Management continues to prioritize shareholder returns, as demonstrated by aggressive capital allocation including $150M in share repurchases during 2025Q1 and consistent FCF margins often ranging between 17% and 26%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 805M | 824M | 801M | 784M | 657M | 635M | 561M | 847M | 837M | 658M | 590.8M | 563.8M | 556.9M | 453.5M | 497.5M | 469.2M |
| Operating CF Margin % | - | 27.38% | 24.84% | 25.83% | 23.73% | 26.44% | 26.96% | 31.39% | 30.85% | 29.09% | 32.11% | 28.39% | 26.18% | 23.54% | 23.23% | 21.69% |
| Operating CF Growth % | -1.2% | 2.87% | 2.17% | 19.33% | 3.46% | 13.19% | -33.77% | 1.19% | 27.2% | 11.37% | 4.79% | 1.24% | 22.8% | -8.84% | 6.03% | - |
| Net Income | 543M | 623M | 731M | 673M | 531M | 442M | 299M | 604M | 639M | 504M | 214.9M | 182.3M | 228.6M | 165.4M | 514.2M | 103M |
| Depreciation & Amortization | 64M | 124M | 121M | 154M | 155M | 150M | 148M | 167M | 164M | 170M | 175.9M | 185.4M | 192.6M | 204M | 252.5M | 255.7M |
| Stock-Based Compensation | 6M | 0 | 26M | 22M | 18M | 14M | 17M | 13M | 13M | 12M | 9.4M | 9.8M | 14.7M | 13.7M | 6.4M | 8M |
| Deferred Taxes | 69M | 64M | -17M | -17M | -4M | 64M | 69M | 65M | 52M | -50M | 114.2M | 96M | 131.8M | 98M | -303.8M | 39.8M |
| Other Non-Cash Items | 414M | 40M | 17M | 3M | 28M | -3M | 26M | 13M | 17M | 25M | 12.4M | 106.3M | -14.5M | -37.7M | 21.6M | 97.5M |
| Working Capital Changes | 16M | -27M | -77M | -51M | -71M | -32M | 2M | -15M | -48M | -3M | 64M | -16M | 3.7M | 10.1M | 6.6M | -34.8M |
| Change in Receivables | 55M | 34M | -8M | 7M | -70M | -78M | 28M | 37M | -61M | -19M | -3M | 9M | -35.8M | -9.9M | 29.9M | -25M |
| Change in Inventory | 37M | 3M | -44M | -52M | -25M | -26M | 21M | -11M | -18M | -25M | 15M | -2M | 12.7M | -4.4M | -1.8M | -11M |
| Change in Payables | -65M | -36M | 1M | 21M | 15M | 24M | -4M | -25M | 9M | 30M | 2M | -25.1M | 2.1M | 17.6M | -29.4M | 24.9M |
| Cash from Investing | -2.77B | -184M | -147M | -129M | -183M | -212M | -111M | -405M | -103M | -94M | -71.4M | -59.7M | -67.9M | -81.5M | -138.7M | -55.9M |
| Capital Expenditures | -149M | -175M | 0 | -125M | -167M | -175M | -115M | -172M | -100M | -91M | -70.6M | -58.1M | -64.1M | -74.4M | -123.9M | -96.9M |
| CapEx % of Revenue | 4.08% | 5.81% | 4.43% | 4.12% | 6.03% | 7.29% | 5.53% | 6.38% | 3.69% | 4.02% | 3.84% | 2.93% | 3.01% | 3.86% | 5.78% | 4.48% |
| Acquisitions | -2.56B | 0 | -6M | 0 | -24M | 212M | 4M | -232M | 0 | 0 | 200K | 300K | 0 | 0 | 0 | 2.4M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -56M | 0 | -139M | 0 | 3M | -212M | 0 | -172M | 0 | 0 | 0 | 0 | 300K | 500K | 600K | 0 |
| Cash from Financing | 1.53B | 69M | -427M | -332M | -367M | -604M | -335M | -480M | -700M | -574M | -564.7M | -528.7M | -424.1M | -277.5M | -593.5M | -369.9M |
| Debt Issued (Net) | 496M | 495M | -104M | -7M | -7M | -7M | -19M | -3M | -28M | 388M | -215M | -137M | -157.6M | -142.4M | -574.8M | -369.9M |
| Equity Issued (Net) | -176M | -320M | -254M | -235M | -282M | -510M | -223M | -388M | -609M | -866M | -232.5M | -282.9M | -190.2M | -53.2M | 29M | 0 |
| Dividends Paid | -67M | -91M | -87M | -83M | -80M | -81M | -78M | -73M | -80M | -89M | -100.6M | -105.6M | -91.6M | -77.1M | -32.8M | 0 |
| Share Repurchases | -178M | -328M | -254M | -270M | -278M | -513M | -225M | -393M | -609M | -885M | -256.2M | -305.8M | -249.8M | -99.5M | 0 | 0 |
| Other Financing | 1.27B | -15M | 18M | -7M | 2M | -6M | -15M | -16M | 17M | -7M | -16.6M | -3.2M | 15.3M | -4.8M | -14.9M | 0 |
| Net Change in Cash | -442M | 714M | 226M | 323M | 105M | -183M | 118M | -39M | 32M | -6M | -46.9M | -11.4M | 78.3M | 104.5M | -233.8M | 61.8M |
| Free Cash Flow | 713M | 649M | 658M | 659M | 490M | 460M | 446M | 675M | 737M | 567M | 520.2M | 505.7M | 492.8M | 379.1M | 373.6M | 372.3M |
| FCF Margin % | 19.53% | 21.56% | 20.4% | 21.71% | 17.7% | 19.15% | 21.43% | 25.02% | 27.17% | 25.07% | 28.27% | 25.47% | 23.16% | 19.68% | 17.44% | 17.21% |
| FCF Growth % | 9.52% | -1.37% | -0.15% | 34.49% | 6.52% | 3.14% | -33.93% | -8.41% | 29.98% | 9% | 2.87% | 2.62% | 29.99% | 1.47% | 0.35% | - |
| FCF per Share | 8.48 | 7.64 | 7.48 | 7.24 | 5.10 | 4.30 | 3.91 | 5.49 | 5.51 | 3.78 | 3.07 | 2.86 | 2.69 | 2.02 | 2.01 | 2.05 |
| FCF Conversion (FCF/Net Income) | 1.31x | 1.32x | 1.10x | 1.16x | 1.24x | 1.44x | 1.88x | 1.40x | 1.31x | 1.31x | 2.75x | 3.10x | 2.44x | 2.74x | 0.97x | 4.56x |
| Interest Paid | 60M | 0 | 124M | 131M | 117M | 103M | 136M | 125M | 115M | 124M | 78M | 97M | 140M | 159.2M | 167.3M | 208.6M |
| Taxes Paid | 99M | 0 | 190M | 194M | 102M | 60M | 26M | 89M | 101M | 96M | 13M | 5M | 5M | 3.8M | 10.7M | 5.8M |
Cyclicality and Electrification Transition
As reported in quarterly financial filings, ALSN consistently demonstrates an OCF/NI ratio exceeding 1.0, with a notable peak of 2.39 in 2025Q4, suggesting that the company's reported net income is frequently understated relative to the actual cash-generating capacity of its core vocational transmission business.
The persistent gap where operating cash flow exceeds net income indicates a high quality of earnings, likely driven by significant non-cash depreciation charges and disciplined working capital management. Investors should monitor whether this conversion efficiency remains stable as the company shifts its R&D focus toward electric powertrain solutions.
Based on historical cash flow statements, ALSN maintains robust FCF margins that frequently oscillate between 17% and 26%, reflecting a business model that generates substantial surplus cash even during periods of cyclical volatility in the broader heavy-duty vehicle and vocational equipment markets.
The ability to sustain double-digit FCF margins despite revenue fluctuations suggests that the company's high-margin service parts business acts as a critical buffer. This trajectory appears to support the company's ongoing commitment to shareholder returns, provided that capital intensity does not escalate unexpectedly.
According to recent financial disclosures, ALSN's capital expenditure as a percentage of revenue has remained relatively contained, peaking at 10% in 2025Q4, which implies that the company is successfully managing its transition to new propulsion technologies without requiring massive, margin-dilutive investments in physical manufacturing capacity.
The moderate capital intensity suggests that the company is leveraging its existing infrastructure to support new product development rather than engaging in aggressive, capital-heavy expansion. Analysts should investigate whether this level of investment is sufficient to maintain the company's competitive moat in the evolving electric vehicle landscape.
As evidenced by the company's cash flow statements, ALSN utilizes its strong free cash flow to fund consistent dividends and significant share repurchases, with buybacks reaching $150M in 2025Q1, signaling management's confidence in the long-term durability of their vocational transmission market position.
The aggressive deployment of cash toward buybacks, alongside a substantial $1.495B cash balance, suggests a management team prioritizing shareholder yield over transformative M&A. While this provides a floor for the stock, it warrants investigation into whether this capital could be better utilized to accelerate the eGen Power platform development.
Quick answers to the most common questions about buying ALSN stock.
Allison Transmission Holdings, Inc. (ALSN) generated $824.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Allison Transmission Holdings, Inc. (ALSN) generated $649.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Allison Transmission Holdings, Inc. (ALSN) spent $175.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Allison Transmission Holdings, Inc. (ALSN) returned $91.0M to shareholders via cash dividends and spent $328.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.