Allison Transmission reported second-quarter 2026 net sales of $1,566 million and net income of $181 million, with adjusted diluted EPS of $2.73. Adjusted EBITDA for the quarter was $404 million (26% of net sales) and adjusted free cash flow reached a record $281 million. The results include the January 1, 2026 acquisition of the Allison Off-Highway business unit, which contributed $706 million of quarterly net sales.
Financial Highlights
- Net sales: $1,566 million for Q2 2026 (includes $706 million from Allison Off-Highway).
- Gross profit: $515 million for Q2 2026; gross margin reported at 33%.
- Operating income (consolidated): $291 million for Q2 2026.
- Net income (GAAP): $181 million for Q2 2026; diluted EPS $2.15.
- Adjusted diluted EPS (Non-GAAP): $2.73 for Q2 2026; Adjusted EBITDA: $404 million (26% of net sales).
Business Highlights
- Allison Transmission business unit achieved record quarterly net sales of $860 million, driven by growth in the Defense end market and North American truck market momentum.
- Allison Off-Highway reported $706 million in Q2 net sales with strong year-over-year growth, notably in Construction & Material Handling and Mining as demand rebounds.
- Integration of the Off-Highway business is underway, with management prioritizing capture of planned synergies and realization of strategic benefits from combined operations.
- Operational performance translated into strong cash generation: net cash provided by operating activities was $312 million in Q2 and adjusted free cash flow was $281 million (record for the quarter).
- Company actions during the quarter included repurchasing $46 million of common stock, paying a quarterly dividend, and repaying the remaining $150 million under the revolving credit facility to progress toward leverage targets.
Original SEC Filing:
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