Allison Transmission Holdings, Inc. (ALSN)

Allison Transmission's stock experienced several notable events in the past six months. The company announced its Q3 2025 earnings, reporting an EPS of $1.63, missing analysts' estimates, and a 15.9% year-over-year decrease in quarterly revenue to $693 million, primarily due to lower demand in the North America On-Highway segment, but net sales in the Defense end market increased by 47% year-over-year. Allison Transmission finalized its $2.7 billion acquisition of Dana Incorporated's Off-Highway Drive & Motion Systems business, leading to the stock closing higher. Analysts significantly increased their average price target for ALSN by 10.96%, reflecting growing confidence in the company's prospects. Allison announced its Q2 2025 results, with net income up 4% year-over-year and diluted EPS reaching a quarterly record of $2.29, but revised its full-year 2025 guidance downwards, citing production cuts at truck manufacturers and weakness in U.S. on-highway truck demand.

Demand for Allison Transmission's products and services exhibits some seasonality, with the company anticipating a sequential decline in Q4 EBITDA due to fewer workdays for OEMs and a return to pre-pandemic seasonality. Demand for automatic transmissions is projected to continue growing, particularly in developing countries, and off-highway markets are also expected to grow in the next five years.

Allison Transmission is a global leader in the design and manufacture of fully automatic transmissions and hybrid-electric propulsion systems for medium- and heavy-duty commercial vehicles, operating within the commercial vehicle industry and serving diverse end markets. The company is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions, offering fully automatic transmissions, hybrid-electric propulsion systems, and eGen Power e-Axles for electric vehicles, along with aftermarket parts, remanufactured transmissions, support equipment, and engineering services. These products are used in on-highway trucks, buses, motorhomes, off-highway vehicles and equipment, and defense vehicles.

Allison Transmission has a significant global presence, operating in over 150 countries, with its global headquarters in Indianapolis, Indiana, USA. Manufacturing facilities are located in the United States, Hungary, and India. The company has global engineering resources, including electrification engineering centers in Indianapolis, Auburn Hills, and London, and an extensive aftermarket service network with approximately 1,600 independent distributor and dealer locations worldwide.

Allison Transmission holds a "Hold" consensus rating from analysts. MarketBeat's MarketRank™ score indicates that Allison Transmission scored higher than 76% of companies evaluated in the auto/tires/trucks sector, ranking 32nd out of 83 stocks. There were no specific major events reported in the past year that significantly impacted Allison Transmission's brand reputation, either positively or negatively, beyond general market performance and analyst sentiment.

Institutional investors hold a significant portion of Allison Transmission Holdings, Inc. stock, with major institutional owners including Fmr LLC, Vanguard Group Inc., and Blackrock, Inc. Insider ownership stands at approximately 77.60%, with net selling by insiders observed over the last 12 and 3 months.