial health, operational results, cash on hand, cash flow, and capital needs.
Allison Transmission, known for its medium- and heavy-duty fully automatic transmissions, operates in over 150 countries and maintains regional headquarters in the Netherlands, China, and Brazil. Manufacturing facilities are located in the USA, Hungary, and India, with engineering centers focused on electrification in Indianapolis, Auburn Hills, and London.
The company, which was founded in 1915 and is headquartered in Indianapolis, Indiana, serves a diverse range of markets including on-highway vehicles, buses, motorhomes, off-highway equipment, and defense vehicles.
In the press release, Allison Transmission included forward-looking statements, cautioning that such statements are subject to risks and uncertainties and actual results could differ from those projected.
This announcement is based on a press release statement from Allison Transmission Holdings Inc. and does not include any speculative or promotional content. The information provided is intended for factual reporting only.
In other recent news, Allison Transmission Holdings Inc. reported a noteworthy increase in net sales and income year-over-year for the third quarter of 2024. This was primarily driven by the robust performance in the Class 8 vocational vehicle market and the defense sector. The firm announced record net sales of $824 million, a 12% rise from the same period in the previous year, and net income reaching $200 million, up by 27% from Q3 2023. Diluted earnings per share also set a new record at $2.27.
Further, Allison Transmission raised its full-year revenue guidance to between $3,135 million and $3,215 million. The company's strategic partnerships and investments in manufacturing and product development, particularly in the defense sector and the Indian market, were underscored as key drivers for its optimistic outlook. The firm has planned an investment of over $100 million to expand its Chennai, India facility and has announced strategic partnerships with Lugan and Ashok Leyland (NS:ASOK).
These recent developments indicate a positive trajectory for Allison Transmission, with the company expecting to nearly double the manufacturing footprint in Chennai, India by 2026, and eyeing a $400 million growth opportunity in the defense sector. Despite potential challenges in labor and supply chain, the company maintains its focus on Class 8 vocational vehicle market leadership and expanding its presence in the defense sector.
InvestingPro Insights
Allison Transmission's recent dividend announcement aligns with its strong financial performance and commitment to shareholder returns. According to InvestingPro data, the company's dividend yield stands at 0.91%, with a notable dividend growth of 8.7% over the last twelve months. This is further supported by an InvestingPro Tip highlighting that Allison has raised its dividend for 4 consecutive years, demonstrating a consistent focus on returning value to shareholders.
The company's financial health appears robust, with revenue of $3,204 million in the last twelve months as of Q3 2024, representing a 7.59% growth. Allison's profitability is also noteworthy, with a gross profit margin of 48.06% and an operating income margin of 31.21% for the same period. These strong margins suggest efficient operations and pricing power in its markets.
An InvestingPro Tip indicates that Allison operates with a moderate level of debt, which is particularly relevant given the company's statement about future dividend payments being subject to various factors, including capital needs. This moderate debt level could provide flexibility for future growth initiatives or increased shareholder returns.
Investors seeking a more comprehensive analysis can access 13 additional InvestingPro Tips for Allison Transmission, offering deeper insights into the company's financial position and market performance.
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