Allison Transmission (ALSN) Earnings Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
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Should l Buy ALSN?
Source: NASDAQ.COM
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Analyst Views on ALSN
Wall Street analysts forecast ALSN stock price to fall
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 114.640
Low
98.00
Averages
109.40
High
115.00
Current: 114.640
Low
98.00
Averages
109.40
High
115.00
About ALSN
Allison Transmission Holdings, Inc. is a designer and manufacturer of propulsion solutions for commercial and defense vehicles. The Company is also a manufacturer of medium-and heavy-duty fully automatic transmissions. Its products are used in a variety of applications, including on-highway trucks, including distribution, refuse, construction, fire and emergency; buses, including school, transit and coach; motorhomes, off-highway vehicles, and equipment, including energy, mining and construction applications; and defense vehicles, including tactical wheeled and tracked. The Company operates in approximately 150 countries. The Company has manufacturing facilities in the United States, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. The Company also has approximately 1,600 independent distributor and dealer locations worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Allison Expands Partnership with Daimler Truck North America
- New Transmission Launch: Allison Transmission expands its partnership with Daimler Truck North America by introducing two new automatic transmissions for the M2 106 Plus medium-duty trucks, set to begin production in January 2027 and July 2026, respectively, thereby broadening powertrain options to meet market demands for efficiency.
- Powertrain Optimization: The new Allison 3414 Regional Haul Series transmission, paired with the Cummins X10 diesel engine, aims to enhance torque delivery balance and fuel efficiency, aligning with increasingly stringent efficiency requirements and thereby boosting product competitiveness.
- Long-term Partnership: Since 2010, Allison has been the exclusive transmission supplier for all Daimler Truck North America product lines, including Freightliner and Western Star, showcasing a strong collaborative foundation in the heavy-duty truck market.
- Future Sales Targets: Following the integration of the Dana Off-Highway acquisition, Allison Transmission outlines a 2026 sales target between $5.575 billion and $5.925 billion, reflecting the company's confidence in future growth and strategic market expansion.
See More
Allison Expands Partnership with Daimler Truck
- New Product Launch: Allison Transmission announces an expansion of its partnership with Daimler Truck North America to introduce two fully automatic transmissions, the 3414 Regional Haul Series and the 9-Speed transmission, set to begin production in January 2027 and July 2026 respectively, significantly enhancing powertrain options for the Freightliner M2 106 Plus medium-duty truck.
- Performance Enhancement: The pairing of the Allison 3414 RHS transmission with the Cummins X10 diesel engine delivers a 25% acceleration improvement compared to competitive automated manual transmissions (AMTs), optimizing vehicle handling and maneuverability to meet medium-duty tractor application needs.
- Market Demand Response: The newly launched 9-Speed transmission, combined with the Cummins B6.7 Octane engine, is designed to help fleets address evolving efficiency requirements while balancing torque delivery and fuel-saving capabilities, thereby enhancing competitiveness in the commercial truck market.
- Strategic Partnership Deepening: The expansion of Allison's collaboration with DTNA underscores a shared commitment to delivering powertrain solutions that meet customer needs, enhancing productivity, efficiency, and long-term value through the integration of new technologies.
See More
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
See More
U.S. Stocks Decline on Friday Amid Inflation Data Impact
- Dow Jones Decline: On Friday, the Dow Jones index fell over 500 points during the session, reflecting investor concerns over the latest inflation data, which may lead to subdued market sentiment and impact short-term investment decisions.
- Nasdaq Weakness: In February, the Nasdaq dropped more than 3%, marking its weakest monthly performance since last March, indicating vulnerability in tech stocks and a reassessment of high valuations in the market.
- S&P 500 Slight Decline: The S&P 500 fell nearly 1% last month, while the Dow rose about 0.2%, suggesting a divergence in performance across different sectors, which could influence portfolio allocation strategies.
- Analyst Rating Discrepancies: Despite Wall Street analysts providing new stock picks daily, the wide variance in analyst ratings and price targets leaves investors confused about which analyst's opinion to trust, potentially affecting the effectiveness of investment decisions.
See More
Allison Transmission Increases Quarterly Dividend by 7.4%
- Quarterly Dividend Increase: Allison Transmission has declared a quarterly dividend of $0.29 per share, marking a 7.4% increase from the previous $0.27, indicating the company's strong profitability and cash flow management, which enhances investor confidence.
- Dividend Yield: The forward yield of 0.93% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, thereby increasing shareholder value.
- Dividend Payment Schedule: The dividend is payable on March 20, with a record date of March 9 and an ex-dividend date also on March 9, ensuring shareholders receive timely returns and strengthening the trust relationship between the company and its investors.
- Future Sales Target: Allison has set a sales target of $5.575 billion to $5.925 billion for 2026, demonstrating its integration capabilities following the Dana Off-Highway acquisition and indicating positive growth prospects for the future.
See More
Allison Transmission Q4 2025 Earnings Call Insights
- Acquisition Completed: Allison Transmission has finalized its acquisition of Dana's Off-Highway Drive & Motion Systems, increasing its workforce to 14,000 across 25 countries, which is expected to significantly enhance market reach and product portfolio, thereby driving future financial performance.
- Financial Performance: Q4 2025 net sales were $737 million, down 7% year-over-year, yet adjusted EBITDA margin rose by 140 basis points to 37.5%, demonstrating the company's resilience in a challenging market, particularly with defense revenue increasing by 26% to $267 million.
- Future Outlook: The company projects 2026 consolidated net sales between $5.575 billion and $5.925 billion, with adjusted EBITDA expected to range from $1.365 billion to $1.515 billion, as management expresses confidence in achieving annual run rate synergies despite ongoing softness in the North American market.
- Shareholder Returns: In 2025, Allison repurchased $328 million in stock and raised its quarterly dividend to $0.27 per share, reflecting the company's commitment to returning capital to shareholders while maintaining strong cash flow and enhancing investor confidence.
See More
Allison Expands Partnership with Daimler Truck North America
- New Transmission Launch: Allison Transmission expands its partnership with Daimler Truck North America by introducing two new automatic transmissions for the M2 106 Plus medium-duty trucks, set to begin production in January 2027 and July 2026, respectively, thereby broadening powertrain options to meet market demands for efficiency.
- Powertrain Optimization: The new Allison 3414 Regional Haul Series transmission, paired with the Cummins X10 diesel engine, aims to enhance torque delivery balance and fuel efficiency, aligning with increasingly stringent efficiency requirements and thereby boosting product competitiveness.
- Long-term Partnership: Since 2010, Allison has been the exclusive transmission supplier for all Daimler Truck North America product lines, including Freightliner and Western Star, showcasing a strong collaborative foundation in the heavy-duty truck market.
- Future Sales Targets: Following the integration of the Dana Off-Highway acquisition, Allison Transmission outlines a 2026 sales target between $5.575 billion and $5.925 billion, reflecting the company's confidence in future growth and strategic market expansion.
See More
Allison Expands Partnership with Daimler Truck
- New Product Launch: Allison Transmission announces an expansion of its partnership with Daimler Truck North America to introduce two fully automatic transmissions, the 3414 Regional Haul Series and the 9-Speed transmission, set to begin production in January 2027 and July 2026 respectively, significantly enhancing powertrain options for the Freightliner M2 106 Plus medium-duty truck.
- Performance Enhancement: The pairing of the Allison 3414 RHS transmission with the Cummins X10 diesel engine delivers a 25% acceleration improvement compared to competitive automated manual transmissions (AMTs), optimizing vehicle handling and maneuverability to meet medium-duty tractor application needs.
- Market Demand Response: The newly launched 9-Speed transmission, combined with the Cummins B6.7 Octane engine, is designed to help fleets address evolving efficiency requirements while balancing torque delivery and fuel-saving capabilities, thereby enhancing competitiveness in the commercial truck market.
- Strategic Partnership Deepening: The expansion of Allison's collaboration with DTNA underscores a shared commitment to delivering powertrain solutions that meet customer needs, enhancing productivity, efficiency, and long-term value through the integration of new technologies.
See More
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
See More
U.S. Stocks Decline on Friday Amid Inflation Data Impact
- Dow Jones Decline: On Friday, the Dow Jones index fell over 500 points during the session, reflecting investor concerns over the latest inflation data, which may lead to subdued market sentiment and impact short-term investment decisions.
- Nasdaq Weakness: In February, the Nasdaq dropped more than 3%, marking its weakest monthly performance since last March, indicating vulnerability in tech stocks and a reassessment of high valuations in the market.
- S&P 500 Slight Decline: The S&P 500 fell nearly 1% last month, while the Dow rose about 0.2%, suggesting a divergence in performance across different sectors, which could influence portfolio allocation strategies.
- Analyst Rating Discrepancies: Despite Wall Street analysts providing new stock picks daily, the wide variance in analyst ratings and price targets leaves investors confused about which analyst's opinion to trust, potentially affecting the effectiveness of investment decisions.
See More
Allison Transmission Increases Quarterly Dividend by 7.4%
- Quarterly Dividend Increase: Allison Transmission has declared a quarterly dividend of $0.29 per share, marking a 7.4% increase from the previous $0.27, indicating the company's strong profitability and cash flow management, which enhances investor confidence.
- Dividend Yield: The forward yield of 0.93% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, thereby increasing shareholder value.
- Dividend Payment Schedule: The dividend is payable on March 20, with a record date of March 9 and an ex-dividend date also on March 9, ensuring shareholders receive timely returns and strengthening the trust relationship between the company and its investors.
- Future Sales Target: Allison has set a sales target of $5.575 billion to $5.925 billion for 2026, demonstrating its integration capabilities following the Dana Off-Highway acquisition and indicating positive growth prospects for the future.
See More
Allison Transmission Q4 2025 Earnings Call Insights
- Acquisition Completed: Allison Transmission has finalized its acquisition of Dana's Off-Highway Drive & Motion Systems, increasing its workforce to 14,000 across 25 countries, which is expected to significantly enhance market reach and product portfolio, thereby driving future financial performance.
- Financial Performance: Q4 2025 net sales were $737 million, down 7% year-over-year, yet adjusted EBITDA margin rose by 140 basis points to 37.5%, demonstrating the company's resilience in a challenging market, particularly with defense revenue increasing by 26% to $267 million.
- Future Outlook: The company projects 2026 consolidated net sales between $5.575 billion and $5.925 billion, with adjusted EBITDA expected to range from $1.365 billion to $1.515 billion, as management expresses confidence in achieving annual run rate synergies despite ongoing softness in the North American market.
- Shareholder Returns: In 2025, Allison repurchased $328 million in stock and raised its quarterly dividend to $0.27 per share, reflecting the company's commitment to returning capital to shareholders while maintaining strong cash flow and enhancing investor confidence.
See More
