Latest news with #Class8
Yahoo
16-05-2025
- Business
- Yahoo
ALSN Q1 Earnings Call: Margin Expansion and International Defense Win Offset Revenue Miss
Transmission provider Allison Transmission (NYSE:ALSN) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 2.9% year on year to $766 million. On the other hand, the company's full-year revenue guidance of $3.25 billion at the midpoint came in 2% above analysts' estimates. Its non-GAAP profit of $2.32 per share was 17.2% above analysts' consensus estimates. Is now the time to buy ALSN? Find out in our full research report (it's free). Revenue: $766 million vs analyst estimates of $790.9 million (2.9% year-on-year decline, 3.2% miss) Adjusted EPS: $2.32 vs analyst estimates of $1.98 (17.2% beat) Adjusted EBITDA: $287 million vs analyst estimates of $282.3 million (37.5% margin, 1.7% beat) The company reconfirmed its revenue guidance for the full year of $3.25 billion at the midpoint EBITDA guidance for the full year is $1.2 billion at the midpoint, above analyst estimates of $1.15 billion Operating Margin: 32.5%, up from 29.7% in the same quarter last year Free Cash Flow Margin: 20.2%, similar to the same quarter last year Market Capitalization: $8.86 billion Allison Transmission's first quarter results reflected a mixed backdrop, with management citing higher pricing, continued demand for Class 8 vocational trucks, and a notable increase in defense market sales as key drivers. CEO David Graziosi pointed to the successful launch of the 3040 MX transmission for India's Future Infantry Combat Vehicle program and highlighted investments in capacity that have positioned Allison to meet stable demand despite weakness in medium-duty trucks. Gross margin gains were attributed to both price realization and the absence of prior-year labor incentives. Looking forward, management reaffirmed its full-year revenue guidance, which is above consensus estimates, and expects continued momentum from pricing, operational efficiency, and defense contracts. Graziosi addressed potential headwinds from tariffs and regulatory uncertainty, noting Allison's minimal sourcing from China and the ability to pass through most material cost changes. CFO Scott Mell emphasized a focus on capital allocation, including share repurchases and organic growth initiatives, while remaining open to strategic M&A opportunities. Management attributed the Q1 revenue decline to softness in medium-duty trucks and a dip in service parts, while growth in Class 8 vocational and defense markets, as well as successful price increases, supported margins and profitability. New CFO Appointment: Allison welcomed Scott Mell as Chief Financial Officer, bringing nearly 30 years of financial leadership experience and signaling a continued focus on disciplined capital management. International Defense Contract Win: Allison's 3040 MX transmission was selected by all OEMs for India's Future Infantry Combat Vehicle prototype, positioning the company for multi-year revenue in global defense and validating its product reliability. North America Vocational Demand: CEO Graziosi described ongoing stability in Class 8 vocational trucks, supported by municipal fleet purchasing, offsetting weakness in medium-duty markets and supporting price increases. Supply Chain Localization: Management emphasized Allison's minimal exposure to Chinese components and reliance on North American suppliers, helping mitigate trade and tariff uncertainties, and enabling effective cost pass-through with customers. Expansion of Global Service Network: The company expanded service partnerships in Japan and West Africa, aligning with rising international interest in fully automatic transmissions and improving aftermarket support. Management's outlook centers on pricing discipline, growth in defense and vocational markets, and continued operational efficiency to support margins while navigating trade and regulatory uncertainty. Pricing and Cost Pass-Through: Higher pricing and contractual material cost pass-throughs are expected to support margins, even if end-market demand remains mixed. Defense and International Growth: Multi-year defense contracts, particularly the Indian FICV program, are anticipated to provide incremental revenue and diversify Allison's end-market exposure. Tariff and Regulatory Risk Management: Management highlighted ongoing monitoring of potential tariff changes and emissions regulations, noting a flexible manufacturing footprint and product lineup designed to adapt quickly to evolving requirements. Kyle Menges (Citigroup): Asked about drivers behind margin expansion despite parts business softness; management cited price realization and lower labor-related costs from last year. Isaac Chausen (Oppenheimer): Sought insight on vocational demand strength; Graziosi pointed to municipal sales and stable Class 8 markets as key sources of resilience. Tim Thein (Raymond James): Inquired about capital allocation and potential for M&A management reiterated a balanced approach focused on organic growth, dividends, and opportunistic acquisitions. Rob Wertheimer (Melius): Asked about supply chain positioning amid trade policy changes; management highlighted high North American content and flexibility in sourcing to manage tariffs. Tami Zakaria (JPMorgan): Questioned the sustainability of recent pricing gains; management expects mid-single-digit price increases to persist through the year. Looking ahead, the StockStory team will be watching (1) execution of the Indian FICV defense contract and associated international revenues, (2) stabilization or recovery in medium-duty truck demand and aftermarket parts sales, and (3) Allison's ability to maintain margin discipline through ongoing price realization and cost management. The progression of U.S. trade and emissions policy, and any related supply chain impacts, will remain important external factors. Allison Transmission currently trades at a forward EV-to-EBITDA ratio of 10.3×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Wall Street Journal
13-05-2025
- Automotive
- Wall Street Journal
Daimler Truck Holdings Cuts Full-Year Guidance
Daimler Truck DTG 1.87%increase; green up pointing triangle Holdings lowered its guidance for the rest of 2025, citing heightened demand uncertainty. The German maker of trucks and buses said it now expects to sell between 260,000 and 290,000 units for the heavy-duty Class 8 market in North America, down from 280,000 to 320,000 units.
Yahoo
09-05-2025
- Automotive
- Yahoo
RUSHA Q1 Earnings Call: Navigating Market Uncertainty Amid Tariffs and Freight Recession
Commercial vehicle retailer Rush Enterprises (NASDAQ:RUSH.A) reported Q1 CY2025 results beating Wall Street's revenue expectations , but sales fell by 1.1% year on year to $1.85 billion. Its non-GAAP profit of $0.73 per share was 1.4% above analysts' consensus estimates. Is now the time to buy RUSHA? Find out in our full research report (it's free). Revenue: $1.85 billion vs analyst estimates of $1.83 billion (1.1% year-on-year decline, 1.4% beat) Adjusted EPS: $0.73 vs analyst estimates of $0.72 (1.4% beat) Adjusted EBITDA: $147 million vs analyst estimates of $146.4 million (7.9% margin, in line) Operating Margin: 5%, in line with the same quarter last year Free Cash Flow was $465.8 million, up from -$309.4 million in the same quarter last year Market Capitalization: $3.95 billion Rush Enterprises' first quarter results were shaped by continued headwinds in the commercial vehicle market, with management pointing to the ongoing freight recession, shifting U.S. trade policies, and evolving emissions regulations as key challenges. CEO Rusty Rush noted that while new Class 8 truck sales were down industry-wide, the company outperformed broader trends by focusing on vocational and public sector customers, and leveraging its ready-to-roll inventory program for medium-duty trucks. He emphasized that after a slow start, sequential improvements materialized as the quarter progressed, particularly in used truck sales and aftermarket services. Looking ahead, management expressed caution regarding the rest of the year, citing significant uncertainty around tariffs and future emissions standards, which are impacting both customer demand and the company's ability to forecast. Rusty Rush commented, 'It's hard to run a business living in an uncertain world like that,' and highlighted that customers are acting conservatively, often replacing vehicles rather than expanding fleets. The company expects some improvement in aftermarket revenues and a slight uptick in new truck deliveries in the coming quarter, but remains unwilling to project further out given the volatile environment. Management detailed the primary forces influencing the quarter's results, emphasizing both the external environment and internal strategic responses. The team also highlighted several operational adjustments and market trends set to impact the business in the coming quarters. Vocational and Public Sector Focus: While Class 8 truck sales to over-the-road customers declined, Rush Enterprises benefited from steady demand in vocational (construction and utility-focused) and public sector segments, which helped offset overall industry weakness. Ready-to-Roll Inventory Program: The company's unique approach to maintaining a stock of ready-to-roll medium-duty vehicles allowed it to outperform market declines in Class 4 through 7 truck sales, capturing market share even as the broader segment contracted. Aftermarket Expansion: Aftermarket revenue—covering parts, service, and body shop work—was down year over year but improved sequentially. The expansion of the aftermarket sales force and addition of service technicians are expected to reduce customer wait times and improve service levels moving forward. Expense Management: General and administrative expenses were reduced by 5.5% year over year, reflecting ongoing efforts to control costs amid weaker sales. Management views expense discipline as a key lever to support profitability during uncertain market periods. Tariffs and Regulatory Changes: Management cited ongoing uncertainty regarding U.S. tariffs on imported parts and evolving emissions regulations as major factors clouding the industry outlook. The company is closely monitoring both, noting that supply chain adjustments and regulatory clarity will be essential for improved demand and long-term planning. Rush Enterprises' outlook for the next quarter and the rest of the year hinges on external factors such as macroeconomic conditions, regulatory clarity, and industry demand, with management prioritizing flexibility and operational discipline. Tariff and Emissions Uncertainty: Management believes that resolution or clarity on U.S. tariff policy and emissions standards will be crucial, as ongoing changes disrupt pricing, supply chains, and customer confidence in making new vehicle purchases. Freight Market Recovery: The company's growth prospects are closely tied to a recovery in freight demand, as continued soft miles driven and low fleet utilization limit both new truck sales and aftermarket service opportunities. Expense Control and Operational Flexibility: Management's commitment to expense management and ability to respond quickly to changing business conditions are expected to help mitigate downside risk and protect margins in a volatile environment. Daniel Imbro (Stephens): Asked about trends in new unit sales and customer expenditure plans. Management stressed ongoing uncertainty, noting that many customers are limiting purchases to replacements as opposed to fleet expansion. Daniel Imbro (Stephens): Inquired about the softness in parts and service revenue and expectations for Q2. Management clarified that sequential improvement is expected, but would not commit to year-over-year growth due to continued volatility. Andrew Obin (Bank of America): Sought clarity on sequential trends in Class 8 and aftermarket sales for Q2. Management expects slight sequential improvement, but highlighted unpredictability due to shifting tariffs and market conditions. Andrew Obin (Bank of America): Questioned whether customers' hesitancy is driven more by pricing uncertainty or broader macro concerns. Management responded that both play a role, but business fundamentals and demand are the primary drivers of customer caution. Avi Jaroslawicz (UBS): Asked how regulatory changes around emissions might impact pre-buying behavior and long-term demand. Management said the lack of clarity on new standards reduces the likelihood of a significant pre-buy, and that future demand will depend on both regulatory and economic factors. In upcoming quarters, the StockStory team will be watching (1) whether regulatory clarity emerges around tariffs and emissions standards, (2) signs of stabilization or recovery in freight demand and miles driven, and (3) sustained improvements in aftermarket revenue and service efficiency. We will also monitor how the company leverages its inventory and cost control strategies to maintain market share in a fluctuating environment. Rush Enterprises currently trades at a forward EV-to-EBITDA ratio of 7.8×. In the wake of earnings, is it a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-04-2025
- Automotive
- Yahoo
Tesla says mass production of electric Semi to begin in 2026
Tesla said Tuesday that full production of its all-electric Class 8 Semi truck would begin in 2026 at its Gigafactory Nevada. Austin, Texas-based Tesla (NASDAQ: TSLA) released its first-quarter earnings and held a conference call with analysts after the market closed. CEO Elon Musk and other Tesla officials did not discuss the Semi during the call, but the company said in its first-quarter earnings report the Semi remains on track 'for volume production next year.' Tesla officials said in January that production of the Semi could begin by the end of 2025, with mass production starting sometime in 2026. 'We just closed up the Semi factory roofing walls last week in Reno,' Travis Axelrod, Tesla's head of investor relations, said during a call with analysts in January. 'We're prepping for mechanical installation of all the equipment in the coming months. The first builds of the high-volume Semi design will come late this year in 2025 and begin ramping early in 2026.' Musk first discussed the Semi in 2017, and the truck was supposed to go into mass production in 2019. Tesla pitched the Semi as a truck that would have a range of up to 500 miles fully charged, with a load capacity of 81,000 pounds. The Semi was originally priced in 2017 at $150,000 for a 300-mile range version and $180,000 for the 500-mile version. Tesla eventually unveiled the Semi in December 2022 but has delayed mass production of the electric tractor several times over the past three years. About 200 Semi trucks have been delivered to clients such as PepsiCo. The Semi's mass production could be delayed an additional 28 months and face a dramatic price increase, according to a recent report by Electrek. Tesla had revenue of $19.3 billion during the first quarter, a 20% year-over-year decrease from the same year-ago period. The company's adjusted earnings per share fell 40% year over year to 27 cents during the quarter. Tesla missed on Wall Street analysts' estimates for the quarter, which predicted revenue of $21.1 billion and 41 cents per share. The automaker produced 362,615 vehicles in the first quarter, a 16% year-over-year decrease. Tesla delivered 336,681 vehicles in the first quarter, a 13% decline compared to the same quarter in 2024. Tesla officials gave no update on plans for a factory in Monterrey, Mexico. Musk said in July 2024 that the company was pausing plans for the factory until after the U.S. presidential election. The company has auto factories in Austin; Fremont, California; Sparks, Nevada; Berlin; and Shanghai. Tesla employs about 121,858 workers around the world. TeslaQ1/25Q1/24Y/Y % ChangeTotal revenueAutomotive revenueNumber of vehicles builtNumber of vehicles deliveredAdjusted earnings per share The post Tesla says mass production of electric Semi to begin in 2026 appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
21-04-2025
- Automotive
- Yahoo
125-Year-Old Truck Maker to Lay Off Up to 450, Cites Tariffs
Mack Trucks plans to lay off up to 450 workers at two facilities in Pennsylvania and Maryland, the company's director of public relations, Kim Pupillo, confirmed. The medium and heavy-duty truck manufacturer's job cuts will take place at the Lehigh Valley Operations center in Macungie, Pennsylvania, and the Powertrain Development and Production plant in Hagerstown, Maryland. Most Read on IEN: 132-Year-Old Pyrex Plant Closes for Good After Four Shutdown Delays Tesla Accused of Fudging Odometers to Avoid Warranty Repairs Illinois Pipe Plant Destroyed by Fire PODCAST: Whirlpool's Layoffs; Torpedo Bat Demand Skyrockets; TI Cuts Jobs Mack Trucks expects the layoffs to impact 250 to 350 workers at the Pennsylvania site over the next 90 days and 50 to 100 employees at the Maryland location between now and May 2. The 125-year-old company told Industrial Equipment News in an email that heavy-duty truck orders have been negatively affected by market uncertainty regarding freight rates and demand, possible regulatory changes and the impact of tariffs. The statement added that the company needed to align production with the reduced demand for its vehicles, which are sold and serviced in nearly 30 countries. The layoffs come as President Donald Trump announced a series of tariffs, including 25% on auto imports. Part of Mack Trucks' production network since 1975, the Lehigh Valley Operations center assembles Mack Trucks' Class 8 trucks for North American and export markets. The facility features 1.7 million square feet of space and employs approximately 3,050 workers. The Powertrain Development and Production plant produces heavy-duty diesel engines, transmissions and drivelines and includes about 1,800 workers. Mack Trucks' network also features the Roanoke Valley Operations facility in Salem, Virginia, which handles production of the MD and MD Electric, the company's line of Class 6 and 7 medium-duty trucks. The company has been a subsidiary of Volvo Group since 2000. Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
