ALSN News & Events

Allison Transmission (ALSN) has entered into a contract with BAE Systems (BAESY) vHagglunds to supply 4040 MX transmissions for the company's CV90 MkIV infantry fighting vehicles. The $250M agreement includes an option for additional units valued at $50M. The agreement is the largest single tracked defense program contract in Allison Transmission's history. The CV90 MkIV program serves as the inaugural production platform for Allison's 4040 MX transmission, and production deliveries are scheduled to begin in 2028. Allison conducted extensive integration testing with BAE Systems Hagglunds over a two-year period to ensure the new solution is mission ready.

Reports Q1 revenue $1.41B, consensus $1.38B. David 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."

Backs FY26 adjusted EBITDA $1.365B-$1.515B.