Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2026 Earnings Presentation
17 slides from Allison Transmission's earnings presentation, Aug 3, 2026
Slide 1: Q2 2026 Earnings Release
Q2 2026 Earnings Release August 3, 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 − Q2 Business Update − Q2 Business Units Net Sales Performance & Strategy Update − Synergy Capture − Q2 Financial Performance − 2026 Guidance Update Allison Transmission Confidential: Business Use Only 4
Slide 5: Q2 2026 Allison Business Update
Q2 2026 Allison Business Update ($ in millions, variance % from Q2 2025) Allison in Action ▪ Content-rich platform highlighting the value we provide to our customers, the trust they place in Allison Q2 2026 End Market Performance products and the measurable impact our solutions offer across a broad
Slide 6: Net Sales Performance – Allison Transmission
Q2 2026 Net Sales Performance – Allison Transmission ($ in millions, variance % from Q2 2025) End Markets Q2 2026 Variance Commentary Market is showing signs of improvement although uncertainty persists around geopolitical impacts, including tariffs, and emissions regulations. Class 8 vocational Nor
Slide 7: Net Sales Performance – Allison Off-Highway
Q2 2026 Net Sales Performance – Allison Off-Highway ($ in millions) End Markets Q2 2026 Commentary Global construction markets seeing steadier investments, while rate-sensitive residential segments lag. Construction & Material European construction activity is showing signs of strength, althought th
Slide 8: Allison Off-Highway Acquisition – Synergy Capture
Allison Off-Highway Acquisition – Synergy Capture Source of Savings and % of Expected $120M Annual Run-Rate Synergy Realization Progress & Timing Procurement & Logistics 2027 40% Captured ▪ Strategic sourcing for purchased components ▪ Increased vertical integration / insourcing opportunities 60% 20
Slide 9: Allison Consolidated Financial Performance
Q2 2026 Allison Consolidated Financial Performance ($ in millions, except per share data) Net Sales Adj. EBITDA* Adj. Diluted EPS** Adj. Free Cash Flow*** AOH 25.8% +8% +84% Margin AT AT ▪ Net Sales increased 92% year- ▪ Consolidated Adjusted EBITDA ▪ Adjusted Diluted EPS ▪ Consolidated Adjusted Fre
Slide 10: Allison Segment Financial Performance
Q2 2026 Allison Segment Financial Performance ($ in millions) Allison Transmission Allison Off-Highway Allison Central Group Consolidated Net Sales $860 $706 - $1,566 Gross Profit $397 $118 - $515 Gross Margin 46.2% 16.7% - 32.9% Operating Income / (Loss) $281 $47 ($37) $291 Operating Income / (Loss
Slide 11: Full Year 2026 Guidance Update
Full Year 2026 Guidance Update ($ in millions) Prior Guide Updated Guide (May 4, 2026) (August 3, 2026) Net Sales $5,575 to $5,925 $5,800 to $6,000 $5,750 Midpoint $5,900 Midpoint Net Income* $600 to $750 $600 to $700 $675 Midpoint $650 Midpoint Adjusted EBITDA** $1,365 to $1,515 $1,465 to $1,575 $1
Slide 12: Appendix: Non-GAAP Financial Information
Appendix Non-GAAP Financial Information Allison Transmission Confidential: Business Use Only 12
Slide 13: 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, June 30, 2021 2022 2023 2024 2025 2025 2026 Net income (GAAP) $442 $531 $673 $731 $623 $195 $181 plus: Interest expense, net 116 118 107 89 92 22 54 Income tax
Slide 14: Non-GAAP Reconciliations (2 of 5)
Non-GAAP Reconciliations (2 of 5) Segment Adjusted EBITDA Reconciliation ($ in millions) Allison Transmission Allison Off-Highway Central Group Function Consolidated Three months ended Three months ended Three months ended Three months ended June 30, June 30, June 30, June 30, 2026 2026 2026 2026 20
Slide 15: 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 June 30, 2026 2025 Net income (GAAP) $ 181 $ 195 plus: Amortization expense 21 1 Depreciation of the stepped up basis in property, plant and equipment 18 - Acquisition-related
Slide 16: 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, June 30, 2021 2022 2023 2024 2025 2025 2026 Net cash provided by operating activities (GAAP) $635 $657 $784 $801 $836 $184 $312 (Deductions) Long-lived
Slide 17: 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 $ 700 plus: Income tax expense 135 185 Depreciation of property, plant and equipment 255 245 Interest expense, net 220 210 Amortization of intangible assets
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