Allison Transmission (ALSN) investor relations material

Strategic overview and market position

• Leading global designer and manufacturer of propulsion solutions for commercial and defense vehicles, with a strong brand reputation and over 100 years of innovation and reliability.

• Largest global manufacturer of medium- and heavy-duty fully automatic transmissions, with a growing portfolio in electrified propulsion systems.

• Diverse end markets include on-highway, off-highway, defense, and parts/support, with $3.1 billion in LTM net sales as of September 2025.

• Over 350 OEMs globally rely on its products, with a premium pricing model and high customer loyalty.

• Asset-light business model supports strong free cash flow and capital allocation flexibility.

Growth strategy and opportunities

• Pursuing $400 million in incremental annual revenue opportunities across mining, oilfield, Class 8 day cab, and defense markets.

• Expanding global reach through the $2.7 billion Dana Off-Highway acquisition, expected to be immediately accretive and deliver $120 million in annual run-rate synergies.

• Focused on emerging markets, electrification, and new product development to expand addressable markets.

• Growth strategies target on-highway, off-highway, and defense sectors both in North America and internationally.

• Leveraging expanded manufacturing and engineering footprint, especially in EMEA and APAC, to drive localization and customer proximity.

Technology and product innovation

• Leading in next-generation commercial propulsion, including fully integrated electric axles, hybrid systems, and advanced battery management.

• eGen Power, eGen Flex, and eGen Force product lines address zero-emission, hybrid, and defense applications, with significant content per vehicle uplift.

• Over $1.5 billion in electric hybrid propulsion sales since 2003, with nearly 9,800 systems delivered globally and 457 million gallons of fuel saved.

• New electrified transmission for tracked vehicles selected for the U.S. Army's XM30 program, with production expected to start in 2029.

• Continuous enhancements to core technologies, including FuelSense 2.0 and XFE models, drive fuel efficiency and emissions reduction.