Allison Transmission's Q1 net sales beat estimates

Allison Transmission Holdings

04/05/2026 21:19

Overview

U.S. transmission maker's Q1 net sales rose 84% yr/yr, driven by Off-Highway acquisition

Company repurchased over $20 mln of stock during the quarter

Outlook

Company reaffirms 2026 consolidated net sales guidance of $5.575 bln to $5.925 bln

Company sees 2026 consolidated net income of $600 mln to $750 mln, including one-time costs

Company expects 2026 adjusted EBITDA of $1.365 bln to $1.515 bln

Result Drivers

OFF-HIGHWAY ACQUISITION - Addition of Off-Highway business unit drove most of the increase in consolidated net sales

LEGACY SALES DECLINE - Allison Transmission business unit sales fell 4% yr/yr due to lower volumes and unfavorable direct material costs, partially offset by price increases

ACQUISITION-RELATED COSTS - Net income was negatively impacted by $76 mln of acquisition-related expenses, including inventory step-up and incremental depreciation

Company press release: ID:nPnzhc17a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.41 bln
$1.38 bln (7 Analysts)
Q1 EPS
$1.33
Q1 Net Income
$112 mln
Q1 Basic EPS
$1.35
Q1 Operating income
$252 mln
Q1 Pretax Profit
$132 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

Wall Street's median 12-month price target for Allison Transmission Holdings Inc is $131.00, about 0.2% below its May 1 closing price of $131.23

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)