Allison Transmission Holdings Inc. filed its third quarter 2026 earnings disclosure on November 2, 2026, reporting consolidated net sales of $1,534 million and raising full year 2026 guidance for the second consecutive quarter.

Key Highlights

  • Consolidated net sales of $1,534 million, up 121% year over year, including $653 million from the Allison Off-Highway business unit acquired on January 1, 2026.
  • Record quarterly net sales of $881 million for the Allison Transmission business unit, up 27% year over year.
  • Net income of $191 million, representing 12.5% of net sales, up $54 million from $137 million in the same period in 2025.
  • Adjusted diluted EPS of $2.90, a year over year increase of 59%; GAAP diluted EPS was $2.30, up 41% year over year.
  • Adjusted EBITDA of $400 million, up $144 million from $256 million in the same period in 2025, with a margin of 26.1%.
  • Full year 2026 consolidated net sales guidance raised to a range of $5,975 to $6,075 million.
  • $57 million of common stock repurchased in the third quarter, with $1,068 million of authorization remaining under the stock repurchase program.

Allison Transmission Reports Third Quarter 2026 Results Across Two Business Units

According to the filing, Allison Transmission Holdings Inc. (NYSE:ALSN) reported third quarter 2026 consolidated net sales of $1,534 million, with gross profit of $505 million representing a gross margin of 33 percent. The year over year increase in gross profit of $175 million was described as principally driven by the addition of the Allison Off-Highway business unit and a $77 million increase in the Allison Transmission business unit. Selling, general and administrative expenses were $142 million, up $59 million from the same period in 2025, including $4 million of one-time acquisition-related expenses. Engineering research and development expenses were $59 million for the quarter.

The Allison Transmission business unit posted record quarterly net sales of $881 million, with segment operating profit of $300 million, or 34 percent of net sales. The Allison Off-Highway business unit, acquired from Dana Incorporated on January 1, 2026, contributed $653 million in net sales and segment operating profit of $32 million, or 5 percent of net sales. The filing noted a $17 million charge attributable to optimization activities within the Allison Off-Highway business unit. Net cash provided by operating activities was $343 million, a year over year increase of 50 percent, and adjusted free cash flow was $278 million, a year over year increase of 51 percent.

The company disclosed that it ended the third quarter with nearly $500 million of cash and cash equivalents, $996 million of available borrowing capacity under its revolving credit facility, total debt of $4,012 million, and net debt of $3,515 million. The filing also noted that year to date cash generation supported the repayment of over $400 million of debt. A quarterly dividend of $0.29 per share was paid during the quarter. For full year 2026, the company raised its consolidated adjusted EBITDA guidance to a range of $1,530 to $1,580 million and consolidated adjusted free cash flow guidance to a range of $850 to $900 million.

What Was Disclosed

Allison Transmission Holdings Inc. disclosed third quarter 2026 financial results and raised full year 2026 guidance, covering net sales, net income, adjusted EBITDA, cash flow, debt levels, dividends, and share repurchase activity across its two business segments.