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Allison Transmission Holdings (ALSN) FY2025 results: revenue $3.0 billion, down 6.7% on the year

Allison Transmission Holdings Inc. (ALSN) reported revenue of $3.0 billion for fiscal 2025, the year ended 31 December 2025, down 6.7% on the year before. Net income was $623 million, down 14.8%, and diluted earnings per share $7.33. The figures are the company's own, from the 10-K it filed with the SEC on 24 February 2026.

Revenue
$3.0 billion
-6.7% on the year
FY2018FY2025
Operating margin
29.2%
30.8% a year earlier
FY2018FY2025
Net income
$623 million
-14.8% on the year
FY2018FY2025
Diluted EPS
$7.33
-11.8% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 8 new.

  • Full year sales reached $3,010 million: Full-year net sales were $3,010 million, against $3,225 million in 2024. Net income was $623 million and diluted EPS was $7.33.
  • Full-year Adjusted EBITDA margin rose: Full-year Adjusted EBITDA was $1,130 million, 37.5 percent of net sales, up 140 basis points. This is a non-GAAP measure.
  • North America On-Highway sales declined: North America On-Highway net sales were $1,540 million for the year, down $212 million. Fourth quarter sales were $361 million, down $58 million.
  • Defense sales grew 26 percent: Defense net sales were $267 million for the year, up 26 percent, which management attributed to growth initiatives. Fourth quarter Defense sales rose 7 percent to $73 million.
  • Fourth quarter gross margin reached 48%: Fourth quarter gross profit was $354 million, down $19 million. Gross margin was 48 percent, up 110 basis points year over year.
Read the Q4 FY2025 earnings call summary

From this 10-K

Allison Transmission makes fully automatic transmissions and other propulsion systems for commercial and defense vehicles. The company states that it is the world's largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and for medium- and heavy-tactical U.S. defense vehicles. The business was founded in 1915 and has been headquartered in Indianapolis, Indiana ever since.

Allison Transmission Holdings Inc., the 10-K for 2025

Allison Transmission makes fully automatic transmissions and other propulsion systems for commercial and defense vehicles. The company states that it is the world's largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and for medium- and heavy-tactical U.S. defense vehicles. The business was founded in 1915 and has been headquartered in Indianapolis, Indiana ever since.

Why an automatic gearbox matters in a truck

Commercial vehicles typically use one of three kinds of transmission: manual, automated manual or fully automatic. A manual box uses a clutch that cuts power at each gear change. That matters little on a long-distance highway run but costs fuel, speed and clutch wear in work that stops and starts all day. A fully automatic transmission shifts without a disconnect clutch, so power keeps flowing to the wheels. Allison's products are used in a wide variety of vehicles: distribution, refuse, construction, fire and emergency trucks, school, transit and coach buses, and motorhomes. The company introduced the first fully automatic transmission for commercial vehicles over 75 years ago.

Where the sales come from

In 2025, North America on-highway was 51% of net sales, on-highway outside North America 17%, global off-highway 2%, defense 9%, and service parts, support equipment and other 21%. North America accounted for approximately 76% of the total. Off-highway products go into hydraulic fracturing and well-servicing equipment, and into rigid, wide-body and underground mining and construction trucks with load capacities between 40 to 130 tons. Defense products include transmissions for tracked combat vehicles and wheeled platforms. The aftermarket covers Allison-branded service parts and transmission fluids, remanufactured transmissions, extended coverage and aluminum die cast components, sold through approximately 1,500 independent distributor and dealer locations worldwide.

Electric products

Alongside transmissions the company sells the eGen Flex electric hybrid system, used in transit buses, and the eGen Power fully electric systems, offered for buses, day cab and line-haul tractors, fire trucks and school buses. Fully electric products are made in Auburn Hills, Michigan.

Factories and suppliers

The main manufacturing facilities are in Indianapolis, with approximately 2.3 million square feet of usable manufacturing space in five plants. High volume on-highway products are also made in Chennai, India and Szentgotthard, Hungary, and aluminum die cast components in Lewisburg, Tennessee. Customization and parts distribution centers are in the United States, the Netherlands, Brazil, China, Hungary, India and Japan. Many of the parts are bought from outside suppliers, and the largest items are aluminum and steel castings and forgings.

The Dana deal

On January 1, 2026 the company completed the purchase of an off-highway drivetrain business from Dana, under an agreement signed on June 11, 2025. It brings approximately 46 manufacturing and assembly plants and approximately 8,000 additional employees, and the company now runs two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. The figures above are for 2025 and do not include the acquired business.

People

At December 31, 2025 the company had approximately 4,000 employees, approximately 87% of them in the United States. Approximately 49% of the U.S. employees are represented by the UAW under a four-year agreement with UAW Local 933 that expires in November 2027.

From Allison Transmission's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 24 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue3,0103,2253,035-6.7%
Cost of revenue1,5471,6961,565-8.8%
Gross profit1,4631,5291,470-4.3%
Gross margin48.6%47.4%48.4%
Research and development174200194-13.0%
Selling, general and administrative380336357+13.1%
Operating income880992919-11.3%
Operating margin29.2%30.8%30.3%
Pre-tax income804897827-10.4%
Income tax181166154+9.0%
Effective tax rate22.5%18.5%18.6%
Net income623731673-14.8%
Net margin20.7%22.7%22.2%
Diluted EPS$7.33$8.31$7.40-11.8%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow836801784+4.4%
Capital expenditure175143125+22.4%
Free cash flow661658659+0.5%
Free cash flow margin22.0%20.4%21.7%
Cash from investing-184-147-129
Cash from financing57.0-427-332
Depreciation and amortisation124121154+2.5%
Share-based compensation27.026.022.0+3.8%
Buybacks328254263+29.1%
Dividends paid91.087.083.0+4.6%
Dividend per share$1.08$1.00$0.92+8.0%
Diluted shares, weighted85m88m91m-3.4%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity1,8671,6511,233+13.1%
Debt2,9092,4142,518+20.5%
Operating lease liabilities13.014.014.0-7.1%
Finance lease liabilities0.0n/an/a
Other liabilities1,2931,2571,260+2.9%
Total liabilities and equity6,0825,3365,025+14.0%
Fixed assets862803774+7.3%
Goodwill2,0752,0752,0760.0%
Intangible assets794822833-3.4%
Investments24.011.020.0+118.2%
Cash and equivalents1,495781555+91.4%
Receivables333360356-7.5%
Inventory316315276+0.3%
Other assets183169135+8.3%
Total assets6,0825,3365,025+14.0%

10-K for the year ended 31 December 2025, filed 24 February 2026: the filing.