Allison Transmission Holdings, Inc.

Good afternoon. Thank you for standing by. Welcome to Allison Transmissions' fourth quarter 2024 earnings conference call. My name is Paul, and I will be your conference operator today. At this time, all participants are in a listen-only mode. After prepared remarks, Allison Transmission executives will conduct a question and answer session, and conference call participants will be given instructions at that time. As a reminder, this conference call is being recorded. If anyone should require operator assistance, please press star zero on your telephone keypad. I would now like to turn the conference over to Jackie Bowles, Executive Director of Treasury and Investor Relations. Please go ahead, Jackie.

Thank you, Paul. Good afternoon, and thank you for joining us for our fourth quarter 2024 earnings conference call. With me this afternoon are Dave Graziosi, our chair and chief executive officer, and Fred Boley, our chief operating officer, chief financial officer, and treasurer. As a reminder, this conference call, webcast, and this afternoon's presentation are available on the investor relations section of alicentransmission.com. A replay of this call will be available through February 25th. As noted on slide two of the presentation, many of our remarks today contain forward-looking statements based on current expectations. These forward-looking statements are subject to known and unknown risks, including those set forth in our fourth quarter 2024 earnings press release and our annual report on Form 10-K for the year ended December 31st, 2023. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, Actual results may vary materially from those that we expressed today. In addition, as noted on slide three of the presentation, some of our remarks today contain non-GAAP financial measures as defined by the SEC. You can find reconciliations of the non-GAAP financial measures to the most comparable GAAP measures attached as an appendix to the presentation and to our fourth quarter 2024 earnings press release. Today's call is set to end at 5.45 p.m. Eastern Time. In order to maximize participation opportunities on the call, we'll take just one question from each analyst. Please turn to slide four of the presentation for the call agenda. During today's call, Dave Graziosi will review highlights from our full year 2024 results. Fred Foley will then review our fourth quarter 2024 financial performance and introduce full year 2025 guidance. Dave will then close with an update on recent announcements across our business prior to commencing the Q&A. Now I'll turn the call over to Dave.

Thank you, Jackie. Good afternoon, and thank you for joining us. I would like to start by thanking the Allison team and all of our partners for their support in making 2024 another record year as we achieved all-time high net sales of $3.2 billion. In our North America on-highway end market, demand for our 3000 and 4000 series products drove full-year net sales to a record $1.8 billion, an increase of 15% from 2023. We have invested in our operations and supply chain to increase output for these products and look forward to another notable year in 2025 as we anticipate ongoing U.S. infrastructure spending to drive continued strong demand for Class VIII vocational vehicles. Our full-year performance was also driven by the execution of growth initiatives in our defense and outside North America on highway end markets. In our defense end market, full-year net sales increased 28 percent year-over-year to a decade-high $212 million. Through the expansion of our product offerings and heightened geopolitical uncertainty across the world, we expect continued growth in this end market. Also contributing to our full-year performance in 2024, we achieved record net sales of $493 million in our outside North America on-highway end market. Our wide-body mining dump truck initiative representing $100 million of incremental annual revenue opportunity continues to drive growth in this end market. We are pleased with the progress of this initiative ending 2024 with realization of around half of the opportunity. Finally, in addition to the significant top-line performance in 2024, Allison's full-year earnings per share increased to a company record diluted EPS of $8.31, up 12% from 2023. We look forward to continued growth in our business while increasing earnings and maintaining our well-defined capital allocation priorities. Thank you, and I'll turn the call over to Fred.