Allison Transmission (NYSE:ALSN) Posts Quarterly Earnings Results, Beats Expectations By $0.47 EPS

Allison Transmission (NYSE:ALSN) issued its quarterly earnings results on Monday. The auto parts company reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.10 by $0.47, Zacks reports. The company had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.38 billion. Allison Transmission had a return on equity of 37.93% and a net margin of 14.88%.The business’s quarterly revenue was up 83.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.23 earnings per share.

Here are the key takeaways from Allison Transmission’s conference call:

• Allison says integration is progressing and is on track to realize synergies, reaffirming a target of $120 million of annual run-rate synergies and expecting financial benefits to begin later in 2026.
• First-quarter GAAP net income fell to $112M due to acquisition-related PPA, depreciation and amortization (~$76M PPA items + $22M amortization) and $17M integration costs, while non-GAAP results showed strength with Adjusted Net Income $216M, Adjusted Diluted EPS $2.57, and Adjusted EBITDA $362M (26% margin).
• Management reaffirmed full-year 2026 guidance (consolidated sales $5.575B–$5.925B; net income $600M–$750M; Adjusted EBITDA $1.365B–$1.515B) and reiterated capital priorities of deleveraging toward a 2x net leverage target while continuing dividends and share repurchases.
• End-market risks remain—North America on-highway demand is only cautiously optimistic amid tariff and EPA/emissions uncertainty, and the Middle East conflict poses indeterminate supply-chain and macro risks, even as defense and mining demand showed notable strength.

Allison Transmission Trading Up 2.6%

NYSE ALSN traded up $3.28 during trading hours on Wednesday, hitting $130.65. 188,126 shares of the company’s stock were exchanged, compared to its average volume of 861,659. The stock has a 50-day simple moving average of $122.10 and a 200 day simple moving average of $106.13. Allison Transmission has a 1-year low of $76.01 and a 1-year high of $137.62. The firm has a market cap of $10.86 billion, a price-to-earnings ratio of 20.32, a PEG ratio of 0.77 and a beta of 1.01. The company has a current ratio of 4.85, a quick ratio of 4.17 and a debt-to-equity ratio of 1.55.

Allison Transmission Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Monday, March 9th were paid a dividend of $0.29 per share. This is an increase from Allison Transmission’s previous quarterly dividend of $0.27. This represents a $1.16 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Monday, March 9th. Allison Transmission’s payout ratio is 15.83%.

Insider Buying and Selling

In related news, insider Eric C. Scroggins sold 1,313 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $114.40, for a total transaction of $150,207.20. Following the completion of the sale, the insider owned 17,654 shares of the company’s stock, valued at $2,019,617.60. This trade represents a 6.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Allison Transmission

Several large investors have recently added to or reduced their stakes in ALSN. Bank of Montreal Can grew its stake in Allison Transmission by 4,032.3% during the fourth quarter. Bank of Montreal Can now owns 2,151,871 shares of the auto parts company’s stock worth $210,668,000 after purchasing an additional 2,099,797 shares during the period. Boston Partners grew its stake in Allison Transmission by 117.6% during the third quarter. Boston Partners now owns 2,038,429 shares of the auto parts company’s stock worth $173,093,000 after purchasing an additional 1,101,824 shares during the period. Millennium Management LLC grew its stake in Allison Transmission by 191.7% during the fourth quarter. Millennium Management LLC now owns 1,257,353 shares of the auto parts company’s stock worth $123,095,000 after purchasing an additional 826,352 shares during the period. UBS Group AG grew its stake in Allison Transmission by 222.2% during the third quarter. UBS Group AG now owns 960,548 shares of the auto parts company’s stock worth $81,531,000 after purchasing an additional 662,458 shares during the period. Finally, Schonfeld Strategic Advisors LLC grew its stake in Allison Transmission by 4,733.5% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 480,496 shares of the auto parts company’s stock valued at $47,041,000 after acquiring an additional 470,555 shares during the period. Institutional investors and hedge funds own 96.90% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on ALSN shares. Wells Fargo & Company increased their price target on Allison Transmission from $127.00 to $137.00 and gave the company an “equal weight” rating in a research note on Wednesday. Citigroup increased their price target on Allison Transmission from $130.00 to $135.00 and gave the company a “neutral” rating in a research note on Monday, April 13th. Weiss Ratings cut Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, February 25th. Morgan Stanley increased their price target on Allison Transmission from $109.00 to $117.00 and gave the company an “equal weight” rating in a research note on Monday, March 16th. Finally, Oppenheimer increased their price target on Allison Transmission from $115.00 to $135.00 and gave the company an “outperform” rating in a research note on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Allison Transmission has a consensus rating of “Hold” and a consensus price target of $115.38.

Allison Transmission Company Profile

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.