Allison Transmission (ALSN) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, th ...

The Borsuk, the newest of many Allison-equipped vehicles developed for Poland, will drive the company's growth in the Defense end market.INDIANAPOLIS, July 16, 2025 /PRNewswire/ -- Allison Transmission, a leading designer and manufacturer of vehicle propulsion solutions for tactical wheeled and tracked defense vehicles, has secured a new order of 3040 MX™ cross-drive transmissions for Poland's Borsuk Infantry Fighting Vehicle (IFV) program. This follows the Memorandum of Understanding announced in 2023 betw ...

INDIANAPOLIS, July 14, 2025 /PRNewswire/ -- Allison Transmission is pleased to announce the Maryland Department of Transportation Maryland Transit Administration has selected New Flyer buses equipped with the Allison eGen Flex® hybrid propulsion system to operate in the metropolitan Baltimore region. The 40-foot electric-hybrid buses will be built in 2025. The eGen Flex system is engineered to advance the efficiency of public transportation and help cities reduce their carbon footprint. The eGen Flex s ...

Core Viewpoint - Allison Transmission (ALSN) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Allison Transmission reflects a positive outlook on its earnings, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [5][7]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Current Earnings Estimates for Allison Transmission - For the fiscal year ending December 2025, Allison Transmission is expected to earn $8.83 per share, indicating no year-over-year change, but the Zacks Consensus Estimate has increased by 0.4% over the past three months [9]. Conclusion on Zacks Rating System - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings, with only the top 5% of stocks receiving a "Strong Buy" rating, indicating superior earnings estimate revisions [10][11]. - The upgrade of Allison Transmission to Zacks Rank 1 positions it among the top 5% of stocks, suggesting potential for higher stock movement in the near term [11].

Core Viewpoint - Allison Transmission (ALSN) has experienced a significant downtrend, with a stock decline of 11.3% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - ALSN's current RSI reading is 19.74, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. - The RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to excessive selling [3]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding ALSN's earnings estimates, with a 0% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7]. - ALSN holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [8].

Core Insights - Three stocks with strong value characteristics and a Zacks Rank of 1 (Strong Buy) are highlighted for investors: Virco Manufacturing, Popular, and Allison Transmission Holdings [1][3][4]. Company Summaries - **Virco Manufacturing (VIRC)**: - Designs, produces, and distributes quality furniture for contract and education markets globally - Zacks Consensus Estimate for current year earnings increased by 26.6% over the last 60 days - Price-to-earnings ratio (P/E) is 7.94, significantly lower than the industry average of 14.80 - Holds a Value Score of A [1][2]. - **Popular (BPOP)**: - Full-service financial services provider offering a comprehensive suite of banking and financial services - Zacks Consensus Estimate for current year earnings increased by 5% over the last 60 days - Price-to-earnings ratio (P/E) is 9.91, compared to the industry average of 10.50 - Holds a Value Score of A [3][4]. - **Allison Transmission Holdings (ALSN)**: - Manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and defense vehicles - Zacks Consensus Estimate for current year earnings increased by 6.5% over the last 60 days - Price-to-earnings ratio (P/E) is 10.28, compared to the industry average of 54.90 - Holds a Value Score of A [4][5].

Group 1: Royal Gold (RGLD) - The company focuses on acquiring and managing precious metals stream and royalty interests, primarily in gold [1] - The Zacks Consensus Estimate for its current year earnings has increased by 9.3% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 1%, compared to the industry average of 0.0% [1] Group 2: Allison Transmission Holdings (ALSN) - The company manufactures fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles [2] - The Zacks Consensus Estimate for its current year earnings has increased by 6.5% over the last 60 days [2] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 1.2%, compared to the industry average of 0.0% [2] Group 3: Virco Manufacturing (VIRC) - The company designs, produces, and distributes quality furniture for the contract and education markets worldwide [3] - The Zacks Consensus Estimate for its current year earnings has increased by 26.6% over the last 60 days [3] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 1.3%, compared to the industry average of 0.0% [3]

Key Takeaways Allison to buy Dana's Off-Highway business for $2.7B to broaden its industrial offerings. The Off-Highway unit made up 27% of Dana's 2024 revenues and operates in over 25 countries. ALSN expects $120M in annual synergies and aims to close the cash-and-debt deal by Q4 2025.Allison Transmission Holdings, Inc. (ALSN) has entered into an agreement with Dana Inc. (DAN) to acquire its Off-Highway business for approximately $2.7 billion. The unit to be acquired manufactures mobile drivetrains and m ...

Summary of Allison Transmission's Analyst and Investor Call Company and Industry - **Company**: Allison Transmission - **Acquisition Target**: Dana Incorporated's off highway business - **Industry**: Powertrain and industrial solutions for commercial duty applications Core Points and Arguments 1. **Strategic Alignment**: The acquisition aligns with Allison's strategic priorities to expand its emerging market footprint, enhance core technologies, and deliver strong financial results, positioning Allison as a global provider in on highway, off highway, and defense markets [6][10][13] 2. **Transaction Details**: The purchase price is $2.7 billion, financed with new debt and cash on hand, representing a 6.8 times multiple on 2024 adjusted EBITDA of approximately $400 million. Including identified annual run rate synergies of around $120 million, the transaction value represents a 5.2 times multiple on 2024's adjusted EBITDA [7][8] 3. **Financial Impact**: The acquisition is expected to increase Allison's revenue significantly, nearly doubling net sales to approximately $6 billion, and increasing adjusted EBITDA by 40% to $1.7 billion, while maintaining industry-leading adjusted EBITDA margins [14][15] 4. **Operational Synergies**: Identified annual run rate synergies are expected to be achieved primarily from operations, procurement, R&D, and SG&A by year four [7][8] 5. **Global Presence**: Dana's off highway business operates in over 25 countries, generating $2.8 billion in revenue for 2024, with over 70% of revenue from outside North America, enhancing Allison's global footprint [10][11] 6. **Product Portfolio Expansion**: The acquisition will expand Allison's product offerings to include axles, gears, and hybrid drivetrain systems, leveraging shared competencies in software, controls, and system integration [11][12] 7. **Sustainability Focus**: The acquisition positions Allison as a leader in the transition to more sustainable solutions across various end markets [12][13] 8. **Cash Flow and Capital Allocation**: Allison's robust cash flow allows for continued dividend payments and share repurchase programs while focusing on deleveraging to a target below two times leverage [26][28] Additional Important Content 1. **Market Share and Competitive Position**: Dana's off highway business is recognized as a significant player in its market, and the combination with Allison is expected to enhance market reach and execution capabilities [18] 2. **Revenue Synergies**: While initial synergies are cost-focused, there is potential for revenue synergies through expanded market access and product offerings, particularly in international markets [39] 3. **Integration Efforts**: The integration of Dana's business is expected to proceed smoothly, with the team being experienced in M&A and integration processes [32] 4. **Future Growth Opportunities**: The acquisition opens up new growth opportunities in adjacent markets, particularly in construction, agriculture, and industrial applications [44][49] This summary encapsulates the key points discussed during the call, highlighting the strategic rationale behind the acquisition and its anticipated impact on Allison Transmission's growth and market position.

Acquisition of Dana Off-Highway Business June 11, 2025 Dave Graziosi, Chair & CEO Fred Bohley, COO Scott Mell, CFO & Treasurer 1 Safe Harbor Statement The following information contains, or may be deemed to contain, "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995). The words "believe," "expect," "anticipate," "intend," "estimate," "will" and other expressions that are predictions of or indicate future events and trends and that do not relate to historica ...