ALSN · Allison Transmission Holdings, Inc.

Allison Transmission reported a transformative first quarter following the January 1, 2026 acquisition of Dana Incorporated's Off-Highway business. Consolidated net sales more than doubled to $1,406 million, with the Off-Highway unit contributing $673 million. However, GAAP net income fell to $112 million from $192 million a year ago, dragged down by approximately $76 million in inventory step-up and incremental depreciation costs, plus $21 million in intangible amortization and $17 million in one-time integration expenses. On an adjusted basis, net income rose to $216 million and adjusted diluted EPS increased 6% to $2.57, reflecting the underlying strength of the combined businesses. The legacy Allison Transmission segment saw net sales decline 4% to $733 million, with gross margin slipping to nearly 49% due to lower volumes and unfavorable direct material costs, partially offset by price increases. The Off-Highway segment reported an operating loss of $21 million on $673 million in sales, as acquisition-related costs weighed on profitability. Management highlighted encouraging momentum in key end markets, with North America on-highway showing signs of stabilization and defense spending remaining strong. The company reaffirmed its full-year 2026 guidance, including consolidated net sales of $5,575-$5,925 million and adjusted EBITDA of $1,365-$1,515 million, signaling confidence in synergy capture and integration progress. Allison also returned $0.29 per share in dividends and repurchased over $20 million in stock during the quarter, with $1,171 million remaining under its buyback program.