Allison Transmission Holdings (ALSN) reported fourth-quarter earnings for 2025 of $1.70 per share, surpassing the Zacks Consensus Estimate of $1.56 but down 15.4% year-over-year. Quarterly revenues totaled $737 million, representing a decline of 7.4% year over year while exceeding the consensus estimate of $722 million. The North America On-Highway segment generated $361 million, a 13.8% decrease from the prior year but beating estimates of $335 million.
Key segments also displayed notable performance: Outside North America On-Highway sales increased 5.7% to $131 million, outperforming estimates of $125 million; Global Off-Highway sales fell to $12 million, though above the expected $11.57 million; and Defense sales rose 7.4% to $73 million, missing expectations of $86 million. Allison’s cash and cash equivalents reached $1.5 billion as of December 31, 2025, up from $781 million a year ago, while long-term debt increased to $2.89 billion.
For 2026, Allison forecasts net sales between $3.025 billion and $3.175 billion, with net income expected between $600 million and $750 million. The adjusted EBITDA outlook is set at $1.365 billion to $1.515 billion, with anticipated operating cash flow of $970 million to $1.1 billion.
