Allison Transmission's Earnings: A Preview

Allison Transmission (NYSE:ALSN) is preparing to release its quarterly earnings on Monday, 2025-08-04. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Allison Transmission to report an earnings per share (EPS) of $2.21.

Investors in Allison Transmission are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.25, leading to a 4.13% increase in the share price the following trading session.

Here's a look at Allison Transmission's past performance and the resulting price change:

Market Performance of Allison Transmission's Stock

Shares of Allison Transmission were trading at $90.07 as of July 31. Over the last 52-week period, shares are up 6.15%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Allison Transmission

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Allison Transmission.

Allison Transmission has received a total of 5 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $94.8, the consensus suggests a potential 5.25% upside.

Comparing Ratings with Competitors

The below comparison of the analyst ratings and average 1-year price targets of Federal Signal, Oshkosh and Terex, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Federal Signal, with an average 1-year price target of $111.5, suggesting a potential 23.79% upside.
• Analysts currently favor an Buy trajectory for Oshkosh, with an average 1-year price target of $130.36, suggesting a potential 44.73% upside.
• Analysts currently favor an Neutral trajectory for Terex, with an average 1-year price target of $54.0, suggesting a potential 40.05% downside.

Analysis Summary for Peers

The peer analysis summary provides a snapshot of key metrics for Federal Signal, Oshkosh and Terex, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Allison Transmission ranks highest in Gross Profit among its peers. It is in the middle for Revenue Growth and Return on Equity.

Delving into Allison Transmission's Background

Allison Transmission is the largest manufacturer of fully automatic transmissions for commercial vehicles. The company's automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business has about 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motor homes). Allison also produces electric hybrid propulsion systems and is developing e-powertrains.

Allison Transmission: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Allison Transmission's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -2.92%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Allison Transmission's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 25.07% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Allison Transmission's ROE excels beyond industry benchmarks, reaching 11.58%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Allison Transmission's ROA stands out, surpassing industry averages. With an impressive ROA of 3.59%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Allison Transmission's debt-to-equity ratio stands notably higher than the industry average, reaching 1.44. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Allison Transmission visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.