Allison Transmission Q1 EPS Beats Forecast 24.8%

Adjusted EPS $2.57 beat $2.06 forecast by 24.76% despite stock falling 2.94% aftermarket.
Defense segment revenue surged 64% YoY, while legacy transmission sales slipped 4% YoY to $733M.
Adjusted EBITDA rose 22% YoY to $362M (26% margin) and net income fell to $112M due to $76M acquisition charges.
Company reaffirmed 2026 guidance, targeting $5.575‑$5.925B revenue, $600‑$750M net income and $120M annual synergies from Dana acquisition.