Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q1 2026 Earnings Presentation
16 slides from Allison Transmission's earnings presentation, May 4, 2026
Slide 1: Q1 2026 Earnings Release
Q1 2026 Earnings Release May 4, 2026 Dave Graziosi – Chair, President & CEO Scott Mell – CFO & Treasurer Fred Bohley – COO & Allison Transmission President Allison Transmission Confidential: Business Use Only Craig Price – Allison Off-Highway President 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following information contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-look
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information We use adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and adjusted EBITDA as a percent of net sales (“adjusted EBITDA margin”) to measure our operating profitability. We believe that adjusted EBITDA and adjusted EBITDA margin provid
Slide 4: Call Agenda
Call Agenda − Business Update − Q1 Financial Performance − 2026 Guidance Update Allison Transmission Confidential: Business Use Only 4
Slide 5: Allison Business Update
Q1 2026 Allison Business Update ($ in millions, variance % from Q1 2025) Integration Value Capture Key Acquisition Rationale Initial phases of synergy realization ▪ Accelerating combined businesses’ current growth objectives while multiplying future global taking shape across several key growth oppo
Slide 6: Net Sales Performance – Allison Transmission
Q1 2026 Net Sales Performance – Allison Transmission ($ in millions, variance % from Q1 2025) End Markets Q1 2026 Variance Commentary Market showing signs of stabilization although uncertainty remains around geopolitical impacts, including tariffs, and emissions regulations. Class 8 vocational truck
Slide 7: Net Sales Performance – Allison Off-Highway
Q1 2026 Net Sales Performance – Allison Off-Highway ($ in millions) End Markets Q1 2026 Commentary Global construction markets seeing steadier investments, while rate-sensitive residential segments lag. European Construction & Material construction showing signs of strength but to be determined impa
Slide 8: Allison Financial Performance
Q1 2026 Allison Financial Performance Segment Performance Consolidated Performance Allison Allison Off- Allison Central $ in millions Transmission Highway Group $ in millions, except per share data Q1 2026 Q1 2025 Variance Net Sales $733 $673 - Net Sales $1,406 $766 $640 Cost of Sales $377 $623 - Co
Slide 9: Allison Cash Flow, Liquidity & Leverage
Q1 2026 Allison Cash Flow, Liquidity & Leverage ($ in millions, except per share data) Allison Consolidated Q1 2026 Liquidity & Leverage as of March 31, 2026 Adjusted Diluted EPS* $2.57 Increased 6% year-over-year with immediate accretion from Allison Off-Highway acquisition Cash and Available Net D
Slide 10: Full Year 2026 Guidance Update
Full Year 2026 Guidance Update ($ in millions) Given first quarter results, while taking into consideration current macroeconomic and geopolitical uncertainty, we are reaffirming our full year 2026 guidance provided to the market on February 23rd Business Unit Consolidated Net Cash Adjusted Provided
Slide 11: Appendix: Non-GAAP Financial Information
Appendix Non-GAAP Financial Information Allison Transmission Confidential: Business Use Only 11
Slide 12: Non-GAAP Reconciliations (1 of 5)
Non-GAAP Reconciliations (1 of 5) Adjusted EBITDA Reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, March 31, 2021 2022 2023 2024 2025 2025 2026 Net income (GAAP) $442 $531 $673 $731 $623 $192 $112 plus: Income tax expense 130 114 154 166 181 41 20 Depreciati
Slide 13: Non-GAAP Reconciliations (2 of 5)
Non-GAAP Reconciliations (2 of 5) Segment Adjusted EBITDA Reconciliation ($ in millions) Allison Transmission Allison Off-Highway Central Group Function Consolidated Three months ended Three months ended Three months ended Three months ended March 31, March 31, March 31, March 31, 2026 2025 2026 202
Slide 14: Non-GAAP Reconciliations (3 of 5)
Non-GAAP Reconciliations (3 of 5) Adjusted Net Income and Earnings Per Share Reconciliation $ in millions Three months ended March 31, 2026 2025 Net income (GAAP) $ 112 $ 192 plus: Recognition of the stepped-up basis in inventory 63 - Amortization expense 23 2 Acquisition-related expenses 17 9 Depre
Slide 15: Non-GAAP Reconciliations (4 of 5)
Non-GAAP Reconciliations (4 of 5) Adjusted Free Cash Flow Reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, March 31, 2021 2022 2023 2024 2025 2025 2026 Net cash provided by operating activities (GAAP) $635 $657 $784 $801 $836 $181 $156 (Deductions) Long-live
Slide 16: Non-GAAP Reconciliations (5 of 5)
Non-GAAP Reconciliations (5 of 5) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2026 Low High Net income (GAAP) $ 600 $ 750 plus: Income tax expense 125 175 Depreciation of property, plant and equipment 210 200 Interest expense, net 210 200 Amortization of intangible assets
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