Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2025 Earnings Presentation
16 slides from Allison Transmission's earnings presentation, Feb 23, 2026
Slide 1: Q4 2025 Earnings Release
Q4 2025 Earnings Release February 23rd, 2026 Dave Graziosi – Chair, President & CEO Scott Mell – CFO & Treasurer Fred Bohley – Allison Transmission President & COO 1 Craig Price – Allison Off-Highway President
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 EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operationa
Slide 4: Call Agenda
Call Agenda Full Year Highlights Recent Announcements Q4 2025 Performance 2026 Guidance Allison Transmission Confidential: Business Use Only 4
Slide 5: Off-Highway Acquisition – Compelling Future Global Growth
Off-Highway Acquisition – Compelling Future Global Growth Off-Highway acquisition accelerates combined businesses’ current growth objectives while multiplying future global growth opportunities Key Growth Drivers for Allison as a Premier Industrial Company Summary Growth Opportunities Engineering &
Slide 6: Q4 2025 Performance Summary
Q4 2025 Performance Summary ($ in millions, except per share data; variance % from Q4 2024) Net Cash Provided Adjusted Adjusted EBITDA Adjusted Free Net Sales Net Income by Operating EBITDA* Margin* Cash Flow** Activities $737 $99 $265 36.0% $243 $169 (7%) (43%) (2%) +210 bps +15% +24% Year-over-yea
Slide 7: Q4 2025 Net Sales Performance
Q4 2025 Net Sales Performance ($ in millions, variance % from Q4 2024) End Markets Q4 2025 Variance Commentary Principally driven by lower demand for Class 8 vocational and medium- North America On-Hwy $361 (14%) duty trucks, partially offset by price increases on certain products and market share g
Slide 8: Q4 2025 Financial Performance
Q4 2025 Financial Performance ($ in millions, except per share data) Q4 2025 $ Variance* % Variance* Commentary Net Sales $737 ($59) (7%) Principally driven by lower net sales in the North America On-Highway end market Cost of Sales $383 ($40) (9%) Principally driven by lower volumes and unfavorable
Slide 9: Q4 2025 Cash Flow Performance
Q4 2025 Cash Flow Performance ($ in millions, variance from Q4 2024) Q4 2025 $ Variance % Variance Commentary Principally driven by lower cash income taxes, reduced engineering – research and Net Cash Provided by development spending and lower operating working capital funding requirements, Operatin
Slide 10: 2026 Guidance
2026 Guidance ($ in millions) For full year 2026, we are providing the following guidance: Business Unit Consolidated Net Cash Adjusted Provided by Capital Adjusted Free Net Sales Net Sales Net Income* EBITDA** Operating Expenditures Cash Flow** Activities $3,025 to $2,550 to $5,575 to $600 to $1,36
Slide 11: 2026 End Market Outlook – Allison Transmission
Q4 2025 2026 EndNet Market SalesOutlook Performance – Allison Transmission End Markets 2026 Outlook Commentary Class 8 vocational truck demand driven by infrastructure North America spending and megaprojects with medium-duty truck demand On-Highway impacted by consumer spending and overall macroecon
Slide 12: 2026 End Market Outlook – Allison Off-Highway
Q4 2025 2026 EndNet Market SalesOutlook Performance – Allison Off-Highway End Markets 2026 Outlook Commentary Global construction markets seeing steadier civil engineering and power- Construction & related work with infrastructure investments while building construction Material remains weak, partic
Slide 13: Appendix
Appendix Non-GAAP Financial Information 13
Slide 14: Non-GAAP Reconciliations (1 of 3)
Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA Reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2021 2022 2023 2024 2025 2024 2025 Net income (GAAP) $442 $531 $673 $731 $623 $175 $99 plus: Income tax expense 130 114 154 166 181 35 48 Deprecia
Slide 15: Non-GAAP Reconciliations (2 of 3)
Non-GAAP Reconciliations (2 of 3) Adjusted Free Cash Flow Reconciliation Allison Transmission Confidential: Business Use Only 15
Slide 16: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2026 Low High Net income (GAAP) $ 600 $ 750 plus: Income tax expense 160 220 Depreciation & Amortization 275 255 Interest expense, net 220 210 Acquisition-related expenses 50 40 Stock-based comp
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