Allison Transmission (ALSN) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Allison Transmission is rated Hold ahead of Q2 earnings, with inorganic revenue growth from the Dana acquisition masking flat organic performance. Gross margins have declined from 49% to 29% post-acquisition, and operating leverage has worsened, raising concerns about sustainable earnings power. Key focus areas are updates on on-highway and off-highway demand, cost reduction strategies, and the impact of recent oil price volatility.
Allison Transmission (ALSN) is Buy-rated, with near-term earnings risk but strong medium-term demand signals in North America on-highway. Recent robust order growth in Class 4-8 trucks and Classes 5-7, where ALSN has 75% market share, points to a re-acceleration opportunity. Integration of the Dana off-highway acquisition creates short-term margin dilution and inorganic noise, but sets up for cleaner growth in FY27.
Allison Transmission Holdings is rated a solid 'Buy' due to its transformative $2.7 billion acquisition of Dana's Off-Highway segment. ALSN's combined business offers a global platform with diversified revenue streams across construction, agriculture, industrial, mining, and on-highway markets. Management targets $120 million in synergies and expects 2026 EBITDA of $1.6–$1.7 billion post-synergies, supporting attractive valuation versus peers.
Allison Transmission (ALSN) reported earnings 30 days ago. What's next for the stock?
Investors need to pay close attention to ALSN stock based on the movements in the options market lately.
Allison Transmission NYSE: ALSN held its 2026 Annual Meeting of Stockholders virtually, with shareholders approving all three proposals presented at the meeting, including the election of nine directors, the ratification of the company's independent auditor and an advisory vote on executive compensation.
ALSN tops Q1 estimates as Off-Highway acquisition boosts revenues, though integration costs weigh on margins and profitability.
Allison Transmission Holdings, Inc. (ALSN) Q1 2026 Earnings Call Transcript
Allison Transmission (ALSN) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.54 per share. This compares to earnings of $2.23 per share a year ago.
Allison Transmission (ALSN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Let's take a closer look at how General Motors, Lear, Magna and Allison are expected to fare this earnings season.