Traders should monitor integration progress and synergy realization for the Off-Highway business; legacy revenue decline and elevated acquisition costs are near-term headwinds. The strong adjusted EPS beat and reaffirmed guidance provide near-term support, but sustained upside depends on legacy stabilization and synergy capture ahead of the 2.0x net leverage target.
Price Chart
Executive Summary
Allison Transmission reported Q1 2026 adjusted diluted EPS of $2.57, beating consensus of $2.10 by 22.4%. Consolidated revenue surged 84% to $1.406B, driven by the Allison Off-Highway acquisition, but legacy transmission revenue declined 4% YoY. GAAP net income fell to $112M from $192M due to acquisition costs. Full-year 2026 guidance was reaffirmed.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS $2.57 vs consensus $2.10 (+22.4% beat)
- Consolidated revenue $1,406M vs consensus $1,380M (+1.9% beat, +84% YoY)
- Legacy Allison Transmission revenue down 4% YoY to $733M
- Net income $112M (8% of sales) vs $192M in Q1 2025 due to ~$100M in acquisition-related costs
- Full-year 2026 guidance reaffirmed: net sales $5,575-$5,925M, adjusted EBITDA $1,365-$1,515M
- Adj. EBITDA $362M (+22% YoY); Adj. EBITDA margin 26% vs 39% a year ago due to acquisition mix
- Generated $156M operating cash flow, $103M adjusted free cash flow
- Repurchased >$20M in stock and paid $0.29 dividend; $1.171B repurchase authorization remaining
Financial Impact
Adjusted EPS beat of $0.47 over consensus, on revenue beat of ~$26M; guidance reaffirmed
Risk Factors
- Legacy Allison Transmission revenue declining 4% YoY
- High acquisition-related costs depressing GAAP earnings
- Integration risks and macroeconomic/geopolitical uncertainty
- Net leverage >3x; elevated debt from acquisition
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-204146 |
| Document: d138525d8k.htm | 0001193125-26-204146 |
| Document: d138525dex992.htm | 0001193125-26-204146 |
| Document: 0001193125-26-204146-index-headers.html | 0001193125-26-204146 |
| Document: 0001193125-26-204146-index.html | 0001193125-26-204146 |
| Document: 0001193125-26-204146.txt | 0001193125-26-204146 |
| 8-K Data (Synthetic) | 0001193125-26-204146 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 15, 2026 6w ago | Institutional Cluster | $127.11 $122.40 | ▼ −3.71% | ▼ −1.73% | $117.97 (−7.19%) |
Aug 13, 2026 7w ago | Insider Cluster | $125.87 $123.49 | ▼ −1.89% | ▲ +0.10% | $117.97 (−6.28%) |
Jun 16, 2026 15w ago | 8-K | $118.86 $115.49 | ▼ −2.84% | ▼ −4.15% | $117.97 (−0.75%) |
May 8, 2026 21w ago | 8-K | $123.72 $117.91 | ▼ −4.70% | ▼ −4.39% | $117.97 (−4.65%) |
May 4, 2026 21w ago | 8-K | $127.37 $116.14 | ▼ −8.82% | ▼ −13.77% | $117.97 (−7.38%) |
Mar 25, 2026 27w ago | DEFA14A | $116.32 $135.51 | ▲ +16.50% | ▲ +5.83% | $117.97 (+1.42%) |
US Market Status
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