Allison Transmission (ALSN)
Industrials · Commercial vehicle automatic transmissions and drivetrain systems
Global leader in fully automatic transmissions for commercial and defense vehicles, now expanded into off-highway drivetrain solutions through major 2026 acquisition.
What Allison Transmission does
Allison Transmission is the world's largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and U.S. defense vehicles. Following its January 2026 acquisition of an off-highway business, the company now operates two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems, offering an expanded portfolio of drivetrain and propulsion solutions for on-highway, off-highway, and defense applications across North America, Europe, Asia, South America, and Africa.
Themes: ["Commercial vehicle transmissions","Off-highway drivetrain solutions","Defense vehicle propulsion","Fuel efficiency and automation"]
Fundamentals
- Price$113.78 as of 2026-07-09 close
- Market cap$9.3B as of 2026-07-10
- 1-year return+17.8% as of 2026-07-09 close
- P/E17.07 as of 2026-07-10
- Net margin+14.9% as of 2026-07-10
- Gross margin+42.6% as of 2026-07-10
- ROE+29.5% as of 2026-07-10
- Debt / equity2.24 as of 2026-07-10
- Revenue growth (YoY)+14.0% as of 2026-07-10
- Revenue CAGR (3y)+2.8% SEC XBRL
- Beta0.98 as of 2026-07-10
Dividend: yield +1.0%; 4-year non-decreasing per-share dividend streak (SEC XBRL).
Key risks (from latest filing)
["Substantial debt increase from acquisition ($1.2 billion in new long-term debt issued in Q1 2026), with total long-term debt rising from $2.9 billion to $4.2 billion, raising leverage and financial risk","Significant operational integration challenge from the off-highway business acquisition, requiring alignment of distinct product portfolios, distribution networks, and customer bases across geographically dispersed operations","Dependence on North American markets for 76% of 2025 revenues, creating exposure to regional economic cycles and commercial vehicle demand volatility"]
Competitors & peers
- ZF Friedrichshafen (ZF) – automatic transmissions for commercial vehicles
- Volvo Group – integrated powertrain and transmission systems
- Dana Incorporated – drivetrain and propulsion technologies
- Eaton Corporation – power distribution and transmission solutions
Fundamentals: Finnhub, as of 2026-07-10. Filings: SEC EDGAR. Prices are delayed daily-close data.
Last updated 2026-07-09.
Informational only — NOT financial advice. All figures are delayed daily-close data from SEC EDGAR & Finnhub, shown with their as-of date.