The second consecutive guidance raise and strong cash generation support the thesis that the Off-Highway acquisition is delivering operational and financial benefits. Monitor Q4 for further debt reduction progress and the trajectory of the legacy Allison Transmission segment's North America On-Highway demand, which drove record revenue.
How the stock moved after the report
⚠ Clustered BULLISH VIEWSTOCK ABOVE ENTRY AT T+5- T+0 · Nov 3 $118.92entry
- T+1 · 8d ago +1.35%α −0.31% · $120.52
- T+5 · yesterday +5.58%α +6.17% · $125.56
- T+6 · todayOpen
- T+20 · in 20d Pending
- T+60 · in 3mo Pending
Price Chart
REPLAYWatch the reaction play outHow similar events traded
Executive Summary
Allison Transmission reported Q3 2026 net sales of $1,534 million (up 121% YoY, including the acquired Off-Highway unit) and adjusted diluted EPS of $2.90 (up 59% YoY), beating the consensus estimate of $2.48. The company raised full-year 2026 guidance for the second consecutive quarter, with consolidated net sales now expected in the range of $5,975 to $6,075 million and adjusted EBITDA of $1,530 to $1,580 million. The Allison Transmission legacy unit posted record quarterly net sales of $881 million, up 27% YoY.
Key Financial Metrics
Key Facts
- Q3 2026 net sales of $1,534 million, up 121% YoY, including $653 million from the Allison Off-Highway unit acquired on January 1, 2026
- Adjusted diluted EPS of $2.90, up 59% YoY from $1.82, beating consensus of $2.48
- Allison Transmission legacy unit record quarterly net sales of $881 million, up 27% YoY
- Full-year 2026 guidance raised: net sales $5,975-$6,075 million (from $5,800-$6,000), adjusted EBITDA $1,530-$1,580 million (from $1,465-$1,575)
- Adjusted free cash flow of $278 million in Q3, up 51% YoY
- Net cash provided by operating activities of $343 million, up 50% YoY
- Over $400 million of debt repaid year-to-date through September 30, 2026
- $57 million of share repurchases and $23 million in dividends paid in Q3
Financial Impact
Q3 adjusted diluted EPS of $2.90 exceeded consensus of $2.48 by 16.9%; full-year guidance raised by $125M at the midpoint for net sales and $35M for adjusted EBITDA
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Allison Transmission | $881.0M | +27.0% |
| Allison Off-Highway | $653.0M | Not reported |
Risk Factors
- Geopolitical uncertainty and tariffs could impact end-market demand, particularly in the Industrial and Agriculture segments which remained subdued
- Integration and restructuring costs for the Off-Highway unit continue, with approximately $125 million of one-time pre-tax expenses expected for the full year
- Higher interest expense ($51M in Q3 vs $24M in Q3 2025) and elevated debt levels ($4,012M total debt) increase financial leverage risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-443664 |
| Document: d187329dex992.htm | 0001193125-26-443664 |
| Document: d187329d8k.htm | 0001193125-26-443664 |
| Document: 0001193125-26-443664-index-headers.html | 0001193125-26-443664 |
| Document: 0001193125-26-443664-index.html | 0001193125-26-443664 |
| Document: 0001193125-26-443664.txt | 0001193125-26-443664 |
| 8-K Data (Synthetic) | 0001193125-26-443664 |
Track record
12 reports on ALSN
The track record builds as more bullish or bearish reports settle.
Filters
- Nov 11, 2026today Press Release Neutral 2/10 Entry $123.03 Now $125.56 +2.06% settles Nov 19
- Nov 10, 20261d ago 8-K Neutral 3/10 Entry $125.56 Now $125.56 −0.00% settles Nov 17
- Nov 2, 20269d ago Institutional Cluster Bullish 4/10 Entry $118.92 to $125.56 Now $125.56 +5.58% ▲ +5.58% +6.17% vs SPY
- Nov 2, 20269d ago 8-K Bullish 6/10 Viewing Entry $118.92 to $125.56 Now $125.56 +5.58% ▲ +5.58% +6.17% vs SPY
- Oct 23, 202619d ago Press Release Neutral 3/10 Entry $106.32 to $108.05 Now $125.56 +18.10% ▲ +1.63% +2.19% vs SPY
- Aug 15, 202612w ago Institutional Cluster Mixed 4/10 Entry $127.11 to $131.38 Now $125.56 −1.22% ▲ +3.36% +4.55% vs SPY
- Aug 13, 202612w ago Insider Cluster Neutral 2/10 Entry $125.87 to $133.23 Now $125.56 −0.25% ▲ +5.85% +7.22% vs SPY
- Aug 5, 202614w ago GOVT-CONTRACT Neutral 3/10 Entry $116.24 to $122.92 Now $125.56 +8.02% ▲ +5.75% +4.53% vs SPY
- Jun 16, 202621w ago 8-K Neutral 3/10 Entry $118.86 to $119.68 Now $125.56 +5.64% ▲ +0.69% +1.73% vs SPY
- May 8, 202626w ago 8-K Neutral 2/10 Entry $123.72 to $114.06 Now $125.56 +1.49% ▼ −7.81% −7.72% vs SPY
US Market Status
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