Allison Transmission Holdings, Inc.
Key Drivers
- High margins
- Strong liquidity
- Elevated leverage
AIAI Summary
Allison's Dana acquisition repositions the company from a cyclical on‑highway supplier into a diversified industrial powertrain platform with stronger margin resilience and growth optionality (defense, off‑highway, electrified products), but the investment thesis is now execution‑dependent—successful integration and sustained FCF deleveraging are required to justify current multiples. Actionable checklist: monitor quarterly synergy milestones, net debt/FCF trajectory, and early commercial wins/certifications for eGen and defense programs; missed targets should prompt valuation downside.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •High margins
- •Strong liquidity
- •Elevated leverage
Allison shows strong profitability and cash conversion with ample liquidity, but elevated leverage and a large intangible base materially increase financial risk.
Price Behavior
Key Price Behavior Insights:
- •Short-term decline
- •Failed resistance
- •Close to support
ALSN is clearly weakening over the last month—down ~6.6% to $110.70 from $118.56 with failure to hold the $121–126 zone and closest resistance near $126 while a break below $110.70 would confirm continued short-term downtrend.
Drop from $126.63 to $110.70 since early
Sentiment & News
Key News Insights:
- •Strong margins
- •Dana acquisition
- •Dividend hike
Allison reported Q4 and FY25 beats with record $3.0B sales and a 37.5% adjusted EBITDA margin, citing Defense and Outside‑North‑America strength, closing the Dana Off‑Highway acquisition, raising the dividend, and guiding to a solid 2026 outlook. #M&A
The combination of margin resilience, strategic M&A and shareholder returns should bolster share momentum and position Allison for broader industrial growth into 2026
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