Allison Transmission Reports 93% Revenue Growth to $1.57 Billion in Q2 2026

Allison Transmission Holdings, Inc. reported significant financial results for the second quarter of 2026, driven largely by the recent acquisition of Dana Incorporated's off-highway business. For the three months ended June 30, 2026, the company achieved net sales of $1,566 million, a substantial increase from $814 million in the same period last year. This growth reflects a 93% year-over-year increase, with the Allison Off-Highway segment contributing $706 million to the total sales. The company's gross profit for the quarter was $515 million, up from $403 million, although the gross profit margin decreased due to the lower average profit profile of the newly acquired segment.

In terms of profitability, Allison's operating income for the second quarter was $291 million, compared to $256 million in the prior year, marking a 14% increase. However, net income fell to $181 million from $195 million year-over-year, resulting in basic earnings per share of $2.18, down from $2.32. The decline in net income was attributed to increased costs associated with the acquisition, including higher interest expenses, which rose to $54 million from $22 million, and increased selling, general, and administrative expenses, which reached $168 million compared to $104 million in the previous year.

The acquisition, completed on January 1, 2026, for approximately $2,628 million, has expanded Allison's product offerings and market reach. The company now operates through two segments: Allison Transmission and Allison Off-Highway, with the latter focusing on drivetrain and motion solutions for various industries, including construction and agriculture. The acquisition is expected to enhance Allison's ability to serve a broader customer base and diversify its revenue streams.

Operationally, Allison's total assets increased to $8,717 million as of June 30, 2026, up from $6,082 million at the end of 2025, primarily due to the acquisition. The company reported a significant rise in accounts receivable and inventories, reflecting increased sales activity. As of June 30, 2026, Allison had approximately 1,500 independent distributor and dealer locations worldwide, supporting its expanded operations.

Looking ahead, Allison expects continued growth in net sales driven by the integration of the Off-Highway segment and increased demand in its Defense and On-Highway markets. The company anticipates that the strategic acquisition will contribute positively to its financial performance in the coming quarters, despite the challenges posed by rising costs and market conditions.