Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2026 Earnings Presentation
18 slides from Allison Transmission's earnings presentation, Nov 2, 2026
Slide 1: Q3 2026 Earnings Release
Exhibit 99.2 Q3 2026 EARNINGS RELEASE November 2, 2026 Dave Graziosi – Chair, President & CEO Scott Mell – CFO & Treasurer Fred Bohley – COO & Allison Transmission President Craig Price – Allison Off-Highway President 1
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 EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (“EBITDA”) AND ADJUSTED EBITDA AS A PERCENT OF NET SALES (“ADJUSTED EBITDA MARGIN”) TO MEASURE OUR OPERATING PROFITABILITY. WE BELIEVE THAT ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN PROVID
Slide 4: Call Agenda
CALL AGENDA Q3 Business Update Combined Product Portfolio Opportunities Q3 Business Unit Net Sales Performance Q3 Financial Performance 2026 Guidance Update PRESENTATION TITLE 4
Slide 5: Q3 2026 Business Update – Allison in Action Highlights
Q3 2026 BUSINESS UPDATE – ALLISON IN ACTION HIGHLIGHTS Moving the world forward with confidence. 20,000 deliveries and counting: How Japanese city bus Building the Jackal: Allison has delivered defense vehicle Defining choice for Mongolia’s mines: How a transmission operators are overcoming driver s
Slide 6: New Allison: Turning Power into Progress
NEW ALLISON: TURNING POWER INTO PROGRESS ALLISON IS TRANSITIONING TO A FULL-SCALE, INTEGRATED PROPULSION SYSTEMS PROVIDER REPRESENTATIVE APPLICATIONS UTILIZING IN-PIPELINE COMBINED PORTFOLIO • Shifting from individual component supplier to driveline MOVING UP integrator THE VALUE • Single-source for
Slide 7: Q3 2026 Business Unit Net Sales Performance
Q3 2026 BUSINESS UNIT NET SALES PERFORMANCE ($ in millions, variance % from Q3 2025) Allison Transmission $1,534 • Record quarterly net sales of $881million, up 27% year- over-year Q3 2026 ALLISON • Year-over-year increase of 41% in the North America NET SALES On-Highway end market, leading to recor
Slide 8: Q3 2026 Net Sales Performance – Allison Transmission
Q3 2026 NET SALES PERFORMANCE – ALLISON TRANSMISSION ($ in millions, variance % from Q3 2025) END MARKETS Q3 2026 VARIANCE COMMENTARY Demand for medium-duty and Class 8 vocational trucks accelerated in the third quarter although uncertainty persists around geopolitical impacts, including tariffs and
Slide 9: Q3 2026 Net Sales Performance – Allison Off-Highway
Q3 2026 NET SALES PERFORMANCE – ALLISON OFF-HIGHWAY ($ in millions) END MARKETS Q3 2026 COMMENTARY Global construction markets seeing steadier investments, while rate-sensitive residential segments lag. European Construction & Material construction activity is showing signs of strength, although the
Slide 10: Q3 2026 Allison Consolidated Financial Performance
Q3 2026 ALLISON CONSOLIDATED FINANCIAL PERFORMANCE ($ in millions, except per share data) Net Sales Adj. EBITDA* Adj. Diluted EPS* Adj. Free Cash Flow* Net Sales increased 121% year-over-year, Adjusted EBITDA of $400 million increased Adjusted Diluted EPS increased 59% year- Adjusted Free Cash Flow
Slide 11: Q3 2026 Allison Segment Financial Performance
Q3 2026 ALLISON SEGMENT FINANCIAL PERFORMANCE ($ in millions) ALLISON TRANSMISSION ALLISON OFF-HIGHWAY ALLISON CENTRAL GROUP CONSOLIDATED Net Sales $881 $653 - $1,534 Gross Profit $407 $98 - $505 Gross Margin 46.2% 15.0% - 32.9% Operating Income / (Loss) $300 $32 ($28) $304 Operating Income / (Loss)
Slide 12: Full Year 2026 Guidance Update
FULL YEAR 2026 GUIDANCE UPDATE ($ in millions) PRIOR GUIDE UPDATED GUIDE (August 3, 2026) (November 2, 2026) $5,800 to $6,000 $5,975 to $6,075 Net Sales $5,900 Midpoint $6,025 Midpoint $600 to $700 $645 to $685 Net Income* $650 Midpoint $665 Midpoint $1,465 to $1,575 $1,530 to $1,580 Adjusted EBITDA
Slide 13: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information PRESENTATION TITLE 13
Slide 14: Non-GAAP Reconciliations (1 of 5): Adjusted EBITDA
NON-GAAP RECONCILIATIONS (1 OF 5) ADJUSTED EBITDA RECONCILIATION Three months ended $ in millions, Unaudited For the year ended December 31, September 30, 2021 2022 2023 2024 2025 2025 2026 Net income (GAAP) $442 $531 $673 $731 $623 $137 $191 plus: Interest expense, net 116 118 107 89 92 24 51 Incom
Slide 15: Non-GAAP Reconciliations (2 of 5): Segment Adjusted EBITDA
NON-GAAP RECONCILIATIONS (2 OF 5) SEGMENT ADJUSTED EBITDA RECONCILIATION Allison Transmission Allison Off-Highway Central Group Function Consolidated Three months ended Three months ended Three months ended Three months ended $ in millions, Unaudited September 30, September 30, September 30, Septemb
Slide 16: Non-GAAP Reconciliations (3 of 5): Adjusted Net Income and EPS
NON-GAAP RECONCILIATIONS (3 OF 5) ADJUSTED NET INCOME AND EARNINGS PER SHARE RECONCILIATION Three months ended $ in millions, Unaudited September 30, 2026 2025 Net income (GAAP) $ 191 $ 137 plus: Amortization expense 22 2 Restructuring charges 17 - Depreciation of the stepped up basis in property, p
Slide 17: Non-GAAP Reconciliations (4 of 5): Adjusted Free Cash Flow
NON-GAAP RECONCILIATIONS (4 OF 5) ADJUSTED FREE CASH FLOW RECONCILIATION Three months ended $ in millions, Unaudited For the year ended December 31, September 30, 2021 2022 2023 2024 2025 2025 2026 Net cash provided by operating activities (GAAP) $635 $657 $784 $801 $836 $228 $343 (Deductions) Long-
Slide 18: Non-GAAP Reconciliations (5 of 5): Guidance Reconciliation
NON-GAAP RECONCILIATIONS (5 OF 5) GUIDANCE RECONCILIATION Guidance $ in millions, Unaudited Year Ending December 31, 2026 Low High Net income (GAAP) $ 645 $ 685 plus: Income tax expense 135 185 Depreciation of property, plant and equipment (a) 250 240 Interest expense, net 225 215 Amortization of in
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