From Seekingalpha · Daniel Jones · · 50s
Allison Transmission Valuation Boost
Allison Transmission's $2.7B off-highway deal drives market value.
In brief
Allison Transmission's $2.7B off-highway deal drives market value. Allison Transmission Holdings remains a Buy as market undervalues its $2.7B off-highway acquisition and synergy potential. Originally reported by Seekingalpha.
Allison Transmission Holdings
Allison Transmission Holdings remains a compelling Buy as the market undervalues its transformative $2.7B off-highway acquisition and synergy capture.
Q2 Financial Results
ALSN's Q2 revenue nearly doubled to $1.57B, driven by the Dana Off-Highway business, while adjusted net income and EBITDA also improved materially.
2026 Financial Projections
Management expects 2026 revenue of $5.8, $6B, net profit of $600, $700M (including $140M in deal expenses), and EBITDA of $1.465, $1.575B.
Valuation Advantage
ALSN trades at attractive valuation multiples versus peers, with further upside as synergies are realized and Q3 results approach.
The key point
Allison Transmission Holdings remains a Buy as market undervalues its $2.7B off-highway acquisition and synergy potential.
