Allison Transmission (ALSN) Investor presentation summary

Acquisition overview and integration

• Completed $2.7B acquisition of Off-Highway Drive & Motion Systems from Dana, effective January 1, 2026, at 6.8x adjusted EBITDA, with pro forma net leverage below 3.0x and a near-term target of less than 2.0x.

• Expected to be immediately accretive to net income and EPS in 2026, with $120M annual run-rate synergies, 90% of which are already in execution.

• Synergies primarily from procurement/logistics (60%), operations/footprint (20%), and SG&A/people (20%), with full realization by end of 2029.

• Integration is proceeding as planned, with initial synergy value capture expected to positively impact financials later in 2026.

Financial performance and guidance

• Q2 2026 consolidated net sales reached $1.57B, with adjusted EBITDA of $404M and a margin of 25.8%.

• Updated 2026 guidance: net sales $5.8–$6.0B, adjusted EBITDA $1.47–$1.58B, and adjusted free cash flow $745–$865M.

• Strong liquidity with $1.4B in cash and available borrowing as of June 30, 2026; net leverage below 3.0x.

• 66% of shares repurchased since IPO, with $1.1B authorization remaining and increased quarterly dividend for the seventh consecutive year.

Business unit and market overview

• Combined company is a global leader in propulsion solutions for commercial, defense, and industrial vehicles, with a strong brand and over 14,000 employees worldwide.

• End markets include on-highway, off-highway, defense, mining, agriculture, construction, and industrial, with diversified revenue streams.

• Q2 2026 net sales: North America On-Highway $430M (+3%), Defense $99M (+57%), Global Off-Highway $22M (+38%), Service Parts $177M (+1%).

• Off-Highway Q2 2026 net sales: Construction & Material Handling $249M, Agriculture $152M, Industrial $99M, Mining $54M.