ALSN NYSE Russell 1000 Earnings call
Allison Transmission Holdings Inc (ALSN) · Q2 2026 results and valuation
Share price: $130.09 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 3 Aug 2026 and 4 May 2026
Net income up 61.6% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+61.6%
Net income vs Q1 2026
Outlook given
Net income 181.0M vs 112.0M
Revenue +11.4%
Against the same quarter last year (Q2 2025) it is −7.2%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
New
Aluminum costs rose nearly 25% quarter-over-quarter due to a quick increase in the metal's price.
Valuation
Is Allison Transmission Holdings Inc undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.8% growth a year (3-year revenue growth), the model's fair value is $67.16 a share — the stock trades 94% above it. Today's price assumes 8.9% growth a year.
Current price
$130.09
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.9% for 10 yrs
Fair value / share
$67.16
Buy below
$50.37
Price vs fair value
Overvalued 94%
Price vs buy-below price
Overvalued 158%
Read between the lines
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Guidance
The company expects sequential improvement within the legacy transmission business in the first half of the year due to macro factors.
Source quote
“When you look at our full year guide, we are expecting sequential improvement within the legacy transmission business first half... It's a bit of a tale of 2 cities. Again, driven by some of the macro factors that Dave mentioned in his comments.”
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Guidance
ALSN expects sequential improvement in medium-duty volumes in the second half of 2026 despite end-user purchasing decisions influenced by tariffs and emissions regulations.
Source quote
“Although we continue to see end-user purchasing decisions influenced by geopolitical impacts, including tariffs and emissions regulations, we expect sequential improvement in volumes in the second half of 2026 for medium-duty...”
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Guidance
The company updated its 2026 revenue guidance to expect consolidated net sales in the range of $5.8 billion to $6 billion.
Source quote
“For 2026 revenue, we expect consolidated net sales in the range of $5.8 billion to $6 billion.”
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Figure
Quarter net sales rose 92% year-over-year to $1.566 billion, indicating growth in the company's revenue.
Source quote
“Second quarter net sales of $1.566 billion was a year-over-year increase of 92%.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Across the defense industry, companies are reporting record order backlogs, expanding manufacturing capacity and increased investment in next-generation platforms to support sustained growth.”
“Allison will also expand its manufacturing capabilities in best cost countries, ensuring we maintain the highest standards of quality while improving our overall cost competitiveness.”
“Moving on, we continue to build meaningful momentum with defense customers, securing 3 significant program wins that underscore both the strength of our existing product portfolio and the success of...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.57B | 1.41B | +11.4% | 814.0M | +92.4% |
| Gross profit | 515.0M | 406.0M | +26.8% | 403.0M | +27.8% |
| Operating income | 291.0M | 195.0M | +49.2% | 256.0M | +13.7% |
| Net income | 181.0M | 112.0M | +61.6% | 195.0M | −7.2% |
| EPS | 2.15 | 1.33 | +61.7% | 2.29 | −6.1% |
| P/E today 18.3 | 17.8 | 18.2 | −0.4 | 10.8 | +7.0 |
Topics
Most discussed now
- Enabled by its disciplined operational execution, Allison Transmission delivered strong cash generation despite headwinds from higher steel…
- Cash generation remained exceptionally strong in the second quarter with record quarterly adjusted free cash flow of $281 million, an...
- The year-over-year increase was driven by the addition of the Allison Off-Highway business unit, along with a 6% increase in...
- Some of your questions were directed at North America On-Highway, where revenue was up 3% year-over-year, but probably more importantly,...
- With regards to the synergies for the full year, the short answer, there's no material or meaningful synergies built into...
Faded since Q1 2026
- Fading Quarter adjusted diluted EPS of $2.57 increased 6% year-over-year, and Allison Transmission expects the...
- Fading Allison Transmission continues to generate substantial cash flow and invest for long-term growth while also reducing debt and returning…
- Fading On the left-hand side of slide eight, Allison Transmission provides sales, operating profit, and adjusted EBITDA by segment.
- Fading Allison Transmission has talked about this year targeting getting down to a two-times net leverage multiple here in the very near...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Material agreement; Regulation FD disclosure · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Acquisition or disposal; New financial obligation; Director or officer change; Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Other events · SEC 8-K