Allison Transmission Holdings, Inc.
- Open
- 125.81
- Day high
- 127.50
- Day low
- 125.39
- Prev close
- 126.32
- Volume
- 740K
- Mkt cap
- $10.4B
- P/E (TTM)
- 19.8
- EPS (TTM)
- $6.34
- P/B
- 5.2
- P/S
- 2.8
- Yield
- 0.91%
- Per share
- $1.14
- ▼Insiders net selling -$4.2M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
Allison Transmission Holdings, Inc. (ALSN) is a Consumer Cyclical company listed on NYSE. The stock is up 44% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4). Drillr has 1 published research article covering ALSN.
Allison Transmission Holdings, Inc. (ALSN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ALSN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 3, 2026 | $2.48 | $2.18 | -12.1% | $1.6B | +4.2% |
| May 4, 2026 | $2.10 | $2.57 | +22.4% | $1.4B | +1.9% |
| Feb 23, 2026 | $1.56 | $1.70 | +9.0% | $737M | -43.2% |
| Oct 29, 2025 | $1.95 | $1.63 | -16.4% | $693M | -3.6% |
| May 1, 2025 | $2.05 | $2.23 | +8.8% | $766M | -2.8% |
| Jul 25, 2024 | $2.03 | $2.13 | +5.1% | $816M | +1.7% |
| Apr 25, 2024 | $1.90 | $1.90 | -0.2% | $789M | +1.8% |
| Feb 13, 2024 | $1.43 | $1.91 | +33.6% | $775M | +4.2% |
| Oct 25, 2023 | $1.75 | $1.76 | +0.6% | $736M | -2.9% |
| Jul 27, 2023 | $1.62 | $1.92 | +18.5% | $783M | +6.4% |
| Apr 27, 2023 | $1.54 | $1.85 | +20.1% | $741M | +2.5% |
| Feb 15, 2023 | $1.25 | $1.52 | +21.6% | $718M | +6.2% |
ALSN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 25, 2026 | Graziosi David S.director, officer: Chair, President and CEO | Sell | 4,558 | $134.05 |
| Aug 25, 2026 | Graziosi David S.director, officer: Chair, President and CEO | Sell | 13,100 | $132.44 |
| Aug 25, 2026 | Graziosi David S.director, officer: Chair, President and CEO | Option | 26,708 | $38.11 |
| Aug 25, 2026 | Graziosi David S.director, officer: Chair, President and CEO | Sell | 9,050 | $133.21 |
| Aug 13, 2026 | Scroggins Eric C.officer: CLO & Asst. Secretary | Sell | 1,050 | $125.00 |
| Aug 11, 2026 | Bohley G Frederickofficer: See Remarks | Option | 3,961 | $37.11 |
| Aug 11, 2026 | Bohley G Frederickofficer: See Remarks | Sell | 3,961 | $122.38 |
| Jun 8, 2026 | Bohley G Frederickofficer: See Remarks | Tax | 242 | $118.38 |
| Jun 8, 2026 | Bohley G Frederickofficer: See Remarks | Option | 10 | — |
| Jun 8, 2026 | Bohley G Frederickofficer: See Remarks | Option | 533 | — |
| Jun 2, 2026 | HAZNEDAR CAROLANN Idirector | Grant | 59 | — |
| Jun 2, 2026 | Price Michael Craigofficer: See Remarks | Grant | 42 | — |
| Jun 2, 2026 | Christman Philip Jdirector | Grant | 3 | — |
| Jun 2, 2026 | Ostojic Sashadirector | Grant | 3 | — |
| Jun 2, 2026 | Altmaier Judy Ldirector | Grant | 57 | — |
Source: ALSN SEC Form 4 filings, latest Aug 25, 2026. For informational purposes only — not investment advice.
See the full ALSN insider & 13F page →Allison Transmission Holdings, Inc. company profile
Overview
Allison Transmission Holdings, Inc. (NYSE:ALSN) is a leading manufacturer of commercial vehicle transmissions founded in 1915 and headquartered in Indianapolis, Indiana. The company went public in 2012 and has established itself as the dominant player in fully-automatic transmissions for medium- and heavy-duty commercial vehicles, as well as defense applications. With over a century of engineering expertise, Allison serves customers globally through an extensive network of approximately 1,400 independent distributors and dealers, providing mission-critical drivetrain solutions for applications ranging from city buses and garbage trucks to military vehicles and mining equipment.
Business
Allison Transmission operates in the commercial vehicle drivetrain industry, specializing in the design, manufacture, and service of fully-automatic transmissions for heavy-duty applications. Unlike the manual or automated manual transmissions commonly found in passenger cars, Allison's transmissions are designed for the demanding requirements of commercial and military vehicles that operate in severe-duty conditions with frequent stop-and-go cycles. The company's core product is the Allison Transmission, a torque converter-based automatic transmission that provides seamless power delivery, improved fuel efficiency, and reduced maintenance compared to manual alternatives. These transmissions are essential components that transfer power from the engine to the wheels while providing multiple gear ratios to optimize performance across different operating conditions. Allison's business is organized around several key market segments: 1. North America On-Highway Market (approximately 56% of revenue): This segment serves medium- and heavy-duty trucks used for distribution, refuse collection, construction, fire and emergency services, school buses, transit buses, and motor homes. The company has particularly strong penetration in vocational applications where frequent shifting and severe-duty cycles make automatic transmissions highly valuable. 2. Outside North America On-Highway Market (approximately 15% of revenue): This includes similar applications in international markets, with growing presence in Asia, Europe, and other regions. The company has been expanding manufacturing capabilities, including a significant investment in its Chennai, India facility. 3. Global Off-Highway Market (approximately 8% of revenue): Serves energy, mining, and construction equipment including wide-body mining dump trucks, hydraulic fracturing equipment, and other specialized machinery operating in harsh environments. 4. Defense Market (approximately 7% of revenue): Provides transmissions for wheeled and tracked military vehicles for the U.S. government and international defense customers, including applications in main battle tanks and infantry fighting vehicles. 5. Service Parts, Support Equipment and Other (approximately 22% of revenue): This high-margin aftermarket business includes replacement parts, remanufactured transmissions under the ReTran brand, support equipment, engineering services, and extended warranty coverage for the installed base of vehicles.
Revenue model
Allison generates revenue through multiple complementary business models that capitalize on both initial equipment sales and ongoing service needs. The company primarily makes money through product sales to original equipment manufacturers (OEMs) who integrate Allison transmissions into their vehicles, and through aftermarket service revenue from the installed base of vehicles. The paying customers include major truck and bus manufacturers such as Freightliner, Peterbilt, Blue Bird, and international OEMs, as well as fleet operators, municipalities, and government agencies who purchase aftermarket parts and services. For defense applications, the primary customer is the U.S. government and allied military forces. The company's revenue model benefits from several key characteristics. First, the razor-and-blade model where initial transmission sales create a long-term stream of high-margin aftermarket revenue, as each transmission typically requires service and parts over a 15-20 year operational life. Second, long-term supply agreements with OEMs provide pricing stability and volume predictability, with over 60% of North America On-Highway contracts typically negotiated every few years. Several factors influence Allison's profitability margins. Positive margin drivers include the company's ability to pass through commodity costs (steel and aluminum) to customers through contractual mechanisms covering 60-80% of raw materials, pricing power due to the mission-critical nature and superior performance of automatic transmissions in severe-duty applications, and the high-margin aftermarket business that grows with the installed base. The company has demonstrated consistent pricing power, achieving 400+ basis points of price increases in recent years. Margin pressures come from raw material inflation, supply chain constraints that can limit production capacity, competitive pressure in certain segments, and the cyclical nature of commercial vehicle demand tied to economic conditions and infrastructure spending. However, Allison's dominant market position and the high switching costs associated with transmission technology provide significant protection against margin compression.
Competitive moat
Allison Transmission possesses a strong and durable competitive moat built on several reinforcing advantages. The company's primary moat stems from its technological leadership and engineering expertise in torque converter-based automatic transmissions, accumulated over more than a century of specialization. This deep technical knowledge creates high barriers to entry, as developing competitive automatic transmission technology requires substantial R&D investment, extensive testing, and years of field validation. The company benefits from significant switching costs for customers. Once an OEM designs a vehicle platform around an Allison transmission, changing to a competitor requires extensive re-engineering, re-certification, and retraining of service networks. Fleet operators similarly face high switching costs due to driver training, maintenance procedures, and parts inventory considerations. Network effects strengthen Allison's position through its extensive service network of 1,400+ distributors and dealers worldwide. This infrastructure provides customers with readily available parts and service, while the large installed base creates economies of scale in parts production and distribution that competitors struggle to match. The company also enjoys brand recognition and reputation advantages, particularly in mission-critical applications where reliability is paramount. Municipal customers, who represent 30-40% of North America on-highway business, particularly value Allison's proven performance record. However, potential competitive threats exist. Electrification of commercial vehicles could disrupt traditional transmission demand, though Allison is developing electric and hybrid solutions. Automated manual transmissions from competitors like Eaton offer lower-cost alternatives, though they lack the performance advantages of torque converter automatics in severe-duty applications. Additionally, consolidation among truck OEMs could increase customer bargaining power over time. Despite these challenges, Allison's moat remains robust due to the mission-critical nature of its products, high customer switching costs, and the company's continued investment in next-generation technologies including electric and hybrid propulsion systems.
Risks & safety
Allison Transmission demonstrates a strong margin of safety with solid financial fundamentals and reasonable valuation metrics. Financial Strength: - Cash position of $753 million with minimal cash burn risk - Net leverage ratio of 1.4x, well below concerning levels - Strong free cash flow generation of $658 million in 2024 - Current ratio of 3.0x indicating solid liquidity - Debt-to-equity ratio of 1.44x, manageable given cash flow stability Valuation Metrics: - P/E ratio of 10.8x, reasonable for a profitable industrial company - EV/EBITDA of 8.8x, modest for a market leader with recurring revenue - Price-to-book ratio of 5.0x, elevated but justified by strong ROE of 44% - Graham number suggests fair value around $60, below current price Other Considerations: - Consistent dividend payments with 67% increase over five years - Strong pricing power demonstrated through recent contract negotiations - Diversified end markets reduce concentration risk - Substantial share buyback program (63% of shares repurchased since IPO)
Recent development
Over the past few years, Allison has pursued several strategic initiatives to drive growth and adapt to industry changes. The company has been expanding its global manufacturing footprint, most notably investing over $100 million in its Chennai, India facility to double manufacturing capacity and support international growth, particularly in the Asian markets. Product development efforts have focused on fuel-agnostic solutions and next-generation technologies. The company launched the 6,000 series transmission for wide-body dump truck applications and has been developing electric hybrid and e-axle solutions to address the evolving propulsion landscape. Allison has also introduced advanced electronic controls platforms and FuelSense 2.0 neutral-at-stop technology that has been standardized by major OEMs like Daimler Truck North America. The company has been diversifying its market presence through strategic partnerships and new market penetration. Key partnerships include collaborations with XCMG for TerraTran transmissions in construction and mining, partnerships with Lugan and LGMG for wide-body mining applications, and expanded relationships in the defense sector including contracts for Abrams tank upgrades and CV90 infantry fighting vehicle applications. Capital allocation strategy has evolved to include the launch of Allison Ventures, a venture capital arm that has made investments in companies like EnerTech Capital to stay connected with emerging technologies. The company has also been actively pursuing the "$400 million growth opportunity" across four key areas: defense market expansion, regional haul Class 8 tractors, hydraulic fracturing applications, and wide-body mining dump trucks. Operational improvements have focused on addressing capacity constraints and supply chain optimization. The company has invested in breaking bottlenecks at existing facilities rather than building new plants, while also securing long-term supply agreements that provide commodity cost pass-through protection for 60-80% of raw materials.
ALSN company profile · for informational purposes only — not investment advice.
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