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Here are a few analogies to describe Allison Transmission (ALSN):

• The Cummins of transmissions: Just as Cummins (CMI) is a leading independent manufacturer of engines for heavy-duty commercial and industrial vehicles, Allison Transmission is a leading independent manufacturer specializing in fully-automatic transmissions for similar types of vehicles.
• The Intel of commercial vehicle transmissions: Similar to how Intel (INTC) designs and manufactures the critical "brain" (processors) for computers, Allison Transmission designs and manufactures the essential "power transfer system" (transmissions) for medium- and heavy-duty commercial and defense vehicles.

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• Fully-Automatic Transmissions: Designs, manufactures, and sells new fully-automatic transmissions for medium- and heavy-duty commercial and defense vehicles across various applications.
• ReTran Remanufactured Transmissions: Provides remanufactured transmissions under the ReTran brand name, offering a cost-effective alternative to new transmissions.
• Branded Replacement Parts: Sells branded replacement parts essential for the service and maintenance of vehicles utilizing Allison transmissions.
• Support Equipment: Offers support equipment necessary for the maintenance and repair of their installed base of transmissions.
• Aluminum Die Cast Components: Supplies aluminum die cast components, likely used in their transmissions or related systems.
• Defense Kits: Provides specialized kits tailored for defense vehicle applications.
• Engineering Services: Offers engineering services to various original equipment manufacturers, distributors, and the U.S. government.
• Extended Transmission Coverage Services: Sells services providing extended coverage for transmissions, ensuring long-term support for customers.

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Allison Transmission (ALSN) primarily sells its products to other companies and governmental entities. Based on the provided background information, its major customers fall into the following categories:

• Original Equipment Manufacturers (OEMs): Allison Transmission sells its fully-automatic transmissions, as well as defense kits, engineering services, and extended transmission coverage services, to various OEMs. These manufacturers integrate Allison's transmissions into a wide range of vehicles, including:
  • Medium-and heavy-duty commercial vehicles (e.g., distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes).
  • Energy, mining, and construction off-highway vehicles and equipment.
  • Medium-and heavy-tactical U.S. defense vehicles (wheeled and tracked).
  The provided background description does not list specific names of these OEM customer companies.
• Independent Distributors and Dealers: The company serves its customer base through an independent network of approximately 1,400 distributor and dealer locations. These locations purchase transmissions, branded replacement parts, support equipment, and other products to service the installed base of vehicles utilizing Allison transmissions.
• The U.S. Government: Allison Transmission also sells defense kits, engineering services, and extended transmission coverage services directly to the U.S. government for its defense vehicle applications.

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David S. Graziosi, Chair, President & Chief Executive Officer

David S. Graziosi has served as the Chair of the Board since 2021 and as President and Chief Executive Officer of Allison Transmission since June 2018. He initially joined Allison in November 2007 as Executive Vice President, Chief Financial Officer, and Treasurer, shortly after the company's sale by General Motors to The Carlyle Group and Onex Corporation, which ultimately led to an initial public offering in March 2012. Prior to Allison, Graziosi was Executive Vice President and Chief Financial Officer of Covalence Specialty Materials Corporation, and held various finance leadership roles at Hexion Specialty Chemicals, Inc., Resolution Performance Products LLC, General Chemical Industrial Products Inc., Sun Chemical Group B.V, the Colgate-Palmolive Company, and Arthur Andersen LLP.

Scott Mell, Chief Financial Officer & Treasurer

Scott Mell was appointed Chief Financial Officer and Treasurer of Allison Transmission, effective April 14, 2025. He brings nearly 30 years of extensive financial and operational leadership experience to the company, including significant international involvement with operations in Asia, Europe, and South America. Most recently, he served as Chief Financial Officer at TriMas Corporation from May 2021 to March 2025. Before that, Mell provided operational and financial advisory services, notably with Riveron Consulting LLC from 2018 to 2021.

G. Frederick Bohley, Chief Operating Officer

G. Frederick Bohley currently serves as Chief Operating Officer, a position he has held since April 2025. He joined Allison Transmission in 1991, starting in the Finance organization and progressing through roles of increasing responsibility. His career at Allison has included positions such as Director of Latin American Operations in Sao Paulo, Brazil, and Director of International Marketing and Business Planning. Bohley also served as Chief Financial Officer and Treasurer from June 2019 until April 2025.

John M. Coll, Senior Vice President, Global Marketing, Sales & Service

John M. Coll joined Allison Transmission in 2016 as Senior Vice President, Global Marketing, Sales & Service. Before his tenure at Allison, Coll was Vice President of Sales and Marketing at Gerdau Ameristeel U.S. He also spent 14 years at Eaton Corp., where his roles included Vice President of Global Marketing for the vehicle group. Earlier in his career, Coll worked for 13 years at Philips Electronics in various sales and distributor relations positions.

Dana W. Pittard, Vice President, Defense Programs

Dana W. Pittard joined Allison Transmission in 2015 as Deputy Vice President of Defense Programs and was promoted to his current role as Vice President, Defense Programs, in January 2016. Prior to joining Allison, Pittard served 34 years in the U.S. Army, retiring as a Major General (2-Star), having commanded Armor and Infantry units and completing multiple combat tours. He has been recognized for his contributions, including being named one of the Top 100 African American Corporate Executives in America by Savoy Magazine in 2018, and is credited with increasing revenue for Allison Defense by 35 percent over three years.

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1. Technological Disruption and Electrification: Allison Transmission faces a significant long-term risk from the accelerating adoption of electric propulsion systems and competition from less expensive Automated Manual Transmissions (AMTs). This shift poses a threat to Allison's traditional fully automatic transmission product lines, potentially leading to declining revenue and heightened competitive threats as the industry moves away from internal combustion engines. There is also a risk that Allison's electric products may be uncompetitive in the growing electric power systems segment.
2. Cyclical Demand in Core Markets: The company is exposed to the cyclical nature and volatility of its primary markets, particularly North America OEM truck production and demand for commercial vehicles. Economic downturns, such as the sustained weakness observed in North American on-highway demand, can lead to substantial reductions in demand for commercial vehicles, forcing end users to defer major purchases and negatively impacting Allison's sales and profitability.
3. Integration Risks from Acquisitions: Allison Transmission has undertaken a significant acquisition, specifically the Dana's Off-Highway Drive & Motion Systems business. This acquisition carries substantial integration costs, potential loss of key personnel or customers, and uncertainty regarding the achievement of anticipated synergies. Failure to effectively integrate operations and realize expected benefits could adversely affect Allison's financial performance and market position, as well as lead to increased leverage.

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The clear emerging threat for Allison Transmission is the accelerating global shift towards the electrification of commercial and defense vehicles. Electric vehicles (both battery-electric and hydrogen fuel cell electric) typically utilize electric motors with single-speed reduction gears or direct-drive systems, fundamentally reducing or eliminating the need for the multi-speed fully-automatic transmissions that Allison Transmission designs and manufactures.

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Allison Transmission (ALSN) operates in several key markets, primarily focusing on propulsion solutions for commercial and defense vehicles.

The addressable market sizes for Allison Transmission's main products and services are as follows:

• Global Commercial Vehicle Transmission Market: This market was valued at approximately USD 26.9 billion in 2024 and is projected to reach USD 36.4 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 5.2%. Another estimate places the global market at USD 28.5 billion in 2025, forecasted to grow to USD 46.9 billion by 2035. The global medium and heavy commercial vehicles transmission market alone was valued at USD 11 billion in 2022.
• Global Off-Highway Transmission Market: The global off-highway transmission market size was estimated at USD 12.8 billion in 2024 and is forecasted to reach USD 20.6 billion by 2033. The global off-highway equipment transmission component market was valued at an estimated USD 2.9 billion in 2024, with projections to reach USD 4.8 billion by 2034.
• North America On-Highway Segment (Classes 4-8 vehicles): The North American production in Allison Transmission's core addressable market for Class 4 through 8 vehicles is projected to grow 1% compounded annually through 2030.
• Global Electric Bus Market: This market is projected to grow 14% compounded annually from 2024 to 2030.

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For Allison Transmission Holdings, Inc. (ALSN), several key drivers are expected to contribute to future revenue growth over the next 2-3 years:

1. Continued Expansion and Program Wins in the Global Defense Market: Allison Transmission is steadily expanding its presence in the global defense market, securing significant contracts for wheeled defense vehicles beyond North America. Programs such as those in Canada, the U.K., Germany, Poland, and Romania, with production and deliveries slated to commence or continue from 2025, are expected to bolster the company's revenue. The 3040MX platform is also emerging as a key growth driver, including a substantial opportunity with India's FICV program and a new contract for Poland's Infantry Fighting Vehicle program.

2. Robust Demand and Price Increases in the North America On-Highway Market: The company anticipates favorable outlook in its largest end market, the North America On-Highway segment, driven by persistent demand for Class 8 vocational and medium-duty trucks. Additionally, strategic price increases on certain products are expected to continue contributing to top-line growth.

3. Strategic Market Expansion and the Acquisition of Dana's Off-Highway Business: Allison is actively expanding into new international on-highway and off-highway markets. This includes growth in the South American agriculture sector, the Chinese bus market, increased demand in the mining sector, and expansion in Europe. Furthermore, the acquisition of Dana's Off-Highway Drive & Motion Systems Business, completed in January 2026, is a transformative event expected to significantly expand Allison's global footprint, diversify its product portfolio, and contribute substantially to consolidated net sales in 2026 and beyond.

4. Growth of Electrified Propulsion Solutions: The company's commitment to innovation in cleaner fuel trends, particularly through its electrified propulsion systems, is a key growth driver. This includes the successful launch and adoption of products like the eGen Flex electric hybrid propulsion solution for transit properties across the United States and the continued development and production of zero-emission electric axles for medium- and heavy-duty commercial vehicles, which offer a higher "content per vehicle" opportunity.

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Share Repurchases

• Allison Transmission repurchased $328 million of common stock in 2025, representing approximately 4% of shares outstanding.
• The company repurchased $254 million of stock in 2024 and $270 million in 2023.
• In February 2025, Allison Transmission's Board of Directors authorized an additional $1 billion for share repurchases, increasing the total authorization under its program to $5 billion.

Share Issuance

• Allison Transmission's shares outstanding have consistently declined over the past few years, with a 3.3% decline in 2024 to 0.088 billion shares from 0.091 billion in 2023, and a 5.21% decline in 2023 from 0.096 billion in 2022.

Outbound Investments

• On January 1, 2026, Allison Transmission completed the acquisition of Dana's Off-Highway Drive & Motion Systems business for $2.7 billion.
• This acquisition is considered transformative, expanding Allison Transmission's portfolio into broader drivetrain and motion solutions for off-highway end markets and adding approximately 46 plants and 8,000 employees.

Capital Expenditures

• Allison Transmission's capital expenditures were guided to be in the range of $125 million to $135 million for the full year 2024.
• For 2025, capital expenditures were anticipated to be between $165 million and $175 million.
• The company generally allocates 4-7% of its annual revenue to capital expenditures, reflecting its asset-light business model, with a focus on maintaining and growing the business, product development, and global capacity expansion.