Allison’s Dana Acquisition Drives 150% Rally; Q4 EPS Seen at $1.68 Ahead of Call
Allison acquired Dana’s Off-Highway Drive & Motion Systems business, forming a multi-billion-dollar enterprise in 29 countries and delivering a +150% gain over three years. Q4 EPS is forecast to drop 22% year-over-year to $1.56, yet analysts’ $1.68 estimate implies a 7.7% upside heading into Feb. 23 earnings call.
1. Strategic Acquisition
On Jan. 2, Allison completed its acquisition of Dana’s Off-Highway Drive & Motion Systems unit, creating a global enterprise generating multi-billion-dollar revenues across 29 countries. This move broadened its product offering and reinforced its position as a leader in commercial and defense vehicle transmissions.
2. Share Rally and Valuation
Allison’s shares have surged over 150% in the past three years, outpacing broader indexes and sector peers. The stock trades near its 52-week high at an 11X forward earnings multiple and offers a dividend yield of approximately 1%, underscoring its value appeal.
3. Q4 Outlook and Earnings Call
Analysts forecast Q4 EPS to decline 22% year-over-year to $1.56, but the consensus estimate of $1.68 suggests a potential 7.7% upside. The company will host its fourth quarter and full-year 2025 earnings call on Feb. 23 at 5:00 p.m. EST with a live webcast and replay available online.