Allison Transmission Holdings Inc (ALSN): Results of Operations and Financial Condition
Allison Transmission Holdings Inc (ALSN) filed an SEC Form 8-K — Results of Operations and Financial Condition. EX-99.1 2 d95413dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Allison Announces Second Quarter 2026 Results * Net Sales of $1,566 million, up 92% year over year, including the addition of the Allison Off-Highway business unit acquired on January 1, 2026 * Record quarterly net sales of
How this was made
The 30-second read
Why it matters
Traders can update models for revenue growth, adjusted profitability, and cash generation, and reassess the pace of acquisition integration and leverage progress based on the new quarter’s operating cash flow and free cash flow figures.
Market read
The filing is a direct earnings and cash-flow update with acquisition integration context, giving traders concrete numbers to reprice near-term fundamentals.
What to watch
Off-Highway segment profitability is still low (segment operating profit 7% of net sales, adjusted EBITDA margin 15%), so the market may scrutinize how quickly synergies translate into sustainable margins and leverage reduction.
Background
This is an SEC Form 8-K with Exhibit 99.1 reporting Allison Transmission Holdings’ second quarter 2026 results, including segment reporting for the Allison Off-Highway business acquired from Dana on Jan 1, 2026.
Ticker impact
Allison reported Q2 2026 net sales of $1,566M, adjusted EPS $2.73, and record adjusted free cash flow of $281M.
Likely positive bias for the next session as traders focus on record sales, EBITDA margin, and strong free cash flow, despite lower GAAP net income.
The filing includes multiple time-sensitive metrics (sales, EPS, EBITDA margin, operating cash flow, free cash flow) and balance-sheet actions (repurchase, dividend, revolver repayment progress) tied to the acquisition integration narrative.
Market effects
Improving demand commentary in defense, North American trucks, and construction/mining end markets may support sentiment across commercial vehicle and drivetrain suppliers.
North America truck momentum and construction/mining rebound could be read as supportive for industrial cyclicals tied to US and Canada freight and equipment demand.
Defense execution and global integration of the Off-Highway unit can influence how investors underwrite industrial M&A integration risk and margin durability globally.
Counterpoint
GAAP net income fell year over year due to acquisition-related operating costs, higher interest expense, and mark-to-market items, which could limit upside if investors focus on earnings quality rather than adjusted metrics.
Key entities
- issuerAllison Transmission Holdings Inc
Reported Q2 2026 results, including record net sales and adjusted free cash flow, and discussed Off-Highway integration and leverage actions.
- segmentAllison Off-Highway business unit
Acquired from Dana on Jan 1, 2026, now included in segment reporting with Q2 net sales of $706M and adjusted EBITDA margin of 15%.
- financingRevolving credit facility
Company repaid $150M outstanding during the quarter as part of progress toward its leverage target.
