Allison Transmission Holdings, Inc.ALSN
NYSE•Consumer Cyclical•Auto Parts
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction of off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company also provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. In addition, it sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.
Allison Transmission Holdings, (ALSN) reported trailing twelve months revenue of $3.65B as of March 2026, a 14.0% increase year-over-year. Quarterly revenue reached $1.41B, reflecting continued top-line momentum.
Allison Transmission Holdings, generated $543.00M in TTM net income, with quarterly EBITDA of $195.00M. The operating margin contracted from 32.5% to 13.9%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (13.9%) and net margin (8.0%) indicates moderate non-operating costs. Net margin has narrowed from 25.1% a year ago, reflecting increased costs or interest expense.
ALSN trades at a P/E of 17.2x (in line with broad market averages) and a P/S of 2.6x. The price-to-book ratio of 4.9x reflects a moderate premium to book value.
The company generated $103.00M in free cash flow over the trailing twelve months, a 33.5% decrease year-over-year, indicating cash generation ability. The balance sheet shows $8.70B in total assets with $4.25B in long-term debt against $1.90B in stockholders equity for a debt-to-equity ratio of 2.2, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~28.0% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 40.5% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has grown modestly overall (~17.1%) but trajectory is uneven, suggesting a competitive or cyclical business.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 22.1% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF covers net income by 1.0x on average — earnings are well-supported by cash generation.
D/E ratio of 2.2 is elevated and rising. Monitor for further debt accumulation.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.6% — net buybacks are reducing shares outstanding and boosting per-share value.