Allison Transmission Q4 revenue beats estimates, driven by higher Europe demand

Allison Transmission Holdings

23/02/2026 21:24

Overview

Transmission maker's Q4 revenue beat analyst expectations

Company completed acquisition of Dana Off-Highway business

Full year Adjusted EBITDA margin increased by 140 basis points

Outlook

Company expects 2026 consolidated net sales between $5,575 mln and $5,925 mln

Allison Transmission segment net sales forecasted between $3,025 mln and $3,175 mln

Company projects 2026 Adjusted EBITDA between $1,365 mln and $1,515 mln

Result Drivers

OUTSIDE NORTH AMERICA ON-HIGHWAY - Record Q4 net sales driven by higher demand in Europe

DEFENSE MARKET GROWTH - 7% increase in Q4 net sales driven by growth initiatives

Company press release: ID:nPn8mgv5Da

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$737 mln
$723.16 mln (8 Analysts)

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 $111.00, about 6.6% below its February 20 closing price of $118.85

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 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.)