ALSN earnings analysis
What we found in ALSN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Allison Transmission reported Q1 2026 net sales of $1.406 billion, exceeding estimates of $1.38 billion, alongside an adjusted EPS of $2.57, outperforming the $2.18 forecast. The results were bolstered by the acquisition of the Off-Highway business from Dana, which contributed $673 million to revenue, despite operational challenges reflected in segment performance. The company continues to face headwinds from increased costs and reduced demand in certain markets due to economic conditions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Beat Expectations
- Actual revenue was $1.406 billion vs. estimates of $1.380 billion.
- Strong EPS Performance
- Reported EPS of $2.57 beat estimates of $2.18, marking a significant surprise.
- Added Off-Highway Segment
- The acquisition contributed $673 million to total revenues, marking a significant expansion.
- Positive Gross Profit Increase
- Gross profit rose to $406 million, up 7% from $378 million YoY.
- Defensive Segment Growth
- Defense end market sales surged by $34 million, or 64%, compared to prior year.
- Softening General Market Impact
- Net sales in North America On-Highway decreased by $60 million, or 14% YoY.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Acquisition Integration Costs
- Acquisition-related expenses are significantly impacting adjusted net income and margins.
- Higher Interest Expenses
- Interest expense increased to $61 million from $21 million YoY, reflecting greater debt levels.
- Weak Market Demand
- Sales in North America On-Highway declined 14% due to lower demand for medium-duty trucks.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.57
- Gross margin
- 28.8%
- Operating margin
- 18.0%
- Segment
- Allison Off-Highway: $673M
- Segment
- Allison Transmission: $733M
What they said about what is next.
Full year 2026 consolidated net sales guidance reaffirmed, expected between $5.575 billion and $5.925 billion.
The filing reads better than the one before it.
What came before.
- 10-K · February 24, 2026
- Allison reported FY2025 net sales of $3,010 million (sum of quarterly revenues) with on-highway products the largest business at $1,540 million (51% of 2025 net sales) and ~76% of revenues generated in North America in…
- 10-Q · May 2, 2025
- Allison reported Q1 net sales of $766.0M, down $23.0M (2.9%) year-over-year but with meaningful margin and EPS improvement. Gross margin expanded to 49.4% and operating margin to 32.5%, driving diluted EPS of $2.23 (up…
- 10-K · February 13, 2025
- Allison (ALSN) presents itself as the world’s largest manufacturer of medium- and heavy-duty fully automatic transmissions and a leader in electrified propulsion, with 2024 net sales of $3,225 million and approximately…
- 10-Q · April 26, 2024
- Allison Transmission Holdings, Inc. reported Q1 2024 results showing increased revenue and earnings driven by growth in North American on-highway sales and despite slightly declining margins. The position of the company…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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