Allison Transmission Holdings, Inc.(ALSN)Earnings, Financials & Key RatiosAllison Transmission Holdings, Inc. (ALSN) stock price & volume — 10-year historical chart
Investment Thesis • Updated 2026Q1
while the company maintains a compelling forward P/E of 13.52 and strong cash conversion, the recent decline in operating margins to 13.9% and increased debt levels warrant a cautious approach until operational stability is restored.
Allison Transmission Holdings, Inc. (ALSN) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Allison Transmission Holdings, Inc. (ALSN) EPS & revenue vs analyst estimates — last 4 quarters
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 4, 2026 | $1.33vs $2.07-35.7% | $1.4Bvs $1.4B+1.9% |
| Q1 2026 | Feb 23, 2026 | $1.18vs $1.56-24.4% | $737Mvs $725M+1.6% |
| Q4 2025 | Oct 29, 2025 | $1.63vs $1.95-16.4% | $693Mvs $719M-3.6% |
| Q3 2025 | Aug 4, 2025 | $2.29vs $2.20+4.1% | $814Mvs $799M+1.8% |
Recent stock market news and headlines for Allison Transmission Holdings, Inc. (ALSN)
Allison Transmission (ALSN) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Allison Transmission is rated Hold ahead of Q2 earnings, with inorganic revenue growth from the Dana acquisition masking flat organic performance. Gross margins have declined from 49% to 29% post-acquisition, and operating leverage has worsened, raising concerns about sustainable earnings power. Key focus areas are updates on on-highway and off-highway demand, cost reduction strategies, and the impact of recent oil price volatility.
Allison Transmission (ALSN) is Buy-rated, with near-term earnings risk but strong medium-term demand signals in North America on-highway. Recent robust order growth in Class 4-8 trucks and Classes 5-7, where ALSN has 75% market share, points to a re-acceleration opportunity. Integration of the Dana off-highway acquisition creates short-term margin dilution and inorganic noise, but sets up for cleaner growth in FY27.
NEW YORK, June 30, 2026 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN) will replace Goodyear Tire & Rubber Co. (NASD: GT) in the S&P MidCap 400, and Goodyear Tire & Rubber will replace Stellar Bancorp Inc. (NYSE: STEL) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, July 6. S&P MidCap 400 constituent Prosperity Bancshares Inc. (NYSE: PB) is acquiring Stellar Bancorp in a deal expected to close July 1.
Allison Holdings (ALSN) offers a compelling buying opportunity, trading at a ~43% P/E discount to peers with strong margin and growth prospects. The Off-Highway business acquisition and robust defence market demand drive revenue growth, offsetting temporary On-Highway headwinds from emission regulations. ALSN targets a long-term adjusted EBITDA margin of 25–27%, supported by pricing power, synergy realization, and operational efficiency.
Key metrics vs top competitors for Allison Transmission Holdings, Inc. (ALSN)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $114.17 | $9.49B | 15.58 | -6.67% | 20.7% | 35.42% | 0.94% | |
| $56.00 | $1.29B | 33.33 | 8.07% | 1.75% | 3.82% | — | |
| $64.07 | $13.2B | 50.05 | 1.65% | 2.53% | 6.17% | — | |
| $25.43 | $3.17B | 39.73 | -27.07% | — | -11.31% | — | |
| $395.68 | $153.64B | 37.83 | 10.33% | 13.99% | 20.76% | — | |
| $58.85 | $12.45B | 78.47 | 3.47% | 1.77% | 3.81% | — |
Allison Transmission Holdings, Inc. (ALSN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Allison Transmission Holdings, Inc. (ALSN) SEC filings — annual & quarterly reports (10-K, 10-Q)
May 4, 2026·SEC
Feb 23, 2026·SEC
Jan 2, 2026·SEC
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Allison Transmission Holdings, Inc. (ALSN) stock FAQ — growth, dividends, profitability & financials explained
Allison Transmission Holdings, Inc. (ALSN) reported $3.65B in revenue for fiscal year 2025. This represents a 69% increase from $2.16B in 2011.
Allison Transmission Holdings, Inc. (ALSN) saw revenue decline by 6.7% over the past year.
Yes, Allison Transmission Holdings, Inc. (ALSN) is profitable, generating $543.0M in net income for fiscal year 2025 (20.7% net margin).
Yes, Allison Transmission Holdings, Inc. (ALSN) pays a dividend with a yield of 0.94%. This makes it attractive for income-focused investors.
Allison Transmission Holdings, Inc. (ALSN) has a return on equity (ROE) of 35.4%. This is excellent, indicating efficient use of shareholder capital.
Allison Transmission Holdings, Inc. (ALSN) generated $713.0M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
