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ALSN

Allison Transmission Holdings, Inc.

ALSN

Allison Transmission Holdings, Inc. • NYSE
$88.66 ▼ -0.89% (-0.80)
Market Cap $7.38 B
52w High $121.81
52w Low $76.01
Dividend Yield 1.08%
P/E 10.88
Volume 789.73K
Outstanding Shares 83.23M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $693M ▼ $125M ▼ $137M ▼ 19.769% ▼ $1.63 ▼ $233M ▼
Q2-2025 $814M ▲ $146M ▲ $195M ▲ 23.956% ▼ $2.32 ▲ $294M ▲
Q1-2025 $766M ▼ $129M ▼ $192M ▲ 25.065% ▲ $2.26 ▲ $284M ▲
Q4-2024 $796M ▼ $138M ▲ $175M ▼ 21.985% ▼ $2.03 ▼ $262M ▼
Q3-2024 $824M $136M $200M 24.272% $2.3 $299M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $902M ▲ $5.517B ▲ $3.676B ▲ $1.841B ▲
Q2-2025 $778M ▲ $5.411B ▲ $3.658B ▼ $1.753B ▲
Q1-2025 $753M ▼ $5.366B ▲ $3.701B ▲ $1.665B ▲
Q4-2024 $781M ▼ $5.336B ▼ $3.685B ▼ $1.651B ▲
Q3-2024 $788M $5.368B $3.747B $1.621B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $137M ▲ $228M ▲ $-49M ▼ $-52M ▲ $124M ▲ $184M ▼
Q2-2025 $0 $184M ▲ $-33M ▼ $-132M ▲ $25M ▲ $210M ▲
Q1-2025 $0 $181M ▼ $-26M ▲ $-184M ▼ $-28M ▼ $155M ▲
Q4-2024 $0 ▼ $211M ▼ $-77M ▼ $-140M ▼ $-7M ▼ $136M ▼
Q3-2024 $200M $246M $-38M $-69M $140M $210M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Defense
Defense
 $120.00M ▲$50.00M ▼$60.00M ▲$80.00M ▲
Service Parts Support Equipment And Other
Service Parts Support Equipment And Other
 $330.00M ▲$150.00M ▼$180.00M ▲$160.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Allison’s income statement shows a steady, healthy build‑up in both sales and profits over the last several years. Revenue has grown consistently, and profits have expanded even faster, which implies better pricing power, operating efficiency, or both. Profit margins look solid for an auto‑parts supplier and have generally improved rather than bounced around. Earnings per share have climbed strongly, suggesting shareholders are benefiting from both higher profits and likely capital return actions. Overall, the business appears to be moving through the cycle with increasing scale and profitability, not just riding a one‑off upswing.

Balance Sheet

Balance Sheet The balance sheet looks sturdier today than a few years ago. Total assets have grown, cash on hand has increased meaningfully, and debt levels have stayed broadly stable rather than expanding. Equity has built up over time, reflecting the retention of earnings and a stronger underlying capital base. Leverage still matters for this company, but the direction of travel is toward a more balanced profile, with more equity supporting a similar amount of debt. This combination points to gradually improving financial resilience, though it remains a leveraged, capital‑intensive business.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has been consistently strong and has trended upward alongside earnings, showing that profits are backed by real cash, not just accounting. Free cash flow has been robust for several years in a row, even after funding a steady level of capital spending to maintain and upgrade the asset base. Capital expenditures appear disciplined, not overly aggressive, which helps leave room for debt service and potential capital returns. Overall, the cash‑flow pattern signals a mature, cash‑rich business with good internal funding capacity for its strategic priorities.

Competitive Edge

Competitive Edge Allison occupies a leading position in its niche: fully automatic transmissions for commercial and defense vehicles. Its brand is closely associated with durability and reliability in demanding uses like buses, refuse trucks, construction, and military applications, which encourages loyalty and repeat business. Deep integrations with major vehicle manufacturers, combined with a wide global service network, create meaningful switching costs for customers and partners. Its long operating history and specialized engineering know‑how make it hard for new entrants to match performance, especially in heavy‑duty and defense settings. The main strategic challenge is less about today’s moat and more about how well that moat carries into an increasingly electrified and software‑driven future.

Innovation and R&D

Innovation and R&D The company is not standing still; it is actively investing to adapt its traditional transmission strength to an electrified world. The eGen portfolio (hybrid bus systems and electric axles for trucks) is a central pillar, aiming to keep Allison relevant as fleets move toward lower‑emission and fully electric drivetrains. Specialized products like FracTran for energy markets and electrified solutions for defense vehicles show a focus on high‑value, niche applications where its engineering edge matters most. Management emphasizes “fuel‑agnostic” propulsion solutions, positioning the firm to pair with diesel, natural gas, or hydrogen as the mix evolves. The opportunity is significant, but success will depend on actual adoption by truck and bus makers and on Allison’s ability to scale these new products profitably while defending its legacy base.

Summary

Allison Transmission looks like a mature, profitable industrial business that has steadily improved its earnings, cash generation, and balance‑sheet strength over several years. Its core competitive advantage rests on proven performance in heavy‑duty and defense applications, long‑standing OEM relationships, and a broad service network, which together create a durable but not guaranteed moat. Financially, the company throws off substantial free cash, with no sign of strain from its debt load at current levels. Strategically, it is in the midst of a transition: using cash from its legacy automatic transmissions to fund electrified and hybrid solutions that could shape its future. The key uncertainties revolve around the speed of commercial adoption of its new electric offerings, the intensity of competition from alternative technologies and suppliers, and how well it can balance legacy profit streams with the need to innovate and reposition for a lower‑emission world.

NEWS

November 19, 2025 · 6:50 AM UTC

Dana and Allison Announce All Required Regulatory Approvals Received for Off-Highway Business Transaction

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November 10, 2025 · 4:05 PM UTC

Allison Transmission Declares Quarterly Dividend

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November 6, 2025 · 5:24 PM UTC

Allison Transmission Prices Offering of $500 Million Aggregate Principal Amount of 5.875% Senior Notes Due 2033 and $1,200 Million Senior Secured Incremental Term Loan Facility

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October 29, 2025 · 4:05 PM UTC

Allison Transmission Announces Third Quarter 2025 Results

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October 29, 2025 · 6:30 AM UTC

Allison Transmission Expands Its Global Network of Authorized Partners to Enhance Support for Cross-Drive Transmissions

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