Allison Transmission(NYSE) ALSN

Allison Transmission makes gears and power systems that help big vehicles move. These products let buses, trucks, and military tanks shift gears without losing power. The company serves people who drive heavy equipment in cities, construction sites, and on the battlefield.

What Moves the World?

• North America On-Highway: Fully automatic transmissions for medium and heavy trucks, school buses, and motorhomes; represents 51% of net sales in 2025.
• Outside North America On-Highway: Gear systems for commercial vehicles and buses in regions like Europe, Asia, and South America; accounts for 17% of net sales in 2025.
• Service Parts and Other: Branded replacement parts, transmission fluids, and remanufactured systems sold under the ReTran name; accounts for 21% of net sales in 2025.
• Defense: Propulsion solutions for U.S. and global tactical wheeled and tracked vehicles, such as the Abrams tank; makes up 9% of net sales in 2025.
• Global Off-Highway: Heavy-duty transmissions used in energy, mining, and construction equipment; represents 2% of net sales in 2025.

New Paths and Big Moves

• Acquired the Off-Highway Drive and Motion Systems business from Dana Incorporated on January 1, 2026.
• Entered a four-year labor agreement with UAW Local 933 in January 2024 to cover U.S. manufacturing employees through November 2027.
• Launched the FracTran product line specifically to serve the hydraulic fracturing market within the energy industry.
• Developed the eGen Power and eGen Flex lines to provide fully electric and electric hybrid solutions for buses and trucks.

How Allison Transmission Stands Out

The company maintains a global reach through a network of 1,500 independent distributor and dealer locations. It utilizes proprietary software and complex algorithms to manage how power flows from an engine to the wheels.

The Financial Scorecard

• Net sales reached $737 million in Q4 2025, down 7.4% from the same period in 2024.
• Net income was $99 million in Q4 2025, a 43.4% decrease from the $175 million reported in Q4 2024.
• Operating cash flow rose to $237 million in Q4 2025, up 12.3% year-over-year.
• Free cash flow hit $163 million in Q4 2025, up 19.9% from the $136 million recorded in Q4 2024.

Evolution and Adaptability

Allison has transitioned from traditional gear manufacturing to developing electric propulsion and motion systems for a wider variety of global industries. This shift from internal combustion support to electrified and off-highway solutions marks its latest stage of growth.