- Allison Transmission Shareholders Approve Board, Auditor and Executive Pay at Annual Meeting
May 9, 2026
Allison Transmission logo
Key Points
Interested in Allison Transmission Holdings, Inc.? Here are five stocks we like better. Allison Transmission shareholders approved all three management proposals at its 2026 Annual Meeting, including the election of nine directors, ratification of the independent auditor, and a non-binding advisory vote on executive pay. The board nominees were elected to one-year terms ending at the 2027 annual meeting, with each director receiving more votes in favor than against. Shareholders also ratified PricewaterhouseCoopers LLP as the company’s independent auditor for 2026 and approved executive compensation in the advisory vote.
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Allison Transmission (NYSE:ALSN) held its 2026 Annual Meeting of Stockholders virtually, with shareholders approving all three proposals presented at the meeting, including the election of nine directors, the ratification of the company’s independent auditor and an advisory vote on executive compensation.
David Graziosi, chair, president and chief executive officer of Allison Transmission Holdings Inc., opened the meeting and welcomed stockholders, directors and members of senior management. The company said the meeting was recorded and that stockholders had the opportunity to submit text questions through the virtual meeting platform.
Board nominees elected for one-year terms
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Stockholders elected nine directors to serve one-year terms expiring at the 2027 Annual Meeting of Stockholders. The nominees were Judy Altmaier, D. Scott Barbour, Philip J. Christman, David C. Everitt, David Graziosi, Carolann Haznedar, Sasha Ostojic, Gustave Perna and Krishna Shivram.
Preston Ray, deputy chief legal officer and secretary of Allison Transmission Holdings Inc., said preliminary voting results showed each director nominee received more votes in favor of election than against. The company noted that no advance notice had been received from stockholders seeking to nominate additional director candidates by the deadline set in the proxy statement.
PwC ratified as independent auditor
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Shareholders also ratified the appointment of PricewaterhouseCoopers LLP as Allison Transmission’s independent registered public accounting firm for 2026. Kelly Markoski of PwC attended the meeting, according to the company.
Ray said the auditor ratification proposal was approved by the affirmative vote of holders of a majority in voting power of the votes cast, excluding abstentions and broker non-votes.
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Executive compensation approved in advisory vote
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The third item of business was a non-binding advisory vote on the compensation paid to the company’s named executive officers, as disclosed in the proxy statement under Securities and Exchange Commission compensation disclosure rules.
Ray said stockholders approved the executive compensation proposal by the affirmative vote of holders of a majority in voting power of the votes cast, excluding abstentions and broker non-votes.
Quorum and voting details
Ray reported that Broadridge Financial Services, the company’s distribution agent, provided an affidavit stating that proxy materials were mailed beginning March 25, 2026, to stockholders of record as of March 9, 2026. He said 83,129,419 shares of common stock were entitled to vote on all matters presented at the meeting.
Ray certified that holders of more than 50% of all votes entitled to be cast were present in person or by proxy, establishing a quorum. Gene Capello of C.T. Hagberg & Associates, LLC served as inspector of election for the meeting.
The company said it expects to report the final voting results on a Form 8-K to be filed with the SEC within four business days of the meeting. After the formal business was adjourned, the company opened the floor for stockholder questions, but no questions were submitted.
About Allison Transmission (NYSE:ALSN)
Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company's products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison's core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.
In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.
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- Allison Transmission Shareholders Approve Board, Auditor and Executive Pay at Annual Meeting
May 9, 2026 · marketbeat.com
Allison Transmission NYSE: ALSN held its 2026 Annual Meeting of Stockholders virtually, with shareholders approving all three proposals presented at the meeting, including the election of nine directors, the ratification of the company's independent auditor and an advisory vote on executive compensation.
- Allison Declares Quarterly Dividend
May 6, 2026
INDIANAPOLIS, May 6, 2026 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world, announced today that its Board of Directors has declared a cash dividend of $0.29 per share on the Company's common stock for the second quarter of 2026. Payment will be made on May 29, 2026, to stockholders of record at the close of business on May 18, 2026.
The payment of any future dividends will be at the discretion of the Board of Directors and will be dependent upon Allison's financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board of Directors.
About Allison Allison (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit https://allisontransmission.com.
Forward-Looking Statements This press release contains forward-looking statements. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: the significant costs we are expected to incur in connection with the integration of the Off-Highway Drive & Motion Systems business of Dana Incorporated (now referred to as the "Allison Off-Highway Business"); our ability to successfully integrate the Allison Off-Highway Business and its operations in the expected time frame; our ability to realize all of the anticipated benefits from the integration of the Allison Off-Highway Business and its operations and to effectively manage our expanded operations; our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, natural disasters, extreme weather events, wars and public health crises such as pandemics; global economic volatility; general economic and industry conditions, including the risk of prolonged inflation and recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these customers; cybersecurity risks to our operational systems, security systems or infrastructure owned by us or our third-party vendors and suppliers; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including acts of war and increased trade protectionism and tariffs; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness.
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- Allison Declares Quarterly Dividend
May 6, 2026 · prnewswire.com
INDIANAPOLIS, May 6, 2026 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world, announced today that its Board of Directors has declared a cash dividend of $0.29 per share on the Company's common stock for the second quarter of 2026. Payment will be made on May 29, 2026, to stockholders of record at the close of business on May 18, 2026.
- ALLISON DECLARES QUARTERLY DIVIDEND
May 6, 2026
INDIANAPOLIS, MAY 6, 2026 /PRNEWSWIRE/ -- ALLISON TRANSMISSION HOLDINGS INC. (NYSE: ALSN), A GLOBAL LEADER IN HIGH-PERFORMANCE MOBILITY AND WORK SOLUTIONS BUILT FOR THE NEEDS OF THE MODERN INDUSTRIAL WORLD, ANNOUNCED TODAY THAT ITS BOARD OF DIRECTORS HAS DECLARED A CASH DIVIDEND OF $0.29 PER SHARE ON THE COMPANY'S COMMON STOCK FOR THE SECOND QUARTER OF 2026. PAYMENT WILL BE MADE ON MAY 29, 2026, TO STOCKHOLDERS OF RECORD AT THE CLOSE OF BUSINESS ON MAY 18, 2026.
- At CHF160, Is ALSO Holding AG (VTX:ALSN) Worth Looking At Closely?
May 6, 2026
ALSO Holding AG (VTX:ALSN), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the SWX over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine ALSO Holding’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
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Is ALSO Holding Still Cheap?
Great news for investors – ALSO Holding is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is CHF202.38, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. ALSO Holding’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
View our latest analysis for ALSO Holding
What kind of growth will ALSO Holding generate?SWX:ALSN Earnings and Revenue Growth May 6th 2026
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 52% over the next couple of years, the future seems bright for ALSO Holding. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since ALSN is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ALSN for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ALSN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
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If you'd like to know more about ALSO Holding as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 2 warning signs for ALSO Holding you should be mindful of and 1 of them makes us a bit uncomfortable.
If you are no longer interested in ALSO Holding, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- ALSN Q1 Earnings Beat Estimates on Off-Highway Additions
May 5, 2026
Allison Transmission Holdings Inc. ALSN reported first-quarter 2026 adjusted earnings of $2.57 per share, which beat the Zacks Consensus Estimate of $2.54 by 1.38% and increased 6% year over year. Quarterly revenues of $1.41 billion rose 84% from the year-ago quarter’s level and topped the Zacks Consensus Estimate of $1.38 billion by 2.15%.
The quarter marked the first to include the Allison Off-Highway business, acquired on Jan. 1, 2026, from Dana Incorporated. Integration efforts are progressing, with approximately $120 million in expected annual cost savings. Adjusted EBITDA margin for the quarter was 26%.
Allison Transmission Holdings, Inc. Price, Consensus and EPS SurpriseAllison Transmission Holdings, Inc. Price, Consensus and EPS Surprise
Allison Transmission Holdings, Inc. price-consensus-eps-surprise-chart | Allison Transmission Holdings, Inc. Quote
Acquisition-Related Costs Weigh on ALSN’s Profitability
Profitability was impacted by one-time costs tied to the Off-Highway acquisition. Results were weighed down by approximately $76 million in acquisition-related expenses, primarily caused by higher inventory costs and incremental depreciation from revalued assets such as property, plant and equipment.
These factors weighed on the bottom line. Net income was $112 million, with diluted earnings of $1.33 per share. The year-over-year decline in net income was largely attributable to acquisition-related costs and higher interest expenses, partially offset by lower income taxes.
ALSN’s Cost Base Expands With Off-Highway Integration
Operating expenses rose as the company integrated the new business. Selling, general and administrative expenses amounted to $157 million, up $70 million from the prior-year period’s level. The increase was mainly due to the addition of the Off-Highway unit, including $21 million in amortization related to intangible assets and about $17 million in one-time acquisition-related integration costs.
Engineering, research and development expense totaled $54 million, up $12 million year over year. The increase was mainly due to the addition of the Off-Highway business, partly offset by lower spending on product-initiatives in the legacy Allison Transmission unit.
ALSN’s Legacy Transmission Unit Faces Mixed Demand
The legacy Allison Transmission business reported net sales of $733 million, down 4% year over year, mainly due to lower volumes and higher material costs. This was partly offset by price increases on certain products. Segment operating profit amounted to $252 million, representing a strong 34% of net sales.
Within the Transmission unit, results were mixed across different markets. North America on-highway sales totaled $375 million, down 14%, while on-highway sales outside North America amounted to $110 million, down 2%. Global off-highway sales dropped sharply to $8 million, reflecting a decline of 56%. On the positive side, defense sales rose 64% to $87 million. Revenues from service parts, support equipment and other areas increased a modest 3% to $153 million.
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Allison’s Off-Highway Mix Boosts Sales, Hits Margins
The newly acquired Allison Off-Highway business generated net sales of $673 million in the quarter. However, profits were affected by higher initial costs and early-stage integration efforts. Gross profit was $50 million, while the unit reported a segment operating loss of $21 million, equal to a negative 3% of net sales.
Off-highway sales were primarily driven by the construction and material handling, totaling $227 million. Agriculture contributed $154 million, while service parts, specialty and other contributed $152 million. Industrial sales totaled $90 million, and mining added $50 million. Demand remained steady in some regions due to ongoing construction activity, while higher mineral prices helped support mining demand.
ALSN’s Cash Flow Supports Deleveraging And Returns
Cash generation remained strong during the quarter. The company generated $156 million in cash from operations and $103 million in adjusted free cash flow. It also used $150 million to repay borrowings under its revolving credit facility during the period.
ALSN ended the quarter with solid liquidity, including $311 million in cash and $845 million available under its revolving credit line. Total debt was $4.29 billion, with net debt of $3.98 billion. The company continues to focus on reducing its debt levels over time, aiming for a net leverage ratio of around 2.0x.
Allison Reaffirms 2026 Outlook
ALSN has reaffirmed its full-year 2026 guidance. Consolidated net sales are expected to be in the range of $5,575-$5,925 million. The Transmission unit sales are projected to be in the $3,025-$3,175 million band. Off-Highway sales are guided to be between $2,550 million and $2,750 million. Net income is expected to be in the range of $600-$750 million. Adjusted EBITDA is anticipated to be in the $1,365-$1,515 million band.
Net cash provided by operating activities is expected to be in the range of $970-$1,100 million. Capital expenditures are projected to be in the band of $295-$315 million. Adjusted free cash flow is now expected to be between $655 million and $805 million.
ALSN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
PHINIA Inc. PHIN reported first-quarter 2026 results on April 30. It posted adjusted earnings of $1.29 per share, which increased 37.2% year over year. The figure beat the Zacks Consensus Estimate of 92 cents by 40.2%. Net sales were $878 million, increasing 10.3% from the year-ago quarter’s level and topping the consensus mark of $840 million by 4.5%.
For 2026, PHINIA continues to expect net sales of $3.52-$3.72 billion, implying year-over-year growth of 1-7%. Net earnings are projected to be in the range of $165-$195 million, while adjusted EBITDA is expected in the $485-$525 million band, with a net earnings margin of 4.7-5.2% and an adjusted EBITDA margin of 13.7-14.3%. The company expects adjusted free cash flow of $200-$240 million and an adjusted tax rate of 30-34%.
Autoliv, Inc. ALV reported first-quarter 2026 results on April 17. It posted adjusted earnings of $2.05 per share, which declined 4.7% year over year but surpassed the Zacks Consensus Estimate of $1.77 by 15.8%. Net sales were $2.75 billion, up 6.8% from the year-ago quarter’s level. The figure outpaced the Zacks Consensus Estimate of $2.63 billion by 4.52%.
Autoliv ended the quarter with cash and cash equivalents of $342 million compared with $322 million a year earlier. Long-term debt was $1.7 billion compared with $1.56 billion in the year- ago period. Shareholder returns continued through dividends. Autoliv paid a cash dividend of 87 cents per share in the quarter, with total dividend payments of $65 million.
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- ALSN Q1 Earnings Beat Estimates on Off-Highway Additions
May 5, 2026 · zacks.com
ALSN tops Q1 estimates as Off-Highway acquisition boosts revenues, though integration costs weigh on margins and profitability.
- Allison Transmission Holdings, Inc. Q1 2026 Earnings Call Summary
May 5, 2026
Allison Transmission Holdings, Inc. Q1 2026 Earnings Call Summary - Moby
Strategic Integration and Market Dynamics
Management reports that the integration of the newly acquired Allison Off Highway business is proceeding in a disciplined manner, with initial synergy realization beginning to take shape. The acquisition thesis is centered on accelerating sales growth through a strategic combination of business units and strengthening the company's localized production footprint to mitigate trade and tariff risks. North America On-Highway performance is characterized by cautious optimism as strong order trends are tempered by uncertainty regarding tariffs and final EPA emissions regulations. The Defense segment experienced exceptional 64% year-over-year growth, driven by international demand for tracked vehicle programs amid heightened global national security concerns. Off-Highway performance was bolstered by elevated commodity prices in mining and steady investment in European construction markets, despite a muted global agriculture environment. Management noted that while the Middle East conflict has undetermined implications, the company has not yet experienced material disruptions to its supply chain or operations.
Outlook and Strategic Targets
The company provided 2026 revenue guidance of $5.575 billion to $5.925 billion, noting that while order trends imply a slight ramp, uncertainty regarding geopolitical impacts and emissions regulations continues to hinder new vehicle purchasing decisions. Management maintains a long-term adjusted EBITDA margin target of 27% to 29%, expected to be achieved within a few years through value capture and synergy realization. The 2026 financial outlook includes over $100 million in one-time pretax expenses related to the separation and integration of the Off Highway business unit. Capital allocation priorities focus on reducing net leverage to a target of two times within the next couple of years through both debt repayment and earnings growth. Guidance for the second half of 2026 assumes a sequential step-up in medium-duty demand, though the scale of a potential pre-buy remains dependent on EPA regulatory clarity.
Non-Recurring Items and Structural Changes
First quarter results were impacted by $76 million in one-time purchase price accounting items related to stepped-up inventory basis and fixed asset depreciation. The company introduced a new reporting structure consisting of three segments: Allison Transmission, Allison Off Highway, and the Allison Central Group cost center. Operating cash flow guidance for 2026 includes approximately $55 million in one-time cash outlays specifically associated with the Off Highway acquisition. Management flagged potential indirect risks to energy markets and macroeconomic conditions stemming from ongoing geopolitical conflicts.
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Q&A Session Highlights
Strategic benefits of the acquisition in a volatile trade environment
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David Graziosi stated the acquisition is exceeding expectations by providing operational footprint flexibility that helps mitigate regional realignment and trade developments. The broader global footprint is now viewed as a more significant benefit than originally anticipated in the initial deal thesis.
Medium-duty market recovery and EPA regulatory impact
Fred Bohley noted that while the first quarter was soft, there are signs of optimism from lease-rental customers leaning back into the market. The primary unknown for 2026/2027 is the cost impact of new EPA engine requirements and whether associated non-compliance fees will trigger a pre-buy in late 2026.
Pricing power and cost offset across business units
The legacy Transmission business generated 325 basis points of price in Q1, which management expects to maintain for the full year to cover inflationary costs. The Off Highway business is expected to have neutral year-over-year pricing, with management focusing on operational cost reductions to offset any minor price givebacks.
Seasonality and cash flow profile of the combined entity
Scott Mell clarified that the Off Highway business is a meaningful user of cash in Q1 due to its European-centric seasonality. The combined company's cash profile will follow historical trends where Q1 and Q3 are uses of cash, while Q2 and Q4 are periods of cash generation.
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- Allison outlines 2026 revenue of $5.575B-$5.925B while targeting $120M annual run rate synergies
May 5, 2026
Earnings Call Insights: Allison Transmission Holdings, Inc. (ALSN) Q1 2026
MANAGEMENT VIEW
* "Our execution has tracked closely with our planning and the integration process is proceeding in a disciplined and structured manner" (Chairman, President & CEO David Graziosi), as the company described early integration progress following the Off-Highway acquisition and said it "expect[s] to begin to see financial benefits later in 2026" from synergy work.
* "We continue to view the truck market with cautious optimism" (Chairman, President & CEO Graziosi), while flagging uncertainty tied to "tariffs and final rulings on emissions regulations" that management said are "hindering end users new vehicle purchasing decisions."
* "The defense end market had an extremely strong first quarter, with revenue up 64% year-over-year" (Chairman, President & CEO Graziosi), and he cited international track programs including "our 3040 MX cross-drive transmission" while adding, "We hold a favorable outlook for the defense end market."
* "The Allison Off-Highway business unit generated $673 million of sales in the first quarter" (Chairman, President & CEO Graziosi), with management pointing to mining growth and steadier construction investment in Europe; he also said, "the conflict in the Middle East currently has undetermined impact and implications" but added, "we have not seen any material disruption to our business at this time."
* "First quarter results now include segment reporting for Allison Transmission, Allison Off-Highway and Allison Central Group" (Senior VP, CFO & Treasurer Scott Mell), and he noted Off-Highway gross profit was "negatively impacted by approximately $76 million of onetime acquisition-related purchase price accounting items."
OUTLOOK
* "Given first quarter results and taking into consideration current macroeconomic and geopolitical uncertainty, we are reaffirming our full year 2026 guidance" (Senior VP, CFO & Treasurer Mell).
* "For 2026 revenue, we expect consolidated net sales in the range of $5.575 billion to $5.925 billion" (Senior VP, CFO & Treasurer Mell), including "$3.025 billion to $3.175 billion" for Allison Transmission and "$2.55 billion to $2.75 billion" for Allison Off-Highway.
* "For earnings, we expect consolidated net income in the range of $600 million to $750 million" (Senior VP, CFO & Treasurer Mell) and said the outlook is "subject to the completion of purchase price accounting" and includes "more than $100 million of onetime pretax expenses associated with the separation, integration and restructuring" of Off-Highway.
* "Further, we expect consolidated adjusted EBITDA in the range of $1.365 billion to $1.515 billion" (Senior VP, CFO & Treasurer Mell), and he added a longer-term margin framework: "Our target for adjusted EBITDA margin" is "27% to 29%."
* Analysts-estimates comparison was skipped because the provided estimates JSON does not match the required quarter-format validation in the prompt.
FINANCIAL RESULTS
* "First quarter net income decreased year-over-year to $112 million" (Senior VP, CFO & Treasurer Mell), which he attributed to acquisition-related items including "$76 million" from stepped-up inventory and incremental depreciation, "$22 million" of intangible amortization, and "approximately $17 million" of onetime integration expenses.
* "First quarter diluted EPS was $1.33" (Senior VP, CFO & Treasurer Mell), and he added, "adjusted net income and adjusted diluted EPS were $216 million and $2.57 per share, respectively" after excluding acquisition-related and other items.
* "Adjusted EBITDA for the first quarter was $362 million" (Senior VP, CFO & Treasurer Mell) with "adjusted EBITDA margin at 26%," alongside a stated objective that "we expect the acquisition of the Allison Off-Highway business unit to be accretive to earnings on a full year basis."
* "During the quarter, we repaid $150 million" on the revolver (Senior VP, CFO & Treasurer Mell), increased the dividend to "$0.29 per share," repurchased "$20 million" of stock, and ended with "approximately $1.2 billion" of repurchase authorization remaining.
Q&A
* Robert Wertheimer, Melius Research LLC: "what versus your deal model has changed most"; Chairman, President & CEO Graziosi said the company was "very pleased with the acquisition" and called the broader footprint "much more to our benefit than, frankly, we had anticipated."
* Timothy Thein, Raymond James: asked when the "27% to 29%" margin target could be realized; Chairman, President & CEO Graziosi replied it was "very attainable within a few years."
* Ian Zaffino, Oppenheimer: asked when medium-duty could improve; President & COO G. Bohley said Q1 was "still extremely soft" but added, "we have had and continue to have the second half stepping up somewhat from the first half" and pointed to EPA-related uncertainty for 2027.
* Jerry Revich, Wells Fargo: asked about sequential trends and synergies; President & COO Bohley said "we do expect things to -- on the transmission side to step up sequentially," and Senior VP, CFO & Treasurer Mell said synergy expectations and timing "has not changed whatsoever."
* Tami Zakaria, JPMorgan: asked for Off-Highway year-over-year and price; President & COO Bohley said legacy Transmission price was "about 325 basis points," while Senior VP, CFO & Treasurer Mell said Off-Highway was "up probably about 10% year-over-year, just over 10%."
* Sherif El-Sabbahy, BofA: asked about free cash flow seasonality post-deal; Senior VP, CFO & Treasurer Mell said the profile should be "very similar" to before, with Q1 a "meaningful user of cash" and Q4 generating cash.
SENTIMENT ANALYSIS
* Analyst sentiment was slightly negative to neutral, with repeated uncertainty framing around the acquisition model, EPA outcomes, pricing vs. cost, and cash flow seasonality (e.g., "There's been a lot that's changed in the world" from Robert Wertheimer, Melius Research LLC).
* Management sentiment was slightly positive in prepared remarks and more measured in Q&A, emphasizing integration progress and reaffirmed targets while repeatedly referencing volatility and policy uncertainty (e.g., "The rate of change in volatility... every day is truly an adventure" from Chairman, President & CEO Graziosi).
* Versus the prior quarter, management used more near-term integration language ("begin to see financial benefits later in 2026") while maintaining the same synergy endpoint and emphasizing geopolitical uncertainty more directly.
QUARTER-OVER-QUARTER COMPARISON
* The full-year 2026 revenue, net income, adjusted EBITDA, and cash flow ranges were reiterated in Q1 2026 after being introduced in Q4 2025, with Q1 explicitly reaffirming them "given... uncertainty" (Senior VP, CFO & Treasurer Mell).
* Management shifted synergy commentary from Q4’s "we have not assumed any synergies in the 2026 guide" (Chairman, President & CEO Graziosi, prior call) to Q1’s expectation to "begin to see financial benefits later in 2026" while still reaffirming the "$120 million" annual run rate target (Chairman, President & CEO Graziosi).
* The company introduced a three-segment structure in Q1 (including "Allison Central Group"), evolving from the prior call’s two-segment expectation.
* The onetime pretax expense language increased from "approximately $70 million" (Q4 2025) to "more than $100 million" (Q1 2026) in management’s 2026 net income guidance commentary.
RISKS AND CONCERNS
* "Uncertainty surrounding geopolitical impacts, including tariffs" and emissions-related rulings were cited as factors affecting purchasing behavior (Chairman, President & CEO Graziosi), alongside "undetermined" implications from the Middle East conflict.
* Purchase accounting and integration costs were a near-term earnings headwind, including "approximately $76 million" in purchase price accounting impacts and "approximately $17 million" of onetime integration expenses (Senior VP, CFO & Treasurer Mell).
* Medium-duty demand was described as "extremely soft" with EPA 2027 rule-related uncertainty influencing the second-half setup (President & COO Bohley).
FINAL TAKEAWAY
Management framed Q1 as an integration-and-reporting transition quarter, reaffirming 2026 guidance while pointing to defense strength, cautious on-highway demand, and Off-Highway exposure to mining and Europe. Leadership reiterated the $120 million annual run rate synergy target and said initial value-capture work is materializing, with expected financial benefits later in 2026, while emphasizing ongoing uncertainty around tariffs, emissions rules, and geopolitical developments.
Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/alsn/earnings/transcripts]
MORE ON ALLISON TRANSMISSION HOLDINGS
* Allison Transmission Holdings, Inc. (ALSN) Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4898143-allison-transmission-holdings-inc-alsn-q1-2026-earnings-call-transcript]
* Allison Transmission Holdings, Inc. 2026 Q1 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4898128-allison-transmission-holdings-inc-2026-q1-results-earnings-call-presentation]
* Allison Transmission: Earnings Compounder At An Attractive Valuation [https://seekingalpha.com/article/4890960-allison-transmission-earnings-compounder-at-an-attractive-valuation]
* Allison Transmission Holdings Q1 2026 Earnings Preview [https://seekingalpha.com/news/4584135-allison-transmission-holdings-q1-2026-earnings-preview]
* Sizing up the impact on auto supplier stocks from the Section 232 tariffs [https://seekingalpha.com/news/4575518-sizing-up-the-impact-on-auto-supplier-stocks-from-the-section-232-tariffs]
