Zacks Investment Research·1d ago
Here's Why Allison Transmission (ALSN) is a Strong Value StockThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
ALSN's operating income rose from $204.0M in 2025Q3 to $304.0M in 2026Q3 and its free cash flow margin reached 32.7% in 2026Q2, suggesting the recovery is translating into cash generation. However, trailing revenue remains about 6.7% below prior-year levels, indicating the rebound is uneven and not yet broad-based.
Price trend, volume and key moving averages
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Revenue recovered to roughly $1.5B in 2026Q3 from $693.0M in 2025Q3, with operating margin of 19.8% and net margin of 12.5%, though gross margin swung between 27.2% and 49.4% across recent quarters.
ALSN is undergoing a strategic shift following its acquisition of Dana's off-highway business, which could enhance its market position and capabilities.
The company's proprietary propulsion technologies provide a competitive edge in the market, particularly in commercial and defense vehicles.
Allison Transmission's contracts with the U.S. defense sector for medium- and heavy-tactical vehicles provide a stable revenue stream.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 2, 2026 | $2.90+25.0% vs $2.32 | $1.5B+4.5% vs $1.5B |
Q3 2026 Aug 3, 2026 | $2.18-12.1% vs $2.48 | $1.6B+4.2% vs $1.5B |
Q2 2026 May 4, 2026 | $1.33-35.7% vs $2.07 | $1.4B+1.9% vs $1.4B |
Q1 2026 Feb 23, 2026 | $1.18-24.4% vs $1.56 | $737M+1.6% vs $725M |
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
The headline numbers for Allison Transmission (ALSN) give insight into how the company performed in the quarter ended September 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Allison Transmission delivered a double beat in Q3, with revenue up 121% y/y and EPS exceeding estimates, driven by the Dana acquisition. Margins declined significantly due to the lower profitability of the acquired off-highway segment, but cash flow and balance sheet remain solid. Management raised guidance, highlighted $120M+ in expected synergies for 2027, and pointed to volume, cost, and defense tailwinds.
Allison Transmission Holdings, Inc. ( ALSN ) Q3 2026 Earnings Call November 2, 2026 5:00 PM EST Company Participants Jacalyn Bolles - Executive Director of Treasury & IR David Graziosi - Chairman, President & CEO Scott Mell - Senior VP, CFO & Treasurer G. Bohley - President & Business Unit Leader of Allison Transmission and COO Craig Price - President and Business Unit Leader of Allison Off-Highway Drive & Motion Systems Conference Call Participants Robert Wertheimer - Melius Research LLC Timothy Thein - Raymond James & Associates, Inc., Research Division Ian Zaffino - Oppenheimer & Co. Inc., Research Division Jerry Revich - Wells Fargo Securities, LLC, Research Division Angel Castillo Malpica - Morgan Stanley, Research Division Kyle Menges - Citigroup Inc., Research Division Tami Zakaria - JPMorgan Chase & Co, Research Division Presentation Operator Good afternoon.
Benchmark ALSN against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Allison Transmission Holdings, Inc. (ALSN)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $116.88 | $9.69B | 16.84 | -6.67% | 12.85% | 29.79% | 0.92% | |
| $35.71 | $821.07M | 70.95 | 8.07% | 0.74% | 1.7% | 1.44% | |
| $48.81 | $10.01B | 20.89 | 1.65% | 3.36% | 8.34% | 1.13% | |
| $21.50 | $2.68B | -8.66 | -27.07% | — | -15.66% | 1.8% | |
| $341.72 | $132.69B | 34.15 | 10.33% | 12.19% | 19.34% | 1.22% | |
| $39.44 | $8.35B | 10.58 | 3.47% | 4.6% | 8.41% | — |
Allison Transmission Holdings, Inc. (ALSN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Allison Transmission Holdings, Inc. (ALSN) SEC filings — annual & quarterly reports (10-K, 10-Q)
Nov 2, 2026·SEC
Aug 3, 2026·SEC
Jun 16, 2026·SEC
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Allison Transmission Holdings, Inc. (ALSN) stock FAQ — growth, dividends, profitability & financials explained
Allison Transmission Holdings, Inc. (ALSN) reported $4.54B in revenue over the trailing twelve months. Revenue was $3.01B in fiscal year 2025. That is 39% more than the $2.16B of fiscal year 2011.
Allison Transmission Holdings, Inc. (ALSN) grew revenue by 47.8% over the trailing twelve months, compared with the twelve months before.
Yes. Allison Transmission Holdings, Inc. (ALSN) earned $583.0M in net income over the trailing twelve months (a 12.8% net margin).
Yes. Allison Transmission Holdings, Inc. (ALSN) pays a dividend that yields 0.92% at the current price, a small yield.
Allison Transmission Holdings, Inc. (ALSN) had a return on equity (ROE) of 29.8% over the trailing twelve months. That is well above the market's typical 10-15%.
Allison Transmission Holdings, Inc. (ALSN) generated $825.0M in free cash flow over the trailing twelve months.
