Allison Transmission Holdings Inc. reported a significant increase in first quarter net sales, reaching $1.406 billion, with an 84% year-over-year growth compared to the same period in 2025.
This upward trend is attributed to the addition of the Allison Off-Highway business unit, which contributed $673 million in net sales to the company's overall revenue.
Despite geopolitical uncertainty, the company remains optimistic about its ability to capitalize on further improvement in end markets conditions throughout the year.
The acquisition of the Allison Off-Highway business unit is expected to be accretive to net income and diluted EPS in 2026, according to CEO David S. Graziosi.
Graziosi also highlighted the company's commitment to returning cash to shareholders, as evidenced by the seventh consecutive annual increase to its quarterly dividend and the repurchase of over $20 million of common stock.
The company's strong balance sheet management has enabled it to repay $150 million of amounts outstanding under its revolving credit facility, further demonstrating its prudent capital allocation priorities.
Allison Transmission's first quarter results also include segment reporting for the company's legacy business, excluding certain costs now accounted for within the Allison Central Group, and the newly acquired Allison Off-Highway business unit.
The addition of the Allison Off-Highway business unit has positively impacted the company's gross profit, with an increase of $28 million compared to the same period in 2025.
However, this growth was partially offset by decreased gross profit in the Allison Transmission business unit, and was also negatively impacted by expenses related to the acquisition of the Allison Off-Highway business unit.
The company's strong cash flow generation enabled it to repay $150 million of amounts outstanding under its revolving credit facility.
