Allison Transmission Q1 Net Sales Up 84% to $1.406B, EPS $2.57
Allison Transmission posted Q1 net sales of $1.406B, up 84% y/y after adding $673M from its Off-Highway acquisition, delivering adjusted EPS of $2.57 and adjusted EBITDA margin of 26%. It expects full-year revenue of $5.58B–$5.93B and repurchased over $20M in stock.
1. Q1 Financial Highlights
Allison Transmission reported Q1 net sales of $1,406 million, an 84% increase versus prior year including $673 million from the Off-Highway business. Adjusted EBITDA reached $362 million (26% margin), adjusted EPS was $2.57 and GAAP EPS was $1.33 on net income of $112 million.
2. Off-Highway Acquisition and Integration
On Jan. 1, Allison closed its acquisition of Dana Incorporated’s Off-Highway business, adding $673 million in sales. Integration costs of approximately $76 million and amortization expenses impacted gross profit, while management targets synergy capture to support long-term growth.
3. Capital Allocation and 2026 Outlook
The company repurchased over $20 million in common stock and raised its quarterly dividend for the seventh consecutive year. It projects full-year 2026 revenue between $5.58 billion and $5.93 billion and continues to pursue a 2.0x net leverage target through prudent balance sheet management.