Allison Transmission (ALSN) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales surged 92% year-over-year to $1,566 million, driven by the acquisition of the Off-Highway business and strong Transmission growth.

• Completed acquisition of Dana's off-highway business for $2,628 million, expanding into new end markets and diversifying the portfolio.

• Record quarterly net sales of $860 million for the Transmission business unit, with strong growth in Defense and North American truck markets.

• Net income was $181 million (11.6% of net sales), with adjusted net income at $229 million, reflecting acquisition-related costs.

• Integration of the Off-Highway unit and synergy capture remain top priorities.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $404 million (25.8% margin), up 29% year-over-year.

• Adjusted diluted EPS was $2.73, up 8% year-over-year.

• Adjusted free cash flow reached a record $281 million, up 84% year-over-year.

• Net cash from operating activities was $312 million, up 70% year-over-year.

• Paid $0.29 per share dividend and repurchased $46 million in stock.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $5,800–$6,000 million.

• Net income guidance of $600–$700 million, including $140 million in one-time pre-tax acquisition costs.

• Adjusted EBITDA forecasted at $1,465–$1,575 million; adjusted free cash flow at $745–$865 million.

• Capital expenditures projected at $260–$280 million, including $30 million for integration.

• Sufficient liquidity is anticipated to meet cash requirements for the next twelve months and beyond.