Allison Transmission

Allison Transmission designs and makes fully automatic transmissions for medium-duty and heavy-duty commercial vehicles, such as trucks, buses and military vehicles. It sells to vehicle makers around the world, and it also sells parts and service. On January 1, 2026, Allison bought Dana's Off-Highway business for $2.732 billion.

That business, now called Allison Off-Highway, makes axles, transmissions and drive systems for construction, mining and farm machines. In Q3 2026, the Allison Transmission business unit had record net sales of $881 million with an adjusted EBITDA margin of 38%, and Allison Off-Highway had net sales of $653 million with an adjusted EBITDA margin of 13%. Net sales were $3 billion in 2025, before the purchase.

The market prices Allison for the risk of a downturn in truck demand and for the cost of its large purchase. North American truck sales move in cycles, and electric vehicles may need fewer conventional transmissions in the long term. The Off-Highway purchase added debt: total debt was $4.01 billion and net debt $3.52 billion at September 30, 2026. The new business also has a much lower margin than the legacy business, and its farm and industrial markets have not recovered yet.

Allison expects about $125 million of one-time costs in 2026 for the separation, integration and restructuring of Off-Highway. For the gap to close, three things must be true. Allison must reach its 2026 guidance, which it raised again on November 2, 2026, to adjusted EBITDA of $1,530 million to $1,580 million and adjusted free cash flow of $850 million to $900 million. The Off-Highway margin must rise from the 13% of Q3 2026 as Allison captures the planned synergies.

Free cash flow must keep lowering net debt toward the company's leverage target. The 2027 guidance with the Q4 2026 report, expected in early February 2027, is the main test. If these checks pass, the gap can close over the next three to six quarters. The main reason it may not close is a fall in North American truck demand, which drives most of the legacy profit.

1. Nov 2, 2026Failed

   Q3 2026 earnings: truck demand and Off-Highway marginResults on track for the raised 2026 guidance and a higher Off-Highway margin than the 15% of Q2 pass; a cut to the guidance fails.Outcome: Allison raised its 2026 guidance again on record legacy sales, but the Off-Highway adjusted EBITDA margin fell to 13%, below the 15% of Q2 that the test asked to beat.
2. Feb 2, 2027 · est.Pending

   Q4 2026 results and 2027 guidance: synergies and debt2027 guidance for higher adjusted EBITDA and lower net debt passes; guidance for lower adjusted EBITDA because of weaker truck demand fails.

Every passed and failed checkpoint across all picks

• November 10, 2026Allison held its Off-Highway Analyst Teach-In Day in Indianapolis and posted the slides. The slides show net sales of $4,506 million and adjusted EBITDA of $1,166 million for the first nine months of 2026. They repeat the 2026 guidance of November 2, 2026, with midpoints of $6,025 million for net sales, $1,555 million for adjusted EBITDA (a margin of 25.8%) and $875 million for adjusted free cash flow. Management named four priorities: a wider propulsion product range, profitable growth, the benefits of greater scale and its position as a premier industrial asset.
• November 2, 2026Allison reported Q3 2026 results and raised its 2026 guidance for the second quarter in a row. Net sales rose 121% to $1,534 million with the Off-Highway business, and the Allison Transmission unit had record net sales of $881 million, up 27%. Diluted EPS was $2.30, and adjusted diluted EPS was $2.90, up 59%. Adjusted EBITDA rose 56% to $400 million, and adjusted free cash flow was $278 million. Allison has repaid more than $400 million of debt in 2026, and it bought back $57 million of stock in Q3. The new 2026 guidance is net sales of $5,975 million to $6,075 million, adjusted EBITDA of $1,530 million to $1,580 million and adjusted free cash flow of $850 million to $900 million.
• October 19, 2026Allison said that it will report Q3 2026 results after the market closes on November 2, 2026, with a call at 5:00 p.m. Eastern Time.

Last earnings

November 2, 2026 (8-K on sec.gov)

Next earnings

Expected about February 2, 2027. The company has not confirmed the date.

• 8-KInvestor disclosureFiled November 10, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 4, 2026 · alsn-20260930
• 8-KEarnings releaseFiled November 2, 2026 · Press release and exhibits
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 5, 2026 · alsn-20260630
• 8-KEarnings releaseFiled August 3, 2026 · Press release and exhibits
• 8-KNew material agreement and Investor disclosureFiled June 16, 2026 · Read it on sec.gov
• 8-KChange of directors or officers and Shareholder vote resultsFiled May 8, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 7, 2026 · alsn-20260331
• 8-KEarnings releaseFiled May 4, 2026 · Press release and exhibits
• 10-KAnnual report for the period ended Dec 31, 2025Filed February 24, 2026 · alsn-20251231

Every filing on SEC EDGAR (CIK 1411207)

• Demand for trucks and buses moves in cycles. North American on-highway trucks give much of the legacy profit. A downturn in truck orders lowers sales of Allison's high-margin transmissions.
• The Off-Highway purchase raised debt, which was $4.01 billion at September 30, 2026. Its adjusted EBITDA margin was 13% in Q3 2026, compared with 38% for the legacy business. If integration costs are higher or synergies are lower than planned, the deal can lower returns.
• Electric commercial vehicles may need fewer or simpler transmissions. Allison sells electric axles and hybrid systems, but a faster change to electric drives can reduce demand for its main products.
• Off-Highway sells to construction, mining and farm markets. Allison said in November 2026 that demand in the agriculture and industrial markets stayed weak. A longer farm downturn can delay the margin gains it expects.

Allison funds its operations with term loans, senior notes and a revolving credit facility. At September 30, 2026, total debt was $4,012 million and net debt was $3,515 million, so cash was $497 million. Read more

Yield at the current rate

0.9% (current annual rate, at today’s price)

Dividend yield

0.9% (last 12 months, at today’s price of $130.09)

Paid per share

$1.14 in the last 12 months (4 payments)

Current annual rate

$1.16 ($0.29 × 4 a year)

Payout ratio

15% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

August 21, 2026, $0.29 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 9.7% a year. From 2015 to 2025, the dividend grew by about 6.1% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.