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Allison Transmission® News Release Allison Transmission Announces First Quarter 2021 Results * Net Sales of $ 588 million * Net Income of $ 120 million , 20 % of Net Sales * Adjusted EBITDA of $ 222 million , 38 % of Net Sales * Diluted EPS of $ 1.07 * Company raises full year 2021 net sales guidance to $ 2,325 to $ 2,475 million INDIANAPOLIS , April 28 , 2021 - Allison Transmission Holdings Inc. ( NYSE : ALSN ) , a leading designer and manufacturer of vehicle propulsion solutions for commercial and defense vehicles , the largest global manufacturer of medium- and heavy - duty fully automatic transmissions , and a leader in electrified propulsion systems , today reported net sales for the first quarter of $ 588 million , a 10 percent increase from the fourth quarter of 2020 and an 8 percent decrease from the same period in 2020 , as the recovery in customer demand and the global economy that began in the second half of 2020 continued through the first quarter of 2021 . Net income for the quarter was $ 120 million . Diluted EPS for the quarter was $ 1.07 . Adjusted EBITDA , a non - GAAP financial measure , for the quarter was $ 222 million . Net cash provided by operating activities for the quarter was $ 128 million . Adjusted free cash flow , a non - GAAP financial measure , for the quarter was $ 107 million . David S. Graziosi , President and Chief Executive Officer of Allison Transmission commented , " I would like to once again express my deep gratitude to Allison's employees , customers , suppliers and communities for their continued dedication and resilience during this critical period . Despite the severe disruptions to global supply chains that are currently impacting our end markets , customer demand is improving and the Allison team continues its tireless efforts to fulfill the Allison promise . I am extremely proud of Allison's extended family and the commitment demonstrated every day . " Graziosi continued , " Thanks to improving customer demand and a resilient outlook , we are increasing our full year 2021 net sales guidance from a range of $ 2,265 to $ 2,415 million to $ 2,325 to $ 2,475 million . We also continue to fund significant investments in engineering - research and development and capital expenditures to further position Allison to capitalize on meaningful growth opportunities across all of our end markets . And finally during the first quarter , we continued our well - defined approach to capital allocation by settling approximately $ 96 million of share repurchases , or over 2 percent of outstanding shares , and increased the quarterly dividend from $ 0.17 to $ 0.19 per share . " First Quarter Net Sales by End Market End Market Q1 2021 Net Sales ( $ M ) Q1 2020 Net Sales ( $ M ) % Variance North America On - Highway $ 319 $ 352 ( 9 % ) North America Off - Highway $ 2 $ 8 ( 75 % ) Defense $ 45 $ 40 13 % Outside North America On - Highway $ 84 $ 72 17 % Outside North America Off - Highway $ 16 $ 27 ( 41 % ) Service Parts , Support Equipment & Other $ 122 $ 138 ( 12 % ) Total Net Sales $ 588 $ 637 ( 8 % ) 1