Allison builds the heavy-duty automatic transmissions that make garbage trucks, school buses, and military vehicles move. Think of it as the gearbox behind the grunt work of modern civilization.
The money comes from selling these transmissions and the parts to keep them running, with a gross margin around 48% in 2025. It's a recurring revenue stream from a massive installed base of vehicles that need service and replacement parts.
Switching costs are high because fleets and militaries are locked into Allison's proprietary tech and service network, making it hard for competitors like ZF Friedrichshafen and Eaton to displace them. However, the shift to electric powertrains, which need few
Buy (sector percentile 82) — value B, growth C, profitability A-, momentum A-. Updated daily, sector-relative, identical for every user.
Key events, in time order
Earnings call transcript released, confirming prior figures with management commentary
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