Allison Transmission Q2 Sales Surge 92%, Guidance Raised Above Street
ALSN sits 53% above its 52-week low of $76.01.
Summary
Allison Transmission delivered a standout Q2, with net sales jumping 92% year-over-year to $1.57 billion, handily beating the $1.51 billion consensus. The Off-Highway acquisition drove most of the top-line surge, while the legacy Transmission unit posted record sales on defense and North American truck momentum. Adjusted diluted EPS rose 8% to $2.15, and the company repurchased $46 million in stock during the quarter. Management raised full-year 2026 guidance: net sales now seen at $5.8–$6.0 billion, net income $600–$700 million (including $140 million in one-time costs), and adjusted EBITDA $1.47–$1.58 billion. This follows the Q1 10-Q that showed acquisition-driven sales growth but margin pressure; the Q2 beat and guidance raise suggest integration is progressing well and end-market demand is strengthening. The stock trades at 11x forward earnings, well below its recent 14x multiple, leaving room for re-rating if execution continues.
At the time of this announcement, ALSN was trading at $116.31 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $9.6B. The 52-week trading range was $76.01 to $137.62. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.