Allison Transmission Q2 Sales Surge 92% on Dana Acquisition, but Higher Interest Costs Weigh on Earnings
ALSN sits 61% above its 52-week low of $76.01.
Summary
Allison Transmission's Q2 2026 revenue jumped 92% to $1.57B driven by the Dana off-highway acquisition, but higher interest costs from acquisition debt pushed net income down 7% to $181M.
Key Events · Earnings and Guidance · ALSN
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Q2 Revenue Nearly Doubles
Net sales surged 92% year-over-year to $1.57 billion, driven by the addition of the Allison Off-Highway segment ($706M) and growth in the Defense end market.
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Earnings Dip on Higher Interest
Net income fell 7% to $181 million ($2.15 diluted EPS) as interest expense more than doubled to $54 million, reflecting debt taken on to fund the Dana acquisition.
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Balance Sheet Leverage Increases
Total debt rose to $4.14 billion from $2.91 billion at year-end 2025, while cash and equivalents dropped to $399 million from $1.5 billion, primarily due to the $2.53 billion acquisition cash outflow.
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Share Repurchases Continue
The company repurchased $47 million of common stock in Q2, with $1.125 billion remaining under its $5 billion repurchase authorization.
Analysis · ALSN · Manufacturing
The transformative impact of the Dana off-highway acquisition is clear in Allison Transmission's Q2 results, with net sales nearly doubling to $1.57 billion. A new Allison Off-Highway segment contributed $706 million in revenue, diversifying the company beyond its traditional on-highway markets. Yet the deal came at a cost: interest expense more than doubled to $54 million, and net income declined 7% year-over-year to $181 million. The balance sheet reflects the acquisition financing, as total debt rose to $4.14 billion and cash reserves fell to $399 million. While the top-line growth is impressive, the increased leverage and integration risks warrant attention.
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In the 30 days to Oct 5, 2026, 29.2% of the 1496 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ALSN was trading at $122.65 on NYSE in the Manufacturing sector, with a market capitalization of approximately $10.2B. The 52-week trading range was $76.01 to $137.62. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.