EarningsQ2 2026 Earnings Report
DE:1A7 Q2 2026 EPS Results
Actual EPS€1.92
Consensus EPS€2.22
Beat/MissMissed by -€0.29
One Year Ago EPS€2.05
DE:1A7 Q2 2026 Revenue Results
Actual Revenue€1.40B
Expected Revenue€1.34B
Beat/MissBeat by +€57.09M
YoY Revenue Growth+92.38%
Earnings Announcement Details
QuarterQ2 2026
Date08/03/2026
TimeAfter Close
Conference CallMonday, August 3, 2026
DE:1A7 Upcoming Earnings
Allison Transmission Holdings's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:1A7 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong positive financial and operational momentum driven by the Off-Highway acquisition, record transmission revenues, sizeable defense contract wins, robust adjusted EBITDA and record free cash flow, plus an upward revision to full-year guidance. Key short-term negatives include material-cost-driven margin pressure in the legacy transmission business, sizeable one-time acquisition and integration expenses, seasonal softness in Off-Highway (Q3), and regional weakness in the Americas and agriculture end markets. Management provided a clear $120M synergy plan and a multi-year realization timeline, but noted limited impact from those synergies on 2026 guidance.Company Guidance
Huge Consolidated Revenue Increase
Second quarter net sales of $1.566 billion, up 92% year-over-year, driven by the acquisition of the Allison Off-Highway business and a 6% year-over-year increase in the Allison Transmission business unit.
Record Transmission Business Sales
Allison Transmission business unit posted a quarterly record of $860 million in revenue, a 6% increase year-over-year, with North America On-Highway up 3% year-over-year and defense up 57% year-over-year to nearly $100 million.
Strong Off-Highway Performance
Allison Off-Highway business unit generated $706 million in Q2 revenue with year-over-year growth in construction, material handling and mining; won program awards representing more than $50 million of annual run-rate net new business.
Robust Profitability and Margins
Consolidated adjusted EBITDA of $404 million (an increase of $91 million YoY) representing a 25.8% adjusted EBITDA margin for the quarter.
Record Cash Generation and Deleveraging Actions
Record adjusted free cash flow of $281 million in the quarter (up 84% year-over-year); repaid remaining $150 million on the revolver, repurchased $46 million of common stock, and paid a quarterly dividend of $0.29 per share.
Raised Full-Year 2026 Guidance
Updated 2026 guidance: consolidated net sales $5.8B–$6.0B; consolidated net income $600M–$700M (includes ~ $140M one-time pretax expenses); consolidated adjusted EBITDA $1.465B–$1.575B (midpoint implies ~26% margin).
Large Defense Program Wins
Secured three major defense awards including selection of 4500 Specialty Series for French PL6T (supporting >7,000 vehicles), a $250 million contract for the new 4040 MX with BAE Hägglunds (largest tracked defense order in company history), and an order with General Dynamics for ~3,000 2500 Specialty Series units (option for 2,000 more).
Defined Synergy Capture Plan with Clear Timeline
Targeting $120 million annual run-rate synergies split ~60% procurement/logistics, ~20% operations/footprint, ~20% organizational efficiency; expect ~40% realization by end of 2027, another 40% by end of 2028 and full realization by end of 2029.
DE:1A7 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed