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Corient Private Wealth LP bought a new position in Allison Transmission Holdings, Inc. (NYSE:ALSN – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 88,913 shares of the auto parts company’s stock, valued at approximately $10,024,000. Corient Private Wealth LP owned approximately 0.11% of Allison Transmission as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in ALSN. Jane Street Group LLC grew its stake in shares of Allison Transmission by 341.3% during the first quarter. Jane Street Group LLC now owns 288,674 shares of the auto parts company’s stock valued at $27,617,000 after buying an additional 223,253 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Allison Transmission by 5.7% in the first quarter. Goldman Sachs Group Inc. now owns 214,907 shares of the auto parts company’s stock worth $20,560,000 after buying an additional 11,542 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Allison Transmission by 9.6% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,892 shares of the auto parts company’s stock valued at $180,000 after acquiring an additional 165 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Allison Transmission by 441.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company’s stock valued at $97,000 after acquiring an additional 830 shares during the last quarter. Finally, Marshall Wace LLP purchased a new stake in Allison Transmission during the 2nd quarter valued at about $6,111,000. Institutional investors own 96.90% of the company’s stock.

Allison Transmission Price Performance Shares of NYSE ALSN opened at $126.41 on Monday. Allison Transmission Holdings, Inc. has a 1 year low of $76.01 and a 1 year high of $137.62. The stock has a market capitalization of $10.44 billion, a P/E ratio of 20.10, a P/E/G ratio of 0.68 and a beta of 0.95. The company’s 50-day moving average is $120.12 and its 200 day moving average is $119.85. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.81 and a quick ratio of 1.17.

Allison Transmission (NYSE:ALSN – Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 earnings per share for the quarter, beating the consensus estimate of $2.48 by $0.25. Allison Transmission had a return on equity of 38.18% and a net margin of 12.02%.The company had revenue of $1.57 billion for the quarter, compared to analyst estimates of $1.50 billion. During the same period in the previous year, the company posted $2.29 earnings per share. The firm’s revenue was up 92.4% on a year-over-year basis. On average, sell-side analysts expect that Allison Transmission Holdings, Inc. will post 9.94 earnings per share for the current year. Allison Transmission Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, August 21st will be issued a dividend of $0.29 per share. The ex-dividend date is Friday, August 21st. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.9%. Allison Transmission’s dividend payout ratio is presently 18.44%.

Insider Activity at Allison Transmission In related news, insider Eric C. Scroggins sold 1,050 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $125.00, for a total transaction of $131,250.00. Following the completion of the sale, the insider owned 16,604 shares of the company’s stock, valued at $2,075,500. This trade represents a 5.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO David S. Graziosi sold 26,708 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $132.97, for a total value of $3,551,362.76. Following the completion of the transaction, the chief executive officer directly owned 304,843 shares in the company, valued at $40,534,973.71. This trade represents a 8.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.10% of the stock is owned by company insiders.

Analyst Ratings Changes Several brokerages have recently issued reports on ALSN. Citigroup cut their target price on shares of Allison Transmission from $135.00 to $125.00 and set a “neutral” rating on the stock in a report on Tuesday, July 14th. Morgan Stanley upped their price target on shares of Allison Transmission from $126.00 to $130.00 and gave the company an “equal weight” rating in a report on Friday, July 17th. JPMorgan Chase & Co. upped their price target on shares of Allison Transmission from $140.00 to $145.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Weiss Ratings raised shares of Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Finally, Wells Fargo & Company raised their price target on shares of Allison Transmission from $127.00 to $137.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $131.17.

Check Out Our Latest Research Report on ALSN

(Free Report)

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.

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BlackRock Inc. bought a new stake in Allison Transmission Holdings, Inc. (NYSE: ALSN) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 3,975,802 shares of the auto parts company's stock, valued at approximately $448,232,000. BlackRock Inc. owned

, /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world, announced today that its Board of Directors has declared a cash dividend of $0.29 per share on the Company's common stock for the third quarter of 2026. Payment will be made on August 31, 2026, to stockholders of record at the close of business on August 21, 2026.

The payment of any future dividends will be at the discretion of the Board of Directors and will be dependent upon Allison's financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board of Directors.

About Allison
Allison (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit https://allisontransmission.com.

Forward-Looking Statements
This press release 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: the significant costs we are expected to incur in connection with the integration of the Off-Highway Drive & Motion Systems business of Dana Incorporated (now referred to as the "Allison Off-Highway Business"); our ability to successfully integrate the Allison Off-Highway Business and its operations in the expected time frame; our ability to realize all of the anticipated benefits from the integration of the Allison Off-Highway Business and its operations and to effectively manage our 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 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 customers; 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 brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness.

SOURCE Allison Transmission Holdings Inc.

Allison Transmission Holdings, Inc. (ALSN) Q2 2026 Earnings Call August 3, 2026 5:00 PM EDT

Company Participants

Jacalyn Bolles - Executive Director of Treasury & IR
David Graziosi - Chairman, President & CEO
Scott Mell - Senior VP, CFO & Treasurer
G. Bohley - President & Business Unit Leader of Allison Transmission and COO
Craig Price - President and Business Unit Leader of Allison Off-Highway Drive & Motion Systems

Conference Call Participants

Robert Wertheimer - Melius Research LLC
Timothy Thein - Raymond James & Associates, Inc., Research Division
Isaac Sellhausen - Oppenheimer & Co. Inc., Research Division
Jerry Revich - Wells Fargo Securities, LLC, Research Division
Tami Zakaria - JPMorgan Chase & Co, Research Division
Angel Castillo Malpica - Morgan Stanley, Research Division
Kyle Menges - Citigroup Inc., Research Division

Presentation

Operator

Good afternoon, and thank you for standing by. Welcome to Allison's Second Quarter 2026 Earnings Conference Call. My name is Sherry, and I will be your conference call operator today. [Operator Instructions] After the prepared remarks, Allison's 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. [Operator Instructions] I would now like to turn the conference over to Jackie Bolles, Executive Director of Treasury and Investor Relations. Please go ahead, Jackie.

Jacalyn Bolles
Executive Director of Treasury & IR

Thank you, Sherry. Good afternoon, and thank you for joining us for our Second Quarter 2026 Earnings Conference Call. With me this afternoon are Dave Graziosi, our Chair, President and Chief Executive Officer; Scott Mell, our Chief Financial Officer and Treasurer; Fred Bohley, Allison's Chief Operating Officer and Allison Transmission Business Unit Leader; and Craig Price, Allison Off-Highway Business Unit Leader. As a reminder, this conference call, webcast and this afternoon's presentation are available on the Investor Relations section of allisontransmission.com. A replay of this call will be available through August 17. As noted on Slide 2

Allison Transmission (ALSN - Free Report) came out with quarterly earnings of $2.73 per share, beating the Zacks Consensus Estimate of $2.6 per share. This compares to earnings of $2.29 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.00%. A quarter ago, it was expected that this automatic transmission maker would post earnings of $2.54 per share when it actually produced earnings of $2.57, delivering a surprise of +1.18%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Allison Transmission, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $1.57 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.82%. This compares to year-ago revenues of $814 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Allison Transmission shares have added about 17% since the beginning of the year versus the S&P 500's gain of 9.4%.

What's Next for Allison Transmission?While Allison Transmission has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Allison Transmission was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.41 on $1.45 billion in revenues for the coming quarter and $9.65 on $5.79 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, LCI (LCII - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This recreational vehicle parts supplier is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of +10%. The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level.

LCI's revenues are expected to be $1.13 billion, up 2% from the year-ago quarter.

Net Sales of $1,566 million, up 92% year over year, including the addition of the Allison Off-Highway business unit acquired on January 1, 2026 Record quarterly net sales of $860 million for the Allison Transmission business unit  Net Income of $181 million, 12% of Net Sales Diluted EPS of $2.15, Adjusted Diluted EPS of $2.73, up 8% year over year Adjusted EBITDA of $404 million, 26% of Net Sales, up 29% year over year , /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), today reported second quarter net sales of $1,566 million with an adjusted EBITDA margin of 26 percent and net cash provided by operating activities of $312 million.

David S. Graziosi, Chair, President and Chief Executive Officer of Allison commented, "In the Allison Transmission business unit, execution of our growth initiatives in the Defense end market and continued momentum in the North American truck market led to record quarterly net sales of $860 million for the second quarter. We also saw strong year over year growth in the Allison Off-Highway business unit, particularly in the Construction & Material Handling and Mining end markets as demand continues to rebound from trough levels. The Agriculture end market, although showing signs of recovery in certain segments and regions, has yet to inflect positively."

Graziosi continued, "The successful integration of the Allison Off-Highway business unit, including capturing planned synergies and realizing the strategic benefits of the combined operations, remains a top priority. At the same time, Allison continues to execute across both business units, converting improving demand conditions into strong cash generation, reflected in record quarterly adjusted free cash flow of $281 million in the second quarter. Alongside repurchasing $46 million of our common stock and paying a quarterly dividend, we also made additional progress toward our leverage target by repaying the remaining $150 million outstanding under our revolving credit facility."

Second quarter results include segment reporting for Allison Transmission, the Company's legacy business, excluding certain costs now accounted for within the Allison Central Group, and Allison Off-Highway, the business acquired from Dana Incorporated on January 1, 2026. The Allison Central Group is a centralized cost center which includes certain functional costs that support the Company's global operations.

Allison Consolidated Second Quarter Financial Results

Net sales for the quarter were $1,566 million, including the addition of $706 million in net sales for the Allison Off-Highway business unit.

Gross profit for the quarter was $515 million, an increase of $112 million from $403 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit. Gross margin for the quarter was 33 percent.

Selling, general and administrative expenses for the quarter were $168 million, an increase of $64 million from $104 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit. Selling general and administrative expenses for the second quarter include $9 million of one-time acquisition-related expenses.

Engineering – research and development expenses for the quarter were $56 million, an increase of $13 million from $43 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit, partially offset by reduced product initiatives spending in the Allison Transmission business unit.

Net income for the quarter was $181 million, a decrease of $14 million from $195 million for the same period in 2025. The decrease was principally driven by increased operating costs due to the acquisition of the Allison Off-Highway business unit, including increased depreciation and amortization expense. The year over year decrease in net income was also driven by higher interest expense, net, and unrealized mark-to-market adjustments for marketable securities. The decrease in net income was partially offset by increased gross profit driven by the addition of the Allison Off-Highway business unit. Diluted EPS for the second quarter was $2.15, a year over year decrease of 6 percent.

Excluding the effect of certain non-cash, non-recurring, infrequent or unusual items, including the costs associated with the acquisition of the Allison Off-Highway business unit, adjusted net income, a non-GAAP financial measure, was $229 million for the second quarter and adjusted diluted EPS was $2.73, a year over year increase of 8 percent.

Adjusted EBITDA, a non-GAAP financial measure, was $404 million for the second quarter, an increase of $91 million from $313 million for the same period in 2025. Adjusted EBITDA margin for the quarter was 26 percent.

Net cash provided by operating activities for the quarter was $312 million, a year over year increase of 70 percent. Adjusted free cash flow, a non-GAAP financial measure, for the quarter was $281 million, a year over year increase of 84 percent.

Allison ended the second quarter with nearly $400 million of cash and cash equivalents and $995 million of available borrowing capacity under its revolving credit facility. Allison ended the second quarter with total debt of $4,114 million and net debt of $3,715 million.

During the second quarter, Allison paid a quarterly dividend of $0.29 per share and repurchased $46 million of its common stock, with $1,125 million of authorization remaining under its stock repurchase program.

Allison Transmission Second Quarter Financial Highlights

Net sales for the quarter increased 6 percent from the same period in 2025, leading to record quarterly net sales of $860 million.

Gross profit for the quarter was $397 million, a decrease of $6 million from $403 million for the same period in 2025. The decrease was principally driven by unfavorable direct material costs and higher manufacturing expense, partially offset by price increases on certain products. Gross margin for the second quarter was 46 percent.

Selling, general and administrative expenses for the quarter were $75 million, an increase of $3 million from $72 million for the same period in 2025 when adjusting for allocations of certain selling, general and administrative expenses to the Allison Central Group. The increase was principally driven by increased commercial activities spending.

Engineering – research and development expenses for the quarter were $41 million, a decrease of $2 million from $43 million for the same period in 2025. The decrease was principally driven by reduced product initiatives spending.

Segment operating profit was $281 million, or 33 percent of net sales, for the second quarter. Adjusted EBITDA, a non-GAAP financial measure, was $318 million for the second quarter. Adjusted EBITDA margin for the quarter was 37 percent.

Allison Off-Highway Second Quarter Financial Highlights

Net sales for the quarter were $706 million.

Gross profit for the quarter was $118 million, representing 17 percent of net sales.

Selling, general and administrative expenses for the quarter were $56 million. Engineering – research and development expenses for the quarter were $15 million.

Segment operating profit was $47 million, or 7 percent of net sales, for the second quarter. Adjusted EBITDA, a non-GAAP financial measure, was $104 million for the second quarter. Adjusted EBITDA margin for the quarter was 15 percent.

Full Year 2026 Guidance Update

Given our second quarter results and improving conditions across our end markets, we are increasing our full year 2026 guidance provided to the market on May 4, 2026. Allison expects:

Consolidated net sales in the range of $5,800 to $6,000 million Consolidated net income in the range of $600 to $700 million, subject to the completion of purchase price accounting associated with the acquisition of the Allison Off-Highway business unit Net income guidance includes approximately $140 million of one-time, pre-tax expenses associated with the separation, integration and restructuring of the Allison Off-Highway business unit, including approximately $75 million of expenses related to the stepped-up basis in inventory. Net income guidance also includes $50 million of additional depreciation. Including one-time costs, the Allison Off-Highway acquisition is expected to be accretive to net income and diluted EPS in 2026 Consolidated adjusted EBITDA in the range of $1,465 to $1,575 million Consolidated net cash provided by operating activities in the range of $1,025 to $1,125 million, including approximately $55 million of one-time cash outlays associated with the acquisition of the Allison Off-Highway business unit Consolidated capital expenditures in the range of $260 to $280 million, including one-time separation and integration capital expenditures of approximately $30 million Consolidated adjusted free cash flow in the range of $745 to $865 million Conference Call and Webcast

The Company will host a conference call at 5:00 p.m. EDT on Monday, August 3, 2026 to discuss its second quarter 2026 results. The dial-in phone number for the conference call is +1-877-425-9470 and the international dial-in number is +1-201-389-0878. A live webcast of the conference call will also be available online at https://ir.allisontransmission.com. 

For those unable to participate in the conference call, a replay will be available from 9:00 p.m. EDT on August 3 until 11:59 p.m. EDT on August 17. The replay dial-in phone number is +1-844-512-2921 and the international replay dial-in number is +1-412-317-6671. The replay passcode is 13761420.

About Allison
Allison (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit https://allisontransmission.com. 

Forward-Looking Statements
This press release 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: the significant costs we are expected to incur in connection with the integration of the Off-Highway Drive & Motion Systems business of Dana Incorporated (now referred to as the "Allison Off-Highway Business"); our ability to successfully integrate the Allison Off-Highway Business and its operations in the expected time frame; our ability to realize all of the anticipated benefits from the integration of the Allison Off-Highway Business and its operations and to effectively manage our 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 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 customers; 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 brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness.

Use of Non-GAAP Financial Measures
This press release contains information about Allison's financial results and forward-looking estimates of financial results that are not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their most directly comparable GAAP financial measures at the end of this press release. Non-GAAP financial measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

We use adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") and adjusted EBITDA as a percent of net sales ("adjusted EBITDA margin") to measure our operating profitability. We believe that adjusted EBITDA and adjusted EBITDA margin 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. Adjusted EBITDA margin is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to adjusted EBITDA and adjusted EBITDA margin is net income or segment operating profit (loss) in the case of our segments and net income as a percent of net sales ("net income margin") or segment operating profit (loss) as a percent of net sales in the case of our segments, 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, governing Allison Transmission, Inc.'s term loans and revolving credit facility. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net sales.

In addition, we believe adjusted net income, adjusted basic earnings per share attributable to common stockholders ("adjusted basic EPS") and adjusted diluted earnings per share attributable to common stockholders ("adjusted diluted EPS") provide management, investors and creditors with useful measures of our core business performance and trends and increase the period-to-period comparability of our results of operations. The most directly comparable GAAP measure to adjusted net income, adjusted basic EPS and adjusted diluted EPS is net income, basic earnings per share attributable to common stockholders ("basic EPS") and diluted earnings per share attributable to common stockholders ("diluted EPS"), respectively. Adjusted net income is calculated as net income excluding the effect of certain non-cash, non-recurring, infrequent or unusual items such as: amortization related to acquired intangible assets, depreciation of the stepped-up basis in property, plant and equipment related to acquired assets, stepped-up basis in acquired inventory, stock-based compensation expense, acquisition-related expenses, impairment charges, other one-off adjustments and the tax effect of the adjustments. Adjusted basic EPS is calculated by dividing adjusted net income by the weighted average shares of common stock outstanding and adjusted diluted EPS is calculated by dividing adjusted net income by the diluted weighted average shares of common stock outstanding.

We use adjusted free cash flow to evaluate the amount of cash generated by our business that, after the capital investment needed to maintain and grow our business and certain mandatory debt service requirements, can be used for repayment of debt, stockholder distributions and strategic opportunities, including investing in our business. We believe that adjusted free cash flow enhances the understanding of the cash flows of our business for management, investors and creditors. Adjusted free cash flow is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to adjusted free cash flow is net cash provided by operating activities. Adjusted free cash flow is calculated as net cash provided by operating activities after cash used for additions of long-lived assets.

Attachments

Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Reconciliations of GAAP to Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance Allison Transmission Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, dollars in millions, except per share data)

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Three months ended June 30, 

 Three months ended June 30, 

 Three months ended June 30, 

 Three months ended June 30, 

2026

2025

2026

2025

2026

2025

2026

2025

Net sales

$                      860

$                      814

$                      706

$                         -

$                      -

$                      -

$                   1,566

$                      814

Cost of sales

463

411

588

-

-

-

1,051

411

Gross profit

397

403

118

-

-

-

515

403

Selling, general and administrative

75

72

56

-

37

32

168

104

Engineering - research and development

41

43

15

-

-

-

56

43

Operating income (loss)

$                      281

$                      288

$                        47

$                         -

$                    (37)

$                    (32)

291

256

Interest expense, net

2

(21)

-

-

(63)

-

(54)

(22)

Other (expense) income, net

(7)

5

4

-

-

-

(9)

8

Income before income taxes

$                      276

$                      272

$                        51

$                         -

$                 (100)

$                    (32)

228

242

Income tax expense

(47)

(47)

Net income

$                      181

$                      195

Basic earnings per share attributable to common stockholders

$                     2.18

$                     2.32

Diluted earnings per share attributable to common stockholders

$                     2.15

$                     2.29

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Six months ended June 30, 

Six months ended June 30, 

Six months ended June 30, 

 Six months ended June 30, 

2026

2025

2026

2025

2026

2025

2026

2025

Net sales

$                   1,593

$                   1,580

$                   1,379

$                         -

$                      -

$                      -

$                   2,972

$                   1,580

Cost of sales

840

799

1,211

-

-

-

2,051

799

Gross profit

753

781

168

-

-

-

921

781

Selling, general and administrative

140

137

112

-

73

54

325

191

Engineering - research and development

80

85

30

-

-

-

110

85

Operating income (loss)

$                      533

$                      559

$                        26

$                         -

$                    (73)

$                    (54)

486

505

Interest expense, net

2

(21)

-

-

(63)

-

(115)

(43)

Other (expense) income, net

(7)

5

4

-

-

-

(11)

13

Income before income taxes

$                      528

$                      543

$                        30

$                         -

$                 (136)

$                    (54)

360

475

Income tax expense

(67)

(88)

Net income

$                      293

$                      387

Basic earnings per share attributable to common stockholders

$                     3.53

$                     4.55

Diluted earnings per share attributable to common stockholders

$                     3.49

$                     4.50

Allison Transmission Holdings, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, dollars in millions)

 June 30, 

 December 31, 

2026

2025

ASSETS

Current Assets

    Cash and cash equivalents

$                   399

$            1,495

    Accounts receivable, net

911

333

    Inventories

840

316

    Other current assets

239

89

Total Current Assets

2,389

2,233

Property, plant and equipment, net

1,660

862

Intangible assets, net

1,607

794

Goodwill

2,812

2,075

Other non-current assets

249

118

TOTAL ASSETS

$                8,717

$            6,082

LIABILITIES

Current Liabilities

    Accounts payable

$                   806

$                190

    Product warranty liability

65

34

    Current portion of long-term debt 

20

5

    Deferred revenue

73

34

    Other current liabilities

358

197

Total Current Liabilities

1,322

460

Product warranty liability

63

50

Deferred revenue

105

103

Long-term debt

4,094

2,885

Deferred income taxes

839

557

Other non-current liabilities

315

160

TOTAL LIABILITIES

6,738

4,215

TOTAL STOCKHOLDERS' EQUITY

1,979

1,867

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$                8,717

$            6,082

Allison Transmission Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, dollars in millions)

 Three months ended June 30, 

 Six months ended June 30, 

2026

2025

2026

2025

Net cash provided by operating activities

$                   312

$                   184

$                   468

$                   365

Net cash used for investing activities (a) (b)

-

(33)

(2,616)

(59)

Net cash (used for) provided by financing activities

(224)

(132)

1,056

(316)

Effect of exchange rate changes on cash

-

6

(4)

7

Net increase (decrease) in cash and cash equivalents

88

25

(1,096)

(3)

Cash and cash equivalents at beginning of period

311

753

1,495

781

Cash and cash equivalents at end of period

$                   399

$                   778

$                   399

$                   778

Supplemental disclosures:

          Interest paid

$                    (66)

$                    (33)

$                  (107)

$                    (60)

          Income taxes paid

$                    (84)

$                    (93)

$                    (95)

$                    (95)

          Interest received from interest rate swaps

$                        -

$                        2

$                        -

$                        4

(a)  Business acquisition, net of cash acquired

$                      34

$                        -

$               (2,529)

-

(b)  Additions of long-lived assets

$                    (31)

$                    (31)

$                    (84)

$                    (57)

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Three months ended 

 Six months ended 

 June 30, 

 June 30, 

2026

2025

2026

2025

Net income (GAAP)

$          181

$          195

$          293

$          387

plus:

    Interest expense, net

54

22

115

43

    Depreciation of property, plant and equipment

46

29

90

57

    Income tax expense

47

47

67

88

    Amortization expense

21

1

44

3

    Recognition of the stepped-up basis in inventory (a)

-

-

63

-

    Depreciation of the stepped up basis in property, plant and equipment (b) 

18

-

31

-

    Acquisition-related expenses (c)

9

15

26

24

    Stock-based compensation expense (d)

10

8

17

14

    Unrealized loss (gain) on marketable securities (e)

12

(5)

9

(8)

    Unrealized loss on foreign exchange (f)

-

1

3

1

    Loss associated with impairment of long-lived assets (g)

2

-

2

-

    Other (h)

4

-

6

-

Adjusted EBITDA (Non-GAAP)

$          404

$          313

$          766

$          609

Net sales (GAAP)

$       1,566

$          814

$       2,972

$       1,580

Net income as a percent of Net sales (GAAP)

11.6 %

24.0 %

9.9 %

24.5 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

25.8 %

38.5 %

25.8 %

38.5 %

Net cash provided by operating activities (GAAP)

$          312

$          184

$          468

$          365

Deductions to reconcile to Adjusted free cash flow:

    Additions of long-lived assets

(31)

(31)

(84)

(57)

Adjusted free cash flow (Non-GAAP)

$          281

$          153

$          384

$          308

(a)

Represents the recognition of the stepped-up basis in inventory related to our acquisition of the Dana Off-Highway business (the "Acquisition") (recorded in Cost of sales).

(b)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(c)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

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

(f)

Represents losses (recorded in Other (expense) income, net) on intercompany financing transactions for our facility in Chennai, India.

(g)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(h)

Represents other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019 as amended.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Three months ended 

 Three months ended 

 Three months ended 

 Three months ended 

 June 30, 

 June 30, 

 June 30, 

 June 30, 

2026

2026

2026

2026

2025

Segment Operating Profit/(Loss) (GAAP)

$                                    281

$                                      47

$                                     (37)

$                      291

$                      256

plus:

    Depreciation of property, plant and equipment

31

15

-

46

29

    Amortization expense

-

21

-

21

1

    Acquisition-related expenses (a)

-

-

9

9

15

    Depreciation of the stepped up basis in property, plant and equipment (b) 

-

18

-

18

-

    Stock-based compensation expense (c)

-

-

10

10

8

    Loss associated with the impariment of long-lived assets (d)

2

-

-

2

-

    Other (e)

4

3

-

7

4

Adjusted EBITDA (Non-GAAP)

$                                    318

$                                    104

$                                     (18)

$                      404

$                      313

Net sales (GAAP)

$                                    860

$                                    706

$                                         -

$                   1,566

$                      814

Segment Operating Profit/(Loss) as a percent of Net sales (GAAP)

32.7 %

6.7 %

-

18.6 %

31.4 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

37.0 %

14.7 %

-

25.8 %

38.5 %

(a)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(b)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(c)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(d)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(e) 

Represents gains and losses (recorded in Other (expense) income, net) to reconcile to Adjusted EBITDA.

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Six months ended 

 Six months ended 

 Six months ended 

 Six months ended 

 June 30, 

 June 30, 

 June 30, 

 June 30, 

2026

2026

2026

2026

2025

Segment Operating Profit/(Loss) (GAAP)

$                            533

$                             26

$                                     (73)

$                      486

$                      505

plus:

    Depreciation of property, plant and equipment

61

29

-

90

57

    Amortization expense

1

43

-

44

3

    Recognition of the stepped-up basis in inventory (a)

-

63

-

63

-

    Acquisition-related expenses (b)

-

-

26

26

24

    Depreciation of the stepped up basis in property, plant and equipment (c) 

-

31

-

31

-

    Stock-based compensation expense (d)

-

-

17

17

14

    Loss associated with the impariment of long-lived assets (e)

2

-

-

2

-

    Other (f)

(3)

10

-

7

6

Adjusted EBITDA (Non-GAAP)

$                          594

$                          202

$                                 (30)

$                    766

$                    609

Net sales (GAAP)

$                       1,593

$                       1,379

$                                     -

$                 2,972

$                 1,580

Segment Operating Profit/(Loss) as a percent of Net sales (GAAP)

33.5 %

1.9 %

-

16.4 %

32.0 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

37.3 %

14.6 %

-

25.8 %

38.5 %

(a)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(b)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(c)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(f) 

Represents gains and losses (recorded in Other (expense) income, net) to reconcile to Adjusted EBITDA.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Three months ended 

 Six months ended 

 June 30, 

 June 30, 

2026

2025

2026

2025

Net income (GAAP)

$          181

$          195

$          293

$          387

plus:

    Recognition of the stepped-up basis in inventory (a)

-

-

63

-

    Amortization expense

21

1

44

3

    Depreciation of the stepped up basis in property, plant and equipment (b) 

18

-

31

-

    Acquisition-related expenses (c)

9

15

26

24

    Stock-based compensation expense (d)

10

8

17

14

    Loss associated with impairment of long-lived assets (e)

2

-

2

-

    Income tax effect on adjustments (f)

(12)

(5)

(31)

(8)

Adjusted net income (Non-GAAP)

$          229

$          214

$          445

$          420

Basic EPS (GAAP)

$         2.18

$         2.32

$         3.53

$         4.55

Diluted EPS (GAAP)

$         2.15

$         2.29

$         3.49

$         4.50

Adjusted basic EPS (Non-GAAP) (g)

$         2.76

$         2.55

$         5.36

$         4.94

Adjusted diluted EPS (Non-GAAP) (g)

$         2.73

$         2.52

$         5.30

$         4.88

(a)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(b)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(c)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition.

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(f)

Represents the income tax effect on the adjustments calculated by applying our effective tax rate.

(g)

Adjusted basic EPS and Adjusted diluted EPS are Non‑GAAP financial measures and are defined as Adjusted net income divided by the weighted average common shares outstanding and diluted weighted average shares outstanding, respectively, for the period. The weighted-average common shares outstanding and diluted weighted-average common shares outstanding are the same as those used in calculating the comparable GAAP measures.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance

(Unaudited, dollars in millions)

Guidance

Year Ending December 31, 2026

Low

High

Net income (GAAP)

$                 600

$                 700

plus:

Income tax expense

135

185

Depreciation of property, plant and equipment (a)

255

245

Interest expense, net

220

210

Amortization of intangible assets

80

80

Recognition of the stepped-up basis in inventory (b)

75

75

Acquisition-related expenses  (c)

45

35

Stock-based compensation expense  (d)

30

30

Unrealized gain on marketable securities  (e)

(10)

(10)

Restructuring & One-Time expenses (f)

30

20

Other (g)

5

5

Adjusted EBITDA (Non-GAAP)

$             1,465

$             1,575

Net cash provided by Operating activities (GAAP)

$             1,025

$             1,125

Deductions to reconcile to Adjusted free cash flow:

    Additions of long-lived assets (h)

$               (280)

$               (260)

Adjusted free cash flow (Non-GAAP)

$                 745

$                 865

(a)

Includes depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(b)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(c)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(d)

Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development).

(e)

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

(f)

Includes one-time restructuring costs, minority interest and one-time employee retention costs.

(g)

Represents other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019 as amended.

(h)

Includes one-time Acquisition-related investments.

SOURCE Allison Transmission Holdings Inc.

Posted by Defense World Staff on Jul 26th, 2026

Bank of Nova Scotia lifted its position in Allison Transmission Holdings, Inc. (NYSE:ALSN – Free Report) by 50.4% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 109,646 shares of the auto parts company’s stock after buying an additional 36,746 shares during the period. Bank of Nova Scotia owned approximately 0.13% of Allison Transmission worth $12,835,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of the company. Bank of Montreal Can lifted its holdings in Allison Transmission by 4,032.3% in the fourth quarter. Bank of Montreal Can now owns 2,151,871 shares of the auto parts company’s stock valued at $210,668,000 after acquiring an additional 2,099,797 shares during the period. Norges Bank bought a new stake in shares of Allison Transmission during the 4th quarter valued at about $115,674,000. Boston Partners increased its position in shares of Allison Transmission by 117.6% during the 3rd quarter. Boston Partners now owns 2,038,429 shares of the auto parts company’s stock valued at $173,093,000 after purchasing an additional 1,101,824 shares during the last quarter. First Trust Advisors LP lifted its stake in shares of Allison Transmission by 85.2% in the 1st quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company’s stock worth $237,234,000 after purchasing an additional 932,201 shares during the period. Finally, Millennium Management LLC lifted its stake in shares of Allison Transmission by 191.7% in the 4th quarter. Millennium Management LLC now owns 1,257,353 shares of the auto parts company’s stock worth $123,095,000 after purchasing an additional 826,352 shares during the period. Institutional investors own 96.90% of the company’s stock.

Analyst Ratings Changes ALSN has been the topic of a number of research reports. Morgan Stanley raised their price objective on shares of Allison Transmission from $126.00 to $130.00 and gave the stock an “equal weight” rating in a report on Friday, July 17th. Citigroup decreased their price target on shares of Allison Transmission from $135.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 14th. Wells Fargo & Company lifted their price target on shares of Allison Transmission from $127.00 to $137.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price objective on shares of Allison Transmission from $140.00 to $145.00 and gave the company a “neutral” rating in a research report on Monday, July 13th. Finally, Weiss Ratings lowered Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $131.17.

View Our Latest Research Report on Allison Transmission

Allison Transmission Trading Up 2.1% Allison Transmission stock opened at $122.15 on Friday. The firm has a 50 day moving average of $115.79 and a 200 day moving average of $117.20. The firm has a market capitalization of $10.13 billion, a price-to-earnings ratio of 19.00, a P/E/G ratio of 0.68 and a beta of 0.95. Allison Transmission Holdings, Inc. has a 12-month low of $76.01 and a 12-month high of $137.62. The company has a current ratio of 1.85, a quick ratio of 1.18 and a debt-to-equity ratio of 2.23.

Allison Transmission (NYSE:ALSN – Get Free Report) last released its earnings results on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping analysts’ consensus estimates of $2.10 by $0.47. The company had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.38 billion. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. The firm’s revenue was up 83.6% compared to the same quarter last year. During the same quarter last year, the business earned $2.23 EPS. As a group, research analysts predict that Allison Transmission Holdings, Inc. will post 9.65 earnings per share for the current year.

Allison Transmission Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Monday, May 18th were paid a dividend of $0.29 per share. The ex-dividend date was Monday, May 18th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.9%. Allison Transmission’s payout ratio is 18.04%.

Insider Buying and Selling at Allison Transmission In related news, CFO Scott A. Mell sold 2,270 shares of the company’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $125.00, for a total value of $283,750.00. Following the completion of the transaction, the chief financial officer owned 1,053 shares of the company’s stock, valued at approximately $131,625. This represents a 68.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 1.10% of the company’s stock.

Allison Transmission Profile (Free Report)

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.

See Also Five stocks we like better than Allison Transmission Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24 Want to see what other hedge funds are holding ALSN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Allison Transmission Holdings, Inc. (NYSE:ALSN – Free Report).

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, /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world, today announced that it will hold its second quarter 2026 financial results conference call at 5:00 p.m. EDT on Monday, August 3, 2026. Allison executives will review the company's financial performance for the period. The news release announcing the financial results will be issued post market on Monday, August 3.

The dial-in phone number for the conference call is +1-877-425-9470 and the international dial-in number is +1-201-389-0878. A live webcast of the conference call will be available online at ir.allisontransmission.com in addition to the second quarter results press release on the 'News Releases' page. For those unable to participate in the conference call, a replay will be available from 9:00 p.m. EDT on August 3 until 11:59 p.m. EDT on August 17. The replay dial-in phone number is +1-844-512-2921 and the international replay dial-in number is +1-412-317-6671. The replay passcode is 13761420.

About Allison

Allison (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit allisontransmission.com.

SOURCE Allison Transmission Holdings Inc.

4.55K Followers

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, /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN) will replace Goodyear Tire & Rubber Co. (NASD: GT) in the S&P MidCap 400, and Goodyear Tire & Rubber will replace Stellar Bancorp Inc. (NYSE: STEL) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, July 6. S&P MidCap 400 constituent Prosperity Bancshares Inc. (NYSE: PB) is acquiring Stellar Bancorp in a deal expected to close July 1.

Following is a summary of the changes that will take place prior to the open of trading on the effective date:

Effective Date

Index Name

Action

Company Name

Ticker

GICS Sector

July 6, 2026

S&P MidCap 400

Addition

Allison Transmission

ALSN

Industrials

July 6, 2026

S&P MidCap 400

Deletion

Goodyear Tire & Rubber

GT

Consumer Discretionary

July 6, 2026

S&P SmallCap 600

Addition

Goodyear Tire & Rubber

GT

Consumer Discretionary

July 6, 2026

S&P SmallCap 600

Deletion

Stellar Bancorp

STEL

Financials

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SOURCE S&P Dow Jones Indices

Allison Transmission Holdings is rated a solid 'Buy' due to its transformative $2.7 billion acquisition of Dana's Off-Highway segment. ALSN's combined business offers a global platform with diversified revenue streams across construction, agriculture, industrial, mining, and on-highway markets. Management targets $120 million in synergies and expects 2026 EBITDA of $1.6–$1.7 billion post-synergies, supporting attractive valuation versus peers.

, /PRNewswire/ -- Allison Transmission Holdings, Inc. (NYSE: ALSN) ("Allison" or the "Company"), a global leader in high-performance mobility and work solutions, today announced that on June 11, 2026 it completed an opportunistic repricing of its existing $508 million term loan due March 13, 2031 (the "Term Loan") through an amendment (the "Amendment") to its second amended and restated credit agreement (as amended, the "Credit Agreement").

The Amendment reduced the applicable interest rate margin on the Term Loan by 25 basis points, resulting in an interest rate margin that is either 1.50% per annum for SOFR loans or 0.50% per annum for base rate loans. The Term Loan maturity date of March 13, 2031 and all other material provisions under the Credit Agreement remain unchanged.

"The interest rate reduction on our Term Loan will reduce annual cash interest expense by approximately $1.3 million," said Allison's Chief Financial Officer and Treasurer, Scott Mell. "This repricing transaction reaffirms Allison's commitment to prudent balance sheet management and its well-defined approach to capital structure and allocation."

About Allison Transmission 

Allison Transmission Holdings, Inc. (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit https://allisontransmission.com.

Forward-Looking Statements

This press release contains forward-looking statements. The words "believe," "expect," "anticipate," "intend," "estimate," "commit" 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: the significant costs we are expected to incur in connection with the integration of the Off-Highway Drive & Motion Systems business of Dana Incorporated (now referred to as the "Allison Off-Highway Business"); our ability to successfully integrate the Allison Off-Highway Business and its operations in the expected time frame; our ability to realize all of the anticipated benefits from the integration of the Allison Off-Highway Business and its operations and to effectively manage our 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 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 customers; 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 brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness.

SOURCE Allison Transmission Holdings Inc.

Allison Transmission offers a compelling buy opportunity, driven by dominant North American market share and strong free cash flow generation. ALSN benefits from robust municipal spending, high adjusted EBITDA margins (37.5%), and a resilient business model less exposed to cyclical auto production. Forward catalysts include accelerating defense spending, electrification initiatives, and a projected 9.6% CAGR in on-highway transmission systems through 2030.

INDIANAPOLIS, April 20, 2026 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world, today announced that it will hold its first quarter 2026 financial results conference call at 5:00 p.m. EDT on Monday, May 4, 2026.

Caprock Group LLC boosted its position in shares of Allison Transmission Holdings, Inc. (NYSE: ALSN) by 191.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 26,051 shares of the auto parts company's stock after purchasing an additional

Allison Transmission (ALSN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Net Sales of $1,406 million, up 84% year over year, including the addition of the Allison Off-Highway business unit acquired on January 1, 2026  Net Income of $112 million, 8% of Net Sales Diluted EPS of $1.33, Adjusted Diluted EPS of $2.57, up 6% year over year Adjusted EBITDA of $362 million, 26% of Net Sales, up 22% year over year First quarter results include segment reporting for Allison Transmission and Allison Off-Highway business units , /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN) today reported first quarter net sales of $1,406 million with adjusted EBITDA margin of 26 percent and net cash provided by operating activities of $156 million.

David S. Graziosi, Chair, President and Chief Executive Officer of Allison commented, "Encouraging momentum in key end markets supported solid demand for both Allison business units in the first quarter. Despite ongoing geopolitical uncertainty, we will look to capitalize on further improvement in end markets conditions throughout the year, while continuing to integrate the Allison Off-Highway business unit, maintaining focus and confidence in our synergy capture target in support of our long-term growth and value creation strategy. For the first quarter, adjusted diluted EPS was $2.57, with expectation for the acquisition of the Allison Off-Highway business unit to be accretive to net income and diluted EPS in 2026."

Graziosi continued, "During the first quarter, we announced the seventh consecutive annual increase to our quarterly dividend and repurchased more than $20 million of our common stock, demonstrating Allison's consistent commitment to returning cash to shareholders as part of our capital allocation priorities. Also during the quarter, as we progress toward our 2.0x net leverage target with prudent balance sheet management, our strong cash flow generation enabled us to repay $150 million of amounts outstanding under our revolving credit facility."  

First quarter results include segment reporting for Allison Transmission, the Company's legacy business, excluding certain costs now accounted for within the Allison Central Group, and Allison Off-Highway, the business acquired from Dana Incorporated on January 1, 2026. The Allison Central Group is a centralized cost center which includes certain functional costs that support the Company's global operations.

Allison Consolidated First Quarter Financial Results

Net sales for the quarter were $1,406 million, including the addition of $673 million in net sales for the Allison Off-Highway business unit.

Gross profit for the quarter was $406 million, an increase of $28 million from $378 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit, partially offset by decreased gross profit in the Allison Transmission business unit. Gross profit for the quarter was negatively impacted by approximately $76 million of expenses related to the acquisition of the Allison Off-Highway business unit, primarily inventory step-up costs and incremental depreciation expense related to the stepped-up basis in property, plant and equipment. Gross margin for the quarter was 29 percent.

Selling, general and administrative expenses for the quarter were $157 million, an increase of $70 million from $87 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit, including $21 million of amortization expense for intangible asset recognition and approximately $17 million of one-time acquisition-related integration costs.

Engineering – research and development expenses for the quarter were $54 million, an increase of $12 million from $42 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit, partially offset by reduced product initiatives spending in the Allison Transmission business unit.

Net income for the quarter was $112 million, a decrease of $80 million from $192 million for the same period in 2025. The decrease was principally driven by costs related to the acquisition of the Allison Off-Highway business unit. The year over year decrease in net income was also driven by higher interest expense, net, partially offset by lower income tax expense. Diluted EPS for the first quarter was $1.33.

Excluding the effect of certain non-cash, non-recurring, infrequent or unusual items, including the costs associated with the acquisition of the Allison Off-Highway business unit, adjusted net income, a non-GAAP financial measure, was $216 million for the first quarter and adjusted diluted EPS was $2.57.

Adjusted EBITDA, a non-GAAP financial measure, was $362 million for the first quarter, an increase of $66 million from $296 million for the same period in 2025. Adjusted EBITDA margin for the quarter was 26 percent.

Net cash provided by operating activities for the quarter was $156 million. Adjusted free cash flow, a non-GAAP financial measure, for the quarter was $103 million.

Allison ended the first quarter with $311 million of cash and cash equivalents and $845 million of available borrowing capacity under its revolving credit facility. Allison ended the first quarter with total debt of $4,292 million and net debt of $3,981 million.

During the first quarter, Allison paid a quarterly dividend of $0.29 per share and repurchased over $20 million of its common stock, with $1,171 million of authorization remaining under its stock repurchase program.

Allison Transmission First Quarter Financial Highlights

Net sales for the quarter were $733 million, a 4 percent decrease from the same period in 2025.

Gross profit for the quarter was $356 million, a decrease of $22 million from $378 million for the same period in 2025. The decrease was principally driven by lower volumes and unfavorable direct material costs, partially offset by price increases on certain products. Gross margin for the first quarter was nearly 49 percent.

Selling, general and administrative expenses for the quarter were $65 million, flat from the same period in 2025 when reflecting allocations of certain selling, general and administrative expenses in the Allison Central Group.

Engineering – research and development expenses for the quarter were $39 million, a decrease of $3 million from $42 million for the same period in 2025. The decrease was principally driven by reduced product initiatives spending.

Segment operating profit was $252 million, or 34 percent of net sales, for the first quarter. Adjusted EBITDA, a non-GAAP financial measure, was $276 million for the first quarter. Adjusted EBITDA margin for the quarter was 38 percent.

Allison Off-Highway First Quarter Financial Highlights

Net sales for the quarter were $673 million.

Gross profit for the quarter was $50 million, including approximately $76 million of expense related to the stepped-up basis in inventory and incremental depreciation expense related to the stepped-up basis in property, plant and equipment.

Selling, general and administrative expenses for the quarter were $56 million, including $21 million of amortization expense for intangible asset recognition. Engineering – research and development expenses for the quarter were $15 million.

Segment operating loss was $(21) million, or (3) percent of net sales, for the first quarter. Adjusted EBITDA, a non-GAAP financial measure, was $98 million for the first quarter. Adjusted EBITDA margin for the quarter was 15 percent.

Full Year 2026 Guidance Update

Given first quarter results, while taking into consideration current macroeconomic and geopolitical uncertainty, we are reaffirming our full year 2026 guidance provided to the market on February 23, 2026. Allison expects:

Consolidated net sales in the range of $5,575 to $5,925 million Net sales for the Allison Transmission business unit in the range of $3,025 to $3,175 million Net sales for the Allison Off-Highway business unit in the range of $2,550 to $2,750 million Consolidated net income in the range of $600 to $750 million, subject to the completion of purchase price accounting associated with the acquisition of the Allison Off-Highway business unit Net income guidance includes more than $100 million of one-time, pre-tax expenses associated with the separation, integration and restructuring of the Allison Off-Highway business unit. Including one-time costs, the Allison Off-Highway acquisition is expected to be accretive to net income and diluted EPS in 2026 Consolidated adjusted EBITDA in the range of $1,365 to $1,515 million Consolidated net cash provided by operating activities in the range of $970 to $1,100 million, including approximately $55 million of one-time cash outlays associated with the acquisition of the Allison Off-Highway business unit Consolidated capital expenditures in the range of $295 to $315 million, including one-time separation and integration capital expenditures of approximately $45 million Consolidated adjusted free cash flow in the range of $655 to $805 million Conference Call and Webcast

The Company will host a conference call at 5:00 p.m. ET on Monday, May 4, 2026 to discuss its first quarter 2026 results. The dial-in phone number for the conference call is +1-877-425-9470 and the international dial-in number is +1-201-389-0878. A live webcast of the conference call will also be available online at https://ir.allisontransmission.com.

For those unable to participate in the conference call, a replay will be available from 9:00 p.m. ET on May 4 until 11:59 p.m. ET on May 18. The replay dial-in phone number is +1-844-512-2921 and the international replay dial-in number is +1-412-317-6671. The replay passcode is 13760157.

About Allison
Allison (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit https://allisontransmission.com. 

Forward-Looking Statements
This press release 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: the significant costs we are expected to incur in connection with the integration of the Off-Highway Drive & Motion Systems business of Dana Incorporated (now referred to as the "Allison Off-Highway Business"); our ability to successfully integrate the Allison Off-Highway Business and its operations in the expected time frame; our ability to realize all of the anticipated benefits from the integration of the Allison Off-Highway Business and its operations and to effectively manage our 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 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 customers; 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 brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness.

Use of Non-GAAP Financial Measures
This press release contains information about Allison's financial results and forward-looking estimates of financial results that are not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their most directly comparable GAAP financial measures at the end of this press release. Non-GAAP financial measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

We use adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") and adjusted EBITDA as a percent of net sales ("adjusted EBITDA margin") to measure our operating profitability. We believe that adjusted EBITDA and adjusted EBITDA margin 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. Adjusted EBITDA margin is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to adjusted EBITDA and adjusted EBITDA margin is net income or segment operating profit (loss) in the case of our segments and net income as a percent of net sales ("net income margin") or segment operating profit (loss) as a percent of net sales in the case of our segments, 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, governing Allison Transmission, Inc.'s term loans and revolving credit facility. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net sales.

In addition, we believe adjusted net income, adjusted basic earnings per share attributable to common stockholders ("adjusted basic EPS") and adjusted diluted earnings per share attributable to common stockholders ("adjusted diluted EPS") provide management, investors and creditors with useful measures of our core business performance and trends and increase the period-to-period comparability of our results of operations. The most directly comparable GAAP measure to adjusted net income, adjusted basic EPS and adjusted diluted EPS is net income, basic earnings per share attributable to common stockholders ("basic EPS") and diluted earnings per share attributable to common stockholders ("diluted EPS"), respectively. Adjusted net income is calculated as net income excluding the effect of certain non-cash, non-recurring, infrequent or unusual items such as: amortization related to acquired intangible assets, depreciation of property, plant and equipment related to the stepped-up basis of acquired assets, step-up in basis of acquired inventory, stock-based compensation expense, acquisition-related expenses, impairment charges, other one-off adjustments and the tax effect of the adjustments. Adjusted basic EPS is calculated by dividing adjusted net income by the weighted average shares of common stock outstanding and adjusted diluted EPS is calculated by dividing adjusted net income by the diluted weighted average shares of common stock outstanding.

We use adjusted free cash flow to evaluate the amount of cash generated by our business that, after the capital investment needed to maintain and grow our business and certain mandatory debt service requirements, can be used for repayment of debt, stockholder distributions and strategic opportunities, including investing in our business. We believe that adjusted free cash flow enhances the understanding of the cash flows of our business for management, investors and creditors. Adjusted free cash flow is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to adjusted free cash flow is net cash provided by operating activities. Adjusted free cash flow is calculated as net cash provided by operating activities after cash used for additions of long-lived assets.

Attachments

Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Reconciliations of GAAP to Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance Allison Transmission Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, dollars in millions, except per share data)

Allison Transmission

Allison Off-Highway

Central Group Finance

Consolidated

 Three months ended March 31,

Three months ended March 31,

 Three months ended March 31,

Three months ended March 31,

2026

2025

2026

2025

2026

2025

2026

2025

Net sales

$  733

$  766

$  673

$     -

$     -

$     -

$  1,406

$   766

Cost of sales

377

388

623

-

-

-

1,000

388

Gross profit

356

378

50

-

-

-

406

378

Selling, general and administrative

65

65

56

-

36

22

157

87

Engineering - research and development

39

42

15

-

-

-

54

42

Operating income (loss)

$  252

$  271

$  (21)

$     -

$  (36)

$  (22)

195

249

Interest expense, net

(61)

(21)

Other (expense) income, net

(2)

5

Income before income taxes

132

233

Income tax expense

(20)

(41)

Net income

$     112

$   192

Basic earnings per share attributable to common stockholders

$    1.35

$  2.26

Diluted earnings per share attributable to common stockholders

$    1.33

$  2.23

Allison Transmission Holdings, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, dollars in millions)

 March 31,

 December 31,

2026

2025

ASSETS

Current Assets

    Cash and cash equivalents

$                    311

$             1,495

    Accounts receivable, net

892

333

    Inventories

835

316

    Other current assets

264

89

Total Current Assets

2,302

2,233

Property, plant and equipment, net

1,667

862

Intangible assets, net

1,685

794

Goodwill

2,827

2,075

Other non-current assets

268

118

TOTAL ASSETS

$                8,749

$             6,082

LIABILITIES

Current Liabilities

    Accounts payable

$                    728

$                190

    Product warranty liability

61

34

    Current portion of long-term debt

20

5

    Deferred revenue

76

34

    Other current liabilities

362

197

Total Current Liabilities

1,247

460

Product warranty liability

60

50

Deferred revenue

103

103

Long-term debt

4,247

2,885

Deferred income taxes

890

557

Other non-current liabilities

299

160

TOTAL LIABILITIES

6,846

4,215

TOTAL STOCKHOLDERS' EQUITY

1,903

1,867

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$                8,749

$             6,082

Allison Transmission Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, dollars in millions)

 Three months ended March 31,

2026

2025

Net cash provided by operating activities

$                   156

$                    181

-

Net cash used for investing activities (a) (b)

(2,616)

(26)

Net cash provided by (used for) financing activities

1,280

(184)

Effect of exchange rate changes on cash

(4)

1

Net decrease in cash and cash equivalents

(1,184)

(28)

Cash and cash equivalents at beginning of period

1,495

781

Cash and cash equivalents at end of period

$                   311

$                    753

Supplemental disclosures:

          Interest paid

$                    (41)

$                     (27)

          Income taxes paid

$                    (11)

$                       (2)

          Interest received from interest rate swaps

$                        -

$                        2

(a)  Business acquisition, net of cash acquired

$               (2,563)

$                         -

(b)  Additions of long-lived assets

$                    (53)

$                     (26)

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Three months ended 

 March 31, 

2026

2025

Net income (GAAP)

$      112

$   192

plus:

    Income tax expense

20

41

    Depreciation of property, plant and equipment

44

28

    Interest expense, net

61

21

    Amortization expense

23

2

    Recognition of the stepped-up basis in inventory (a)

63

-

    Acquisition-related expenses (b)

17

9

    Depreciation of the stepped up basis in property, plant and equipment (c) 

13

-

    Stock-based compensation expense (d)

7

6

    Unrealized gain on marketable securities (e)

(3)

(3)

    Other (f)

5

-

Adjusted EBITDA (Non-GAAP)

$      362

$   296

Net sales (GAAP)

$   1,406

$   766

Net income as a percent of Net sales (GAAP)

8.0 %

25.1 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

25.7 %

38.6 %

Net cash provided by operating activities (GAAP)

$      156

$   181

Deductions to reconcile to Adjusted free cash flow:

    Additions of long-lived assets

(53)

(26)

Adjusted free cash flow (Non-GAAP)

$      103

$   155

(a)

Represents the recognition of the stepped-up basis in inventory related to our acquisition of the Dana Off-Highway business (the "Acquisition") (recorded in Cost of sales).

(b)

Represents acquisition-related expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(c)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

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

(f)

Represents other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019 as amended.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Three months ended 

 Three months ended 

 Three months ended 

 Three months ended 

 March 31, 

 March 31, 

 March 31, 

 March 31, 

2026

2025

2026

2025

2026

2025

2026

2025

Segment Operating Profit/(Loss) (GAAP)

$   252

$   271

$   (21)

$      -

$   (36)

$   (22)

$      195

$   249

plus:

    Depreciation of property, plant and equipment

30

28

14

-

-

-

44

28

    Amortization expense

1

2

22

-

-

-

23

2

    Recognition of the stepped-up basis in inventory (a)

-

-

63

-

-

-

63

-

    Acquisition-related expenses (b)

-

-

-

-

17

9

17

9

    Depreciation of the stepped up basis in property, plant and equipment (c) 

-

-

13

-

-

-

13

-

    Stock-based compensation expense (d)

-

-

-

-

7

6

7

6

    Other (e)

(7)

2

7

-

-

-

-

2

Adjusted EBITDA (Non-GAAP)

$   276

$   303

$     98

$      -

$   (12)

$     (7)

$      362

$   296

Net sales (GAAP)

$   733

$   766

$   673

$      -

$       -

$       -

$   1,406

$   766

Segment Operating Profit/(Loss) as a percent of Net sales (GAAP)

34.4 %

35.4 %

-3.1 %

-

-

-

13.9 %

32.5 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

37.7 %

39.6 %

14.6 %

-

-

-

25.7 %

38.6 %

(a)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(b)

Represents acquisition-related expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(c)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e) 

Represents gains and losses (recorded in Other (expense) income, net) to reconcile to Adjusted EBITDA.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Three months ended 

 March 31, 

2026

2025

Net income (GAAP)

$    112

$    192

plus:

    Recognition of the stepped-up basis in inventory (a)

63

-

    Amortization expense

23

2

    Acquisition-related expenses (b)

17

9

    Depreciation of the stepped up basis in property, plant and equipment (c) 

13

-

    Stock-based compensation expense (d)

7

6

    Income tax effect on adjustments (e)

(19)

(3)

Adjusted net income (Non-GAAP)

$    216

$    206

Basic EPS (GAAP)

$   1.35

$   2.26

Diluted EPS (GAAP)

$   1.33

$   2.23

Adjusted basic EPS (Non-GAAP) (f)

$   2.60

$   2.46

Adjusted diluted EPS (Non-GAAP) (f)

$   2.57

$   2.43

(a)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(b)

Represents acquisition-related expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition.

(c)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

Represents the income tax effect on the adjustments calculated by applying our effective tax rate.

(f)

Adjusted basic EPS and Adjusted diluted EPS are Non‑GAAP financial measures are defined as Adjusted net income divided by the weighted average common shares outstanding and diluted weighted average shares outstanding, respectively, for the period. The weighted-average common shares outstanding and diluted weighted-average common shares outstanding are the same as those used in calculating the comparable GAAP measures.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance

(Unaudited, dollars in millions)

Guidance

Year Ending December 31, 2026

Low

High

Net income (GAAP)

$     600

$     750

plus:

Income tax expense

125

175

Depreciation of property, plant and equipment (a)

210

200

Interest expense, net

210

200

Amortization of intangible assets

85

75

Recognition of the stepped-up basis in inventory (b)

65

65

Acquisition-related expenses  (c)

40

30

Stock-based compensation expense (d)

30

20

Unrealized gain on marketable securities (e)

(15)

(15)

Restructuring & One-Time expenses (f) 

15

15

Adjusted EBITDA (Non-GAAP)

$  1,365

$  1,515

Net cash provided by Operating activities (GAAP)

$     970

$  1,100

Deductions to reconcile to Adjusted free cash flow:

    Additions of long-lived assets (g)

$   (315)

$   (295)

Adjusted free cash flow (Non-GAAP)

$     655

$     805

(a)

Includes depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(b)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(c)

Represents acquisition-related expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to our acquisition of the Dana Off-Highway business (the "Acquisition"). 

(d)

Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development).

(e)

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

(f)

Includes one-time restructuring costs, minority interest and one-time employee retention costs

(g)

Includes one-time acquisition-related investments

SOURCE Allison Transmission Holdings Inc.

Allison Transmission Holdings, Inc. (ALSN) Q1 2026 Earnings Call Transcript

INDIANAPOLIS, May 6, 2026 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world, announced today that its Board of Directors has declared a cash dividend of $0.29 per share on the Company's common stock for the second quarter of 2026. Payment will be made on May 29, 2026, to stockholders of record at the close of business on May 18, 2026.

On May 15, 2026, Allison Transmission Holdings Inc (ALSN) shares fell 4.4% today, bringing the current price to $117.27. The stock has experienced a range of pe

Investors need to pay close attention to ALSN stock based on the movements in the options market lately.

, /PRNewswire/ -- Allison Transmission Holdings, Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions, today announced that the next generation of tactical trucks for the French Land Forces will be equipped with its Specialty Series™ (SP) fully automatic transmissions. The Allison 4500 SP will be the standard offering on these tactical trucks built on Daimler Truck's Zetros 6x6 chassis. The French Ministry of the Armed Forces awarded the "Porteurs Logistiques 6 Tonnes" (PL6T) contract to Arquus for the "Zetros by Arquus" vehicle, which is the product of a strategic partnership between Arquus and Daimler Truck.

Arquus Defense This multi-million-dollar program represents a significant commitment to modernizing the logistics and operational capabilities of French Land Forces. It addresses expanding requirements for reliable performance in highly intense, demanding operations during an era of rapid defense modernization.

The PL6T program will produce and deliver 7,000 defense trucks over a period of more than 10 years, beginning with initial deliveries in 2027. All vehicles will feature a three-axle configuration powered by the Mercedes-Benz OM 460 engine, paired with the Allison 4500 SP automatic transmission. This combination delivers operational readiness while providing the reliability, durability and enhanced driving performance required for demanding defense operations.

"The selection of the Zetros platform with Allison's fully automatic transmission technology reflects our commitment to providing the French Armed Forces with best-in-class solutions," said Daniel Zittel, Head of Defense Sales at Daimler Truck. "This partnership leverages trust and shared commitment to deliver exceptional vehicles for modern operations. The proven reliability and driving performance of Allison transmissions will contribute significantly to vehicle readiness during field missions."

Allison's 4500 SP fully automatic transmission eliminates the need for manual shifting and shifts gears seamlessly without interruptions. Allison's Continuous Power Technology provides uninterrupted power to the wheels, allowing operators to focus on mission requirements and drive smoothly across all terrains.

"Our partnership with Arquus and Daimler Truck represents a significant milestone in Allison's continued commitment to supporting the evolving needs of our customers in the defense sector," said Taner Gider, Executive Director, Sales, Europe, Middle East and Asia Pacific, at Allison Transmission. "Allison's global market leadership in defense vehicle propulsion is built on our dedication to partnership and our ability to deliver the most reliable and valued propulsion solutions for mission-critical applications. The 4500 SP transmission has proven itself in the most demanding environments, and we are honored to support the modernization of the French Land Forces."

About Allison Transmission 

Allison Transmission Holdings, Inc. (NYSE: ALSN) ("Allison") is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit https://allisontransmission.com

SOURCE Allison Transmission Holdings Inc.