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Allison Transmission (ALSN)
NYSE:ALSN
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Allison Transmission Holdings (ALSN) Price & Analysis

369 Followers

ALSN Stock Chart & Stats

$122.34
$2.70(2.26%)
At close: 4:00 PM EDT
$122.34
$2.70(2.26%)

Bulls Say, Bears Say

Bulls Say
Sustained Revenue GrowthConsistent TTM top-line expansion (+20.6%) reflects widening product adoption and scale from the Off-Highway acquisition and core transmission demand. Durable OEM relationships and a larger installed base support recurring aftermarket revenue, making revenue growth less cyclical over a multi‑quarter horizon.
Robust Cash Generation And FCFStrong operating and free cash flow provides durable funding for capex, electrification investments, dividends, buybacks, and debt reduction. Predictable FCF can sustain reinvestment and deleveraging over 2–3 years, improving financial optionality despite cyclical end markets.
Large Multi-year Defense WinsSignificant defense contracts create multi-year, higher‑visibility revenue streams and diversify end-market exposure away from commercial cyclicality. Defense program scale supports longer production runs, aftermarket parts and service revenue, and strengthens backlog and predictability over several years.
Bears Say
Legacy Margin CompressionSharp raw material headwinds have materially reduced gross and net margins versus prior years. With passthrough pricing lagging 6–12 months, margin volatility can persist, eroding earnings quality and cash conversion until pricing or mix improvements fully offset input inflation.
Elevated LeverageA higher leverage profile increases financial sensitivity to profit swings in a cyclically exposed auto‑parts business. While ROE benefits from leverage in good years, elevated debt limits flexibility for opportunistic investment and raises refinancing and coverage risk if margins remain pressured.
One-time Integration Costs And Execution LoadMaterial one‑time charges and heavy integration work can constrain near‑term cash flow and management bandwidth, delaying synergy capture. Execution risk may slow realization of the $120M synergy plan and temporarily reduce free‑cash conversion and operating leverage over the next 12–24 months.

Allison Transmission Holdings News

ALSN FAQ

What was Allison Transmission’s price range in the past 12 months?
Allison Transmission lowest stock price was $76.01 and its highest was $137.62 in the past 12 months.
    What is Allison Transmission’s market cap?
    Allison Transmission’s market cap is $9.50B.
      When is Allison Transmission’s upcoming earnings report date?
      Allison Transmission’s upcoming earnings report date is Oct 28, 2026 which is in 83 days.
        How were Allison Transmission’s earnings last quarter?
        Allison Transmission released its earnings results on Aug 03, 2026. The company reported $2.15 earnings per share for the quarter, missing the consensus estimate of $2.479 by -$0.329.
          Is Allison Transmission overvalued?
          According to Wall Street analysts Allison Transmission’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Allison Transmission pay dividends?
            Allison Transmission pays a Quarterly dividend of $0.29 which represents an annual dividend yield of 0.98%. See more information on Allison Transmission dividends here
              What is Allison Transmission’s EPS estimate?
              Allison Transmission’s EPS estimate is 2.28.
                How many shares outstanding does Allison Transmission have?
                Allison Transmission has 82,935,980 shares outstanding.
                  What happened to Allison Transmission’s price movement after its last earnings report?
                  Allison Transmission reported an EPS of $2.15 in its last earnings report, missing expectations of $2.479. Following the earnings report the stock price went up 5.425%.
                    Which hedge fund is a major shareholder of Allison Transmission?
                    Currently, no hedge funds are holding shares in ALSN
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Allison Transmission

                      Allison Transmission Holdings, Inc. (ALSN), along with its affiliates, specializes in the global development, manufacturing, and sale of fully-automatic transmissions. These robust systems are engineered for both medium and heavy-duty commercial vehicles, as well as medium and heavy-tactical defense vehicles utilized by the U.S. military. The company's diverse product portfolio serves a broad spectrum of applications. This includes on-highway vehicles such as trucks for distribution, refuse collection, construction, fire, and emergency services, alongside school and transit buses, and recreational motor homes. Furthermore, Allison transmissions power off-highway equipment for the energy, mining, and construction industries, as well as both wheeled and tracked defense vehicles. New transmissions are marketed under the well-known Allison Transmission brand, while their remanufactured offerings are sold as ReTran. Beyond core transmissions, the company supplies a range of ancillary products and services. These encompass branded replacement parts, essential support equipment, aluminum die-cast components, and other items critical for maintaining their extensive installed base of vehicles. Additionally, they provide defense kits, specialized engineering services, and extended transmission coverage to key clients, including original equipment manufacturers (OEMs), distributors, and the U.S. government. Allison Transmission reaches its customer base through a robust, independent global network comprising approximately 1,400 distributor and dealer locations. Established in 1915, the company was formerly known as Clutch Holdings, Inc. Its corporate headquarters are situated in Indianapolis, Indiana.

                      Allison Transmission Holdings (ALSN) Earnings & Revenues

                      ALSN Company Deck

                      ALSN Earnings Call

                      Q2 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call conveyed strong positive financial and operational momentum driven by the Off-Highway acquisition, record transmission revenues, sizeable defense contract wins, robust adjusted EBITDA and record free cash flow, plus an upward revision to full-year guidance. Key short-term negatives include material-cost-driven margin pressure in the legacy transmission business, sizeable one-time acquisition and integration expenses, seasonal softness in Off-Highway (Q3), and regional weakness in the Americas and agriculture end markets. Management provided a clear $120M synergy plan and a multi-year realization timeline, but noted limited impact from those synergies on 2026 guidance.View all ALSN earnings summaries

                      ALSN Revenue Breakdown

                      71.53%71.53%5.40%3.36%2.14%17.56%
                      71.53% U.S.
                      5.40% China
                      3.36% Japan
                      2.14% Canada
                      17.56% Other
                      tipranks

                      ALSN Stock 12 Month Forecast

                      Average Price Target

                      $137.33
                      ▲(12.26% Upside)
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