Allison Transmission (ALSN) Investor presentation summary

Acquisition overview and integration

• Completed $2.7B acquisition of Off-Highway Drive & Motion Systems from Dana, effective January 1, 2026, funded through a mix of cash, new debt, and credit facilities.

• Pro forma net leverage below 3.0x as of March 31, 2026, with a near-term target of less than 2.0x.

• Expected to be immediately accretive to net income and EPS in 2026, with $120M in annual run-rate synergies anticipated.

• Integration is progressing as planned, with synergy realization already positively impacting financials.

Strategic growth and global platform

• Combined entity has ~14,000 employees and a strong global footprint, with significant presence in EMEA and Asia Pacific.

• Growth driven by expanded product portfolio, cross-selling, and enhanced aftermarket support.

• Accelerated product innovation and cost reductions through increased scale and shared services.

• Broader M&A platform established for further inorganic growth in established and new markets.

Financial performance and guidance

• Q1 2026 consolidated net sales reached $1.41B, with adjusted EBITDA of $362M and margin of 25.7%.

• Full-year 2026 guidance reaffirmed: consolidated net sales $5.58B–$5.93B, adjusted EBITDA $1.37B–$1.52B, and adjusted free cash flow $655M–$805M.

• Strong liquidity with $1.2B in cash and available borrowing as of March 31, 2026; net leverage below 3.0x.

• Over 65% of shares repurchased since IPO, with $1.2B authorization remaining and increased quarterly dividend.