Allison Transmission (NYSE:ALSN) Releases Quarterly Earnings Results, Beats Estimates By $0.25 EPS

Posted by George Bondi on Aug 5th, 2026

Allison Transmission (NYSE:ALSN – Get Free Report) released its earnings results on Monday. The auto parts company reported $2.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.48 by $0.25, FiscalAI reports. Allison Transmission had a net margin of 12.02% and a return on equity of 38.73%. The business had revenue of $1.57 billion for the quarter, compared to analysts’ expectations of $1.50 billion. During the same period last year, the company earned $2.29 earnings per share. The company’s quarterly revenue was up 92.4% on a year-over-year basis.

Here are the key takeaways from Allison Transmission’s conference call:

Second-quarter performance was strong: net sales rose 92% year over year to $1.566 billion, adjusted EBITDA increased to $404 million with a 25.8% margin, adjusted EPS rose 8% to $2.73, and adjusted free cash flow reached a record $281 million.
Allison raised its 2026 guidance, now expecting revenue of $5.8 billion–$6.0 billion, adjusted EBITDA of $1.465 billion–$1.575 billion, and adjusted free cash flow of $745 million–$865 million. Management said the increase is primarily driven by a stronger outlook for the legacy transmission business, while the Off-Highway outlook is broadly unchanged.
Defense momentum remains substantial, including a $250 million CV90 Mark 4 transmission contract, a French tactical truck award covering more than 7,000 vehicles, and an order for approximately 3,000 EAGLE armored vehicles with an option for 2,000 more. Management described defense demand and visibility into 2027 as highly favorable.
The company outlined a $120 million annual run-rate synergy target from the Off-Highway integration, focused mainly on procurement and logistics, manufacturing optimization, and corporate efficiencies. Allison expects to realize approximately 40% by the end of 2027, another 40% by the end of 2028, and the full amount by the end of 2029, with potential upside beyond the current target.
Legacy-business margins faced significant steel and aluminum inflation, including mid-teens year-over-year material-cost headwinds and a roughly 25% sequential increase in aluminum costs. Pricing and contractual recovery mechanisms are expected to offset much of the pressure, but with a six- to 12-month lag; agriculture demand in Off-Highway also remains weak and the business faces normal third-quarter seasonality.

Allison Transmission Stock Up 0.2%

ALSN traded up $0.29 on Wednesday, reaching $122.91. The company’s stock had a trading volume of 29,475 shares, compared to its average volume of 984,636. Allison Transmission has a 1 year low of $76.01 and a 1 year high of $137.62. The business’s 50 day moving average is $116.87 and its 200 day moving average is $118.04. The company has a debt-to-equity ratio of 2.23, a current ratio of 1.85 and a quick ratio of 1.18. The stock has a market cap of $10.19 billion, a price-to-earnings ratio of 19.12, a price-to-earnings-growth ratio of 0.64 and a beta of 0.95.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on ALSN shares. Weiss Ratings downgraded shares of Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, July 16th. Wells Fargo & Company increased their target price on Allison Transmission from $127.00 to $137.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Morgan Stanley boosted their price target on Allison Transmission from $126.00 to $130.00 and gave the company an “equal weight” rating in a research report on Friday, July 17th. JPMorgan Chase & Co. raised their price objective on Allison Transmission from $140.00 to $145.00 and gave the stock a “neutral” rating in a report on Monday, July 13th. Finally, Citigroup decreased their target price on Allison Transmission from $135.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $131.17.

Get Our Latest Stock Report on ALSN

Insider Transactions at Allison Transmission

In other Allison Transmission news, CFO Scott A. Mell sold 2,270 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $125.00, for a total transaction of $283,750.00. Following the transaction, the chief financial officer directly owned 1,053 shares in the company, valued at $131,625. This represents a 68.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Allison Transmission

Large investors have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC raised its position in shares of Allison Transmission by 2,112.5% during the 4th quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company’s stock worth $35,000 after purchasing an additional 338 shares during the period. Advisory Services Network LLC bought a new position in Allison Transmission during the 3rd quarter worth $61,000. EverSource Wealth Advisors LLC increased its position in Allison Transmission by 441.5% in the second quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company’s stock worth $97,000 after buying an additional 830 shares during the period. Parallel Advisors LLC lifted its stake in Allison Transmission by 8.7% in the fourth quarter. Parallel Advisors LLC now owns 1,710 shares of the auto parts company’s stock valued at $167,000 after buying an additional 137 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its holdings in shares of Allison Transmission by 102.2% during the second quarter. Smartleaf Asset Management LLC now owns 1,763 shares of the auto parts company’s stock valued at $167,000 after acquiring an additional 891 shares during the period. 96.90% of the stock is currently owned by institutional investors.

Allison Transmission Company Profile

(Get Free Report)

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.