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Accessibility StatementSkip Navigation INDIANAPOLIS, Oct. 15, 2025 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions for commercial and defense vehicles, today announced that it will hold its third quarter 2025 financial results conference call at 5:00 p.m. EDT on Wednesday, October 29, 2025. David S. Gr ...

Today the X1100 continues to fulfill the Army's evolving operational needs, including its renewed emphasis on maintainability, modularity and lifecycle readiness. Since the start of the Abrams program, Allison has enabled transmission repair activity at the Army's Anniston depot by providing enhanced access to diagnostics, components and service protocols under the Army's recent right to repair initiative. Qualification of select Allison service channel members to support cross drive products further reinfo ...

Core Viewpoint - Wealth Oklahoma has initiated a new position in Allison Transmission Holdings by acquiring 75,606 shares valued at approximately $6.4 million, representing 1.9% of its reportable U.S. equity assets as of Q3 2025 [1][2][3]. Company Overview - Allison Transmission designs and manufactures fully automatic transmissions and related parts for commercial, defense, and specialty vehicles, generating revenue primarily through product sales to original equipment manufacturers (OEMs) and aftermarket services [5][8]. - The company reported trailing twelve-month (TTM) revenue of $3.2 billion and net income of $762 million for the period ended June 30, 2025 [3][4]. Financial Performance - As of October 10, 2025, Allison Transmission's dividend yield was 1.3%, and shares were priced at $81.02, which is 35% below their 52-week high as of October 9, 2025 [3][4]. - The company's revenue for the first half of 2025 was $1.58 billion, a slight decrease from $1.61 billion in 2024 [9]. - Allison Transmission has revised its 2025 revenue expectations to between $3.1 billion and $3.2 billion, down from a previous estimate of $3.2 billion to $3.3 billion due to softness in demand in certain end markets [10]. Market Position - Allison Transmission is the world's largest manufacturer of medium and heavy-duty fully automatic transmissions, leveraging a broad distribution network and long-standing OEM relationships [9][11]. - The company serves a global customer base, focusing on commercial vehicle and defense markets [6][8]. Investment Rationale - Wealth Oklahoma's acquisition of Allison Transmission shares is seen as a strategic move, reflecting confidence in the company's potential recovery, especially following its recent acquisition of Dana Incorporated, which enhances its drivetrain and propulsion systems capabilities [11]. - With a price-to-earnings ratio of 9, Allison Transmission's valuation appears attractive, indicating a potential buying opportunity [12].

Core Insights - Allison Transmission has successfully integrated its 4500 Rugged Duty Series (RDS) fully automatic transmission with the Cummins X15N natural gas engine in Kenworth T880 tractors, setting a new standard for sustainable heavy-duty transportation [1][2] Group 1: Product Integration and Performance - The integration of the Allison 4500 RDS transmission with the Cummins X15N engine demonstrates a commitment to sustainability while enhancing operational performance [3][5] - The X15N engine features a broader torque curve, providing better low-end torque and improved drivability, especially in challenging conditions [5] - The combination of the X15N engine, which delivers 500 horsepower and 1850 pounds per foot of torque, with the Allison 4500 RDS transmission showcases advanced capabilities without compromising performance [5][6] Group 2: Sustainability and Efficiency - Ozinga Renewable Energy Logistics has validated the use of natural gas-powered vehicles, emphasizing the reduction of emissions and enhancement of fleet performance [3][4] - The lighter weight of the X15N engine, along with the optimized performance of the 4500 RDS transmission, increases payload capacity and reduces total cost of vehicle ownership, aligning with sustainability objectives [4] - The X15N engine can achieve a negative carbon footprint when using renewable natural gas, meeting customer demands for cleaner fuel alternatives [5] Group 3: Market Position and Offerings - Allison Transmission offers fuel-agnostic solutions, allowing customers to choose from diesel, electric, or natural gas propulsion systems [7] - The Allison 4500 RDS transmission is designed for heavy-duty tractor and vocational truck applications, ensuring reliability and durability [6] - Allison Transmission is a leading manufacturer of medium- and heavy-duty fully automatic transmissions, with a global presence and a wide range of applications [8]

Group 1 - BUNGE GLOBAL SA (BG) is an integrated global agribusiness and food company with a downward revision of almost 16.6% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Avnet (AVT) is one of the world's largest distributors of electronic components and computer products, experiencing a downward revision of almost 10.8% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Allison Transmission Holdings (ALSN) manufactures fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles, with a downward revision of 8% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Core Thesis - Allison Transmission Holdings, Inc. is viewed as a compelling value opportunity, trading below intrinsic value with a P/E ratio of 9x, EBITDA of 8.0x, and revenue multiple of 2.7x [2] Financial Performance - The company's core on-highway segment revenue declined from $456 million in Q2 2024 to $417 million in Q2 2025, while defense-related revenues grew by 47% [3] - Earnings improved due to modest reductions in cost of goods sold (COGS), selling, general and administrative (SG&A) expenses, and research and development (R&D) expenses [3] Debt and Financial Flexibility - Allison carries significant leverage, with approximately 60% of enterprise value in debt, but most of this debt is long-dated with below-market interest rates, providing financial flexibility in a high-interest-rate environment [3] Strategic Acquisition - The company plans to acquire Dana Incorporated by Q4 2025, using a combination of cash and debt to expand its international footprint and enhance product offerings [4] - The acquisition is expected to generate synergies that will bolster cash flows over the medium term, despite potential near-term headwinds from integration costs and higher interest expenses [4] Competitive Advantages - Allison's durable competitive advantages include proprietary transmission technologies, strong brand equity, long-standing OEM integration, and a global aftermarket network, which create high switching costs and recurring revenue streams [5] - Multi-year defense contracts further enhance regulatory and contractual moats, limiting competition and providing a defensible market position [5] Valuation Potential - A simple discounted cash flow (DCF) analysis indicates an equity value of approximately $12.8 billion, suggesting a potential upside of roughly 75% [4]

Core Insights - Allison Transmission has introduced its Neutral at Stop fuel-saving technology as a standard feature on Kenworth and Peterbilt models equipped with the Allison 4700 Rugged Duty Series transmissions, aimed at enhancing fuel efficiency and reducing operating costs for commercial fleets [1][2][4] Group 1: Technology and Benefits - The Neutral at Stop technology improves vehicle efficiency by automatically shifting the transmission to neutral when the vehicle is stopped, which reduces engine load and fuel consumption [3] - This feature is part of Allison's FuelSense 2.0 package, which can achieve fuel savings of up to 6%, contributing to lower operating costs and a more sustainable operation [4] Group 2: Company Overview - Allison Transmission is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles, and is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions [6] - The company has a presence in over 150 countries, with regional headquarters in the Netherlands, China, and Brazil, and manufacturing facilities in the USA, Hungary, and India [6]

Core Viewpoint - Allison Transmission's recent earnings report shows mixed results, with earnings per share beating estimates but revenues slightly declining year over year, raising questions about future performance [3][12]. Financial Performance - Q2 2025 earnings were $2.29 per share, exceeding the Zacks Consensus Estimate of $2.20, and reflecting a 7.5% increase year over year [3]. - Quarterly revenues totaled $814 million, a decrease of 0.2% from the previous year but above the Zacks Consensus Estimate of $794 million [3]. - Gross profit increased to $402 million from $394 million year over year, driven by price increases on certain products [8]. - Adjusted EBITDA rose to $313 million from $301 million reported a year ago [8]. Segmental Performance - North America On-Highway net sales fell 8.6% year over year to $417 million, missing the Zacks Consensus Estimate of $442 million due to lower demand for medium-duty trucks [4]. - Outside North America On-Highway net sales increased to $142 million from $128 million year over year, surpassing the Zacks Consensus Estimate of $123 million [5]. - Global Off-Highway net sales dropped to $16 million from $23 million year over year, missing the Zacks Consensus Estimate of $18.45 million [6]. - Defense end market net sales rose 46.5% year over year to $63 million, exceeding the Zacks Consensus Estimate of $52 million [6]. - Service Parts, Support Equipment & Other net sales grew 6% year over year to $176 million, beating the Zacks Consensus Estimate of $162 million [7]. Financial Position - Selling, general and administrative expenses increased by 24.4% year over year to $102 million [9]. - Cash and cash equivalents were $778 million as of June 30, 2025, down from $781 million at the end of 2024 [9]. - Long-term debt remained unchanged at $2.4 billion [9]. - Net cash provided by operating activities totaled $184 million, with adjusted free cash flow at $153 million, up from $150 million year over year [10]. 2025 Outlook - Full-year 2025 net sales are now expected to be between $3,075 million and $3,175 million, down from the previous estimate of $3,200 million to $3,300 million [12]. - Expected net income is revised to a range of $640 million to $680 million, down from $735 million to $785 million [12]. - Adjusted EBITDA is estimated to be between $1,130 million and $1,180 million, reduced from the earlier expectation of $1,170 million to $1,230 million [12]. - The company anticipates net cash provided by operating activities to be between $785 million and $835 million, down from the previous estimate of $800 million to $860 million [13]. Market Sentiment - There has been a downward trend in estimates revisions, with the consensus estimate shifting down by 12.88% [14]. - Allison Transmission currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [16].

Core Insights - Allison Transmission Holdings (ALSN) reported Q2 2025 earnings of $2.29 per share, exceeding the Zacks Consensus Estimate of $2.20 and reflecting a 7.5% year-over-year increase. Quarterly revenues reached $814 million, a slight decline of 0.2% from the previous year but surpassing the Zacks Consensus Estimate of $794 million [1]. Segmental Performance - In the North America On-Highway end market, net sales decreased by 8.6% year-over-year to $417 million, falling short of the Zacks Consensus Estimate of $442 million due to reduced demand for medium-duty trucks [2]. - The Outside North America On-Highway end market saw net sales rise to $142 million from $128 million in the same quarter of 2024, driven by increased demand in South America and Europe, and exceeded the Zacks Consensus Estimate of $123 million [2]. - Global Off-Highway end market net sales dropped to $16 million from $23 million year-over-year, missing the Zacks Consensus Estimate of $18.45 million due to weaker demand from energy, mining, and construction sectors outside North America [3]. - The Defense end market experienced a significant increase in net sales, rising 46.5% year-over-year to $63 million, driven by focused growth initiatives, and also surpassed the Zacks Consensus Estimate of $52 million [3]. - Net sales in the Service Parts, Support Equipment & Other end markets grew by 6% year-over-year to $176 million, attributed to higher demand for service parts and price increases, beating the Zacks Consensus Estimate of $162 million [4]. Financial Position - Gross profit for Allison Transmission was $402 million, up from $394 million in the previous year, primarily due to price increases on certain products [5]. - Adjusted EBITDA for the quarter was $313 million, an increase from $301 million reported a year ago [5]. - Selling, general and administrative expenses rose by 24.4% year-over-year to $102 million, while engineering and R&D expenses decreased to $44 million from $49 million [6]. - As of June 30, 2025, cash and cash equivalents stood at $778 million, a slight decrease from $781 million at the end of 2024, with long-term debt remaining unchanged at $2.4 billion [6]. - Net cash provided by operating activities totaled $184 million, and adjusted free cash flow was $153 million, up from $150 million in the previous year [7]. 2025 Outlook - The company revised its full-year 2025 net sales guidance to a range of $3,075-$3,175 million, down from the previous estimate of $3,200-$3,300 million. Net income expectations were also lowered to $640-$680 million from $735-$785 million [8]. - Adjusted EBITDA is now estimated to be between $1,130-$1,180 million, down from the earlier forecast of $1,170-$1,230 million [8]. - Expected net cash provided by operating activities is now between $785 million and $835 million, compared to the previous estimate of $800-$860 million, with capital expenditures projected in the range of $165-$175 million [9][10].