Allison Raises 2026 Net Sales Outlook to $6.075 Billion

Allison Transmission Holdings Inc. raised its 2026 net sales outlook to as much as $6.075 billion on Nov. 2 after third-quarter sales more than doubled, with its acquired Off-Highway business contributing $653 million.

The company now expects net sales of $5.975 billion to $6.075 billion, compared with its previous range of $5.8 billion to $6 billion. The midpoint rose to $6.025 billion from $5.9 billion. This was the second consecutive quarter in which Allison increased its net sales forecast.

Allison also lifted its adjusted free cash flow forecast to $850 million to $900 million from $745 million to $865 million. Its forecast for net cash provided by operating activities rose to $1.11 billion to $1.14 billion from $1.025 billion to $1.125 billion. The company lowered its capital expenditure range to $240 million to $260 million from $260 million to $280 million.

Adjusted EBITDA guidance increased to $1.53 billion to $1.58 billion from $1.465 billion to $1.575 billion. Net income guidance narrowed to $645 million to $685 million from $600 million to $700 million. Its midpoint rose to $665 million from $650 million, but the upper end declined. Adjusted EBITDA and adjusted free cash flow are non-GAAP measures.

For the quarter ended Sept. 30, net sales reached $1.534 billion, up 121% from a year earlier. Allison Off-Highway, acquired from Dana Incorporated on Jan. 1, contributed $653 million. The Allison Transmission business unit, the company’s legacy operation, posted record quarterly net sales of $881 million, a 27% increase.

Net income was $191 million, compared with $137 million in the year-earlier quarter. Adjusted diluted earnings per share rose 59% to $2.90, while adjusted EBITDA increased 56% to $400 million, representing a 26.1% margin. Allison generated $343 million in operating cash flow; adjusted free cash flow rose 51% to $278 million.

Chair, President and CEO David S. Graziosi said, “Demand accelerated for medium-duty and Class 8 vocational trucks.”

The 2026 net income forecast includes about $125 million in one-time pretax expenses related to separating, integrating and restructuring Allison Off-Highway. About $65 million of those expenses relate to stepped-up inventory basis. The net income outlook remains subject to completion of purchase-price accounting for the acquisition.