Allison Announces Third Quarter 2026 Results
Key Highlights
- ➤Q3 net sales $1,534 million, up 121% year over year
- ➤Adjusted diluted EPS $2.90, up 59% year over year
- ➤Full-year 2026 revenue guidance raised to $5,975-$6,075 million
- ➤Adjusted EBITDA guidance raised to $1,530-$1,580 million
- ➤Allison Transmission quarterly sales record $881 million, up 27% year over year
Expert Statements
David S. Graziosi, Chair, President and Chief Executive Officer of Allison Transmission
“Allison's third quarter results reflect continued strength across the majority of our end markets, supported by disciplined execution that maximized the benefits of higher volumes. Within the Allison Transmission business unit, demand accelerated for medium-duty and Class 8 vocational trucks, driving record quarterly revenue of $462 million in the North America On-Highway end market. Within the Allison Off-Highway business unit, momentum in the Mining end market remained robust, while the Construction & Material Handling end market delivered year over year growth across all regions, exceeding our expectations entering 2026. As anticipated, third quarter performance reflects customary seasonality for the business unit, including the impact of European holidays, and represents the softest quarter of the year. Conversely, demand within the Industrial and Agriculture end markets remained subdued, as ongoing geopolitical developments continue to temper customer purchasing activity.”
David S. Graziosi, Chair, President and Chief Executive Officer of Allison Transmission
“Favorable end markets demand conditions and operational execution drove strong cash generation in the third quarter, resulting in adjusted free cash flow of $278 million, up 51 percent year over year. Year to date, this cash generation has supported the repayment of over $400 million of debt, advancing the Company toward our leverage target. In addition to debt reduction, Allison remains committed to returning capital to shareholders through our quarterly dividend and share repurchase program. During the third quarter, Allison paid $23 million for its quarterly dividend and repurchased $57 million of common stock.”
* Raising revenue, earnings and cash flow guidance for the second consecutive quarter * Net Sales of $1,534 million, up 121% year over year, including the addition of the Allison Off-Highway business unit acquired on January 1, 2026 * Record quarterly net sales of $881 million for the Allison Transmission business unit, up 27% year over year * Net Income of $191 million, 12.5% of Net Sales * Diluted EPS of $2.30, Adjusted Diluted EPS of $2.90, up 59% year over year * Adjusted EBITDA of $400 million, up 56% year over year, 26.1% of Net Sales INDIANAPOLIS, Nov. 2, 2026 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), today reported third quarter net sales of $1,534 million with an adjusted EBITDA margin of 26.1 percent and net cash provided by operating activities of $343 million and raised full year 2026 guidance.
David S. Graziosi, Chair, President and Chief Executive Officer of Allison commented, "Allison's third quarter results reflect continued strength across the majority of our end markets, supported by disciplined execution that maximized the benefits of higher volumes. Within the Allison Transmission business unit, demand accelerated for medium-duty and Class 8 vocational trucks, driving record quarterly revenue of $462 million in the North America On-Highway end market. Within the Allison Off-Highway business unit, momentum in the Mining end market remained robust, while the Construction & Material Handling end market delivered year over year growth across all regions, exceeding our expectations entering 2026. As anticipated, third quarter performance reflects customary seasonality for the business unit, including the impact of European holidays, and represents the softest quarter of the year. Conversely, demand within the Industrial and Agriculture end markets remained subdued, as ongoing geopolitical developments continue to temper customer purchasing activity."
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