Allison Transmission (NYSE:ALSN) Announces Quarterly Earnings Results

Allison Transmission (NYSE:ALSN) issued its quarterly earnings results on Monday. The auto parts company reported $2.57 EPS for the quarter, topping analysts’ consensus estimates of $2.10 by $0.47, Zacks reports. The firm had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.38 billion. Allison Transmission had a net margin of 20.70% and a return on equity of 37.41%. The business’s revenue for the quarter was up 83.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.23 EPS.

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

• Allison says integration is progressing and is on track to realize synergies, reaffirming a target of $120 million of annual run-rate synergies and expecting financial benefits to begin later in 2026.
• First-quarter GAAP net income fell to $112M due to acquisition-related PPA, depreciation and amortization (~$76M PPA items + $22M amortization) and $17M integration costs, while non-GAAP results showed strength with Adjusted Net Income $216M, Adjusted Diluted EPS $2.57, and Adjusted EBITDA $362M (26% margin).
• Management reaffirmed full-year 2026 guidance (consolidated sales $5.575B–$5.925B; net income $600M–$750M; Adjusted EBITDA $1.365B–$1.515B) and reiterated capital priorities of deleveraging toward a 2x net leverage target while continuing dividends and share repurchases.
• End-market risks remain—North America on-highway demand is only cautiously optimistic amid tariff and EPA/emissions uncertainty, and the Middle East conflict poses indeterminate supply-chain and macro risks, even as defense and mining demand showed notable strength.

Allison Transmission Price Performance

ALSN stock opened at $129.22 on Tuesday. The company has a debt-to-equity ratio of 1.55, a quick ratio of 4.17 and a current ratio of 4.85. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $137.62. The firm’s fifty day moving average is $121.93 and its 200 day moving average is $105.82. The firm has a market cap of $10.74 billion, a P/E ratio of 17.63, a P/E/G ratio of 0.79 and a beta of 1.01.

Allison Transmission Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Monday, March 9th were issued a dividend of $0.29 per share. The ex-dividend date of this dividend was Monday, March 9th. This represents a $1.16 annualized dividend and a dividend yield of 0.9%. This is an increase from Allison Transmission’s previous quarterly dividend of $0.27. Allison Transmission’s payout ratio is 15.83%.

Insider Activity at Allison Transmission

In related news, insider Eric C. Scroggins sold 1,313 shares of the stock in a transaction on Monday, March 9th. The shares were sold at an average price of $114.40, for a total transaction of $150,207.20. Following the transaction, the insider owned 17,654 shares of the company’s stock, valued at approximately $2,019,617.60. This trade represents a 6.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Allison Transmission

Several institutional investors and hedge funds have recently made changes to their positions in the business. Transamerica Financial Advisors LLC grew its holdings in Allison Transmission by 2,112.5% in the 4th quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company’s stock worth $35,000 after acquiring an additional 338 shares during the last quarter. Advisory Services Network LLC bought a new stake in Allison Transmission in the 3rd quarter worth $61,000. EverSource Wealth Advisors LLC grew its holdings in Allison Transmission by 441.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company’s stock worth $97,000 after acquiring an additional 830 shares during the last quarter. New Vernon Capital Holdings II LLC bought a new stake in Allison Transmission in the 3rd quarter worth $156,000. Finally, Smartleaf Asset Management LLC grew its holdings in Allison Transmission by 102.2% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,763 shares of the auto parts company’s stock worth $167,000 after acquiring an additional 891 shares during the last quarter. Institutional investors own 96.90% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. increased their price target on shares of Allison Transmission from $87.00 to $115.00 and gave the stock a “neutral” rating in a report on Wednesday, January 14th. Morgan Stanley increased their price target on shares of Allison Transmission from $109.00 to $117.00 and gave the stock an “equal weight” rating in a report on Monday, March 16th. Oppenheimer increased their price target on shares of Allison Transmission from $115.00 to $135.00 and gave the stock an “outperform” rating in a report on Tuesday, February 24th. Zacks Research lowered shares of Allison Transmission from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 24th. Finally, Wells Fargo & Company increased their price target on shares of Allison Transmission from $98.00 to $127.00 and gave the stock an “equal weight” rating in a report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Allison Transmission presently has a consensus rating of “Hold” and an average price target of $114.13.

About Allison Transmission

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.