Allison Transmission Holdings, Inc. (ALSN)

In the past six months, Allison Transmission's stock has been influenced by several key events. In Q1 2026, Allison announced its first-quarter results, reporting a significant increase in net sales due to the acquisition of the Allison Off-Highway business unit, but net income decreased due to higher expenses. The company also announced a 7% increase to its quarterly dividend. Allison Transmission expanded its partnership with Daimler Truck North America LLC. Allison Transmission announced its fourth-quarter and full-year 2025 results. The stock has seen some recent pullback, but longer-term momentum is positive, with analysts giving ALSN a "Hold" consensus rating.

The demand for Allison Transmission's products is relatively consistent throughout the year. The North American truck market experiences higher production in the first half of the year. The Off-Highway business unit experiences seasonality, with the first quarter typically being a "meaningful user of cash" and stronger cash generation expected in the fourth quarter. Demand in the medium-duty markets has been described as "extremely soft" in Q1 2026, while the defense end market showed strong demand.

Allison Transmission Holdings, Inc. is an American manufacturer of commercial-duty automatic transmissions and hybrid propulsion systems, including electric hybrid and fully electric propulsion systems. Founded in 1915 and headquartered in Indianapolis, Indiana, it operates within the Consumer Cyclical sector, specifically the Vehicles & Parts industry group. Allison's products are used across various market sectors, including on-highway trucks, buses, motorhomes, off-highway vehicles, and defense vehicles. The company is the world's largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial and U.S. defense vehicles, offering electrified propulsion systems and remanufactured transmissions.

Allison Transmission has a significant global presence, serving customers in over 150 countries. Its global headquarters is in Indianapolis, Indiana, which also houses engineering, manufacturing, a Parts Distribution Center, Innovation Center, and the Vehicle Electrification + Environmental Test Center. Regional headquarters are in the Netherlands, China, and Brazil. Manufacturing facilities are in the U.S., Chennai, India, and Szentgotthárd, Hungary. The company operates through an independent network of approximately 1,400 to 1,600 distributor and dealer locations worldwide.

Allison Transmission maintains a strong market position as a global leader in the manufacture of fully automatic transmissions and propulsion solutions for commercial and defense vehicles. The company's products are known for improving fuel efficiency, reducing emissions, and enhancing performance. Allison's transmissions were used in a high percentage of school buses, commercial trucks, and motorhomes in North America. Allison's transmissions also command a price premium. The company is actively investing in electrification and has secured EV-related supply agreements.

Allison Transmission Holdings, Inc. is predominantly owned by institutional investors, holding a significant majority of outstanding shares. Major institutional owners include FMR LLC, The Vanguard Group, Inc., BlackRock, Inc., Fuller & Thaler Asset Management, Inc., Renaissance Technologies LLC, Boston Partners Global Investors, Inc., LSV Asset Management and Burgundy Asset Management Ltd. Individual insider holdings are generally a small percentage.