Allison Transmission Reports Strong Q1 Results with Strategic Growth Focus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 04 2026
0mins
Should l Buy ALSN?
Source: PRnewswire
- Sales Performance Growth: Allison Transmission reported net sales of $1.406 billion in Q1, reflecting strong demand in key markets, which is expected to further drive the company's long-term growth strategy.
- Profitability Improvement: Adjusted EBITDA reached $362 million with a 26% margin, an increase of $66 million from the previous year, indicating effective integration of the newly acquired business unit.
- Commitment to Shareholder Returns: The company announced its seventh consecutive quarterly dividend increase and repurchased over $20 million of common stock, demonstrating a consistent commitment to shareholder returns in its capital allocation priorities.
- Financial Resilience: With net cash provided by operating activities at $156 million and cash equivalents totaling $311 million, the company showcases a robust financial foundation to navigate market uncertainties.
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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: 124.180
Low
98.00
Averages
109.40
High
115.00
Current: 124.180
Low
98.00
Averages
109.40
High
115.00
About ALSN
Allison Transmission Holdings, Inc. specializes in high-performance mobility and work solutions. The Company operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. The Company manufactures solutions which offer value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. Its transmission model products include 1000 Series + 2000 Series, 9-Speed, 3000 Series, 4000 Series, 6000 Series, 8000 Series, 9000 Series, FracTran, and X Models. Its electric + hybrid model products include eGen Flex, eGen Force, and eGen Power. Allison Off-Highway Drive & Motion Systems specializes in powertrain technologies, encompassing axles, propulsion solutions and drivetrain components. It specializes in hybrid and electric drive systems tailored to customer needs. The Company has a global presence by serving customers in North America, Asia, Europe, South America, and Africa.
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 Transmission Q1 2026 Earnings Call Insights
- Strong Defense Market: Allison Transmission reported a 64% year-over-year increase in defense market revenue for Q1 2026, indicating robust demand from international track programs, which is expected to further enhance the company's market share in this sector.
- Integration Progress: The company is making steady progress in integrating the Off-Highway business post-acquisition, with financial benefits anticipated to begin materializing in the second half of 2026, reflecting management's confidence in future growth.
- Sales and Earnings Outlook: For 2026, consolidated net sales are projected to range between $5.575 billion and $5.925 billion, with net income expected between $600 million and $750 million, demonstrating a positive growth outlook despite macroeconomic uncertainties.
- Shareholder Return Initiatives: In Q1, the company repaid $150 million in debt and increased its dividend to $0.29 per share, showcasing a commitment to enhancing shareholder returns while maintaining approximately $1.2 billion in stock repurchase authorization.
See More
Allison Transmission Reports Strong Q1 Results with Strategic Growth Focus
- Sales Performance Growth: Allison Transmission reported net sales of $1.406 billion in Q1, reflecting strong demand in key markets, which is expected to further drive the company's long-term growth strategy.
- Profitability Improvement: Adjusted EBITDA reached $362 million with a 26% margin, an increase of $66 million from the previous year, indicating effective integration of the newly acquired business unit.
- Commitment to Shareholder Returns: The company announced its seventh consecutive quarterly dividend increase and repurchased over $20 million of common stock, demonstrating a consistent commitment to shareholder returns in its capital allocation priorities.
- Financial Resilience: With net cash provided by operating activities at $156 million and cash equivalents totaling $311 million, the company showcases a robust financial foundation to navigate market uncertainties.
See More
Allison Transmission Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Allison Transmission reported a Q1 non-GAAP EPS of $2.57, beating expectations by $0.47, which demonstrates the company's robust profitability and enhances investor confidence.
- Significant Revenue Growth: The company achieved $1.40 billion in revenue for Q1, reflecting an 82.8% year-over-year increase and surpassing market expectations by $20 million, indicating strong performance amid recovering market demand that could drive future investments and expansion.
- Adjusted EBITDA Increase: Q1 adjusted EBITDA reached $362 million, accounting for 26% of net sales and up 22% year-over-year, showcasing significant progress in cost control and operational efficiency, thereby strengthening its profitability.
- Optimistic Market Outlook: With the recovery of the automotive supply chain and increasing demand, Allison Transmission's strong earnings report may attract more investor attention, further enhancing its competitive position in the industry.
See More
Allison Transmission Q1 Earnings Announcement Scheduled
- Earnings Release Date: Allison Transmission Holdings is set to announce its Q1 earnings on May 4th after market close, with consensus EPS estimate at $2.10, reflecting a 5.8% year-over-year decline, while revenue is expected to reach $1.38 billion, indicating a robust 80.2% year-over-year growth.
- Performance Exceeding Expectations: Over the past year, Allison Transmission has surpassed EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing the company's exceptional performance in profitability and market expectation management.
- Revision Trends: In the last three months, EPS estimates have seen one upward revision and no downward adjustments, while revenue estimates have experienced three upward revisions and one downward, indicating strong market confidence in the company's future performance.
- Industry Impact Analysis: The upcoming earnings report from Allison Transmission may influence auto supplier stocks, particularly in the context of Section 232 tariffs, as market participants will closely monitor its financial performance to assess the industry's outlook.
See More
Allison Transmission Schedules Q1 2026 Earnings Call
- Earnings Call Scheduled: Allison Transmission will hold its Q1 2026 financial results conference call at 5:00 p.m. EDT on May 4, 2026, where executives will review the company's financial performance, aiming to provide transparency to investors.
- Timing of Results Release: The financial results press release will be issued post-market on May 4, ensuring investors have access to the latest financial data before the call, thereby enhancing market understanding of the company's performance.
- Dial-in Information Provided: The conference call can be accessed at +1-877-425-9470 for domestic calls and +1-201-389-0878 for international calls, facilitating global investor participation and demonstrating the company's commitment to investor relations.
- Replay Service Offered: For those unable to attend live, a replay will be available from 9:00 p.m. EDT on May 4 until 11:59 p.m. EDT on May 18, ensuring all investors can access the meeting content and further improving information accessibility.
See More
RBC Capital: Recent Decline in Auto Suppliers' Stocks Overblown
- Tariff Adjustment Impact: On April 6, the U.S. implemented a new Section 232 tariff structure that changes the calculation method for tariffs on finished goods, increasing the overall customs value and potentially raising costs for auto suppliers.
- Overblown Market Reaction: RBC Capital analyst Tom Narayan noted that the sharp decline in BRP's stock due to guidance cuts over tariff issues has led to an overly pessimistic market reaction regarding auto suppliers, which could undermine investor confidence.
- USMCA Exemption Status: The analyst emphasized that the Section 232 adjustments do not affect existing tariff agreements with the EU, Japan, or Korea, and the USMCA exemption status remains largely intact, potentially providing some protection for auto suppliers.
- Ongoing Metal Tariffs: While USMCA-qualifying goods still face metal tariffs, analysts believe there are beneficial offsets available that may mitigate negative impacts on suppliers, thereby supporting future market performance.
See More
Allison Transmission Q1 2026 Earnings Call Insights
- Strong Defense Market: Allison Transmission reported a 64% year-over-year increase in defense market revenue for Q1 2026, indicating robust demand from international track programs, which is expected to further enhance the company's market share in this sector.
- Integration Progress: The company is making steady progress in integrating the Off-Highway business post-acquisition, with financial benefits anticipated to begin materializing in the second half of 2026, reflecting management's confidence in future growth.
- Sales and Earnings Outlook: For 2026, consolidated net sales are projected to range between $5.575 billion and $5.925 billion, with net income expected between $600 million and $750 million, demonstrating a positive growth outlook despite macroeconomic uncertainties.
- Shareholder Return Initiatives: In Q1, the company repaid $150 million in debt and increased its dividend to $0.29 per share, showcasing a commitment to enhancing shareholder returns while maintaining approximately $1.2 billion in stock repurchase authorization.
See More
Allison Transmission Reports Strong Q1 Results with Strategic Growth Focus
- Sales Performance Growth: Allison Transmission reported net sales of $1.406 billion in Q1, reflecting strong demand in key markets, which is expected to further drive the company's long-term growth strategy.
- Profitability Improvement: Adjusted EBITDA reached $362 million with a 26% margin, an increase of $66 million from the previous year, indicating effective integration of the newly acquired business unit.
- Commitment to Shareholder Returns: The company announced its seventh consecutive quarterly dividend increase and repurchased over $20 million of common stock, demonstrating a consistent commitment to shareholder returns in its capital allocation priorities.
- Financial Resilience: With net cash provided by operating activities at $156 million and cash equivalents totaling $311 million, the company showcases a robust financial foundation to navigate market uncertainties.
See More
Allison Transmission Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Allison Transmission reported a Q1 non-GAAP EPS of $2.57, beating expectations by $0.47, which demonstrates the company's robust profitability and enhances investor confidence.
- Significant Revenue Growth: The company achieved $1.40 billion in revenue for Q1, reflecting an 82.8% year-over-year increase and surpassing market expectations by $20 million, indicating strong performance amid recovering market demand that could drive future investments and expansion.
- Adjusted EBITDA Increase: Q1 adjusted EBITDA reached $362 million, accounting for 26% of net sales and up 22% year-over-year, showcasing significant progress in cost control and operational efficiency, thereby strengthening its profitability.
- Optimistic Market Outlook: With the recovery of the automotive supply chain and increasing demand, Allison Transmission's strong earnings report may attract more investor attention, further enhancing its competitive position in the industry.
See More
Allison Transmission Q1 Earnings Announcement Scheduled
- Earnings Release Date: Allison Transmission Holdings is set to announce its Q1 earnings on May 4th after market close, with consensus EPS estimate at $2.10, reflecting a 5.8% year-over-year decline, while revenue is expected to reach $1.38 billion, indicating a robust 80.2% year-over-year growth.
- Performance Exceeding Expectations: Over the past year, Allison Transmission has surpassed EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing the company's exceptional performance in profitability and market expectation management.
- Revision Trends: In the last three months, EPS estimates have seen one upward revision and no downward adjustments, while revenue estimates have experienced three upward revisions and one downward, indicating strong market confidence in the company's future performance.
- Industry Impact Analysis: The upcoming earnings report from Allison Transmission may influence auto supplier stocks, particularly in the context of Section 232 tariffs, as market participants will closely monitor its financial performance to assess the industry's outlook.
See More
Allison Transmission Schedules Q1 2026 Earnings Call
- Earnings Call Scheduled: Allison Transmission will hold its Q1 2026 financial results conference call at 5:00 p.m. EDT on May 4, 2026, where executives will review the company's financial performance, aiming to provide transparency to investors.
- Timing of Results Release: The financial results press release will be issued post-market on May 4, ensuring investors have access to the latest financial data before the call, thereby enhancing market understanding of the company's performance.
- Dial-in Information Provided: The conference call can be accessed at +1-877-425-9470 for domestic calls and +1-201-389-0878 for international calls, facilitating global investor participation and demonstrating the company's commitment to investor relations.
- Replay Service Offered: For those unable to attend live, a replay will be available from 9:00 p.m. EDT on May 4 until 11:59 p.m. EDT on May 18, ensuring all investors can access the meeting content and further improving information accessibility.
See More
RBC Capital: Recent Decline in Auto Suppliers' Stocks Overblown
- Tariff Adjustment Impact: On April 6, the U.S. implemented a new Section 232 tariff structure that changes the calculation method for tariffs on finished goods, increasing the overall customs value and potentially raising costs for auto suppliers.
- Overblown Market Reaction: RBC Capital analyst Tom Narayan noted that the sharp decline in BRP's stock due to guidance cuts over tariff issues has led to an overly pessimistic market reaction regarding auto suppliers, which could undermine investor confidence.
- USMCA Exemption Status: The analyst emphasized that the Section 232 adjustments do not affect existing tariff agreements with the EU, Japan, or Korea, and the USMCA exemption status remains largely intact, potentially providing some protection for auto suppliers.
- Ongoing Metal Tariffs: While USMCA-qualifying goods still face metal tariffs, analysts believe there are beneficial offsets available that may mitigate negative impacts on suppliers, thereby supporting future market performance.
See More
