Allison Transmission Reports Record Q3 2026 Results Driven by Off-Highway Acquisition
Allison Transmission (ALSN) reported a significant surge in third-quarter 2026 revenue, reaching $1.534 billion, a 121% increase year-over-year. This massive growth was primarily fueled by the acquisition of the Allison Off-Highway business unit on January 1, 2026. The legacy Allison Transmission segment also saw record performance with net sales of $881 million, up 27% from the previous year. Despite the revenue surge, adjusted EBITDA margins compressed to 26.1% from 36.9% due to raw material inflation and the integration of the new business unit. However, profitability remains strong with an adjusted diluted EPS of $2.90, a 59% increase year-over-year. The company also secured its largest defense order in history via BAE Hägglunds, valued at $250 million. Management raised full-year 2026 revenue guidance to between $5.975 billion and $6.075 billion. While facing headwinds from material costs and muted industrial/agricultural markets, the company continues aggressive debt repayment and share repurchases.
Topics: acquisition ebitda eps revenue growth segment performance