Allison Transmission Raises Dividend 7% to $0.29, Projects $5.6B-$5.9B 2026 Sales
Allison Transmission raised its dividend 7% to $0.29, the seventh annual increase, payable March 20. Q4 EPS fell 15.4% to $1.70 on 7.4% lower revenue of $737m, while 26% defense sales growth and the Dana acquisition support a 2026 sales forecast of $5.575–$5.925b.
1. Dividend Increase
Allison Transmission approved a 7% hike in its quarterly dividend, lifting the payout from $0.27 to $0.29 per share. This marks the seventh consecutive annual increase, with the new dividend payable on March 20 to shareholders of record.
2. Q4 Financial Results
In the fourth quarter of 2025, Allison reported EPS of $1.70, down 15.4% year over year, and revenue of $737 million, a 7.4% decline driven by softer commercial truck demand. Despite the downturn, the company maintained strong free cash flow to support its dividend policy.
3. Growth Drivers and Outlook
Defense sales surged 26% in 2025, highlighted by the 3040MX platform selection for India’s FICV program ($100 million over 20 years) and a new Poland IFV contract. The January 2026 acquisition of Dana’s Off-Highway Drive & Motion Systems expands international reach, underpinning a 2026 net sales forecast of $5.575–$5.925 billion with EBITDA margins of 27%–29%.