Revenue volatility remains a primary concern, as evidenced by the sharp 2026Q1 surge to $1.4B following a period where year-over-year growth rates fluctuated between -15.9% and 12.0%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 3.65B | 3.01B | 3.23B | 3.04B | 2.77B | 2.4B | 2.08B | 2.7B | 2.71B | 2.26B | 1.84B | 1.99B | 2.13B | 1.93B | 2.14B | 2.16B |
| Revenue Growth % | 13.99% | -6.67% | 6.26% | 9.61% | 15.28% | 15.43% | -22.87% | -0.55% | 19.94% | 22.92% | -7.33% | -6.66% | 10.41% | -10.04% | -0.97% | - |
| Cost of Goods Sold | 2.16B | 1.55B | 1.7B | 1.56B | 1.47B | 1.26B | 1.08B | 1.3B | 1.29B | 1.13B | 976M | 1.05B | 1.15B | 1.08B | 1.19B | 1.21B |
| COGS % of Revenue | - | 51.63% | 52.59% | 51.57% | 53.16% | 52.33% | 52.04% | 48.33% | 47.59% | 50% | 53.04% | 52.98% | 54.13% | 56.31% | 55.44% | 55.87% |
| Gross Profit | 1.49B | 1.46B | 1.53B | 1.47B | 1.3B | 1.15B | 998M | 1.39B | 1.42B | 1.13B | 864.2M | 933.8M | 975.9M | 841.9M | 954.3M | 954.5M |
| Gross Margin % | 40.79% | 48.37% | 47.41% | 48.43% | 46.84% | 47.67% | 47.96% | 51.67% | 52.41% | 50% | 46.96% | 47.02% | 45.87% | 43.69% | 44.56% | 44.13% |
| Gross Profit Growth % | - | -4.77% | 4.01% | 13.34% | 13.28% | 14.73% | -28.41% | -1.97% | 25.73% | 30.87% | -7.45% | -4.31% | 15.92% | -11.78% | -0.02% | - |
| Operating Expenses | 608M | 483M | 537M | 551M | 513M | 476M | 464M | 502M | 499M | 479M | 412M | 505M | 463.8M | 432M | 534.1M | 525.5M |
| OpEx % of Revenue | - | 16.05% | 16.65% | 18.15% | 18.53% | 19.82% | 22.3% | 18.61% | 18.39% | 21.18% | 22.39% | 25.43% | 21.8% | 22.42% | 24.94% | 24.3% |
| Selling, General & Admin | 423M | 309M | 337M | 357M | 328M | 305M | 317M | 356M | 368M | 342M | 324M | 317M | 344.6M | 334.9M | 419M | 409.1M |
| SG&A % of Revenue | - | 10.27% | 10.45% | 11.76% | 11.85% | 12.7% | 15.23% | 13.2% | 13.56% | 15.12% | 17.61% | 15.96% | 16.2% | 17.38% | 19.56% | 18.92% |
| Research & Development | 185M | 174M | 200M | 194M | 185M | 171M | 147M | 154M | 131M | 105M | 88M | 93M | 103.8M | 97.1M | 115.1M | 116.4M |
| R&D % of Revenue | - | 5.78% | 6.2% | 6.39% | 6.68% | 7.12% | 7.06% | 5.71% | 4.83% | 4.64% | 4.78% | 4.68% | 4.88% | 5.04% | 5.37% | 5.38% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8M | 0 | 32M | 0 | 95M | 15.4M | 0 | 0 | 0 |
| Operating Income | 881M | 973M | 992M | 919M | 784M | 669M | 534M | 892M | 923M | 652M | 452M | 429M | 512.1M | 409.9M | 420.2M | 429M |
| Operating Margin % | 24.14% | 32.33% | 30.76% | 30.28% | 28.31% | 27.85% | 25.66% | 33.06% | 34.02% | 28.82% | 24.56% | 21.6% | 24.07% | 21.27% | 19.62% | 19.84% |
| Operating Income Growth % | - | -1.92% | 7.94% | 17.22% | 17.19% | 25.28% | -40.13% | -3.36% | 41.56% | 44.25% | 5.36% | -16.23% | 24.93% | -2.45% | -2.05% | - |
| EBITDA | 970M | 1.1B | 1.11B | 1.07B | 939M | 819M | 682M | 1.06B | 1.09B | 822M | 628M | 614M | 704.7M | 613.9M | 672.7M | 684.7M |
| EBITDA Margin % | 26.58% | 36.45% | 34.51% | 35.35% | 33.91% | 34.1% | 32.77% | 39.25% | 40.07% | 36.34% | 34.13% | 30.92% | 33.12% | 31.86% | 31.41% | 31.66% |
| EBITDA Growth % | -13.85% | -1.44% | 3.73% | 14.27% | 14.65% | 20.09% | -35.6% | -2.58% | 32.24% | 30.89% | 2.28% | -12.87% | 14.79% | -8.74% | -1.75% | - |
| D&A (Non-Cash Add-back) | 89M | 124M | 121M | 154M | 155M | 150M | 148M | 167M | 164M | 170M | 176M | 185M | 192.6M | 204M | 252.5M | 255.7M |
| EBIT | 642M | 902M | 986M | 934M | 763M | 688M | 530M | 902M | 926M | 630M | 442M | 403M | 507.4M | 399.8M | 368.3M | 425.7M |
| Net Interest Income | -71M | -98M | -89M | -107M | -118M | -116M | -137M | -134M | -121M | -103M | -113M | -140M | -139.8M | -134.5M | -157.3M | -274.2M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 700K | 700K | 900K | 800K | 900K | 900K |
| Interest Expense | 10M | 98M | 89M | 107M | 118M | 116M | 137M | 134M | 121M | 103M | 101.3M | 139.8M | 142.8M | 168M | 177.6M | 218.2M |
| Other Income/Expense | -178M | -169M | -95M | -92M | -139M | -97M | -141M | -124M | -118M | -125M | -111M | -140M | -144M | -143.8M | -204M | -278.4M |
| Pretax Income | 703M | 804M | 897M | 827M | 645M | 572M | 393M | 768M | 805M | 527M | 341M | 289M | 368.1M | 266.1M | 216.2M | 150.6M |
| Pretax Margin % | 19.26% | 26.71% | 27.81% | 27.25% | 23.29% | 23.81% | 18.89% | 28.47% | 29.67% | 23.3% | 18.53% | 14.55% | 17.3% | 13.81% | 10.09% | 6.96% |
| Income Tax | 120M | 181M | 166M | 154M | 114M | 130M | 94M | 164M | 166M | 23M | 126M | 107M | 139.5M | 100.7M | -298M | 47.6M |
| Effective Tax Rate % | 17.07% | 22.51% | 18.51% | 18.62% | 17.67% | 22.73% | 23.92% | 21.35% | 20.62% | 4.36% | 36.95% | 37.02% | 37.9% | 37.84% | -137.84% | 31.61% |
| Net Income | 543M | 623M | 731M | 673M | 531M | 442M | 299M | 604M | 639M | 504M | 215M | 182M | 228.6M | 165.4M | 514.2M | 103M |
| Net Margin % | 14.88% | 20.7% | 22.67% | 22.17% | 19.18% | 18.4% | 14.37% | 22.39% | 23.55% | 22.28% | 11.68% | 9.17% | 10.75% | 8.58% | 24.01% | 4.76% |
| Net Income Growth % | -27.98% | -14.77% | 8.62% | 26.74% | 20.14% | 47.83% | -50.5% | -5.48% | 26.79% | 134.42% | 18.13% | -20.39% | 38.21% | -67.83% | 399.22% | - |
| Net Income (Continuing) | 543M | 623M | 731M | 673M | 531M | 442M | 299M | 604M | 639M | 504M | 215M | 182M | 228.6M | 165.4M | 514.2M | 103M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.46 | 7.33 | 8.31 | 7.40 | 5.53 | 4.13 | 2.62 | 4.91 | 4.78 | 3.36 | 1.27 | 1.03 | 1.25 | 0.88 | 2.76 | 0.57 |
| EPS Growth % | -25.58% | -11.79% | 12.3% | 33.82% | 33.9% | 57.63% | -46.64% | 2.72% | 42.26% | 164.57% | 23.3% | -17.6% | 42.05% | -68.12% | 384.21% | - |
| EPS (Basic) | - | 7.42 | 8.40 | 7.48 | 5.53 | 4.13 | 2.62 | 4.95 | 4.81 | 3.38 | 1.28 | 1.03 | 1.27 | 0.90 | 2.83 | 0.57 |
| Diluted Shares Outstanding | 84.05M | 85M | 88M | 91M | 96M | 107M | 114M | 123M | 133.68M | 150M | 169.21M | 176.99M | 182.88M | 187.95M | 186.3M | 181.38M |
| Basic Shares Outstanding | 84.05M | 84M | 87M | 90M | 96M | 107M | 114M | 122M | 132.85M | 149.11M | 167.89M | 175.9M | 180M | 183.78M | 181.7M | 181.38M |
| Dividend Payout Ratio | - | 14.61% | 11.9% | 12.33% | 15.07% | 18.33% | 26.09% | 12.09% | 12.52% | 17.66% | 46.79% | 58.02% | 40.07% | 46.61% | 6.38% | - |
Cyclicality and Electrification Transition
As reported in recent financial statements, ALSN experienced a significant revenue surge to $1.4B in 2026Q1, yet this follows a period of contraction where year-over-year growth rates fluctuated between -15.9% and 12.0%, suggesting that the company's top-line trajectory remains highly sensitive to volatile vocational demand cycles.
The sharp revenue spike in the most recent quarter warrants caution, as it may reflect non-recurring factors rather than a sustained shift in underlying demand. Investors should monitor whether this growth is driven by genuine volume expansion in the vocational segment or if it represents a temporary inventory restocking cycle by OEMs.
Based on the provided income statement data, ALSN has maintained a robust gross margin profile, consistently hovering near the 48% level throughout 2024 and 2025, which underscores the company's significant pricing power within the specialized vocational transmission market despite recent inflationary pressures on raw material inputs.
This margin stability suggests that the company possesses a 'toll-bridge' position in the supply chain, allowing it to pass through cost increases to customers. However, the compression to 28.9% in 2026Q1 indicates that this pricing power may be tested by shifting product mixes or potential inefficiencies in scaling new propulsion technologies.
According to historical income statement filings, ALSN has demonstrated disciplined operating leverage, with operating margins typically ranging between 29% and 32%, though the recent decline to 13.9% in 2026Q1 suggests that fixed costs are currently scaling faster than the company's ability to generate incremental operating profit.
The company's ability to keep SG&A expenses relatively flat while revenue fluctuated highlights a lean corporate structure. The recent margin contraction implies that management may be increasing investment in R&D or overhead to support the transition to electric axles, which could weigh on profitability in the near term.
As indicated by the quarterly data, ALSN's net income has shown significant volatility, with EPS dropping from $2.29 in 2025Q2 to $1.33 in 2026Q1, a trend that appears influenced by fluctuating operating margins and the intermittent impact of stock-based compensation expenses on the bottom line.
The presence of stock-based compensation in specific quarters suggests that headline earnings may be slightly overstated in periods where these costs are absent. Analysts should scrutinize the sustainability of net margins, which have historically been strong but appear vulnerable to the current shift in the company's cost structure.
Based on the provided figures, short-sellers may focus on the recent sharp decline in net margins and the potential for R&D capitalization to mask underlying operational weakness, as the company navigates a challenging transition from traditional mechanical transmissions to more fragmented electric powertrain solutions.
The market's current valuation may be overly optimistic if the company's historical moat in vocational 'stop-and-go' markets fails to translate into the electric vehicle era. Investors should monitor whether the current R&D spend is sufficient to maintain technical leadership or if it represents a defensive attempt to stave off obsolescence.
Quick answers to the most common questions about buying ALSN stock.
For fiscal year 2025, Allison Transmission Holdings, Inc. (ALSN) reported total revenue of $3.01B. This represents a 39.2% increase compared to $2.16B in 2011.
Allison Transmission Holdings, Inc. (ALSN) is profitable, generating $623.0M in net income for the fiscal year ending 2025 with a net profit margin of 20.7%.
Allison Transmission Holdings, Inc. (ALSN) reported an operating income of $973.0M, resulting in an operating profit margin of 32.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Allison Transmission Holdings, Inc. (ALSN) generated $1.46B in gross profit for the year, representing a gross profit margin of 48.4%. This demonstrates the company's core pricing power and production efficiency.