Allison Transmission Holdings Inc

Previous wording

In 2025, we expect higher net sales driven by price increases on certain products, increased demand for Tracked vehicle applications in our Defense end market and continued strength in North American vocational demand.

Current wording

In 2025, we expect decreased net sales in our North America On-Highway end market, partially offset by price increases on certain products and increased demand for Tracked vehicle applications in our Defense end market.

Previous wording

First Quarter Net Sales by End Market (dollars in millions)

Current wording

Second Quarter Net Sales by End Market (dollars in millions)

Previous wording

Global Off-Highway net sales were down $28 million for the first quarter 2025 compared to the first quarter 2024, principally driven by lower demand from the energy, mining and construction sectors outside of North America.

Current wording

Global Off-Highway net sales were down $7 million for the second quarter 2025 compared to the second quarter 2024, principally driven by lower demand from the energy, mining and construction sectors outside of North America.

Previous wording

Our primary components of cost of sales are purchased parts, the overhead expense related to our manufacturing operations and direct labor associated with the manufacture and assembly of vehicle propulsion solutions and parts. For the three months ended March 31, 2025, direct material costs were approximately 66%, overhead costs were approximately 26%, and direct labor costs were approximately 8% of cost of sales. We are subject to changes in our cost of sales caused by movements in underlying commodity prices. We seek to hedge against this risk by using long-term agreements (“LTAs”), as appropriate. See Part I, Item 3, “Quantitative and Qualitative Disclosures about Market Risk—Commodity Price Risk” included below.

Current wording

Our primary components of cost of sales are purchased parts, the overhead expense related to our manufacturing operations and direct labor associated with the manufacture and assembly of vehicle propulsion solutions and parts. For the six months ended June 30, 2025, direct material costs were approximately 66%, overhead costs were approximately 26%, and direct labor costs were approximately 8% of cost of sales. We are subject to changes in our cost of sales caused by movements in underlying commodity prices. We seek to hedge against this risk by using long-term agreements (“LTAs”), as appropriate. See Part I, Item 3, “Quantitative and Qualitative Disclosures about Market Risk—Commodity Price Risk” included below.

Previous wording

We use Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operational results of our business and increase the period-to-period comparability of our operating profitability and comparability with other companies. Adjusted EBITDA as a percent of net sales is also used in the calculation of management’s incentive compensation program. The most directly comparable U.S. generally accepted accounting principles (“GAAP”) measure to Adjusted EBITDA and Adjusted EBITDA as a percent of net sales is Net income and Net income as a percent of net sales, respectively. Adjusted EBITDA is calculated as earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019, as amended (the “Credit Agreement”), governing Allison Transmission, Inc.’s (“ATI”), our wholly-owned subsidiary, term loan facility in the amount of $513 million due March 2031 (“Term Loan”) and ATI’s revolving credit facility with commitments in the amount of $750 million due March 2029 ("Revolving Credit Facility" and, together with the Term Loan, the "Senior Secured Credit Facility"). Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales.

Current wording

We use Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operational results of our business and increase the period-to-period comparability of our operating profitability and comparability with other companies. Adjusted EBITDA as a percent of net sales is also used in the calculation of management’s incentive compensation program. The most directly comparable U.S. generally accepted accounting principles (“GAAP”) measure to Adjusted EBITDA and Adjusted EBITDA as a percent of net sales is Net income and Net income as a percent of net sales, respectively. Adjusted EBITDA is calculated as earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019, as amended (the “Credit Agreement”), governing Allison Transmission, Inc.’s (“ATI”), our wholly-owned subsidiary, term loan facility in the amount of $512 million due March 2031 (“Term Loan”) and ATI’s revolving credit facility with commitments in the amount of $750 million due March 2029 ("Revolving Credit Facility" and, together with the Term Loan, the "Senior Secured Credit Facility"). Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales.

Previous wording

Represents (gains) losses (recorded in Other income (expense), net) related to an investment in the common stock of Jing-Jin Electric Technologies Co. Ltd.

Current wording

Represents unrealized (gains) losses (recorded in Other income (expense), net) related to an investment in the common stock of Jing-Jin Electric Technologies Co. Ltd.

Previous wording

Engineering expenses for the quarter ended March 31, 2025 were $43 million compared to $46 million for the quarter ended March 31, 2024, a decrease of 7%. The decrease was principally driven by the timing of product initiatives spending.

Current wording

Engineering expenses for the quarter ended June 30, 2025 were $44 million compared to $49 million for the quarter ended June 30, 2024, a decrease of 10%. The decrease was principally driven by reduced product initiatives spending.

Previous wording

Selling, general and administrative expenses were $86 million for each of the quarters ended March 31, 2025 and March 31, 2024. During the first quarter of 2025, there was increased commercial activities spending and lower incentive compensation expense compared to the first quarter of 2024.

Current wording

Interest expense, net for each of the quarters ended June 30, 2025 and 2024 was $22 million.

Previous wording

Other income (expense), net for the quarter ended March 31, 2025 was $5 million compared to ($5) million for the quarter ended March 31, 2024. The change was principally driven by a $10 million change in unrealized mark-to-market adjustments for marketable securities.

Current wording

Other income (expense), net for the quarter ended June 30, 2025 was $8 million compared to ($7) million for the quarter ended June 30, 2024. The change was principally driven by an $8 million change in unrealized mark-to-market adjustments for marketable securities and a $4 million non-cash defined benefit pension plan settlement charge recognized in the second quarter of 2024 that did not reoccur in 2025.

Previous wording

Service Parts, Support Equipment and Other end market net sales decreased $12 million, or 8%, principally driven by lower demand for service parts and support equipment, partially offset by price increases on certain products.

Current wording

Service Parts, Support Equipment and Other end market net sales decreased $2 million, or 1%, principally driven by lower demand for aluminum die cast components and support equipment, partially offset by price increases on certain products and higher demand for service parts.

Previous wording

Cost of sales for the quarter ended March 31, 2025 was $388 million compared to $423 million for the quarter ended March 31, 2024, a decrease of 8%. The decrease was principally driven by lower direct material expense commensurate with decreased net sales and $13 million of UAW Local 933 contract signing incentives recognized in the first quarter of 2024 that did not reoccur in 2025, partially offset by unfavorable direct material costs.

Current wording

Cost of sales for the six months ended June 30, 2025 was $800 million compared to $845 million for the six months ended June 30, 2024, a decrease of 5%. The decrease was principally driven by lower direct material and manufacturing expense commensurate with decreased net sales, $13 million of UAW Local 933 contract signing incentives recognized in the first quarter of 2024 that did not reoccur in 2025 and $9 million of lower incentive compensation expense, partially offset by unfavorable direct material costs.

Previous wording

Gross profit for the quarter ended March 31, 2025 was $378 million compared to $366 million for the quarter ended March 31, 2024, an increase of 3%. The increase was principally driven by $39 million of price increases on certain products and $13 million of UAW Local 933 contract signing incentives recognized in the first quarter of 2024 that did not reoccur in 2025, partially offset by $37 million of decreased net sales and $6 million of unfavorable direct material costs. Gross profit as a percent of net sales for the three months ended March 31, 2025 increased 290 basis points compared to the same period in 2024, principally driven by price increases on certain products and decreased cost of sales, including $13 million of UAW Local 933 contract signing incentives recognized in the first quarter of 2024 that did not reoccur in 2025.

Current wording

Gross profit for the six months ended June 30, 2025 was $780 million compared to $760 million for the six months ended June 30, 2024, an increase of 3%. The increase was principally driven by $73 million of price increases on certain products, $13 million of UAW Local 933 contract signing incentives recognized in the first quarter of 2024 that did not reoccur in 2025, $9 million of lower incentive compensation expense and $4 million of lower manufacturing expense, partially offset by $62 million from decreased net sales and $17 million of unfavorable direct material costs. Gross profit as a percent of net sales for the six months ended June 30, 2025 increased 200 basis points compared to the same period in 2024, principally driven by price increases on certain products and decreased cost of sales.

Previous wording

Interest expense, net for the quarter ended March 31, 2025 was $21 million compared to $25 million for the quarter ended March 31, 2024, a decrease of 16%. The decrease was principally driven by lower interest expense on ATI's Term Loan due primarily to decreased variable interest rates.

Current wording

Interest expense, net for the six months ended June 30, 2025 was $43 million compared to $47 million for the six months ended June 30, 2024, a decrease of 9%. The decrease was principally driven by lower interest expense on ATI's Term Loan due primarily to decreased variable interest rates.

Previous wording

Income tax expense for the three months ended March 31, 2025 was $41 million, resulting in an effective tax rate of 18%, compared to $35 million of income tax expense and an effective tax rate of 17% for the three months ended March 31, 2024. The increase in income tax expense was principally driven by higher taxable income.

Current wording

Income tax expense for the six months ended June 30, 2025 was $88 million, resulting in an effective tax rate of 19%, compared to $82 million of income tax expense and an effective tax rate of 19% for the six months ended June 30, 2024. The increase in income tax expense was principally driven by higher taxable income.

Previous wording

We generate cash primarily from our operations to fund our operating, investing and financing activities. Our principal uses of cash are operating expenses, capital expenditures, working capital needs, debt service, dividends on common stock, stock repurchases and strategic growth initiatives, including investments, acquisitions and collaborations. Our ability to generate cash in the future and our future uses of cash are subject to general economic, financial, competitive, legislative, regulatory and other factors that may be beyond our control. We had total available cash and cash equivalents of $753 million and $781 million as of March 31, 2025 and December 31, 2024, respectively. Of the available cash and cash equivalents, $146 million was deposited in operating accounts and $607 million was invested in U.S. government backed securities and time deposits as of March 31, 2025, compared to $117 million deposited in operating accounts and $664 million invested in U.S. government backed securities as of December 31, 2024.

Current wording

We generate cash primarily from our operations to fund our operating, investing and financing activities. Our principal uses of cash are operating expenses, capital expenditures, working capital needs, debt service, dividends on common stock, stock repurchases and strategic growth initiatives, including investments, acquisitions and collaborations. Our ability to generate cash in the future and our future uses of cash are subject to general economic, financial, competitive, legislative, regulatory and other factors that may be beyond our control. We had total available cash and cash equivalents of $778 million and $781 million as of June 30, 2025 and December 31, 2024, respectively. Of the available cash and cash equivalents, $204 million was deposited in operating accounts and $574 million was invested primarily in U.S. government backed securities and time deposits as of June 30, 2025, compared to $117 million deposited in operating accounts and $664 million invested primarily in U.S. government backed securities as of December 31, 2024.

Previous wording

As of March 31, 2025, the total of cash held by foreign subsidiaries was $80 million, the majority of which was at our subsidiaries located in China, India, Japan, Hungary and the Netherlands. We manage our worldwide cash requirements considering available funds among the subsidiaries through which we conduct our business and the cost effectiveness with which those funds can be accessed. As a result, we do not currently anticipate that local liquidity restrictions will preclude us from funding our targeted initiatives or operating needs with local resources.

Current wording

As of June 30, 2025, the total of cash held by foreign subsidiaries was $136 million, the majority of which was at our subsidiaries located in the Netherlands, China, Japan and India. We manage our worldwide cash requirements considering available funds among the subsidiaries through which we conduct our business and the cost effectiveness with which those funds can be accessed. As a result, we do not currently anticipate that local liquidity restrictions will preclude us from funding our targeted initiatives or operating needs with local resources.

Previous wording

Our liquidity requirements are significant, primarily due to our debt service requirements. As of March 31, 2025, we had $513 million of indebtedness associated with ATI’s Term Loan, $400 million of indebtedness associated with ATI’s 4.75% Senior Notes due October 2027 (“4.75% Senior Notes”), $500 million of indebtedness associated with ATI’s 5.875% Senior Notes due June 2029 (“5.875% Senior Notes”) and $1,000 million of indebtedness associated with ATI’s 3.75% Senior Notes due January 2031 (“3.75% Senior Notes” and, together with the 4.75% Senior Notes and 5.875% Senior Notes, the “Senior Notes”). Short-term and long-term debt service liquidity requirements consist of $1 million of minimum required quarterly principal payments on ATI’s Term Loan through its maturity date of March 2031 and periodic interest payments on ATI’s Term Loan and the Senior Notes. There are no required quarterly principal payments on the Senior Notes. Long-term debt service liquidity requirements also consist of the payment in full of any remaining principal balance of ATI’s Term Loan and the Senior Notes upon their respective maturity dates.

Current wording

Our liquidity requirements are significant, primarily due to our debt service requirements. As of June 30, 2025, we had $512 million of indebtedness associated with ATI’s Term Loan, $400 million of indebtedness associated with ATI’s 4.75% Senior Notes due October 2027 (“4.75% Senior Notes”), $500 million of indebtedness associated with ATI’s 5.875% Senior Notes due June 2029 (“5.875% Senior Notes”) and $1,000 million of indebtedness associated with ATI’s 3.75% Senior Notes due January 2031 (“3.75% Senior Notes” and, together with the 4.75% Senior Notes and 5.875% Senior Notes, the “Senior Notes”). Short-term and long-term debt service liquidity requirements consist of $1 million of minimum required quarterly principal payments on ATI’s Term Loan through its maturity date of March 2031 and periodic interest payments on ATI’s Term Loan and the Senior Notes. There are no required quarterly principal payments on the Senior Notes. Long-term debt service liquidity requirements also consist of the payment in full of any remaining principal balance of ATI’s Term Loan and the Senior Notes upon their respective maturity dates.

Previous wording

We made $1 million and $101 million of principal payments on the Term Loan during the three months ended March 31, 2025 and 2024, respectively. Our ability to make payments on and refinance our indebtedness and to fund planned capital expenditures and growth initiatives will depend on our ability to generate cash in the future.

Current wording

We made $2 million and $102 million of principal payments on the Term Loan during the six months ended June 30, 2025 and 2024, respectively. Our ability to make payments on and refinance our indebtedness and to fund planned capital expenditures and growth initiatives will depend on our ability to generate cash in the future.

Previous wording

The Senior Secured Credit Facility provides for a $750 million Revolving Credit Facility, net of an allowance for up to $75 million in outstanding letter of credit commitments. As of March 31, 2025, we had $744 million available under the Revolving Credit Facility, net of $6 million in letters of credit. As of March 31, 2025, we had no amounts outstanding under the Revolving Credit Facility. If we have commitments outstanding on the Revolving Credit Facility at the end of a fiscal quarter, the Senior Secured Credit Facility requires us to maintain a specified maximum first lien net leverage ratio of 5.50x. Additionally, within the terms of the Senior Secured Credit Facility, a first lien net leverage ratio at or below 4.00x results in the elimination of excess cash flow payments on the Senior Secured Credit Facility for the applicable year. As of March 31, 2025, our first lien net leverage ratio was (0.21x). The Senior Secured Credit Facility also provides certain financial incentives based on our first lien net leverage ratio. A first lien net leverage ratio at or below 4.00x and above 3.50x results in a 25 basis point reduction to the applicable margin on the Revolving Credit Facility. A first lien net leverage ratio at or below 3.50x results in an additional 25 basis point reduction to the applicable margin on the Revolving Credit Facility. These reductions remain in effect as long as we achieve a first lien net leverage ratio at or below the related threshold.

Current wording

The Senior Secured Credit Facility provides for a $750 million Revolving Credit Facility, net of an allowance for up to $75 million in outstanding letter of credit commitments. As of June 30, 2025, we had $745 million available under the Revolving Credit Facility, net of $5 million in letters of credit. As of June 30, 2025, we had no amounts outstanding under the Revolving Credit Facility. If we have commitments outstanding on the Revolving Credit Facility at the end of a fiscal quarter, the Senior Secured Credit Facility requires us to maintain a specified maximum first lien net leverage ratio of 5.50x. Additionally, within the terms of the Senior Secured Credit Facility, a first lien net leverage ratio at or below 4.00x results in the elimination of excess cash flow payments on the Senior Secured Credit Facility for the applicable year. As of June 30, 2025, our first lien net leverage ratio was (0.22x). The Senior Secured Credit Facility also provides certain financial incentives based on our first lien net leverage ratio. A first lien net leverage ratio at or below 4.00x and above 3.50x results in a 25 basis point reduction to the applicable margin on the Revolving Credit Facility. A first lien net leverage ratio at or below 3.50x results in an additional 25 basis point reduction to the applicable margin on the Revolving Credit Facility. These reductions remain in effect as long as we achieve a first lien net leverage ratio at or below the related threshold.

Previous wording

On February 20, 2025, our Board of Directors authorized us to repurchase an additional $1,000 million of our common stock pursuant to our stock repurchase program (the "Repurchase Program"), bringing the total amount authorized pursuant to the Repurchase Program to $5,000 million. During the three months ended March 31, 2025, we repurchased $154 million of our common stock under the Repurchase Program. Substantially all of the repurchase transactions during the three months ended March 31, 2025 were settled in cash during the same period. As of March 31, 2025, we had approximately $1,366 million available under the Repurchase Program.

Current wording

On February 20, 2025, our Board of Directors authorized us to repurchase an additional $1,000 million of our common stock pursuant to our stock repurchase program (the "Repurchase Program"), bringing the total amount authorized pursuant to the Repurchase Program to $5,000 million. During the six months ended June 30, 2025, we repurchased $256 million of our common stock under the Repurchase Program. Substantially all of the repurchase transactions during the six months ended June 30, 2025 were settled in cash during the same period. As of June 30, 2025, we had approximately $1,263 million available under the Repurchase Program.

Previous wording

The following table shows our sources and uses of funds for the three months ended March 31, 2025 and 2024 (dollars in millions):

Current wording

The following table shows our sources and uses of funds for the six months ended June 30, 2025 and 2024 (dollars in millions):

Previous wording

Generally, cash provided by operating activities has been adequate to fund our operations. We have significant liquidity, including $753 million of cash and cash equivalents and $744 million available under the Revolving Credit Facility, net of $6 million of letters of credit, as of March 31, 2025. At this time, we believe cash provided by operating activities, cash and cash equivalents and borrowing capacity under the Revolving Credit Facility will be sufficient to meet our known and anticipated cash requirements for the next twelve months and thereafter.

Current wording

Generally, cash provided by operating activities has been adequate to fund our operations. We have significant liquidity, including $778 million of cash and cash equivalents and $745 million available under the Revolving Credit Facility, net of $5 million of letters of credit as of June 30, 2025. In addition, we have $2,000 million available under the Bridge Facility, which may be used to finance a portion of the purchase price of the Acquisition and other related costs, fees and expenses. At this time, we believe cash provided by operating activities, cash and cash equivalents and borrowing capacity under the Revolving Credit Facility and Bridge Facility will be sufficient to meet our known and anticipated cash requirements for the next twelve months and thereafter.

Previous wording

Operating activities for the three months ended March 31, 2025 generated $181 million of cash compared to $173 million for the three months ended March 31, 2024. The increase was principally driven by UAW Local 933 contract signing incentives recognized in the first quarter of 2024 that did not reoccur in 2025, partially offset by higher cash incentive compensation payments.

Current wording

Operating activities for the six months ended June 30, 2025 generated $365 million of cash compared to $344 million for the six months ended June 30, 2024. The increase was principally driven by lower operating working capital funding requirements, UAW Local 933 contract signing incentives recognized in the first quarter of 2024 that did not reoccur in 2025, higher gross profit and lower cash income taxes, partially offset by payments for expenses related to the Acquisition and higher cash incentive compensation payments.

Previous wording

Investing activities for the three months ended March 31, 2025 used $26 million of cash compared to $12 million for the three months ended March 31, 2024. The increase was principally driven by a $15 million increase in capital expenditures.

Current wording

Investing activities for the six months ended June 30, 2025 used $59 million of cash compared to $32 million for the six months ended June 30, 2024. The increase was principally driven by a $25 million increase in capital expenditures.

Previous wording

Financing activities for the three months ended March 31, 2025 used $184 million of cash compared to $164 million for the three months ended March 31, 2024. The increase was principally driven by $98 million of higher stock repurchases under the Repurchase Program and $17 million of lower proceeds from the exercise of stock options, partially offset by $100 million of decreased payments on our long-term debt.

Current wording

Financing activities for the six months ended June 30, 2025 used $316 million of cash compared to $218 million for the six months ended June 30, 2024. The increase was principally driven by $172 million of higher stock repurchases under the Repurchase Program, $17 million of lower proceeds from the exercise of stock options and $6 million of higher taxes paid related to the net share settlement of equity awards, partially offset by $100 million of decreased payments on our long-term debt.

Previous wording

A discussion of our critical accounting estimates is included in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission on February 13, 2025. The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of some assets and liabilities and, in some instances, the reported amounts of revenues and expenses during the applicable reporting period. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur. Within the context of these critical accounting estimates, we are not currently aware of any reasonably likely events or circumstances that would result in different estimates being reported for the three months ended March 31, 2025.

Current wording

A discussion of our critical accounting estimates is included in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission on February 13, 2025. The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of some assets and liabilities and, in some instances, the reported amounts of revenues and expenses during the applicable reporting period. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur. Within the context of these critical accounting estimates, we are not currently aware of any reasonably likely events or circumstances that would result in different estimates being reported for the three and six months ended June 30, 2025.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, natural disasters, extreme weather events, wars and public health crises such as pandemics; global economic volatility; general economic and industry conditions, including the risk of prolonged inflation and recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; cybersecurity risks to our operational systems, security systems or infrastructure owned by us or our third-party vendors and suppliers; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including acts of war and increased trade protectionism and tariffs; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our …

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: risks relating to the pending Acquisition, including: the Acquisition may not be completed in a timely manner or at all; we may experience delays, unanticipated costs or restrictions resulting from regulatory review of the Acquisition, including the risk that we may be unable to obtain governmental and regulatory approvals required for the Acquisition or that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Acquisition; the financing intended to fund the Acquisition may not be obtained; uncertainties associated with the Acquisition may cause a loss of both companies’ management personnel and other key employees, and cause disruptions to both companies’ business relationships; the Purchase Agreement subjects the Company and Dana to restrictions on business activities prior to the effective time of the Acquisition; we are expected to incur significant costs in connection with the Acquisition and integration; litigation risks relating to the Acquisition; the off-highway business of Dana and its operations may not be integrated successfully in the expected time frame; the Acquisition may result in a loss of customers, vendors, and other business counterparties; the combined company may fail to realize all of the anticipated benefits of the Acquisition or fail to effectively manage its expanded operations; our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to …

Excerpt shortened here; the source contains the full paragraph.