ALSN Allison Transmission Holdings Inc

Overview and Growth

Allison Transmission Holdings Inc generated $3.01B of revenue in fiscal 2025, with net income of $623.00M and an operating cash inflow of $836.00M. Revenue of $3.01B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $3.23B in fiscal 2024, revenue decreased 6.7%, a top-line contraction that reduced operating scale. The company reported diluted EPS of $7.33, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS decreased by 11.8% from $8.31 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.49x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $1.46B as gross profit before recognizing operating expenses and other items. Gross profit represented 48.6% of revenue, showing how much of the top line remained after direct costs. Operations produced $880.00M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 29.2% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $623.00M, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 20.7% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $804.00M of earnings, providing a bridge between the operating result and final net income. The pretax margin was 26.7%, relating income before taxes directly to revenue. Income tax expense totaled $181.00M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 22.5%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

Total assets were $6.08B, supported by $4.21B of liabilities and $1.87B of shareholder equity. Current assets were $2.23B against $460.00M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 4.85x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $1.50B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 325.0%, excluding receivables and other current assets. Borrowings totaled $2.89B, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 1.55x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 47.5%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 69.3%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 24.6%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Cash flow from operations was $836.00M, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.34x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $175.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 20.9% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $661.00M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 22.0%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 10.9%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.