Allison Transmission Holdings, (ALSN) Stock Price & How to Invest
Last updated July 2026
Short answer
Allison Transmission (NYSE: ALSN) is the world's largest maker of fully automatic transmissions for medium- and heavy-duty commercial vehicles, and it is now diversifying into off-highway drive systems and defense. It trades like a steady, cash-generative industrial with a modest earnings multiple, so most investors approach it as a cyclical cash-flow and capital-return story rather than a high-growth name.
ALSN stock price
As of 2026-07-24, Allison Transmission Holdings, (ALSN) last closed at $122.34, up 36.8% over the past year. Over the past 52 weeks it has traded between $79.27 and $136.00.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Allison Transmission Holdings, 's investor relations page. Walnut is informational, not investment advice.
What does Allison Transmission Holdings, (ALSN) do?
Allison Transmission Holdings, based in Indianapolis, designs and builds fully automatic transmissions and propulsion systems for on-highway trucks and buses, off-highway equipment, and defense vehicles. It is the clear global leader in medium- and heavy-duty automatic transmissions, with a large installed base, strong aftermarket parts and service revenue, and deep relationships with truck makers like Daimler, PACCAR, and Traton. The company also sells electric propulsion products such as its eGen axle line and remains a long-standing supplier of tracked-vehicle transmissions to the U.S. military and allied defense programs.
The investment picture in 2026 is shaped by two things: a highly profitable, mature core business that throws off substantial free cash flow, and a major acquisition of an off-highway drive-and-motion business that sharply expanded revenue but added integration costs and debt. Allison converts strong EBITDA margins into buybacks and a growing dividend, which is a core part of the return thesis. The key debate is whether the eventual shift toward battery-electric commercial vehicles, which need fewer multi-speed transmissions, erodes the moat over the long term, or whether slow fleet adoption and Allison's own electric and defense products keep the franchise durable for years.
What's driving Allison Transmission Holdings, (ALSN)?
1. Off-Highway acquisition scale-up
A large off-highway drive-and-motion acquisition added roughly $673 million of quarterly net sales and drove reported revenue up more than 80% year over year in early 2026. It diversifies Allison beyond on-highway trucks into construction, mining, and agriculture end markets. Execution now hinges on integrating the business and realizing the targeted margins net of more than $100 million in one-time 2026 integration costs.
2. Defense strength
Defense revenue jumped about 64% year over year in the first quarter of 2026 as demand for tracked and wheeled vehicle propulsion picked up. Elevated global defense spending gives Allison a higher-visibility, less cyclical revenue stream than its commercial truck base. It also leans on a decades-long incumbency in military transmissions that is hard for rivals to displace.
3. Cash generation and capital return
The core transmission business carries very high EBITDA margins and modest capital needs, producing consistent free cash flow. Management has a long record of buying back stock and raising the dividend, shrinking the share count over time. This capital-return engine is a central reason investors hold the name despite low unit-volume growth.
4. Electrification and product hedge
Allison sells electric propulsion products, including its eGen Power e-axles, to position for a battery-electric future while continuing to profit from internal-combustion transmissions today. The bet is that heavy-duty electrification arrives slowly and unevenly, giving the legacy franchise a long runway. Progress on winning electric platform wins is a key thing to watch.
What are the risks to Allison Transmission Holdings, (ALSN)?
Allison's core on-highway transmission business is cyclical and fell about 4% year over year even as total revenue surged, so a downturn in North American Class 8 and vocational truck demand would pressure the highest-margin segment. The long-term threat is battery-electric commercial vehicles, which typically do not need multi-speed automatic transmissions, potentially shrinking Allison's addressable content per vehicle over time. The off-highway acquisition adds integration risk, one-time costs, and higher leverage. Customer concentration among a handful of large truck makers, exposure to defense budget cycles, and sensitivity to steel and component costs are additional risks.
How is Allison Transmission Holdings, (ALSN) valued? (approximate, July 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Allison Transmission Holdings, 's investor relations page or your broker.
- Revenue (TTM): ~$3.9B
- FY2026 revenue guidance: ~$5.58B to $5.93B
- Q1 2026 revenue: ~$1.41B (+84% YoY)
- Q1 2026 adjusted EPS: ~$2.57
- Market cap: ~$10.3B
- P/E ratio: ~16x to 19x
First-quarter 2026 revenue of roughly $1.41 billion beat expectations, but most of the growth was inorganic from the off-highway acquisition while the core transmission unit declined about 4%. Full-year 2026 guidance calls for revenue of roughly $5.58 billion to $5.93 billion and adjusted EBITDA around a 25% midpoint margin, including more than $100 million of one-time integration costs. The stock's mid-teens to high-teens earnings multiple sits above its own long-run median, reflecting the expanded, more diversified revenue base.
Who competes with Allison Transmission Holdings, (ALSN)?
Commercial-vehicle drivetrain suppliers
Eaton, BorgWarner, ZF Friedrichshafen, and Dana compete in transmissions, axles, and electric propulsion for trucks and buses. These players contest both legacy driveline content and the emerging electric-powertrain market where Allison is trying to establish e-axle share.
Truck makers with in-house or alternative transmissions
PACCAR, Daimler Truck, and Traton both buy from Allison and offer their own automated manual transmissions, so they are customers and competitors at once. Fleet preferences between Allison fully automatics and vertically integrated AMT options directly affect Allison's on-highway penetration.
Off-highway and specialty vehicle equipment peers
Oshkosh, Dana's off-highway peers, and other drive-system makers overlap in construction, mining, agriculture, and defense platforms that Allison expanded into via acquisition. Douglas Dynamics and Dorman Products are sometimes grouped as broader commercial-vehicle component comparables.
How to invest in Allison Transmission Holdings, (ALSN)
There are three common ways to get ALSN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so ALSN sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where ALSN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Allison Transmission Holdings, (ALSN)
ALSN is a dominant, cash-rich commercial-vehicle transmission maker adding off-highway and defense scale, with the long-run electrification transition as the central question mark.
More on Allison Transmission Holdings, (ALSN)
Whether ALSN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is ALSN a buy?, and where the stock could go from here in the ALSN stock forecast.
For income investors, whether ALSN pays a dividend and how the payout looks is covered in does ALSN pay a dividend?
Build a basket around ALSN with Walnut
Use Allison Transmission Holdings, as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Allison Transmission do?
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Allison designs and manufactures fully automatic transmissions and propulsion systems for medium- and heavy-duty commercial trucks, buses, off-highway equipment, and defense vehicles. It is the largest maker of such transmissions globally and also earns significant aftermarket parts and service revenue from its large installed base.
Is ALSN a growth stock or a value stock?
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ALSN generally trades and behaves like a cash-generative industrial value name rather than a high-growth stock. Its core unit volumes grow slowly, but it produces strong margins and returns cash through buybacks and a rising dividend, so investors often frame it around free cash flow and capital return.
Why did Allison's revenue jump so much in 2026?
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The large increase, more than 80% year over year in the first quarter of 2026, was mostly inorganic. An off-highway drive-and-motion acquisition added roughly $673 million of quarterly net sales. The legacy on-highway transmission business actually declined about 4% over the same period.
What is the biggest long-term risk to ALSN?
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The main structural risk is electrification. Battery-electric commercial vehicles usually do not require multi-speed automatic transmissions, so a faster shift to electric heavy-duty trucks could shrink Allison's content per vehicle over time. The company is hedging with electric e-axle products, but adoption pace is uncertain.
Does Allison Transmission pay a dividend?
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Yes, Allison pays a quarterly dividend and has raised it over time, alongside consistent share buybacks. Capital return is a core part of how the company deploys its free cash flow, though dividend details should be verified from the latest company filings before making any decision.
Who are Allison Transmission's main competitors?
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Competitors include drivetrain suppliers like Eaton, BorgWarner, ZF Friedrichshafen, and Dana, plus truck makers such as PACCAR, Daimler Truck, and Traton that offer their own automated manual transmissions. In off-highway and specialty markets, peers include Oshkosh and other drive-system makers.
How exposed is Allison to defense spending?
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Allison has a decades-long position supplying transmissions for U.S. and allied military tracked and wheeled vehicles, and its defense revenue rose about 64% year over year in early 2026. This gives it a higher-visibility revenue stream than its commercial truck base, but it also ties part of results to defense budget cycles.
How could I invest in ALSN through Walnut?
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With Walnut you can add ALSN to a thematic basket, for example alongside other industrial or commercial-vehicle names, set target weights that reflect your own thesis, connect your brokerage, and place orders that move the basket toward those targets. Walnut is not an investment adviser and does not tell you whether to buy or sell; it helps you organize and track your own investment ideas.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Allison Transmission Holdings, 's investor relations page or your broker before making investment decisions.