Allison Transmission to Replace Goodyear in S&P MidCap 400 Index
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Source: Newsfilter
- Index Changes: Allison Transmission Holdings Inc. will replace Goodyear Tire & Rubber Co. in the S&P MidCap 400 Index effective July 6, 2026, highlighting its recognition and elevation within the industrial sector, which is expected to enhance market visibility and investor confidence.
- Acquisition Impact: Prosperity Bancshares Inc. is acquiring Stellar Bancorp Inc., with the deal expected to close on July 1, resulting in Stellar's removal from the S&P SmallCap 600 Index, reflecting a trend of consolidation within the financial sector.
- Market Reaction: Goodyear Tire will be re-added to the S&P SmallCap 600 Index, and while its position in the MidCap Index is replaced, this change may attract different types of investors, potentially boosting its market performance in the consumer discretionary sector.
- Industry Dynamics: As the largest global index provider, S&P Dow Jones Indices continues to enhance market transparency and investor confidence, with Allison's inclusion further diversifying the MidCap Index and reflecting ongoing growth potential in the industrial sector.
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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: 112.740
Low
98.00
Averages
109.40
High
115.00
Current: 112.740
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 to Replace Goodyear in S&P MidCap 400 Index
- Index Changes: Allison Transmission Holdings Inc. will replace Goodyear Tire & Rubber Co. in the S&P MidCap 400 Index effective July 6, 2026, highlighting its recognition and elevation within the industrial sector, which is expected to enhance market visibility and investor confidence.
- Acquisition Impact: Prosperity Bancshares Inc. is acquiring Stellar Bancorp Inc., with the deal expected to close on July 1, resulting in Stellar's removal from the S&P SmallCap 600 Index, reflecting a trend of consolidation within the financial sector.
- Market Reaction: Goodyear Tire will be re-added to the S&P SmallCap 600 Index, and while its position in the MidCap Index is replaced, this change may attract different types of investors, potentially boosting its market performance in the consumer discretionary sector.
- Industry Dynamics: As the largest global index provider, S&P Dow Jones Indices continues to enhance market transparency and investor confidence, with Allison's inclusion further diversifying the MidCap Index and reflecting ongoing growth potential in the industrial sector.
See More
Allison Transmission to Replace Goodyear in S&P MidCap 400
- Index Changes: Allison Transmission (Ticker: ALSN) will replace Goodyear Tire & Rubber (Ticker: GT) in the S&P MidCap 400 effective July 6, 2026, which is expected to enhance Allison's market visibility and potentially attract more investor interest.
- Goodyear's Transition: Goodyear will be removed from the S&P MidCap 400 and added to the S&P SmallCap 600, indicating a shift in its market position that may impact its stock performance and investor confidence.
- Acquisition Impact: Prosperity Bancshares (Ticker: PB) is set to complete its acquisition of Stellar Bancorp (Ticker: STEL) on July 1, which will further reshape the composition of the S&P SmallCap 600 index and could influence market dynamics for related financial stocks.
- Index Management Context: S&P Dow Jones Indices is one of the largest index providers globally, managing a vast array of investment products based on its indices, and these changes will affect investors' asset allocation strategies, reflecting anticipated shifts in company performance.
See More
Allison Transmission Lowers Loan Interest Rate
- Loan Rate Reduction: Allison Transmission has amended its credit agreement to lower the interest rate margin on its existing $508 million term loan by 25 basis points, resulting in a 1.50% annual rate for SOFR loans, which is expected to reduce annual cash interest expenses by approximately $1.3 million, thereby enhancing financial flexibility.
- Commitment to Financial Management: CFO Scott Mell emphasized that this repricing reflects the company's commitment to prudent balance sheet management, ensuring a clear strategy for capital structure and allocation, which is likely to boost investor confidence.
- Business Stability: Operating in over 150 countries, Allison focuses on high-performance mobility and work solutions, and the interest rate reduction will further solidify its market position in critical sectors such as infrastructure, energy, and transportation.
- Future Outlook: Despite facing global economic volatility and industry competition, Allison Transmission remains dedicated to achieving long-term growth through technological innovation and market adaptability, ensuring competitiveness in the electric hybrid and fully electric commercial vehicle sectors.
See More
Allison Transmission Secures $250 Million Contract with BAE Systems
- Historic Contract: Allison Transmission has signed a $250 million agreement with BAE Systems Hägglunds to supply 4040 MX transmissions, marking the largest single tracked defense program contract in the company's history and representing a significant breakthrough in the defense market.
- Production Plans: The contract includes an option for additional units valued at $50 million, which is expected to provide a continuous revenue stream for Allison's 4040 MX transmissions, further solidifying its market position in the defense sector.
- Product Application: The CV90 MkIV infantry fighting vehicle will serve as the inaugural production platform for Allison's 4040 MX transmission, with production deliveries scheduled to begin in 2028, creating new growth opportunities for the company.
- Market Reaction: Following the contract announcement, Allison's stock rose 0.9% in premarket trading to $120.55, reflecting investor confidence in the company's future growth potential.
See More
Allison Transmission Partners with French Army for Tactical Trucks
- Contract Award: The French Ministry of Armed Forces awarded the PL6T contract to Arquus for 7,000 tactical trucks based on the Daimler Zetros 6x6 chassis over a decade, reflecting a significant commitment to modernizing logistics capabilities.
- Technology Integration: All vehicles will feature Allison's 4500 SP fully automatic transmission paired with the Mercedes-Benz OM 460 engine, ensuring reliability and superior driving performance in high-intensity operational environments.
- Market Leadership: Allison's global leadership in defense vehicle propulsion stems from its dedication to partnerships and its ability to deliver high-value propulsion solutions, further solidifying its influence in the defense sector.
- Strategic Importance: This collaboration enhances the operational readiness of the French Army and ensures smooth driving across various terrains through Allison's Continuous Power Technology, addressing the demands of modern military operations.
See More
Allison Transmission Partners with French Army for Tactical Trucks
- Large Contract Scale: The French Ministry of Armed Forces awarded the PL6T contract to Arquus, planning to produce 7,000 tactical trucks based on the Daimler Truck Zetros 6x6 chassis over a decade, demonstrating a strong commitment to modernizing logistics capabilities.
- Significant Technical Advantages: All vehicles will feature Allison's 4500 SP fully automatic transmission paired with the Mercedes-Benz OM 460 engine, providing exceptional reliability and driving performance essential for operational readiness in high-intensity combat environments.
- Deepened Strategic Partnership: The collaboration between Allison, Arquus, and Daimler Truck marks a significant milestone in the defense sector, reflecting a commitment to supporting evolving customer needs and reinforcing Allison's leadership in defense vehicle propulsion.
- Innovative Technology Application: Allison's 4500 SP transmission enhances operator driving experience across various terrains through seamless shifting and Continuous Power Technology, allowing focus on mission requirements and improving tactical vehicle operational capabilities.
See More
Allison Transmission to Replace Goodyear in S&P MidCap 400 Index
- Index Changes: Allison Transmission Holdings Inc. will replace Goodyear Tire & Rubber Co. in the S&P MidCap 400 Index effective July 6, 2026, highlighting its recognition and elevation within the industrial sector, which is expected to enhance market visibility and investor confidence.
- Acquisition Impact: Prosperity Bancshares Inc. is acquiring Stellar Bancorp Inc., with the deal expected to close on July 1, resulting in Stellar's removal from the S&P SmallCap 600 Index, reflecting a trend of consolidation within the financial sector.
- Market Reaction: Goodyear Tire will be re-added to the S&P SmallCap 600 Index, and while its position in the MidCap Index is replaced, this change may attract different types of investors, potentially boosting its market performance in the consumer discretionary sector.
- Industry Dynamics: As the largest global index provider, S&P Dow Jones Indices continues to enhance market transparency and investor confidence, with Allison's inclusion further diversifying the MidCap Index and reflecting ongoing growth potential in the industrial sector.
See More
Allison Transmission to Replace Goodyear in S&P MidCap 400
- Index Changes: Allison Transmission (Ticker: ALSN) will replace Goodyear Tire & Rubber (Ticker: GT) in the S&P MidCap 400 effective July 6, 2026, which is expected to enhance Allison's market visibility and potentially attract more investor interest.
- Goodyear's Transition: Goodyear will be removed from the S&P MidCap 400 and added to the S&P SmallCap 600, indicating a shift in its market position that may impact its stock performance and investor confidence.
- Acquisition Impact: Prosperity Bancshares (Ticker: PB) is set to complete its acquisition of Stellar Bancorp (Ticker: STEL) on July 1, which will further reshape the composition of the S&P SmallCap 600 index and could influence market dynamics for related financial stocks.
- Index Management Context: S&P Dow Jones Indices is one of the largest index providers globally, managing a vast array of investment products based on its indices, and these changes will affect investors' asset allocation strategies, reflecting anticipated shifts in company performance.
See More
Allison Transmission Lowers Loan Interest Rate
- Loan Rate Reduction: Allison Transmission has amended its credit agreement to lower the interest rate margin on its existing $508 million term loan by 25 basis points, resulting in a 1.50% annual rate for SOFR loans, which is expected to reduce annual cash interest expenses by approximately $1.3 million, thereby enhancing financial flexibility.
- Commitment to Financial Management: CFO Scott Mell emphasized that this repricing reflects the company's commitment to prudent balance sheet management, ensuring a clear strategy for capital structure and allocation, which is likely to boost investor confidence.
- Business Stability: Operating in over 150 countries, Allison focuses on high-performance mobility and work solutions, and the interest rate reduction will further solidify its market position in critical sectors such as infrastructure, energy, and transportation.
- Future Outlook: Despite facing global economic volatility and industry competition, Allison Transmission remains dedicated to achieving long-term growth through technological innovation and market adaptability, ensuring competitiveness in the electric hybrid and fully electric commercial vehicle sectors.
See More
Allison Transmission Secures $250 Million Contract with BAE Systems
- Historic Contract: Allison Transmission has signed a $250 million agreement with BAE Systems Hägglunds to supply 4040 MX transmissions, marking the largest single tracked defense program contract in the company's history and representing a significant breakthrough in the defense market.
- Production Plans: The contract includes an option for additional units valued at $50 million, which is expected to provide a continuous revenue stream for Allison's 4040 MX transmissions, further solidifying its market position in the defense sector.
- Product Application: The CV90 MkIV infantry fighting vehicle will serve as the inaugural production platform for Allison's 4040 MX transmission, with production deliveries scheduled to begin in 2028, creating new growth opportunities for the company.
- Market Reaction: Following the contract announcement, Allison's stock rose 0.9% in premarket trading to $120.55, reflecting investor confidence in the company's future growth potential.
See More
Allison Transmission Partners with French Army for Tactical Trucks
- Contract Award: The French Ministry of Armed Forces awarded the PL6T contract to Arquus for 7,000 tactical trucks based on the Daimler Zetros 6x6 chassis over a decade, reflecting a significant commitment to modernizing logistics capabilities.
- Technology Integration: All vehicles will feature Allison's 4500 SP fully automatic transmission paired with the Mercedes-Benz OM 460 engine, ensuring reliability and superior driving performance in high-intensity operational environments.
- Market Leadership: Allison's global leadership in defense vehicle propulsion stems from its dedication to partnerships and its ability to deliver high-value propulsion solutions, further solidifying its influence in the defense sector.
- Strategic Importance: This collaboration enhances the operational readiness of the French Army and ensures smooth driving across various terrains through Allison's Continuous Power Technology, addressing the demands of modern military operations.
See More
Allison Transmission Partners with French Army for Tactical Trucks
- Large Contract Scale: The French Ministry of Armed Forces awarded the PL6T contract to Arquus, planning to produce 7,000 tactical trucks based on the Daimler Truck Zetros 6x6 chassis over a decade, demonstrating a strong commitment to modernizing logistics capabilities.
- Significant Technical Advantages: All vehicles will feature Allison's 4500 SP fully automatic transmission paired with the Mercedes-Benz OM 460 engine, providing exceptional reliability and driving performance essential for operational readiness in high-intensity combat environments.
- Deepened Strategic Partnership: The collaboration between Allison, Arquus, and Daimler Truck marks a significant milestone in the defense sector, reflecting a commitment to supporting evolving customer needs and reinforcing Allison's leadership in defense vehicle propulsion.
- Innovative Technology Application: Allison's 4500 SP transmission enhances operator driving experience across various terrains through seamless shifting and Continuous Power Technology, allowing focus on mission requirements and improving tactical vehicle operational capabilities.
See More
