Allison Transmission: Will Its Focus On Defense Market Opportunities Pay Off?

Allison Transmission’s first quarter 2025 earnings painted a detailed picture of the company’s current standing, plans, and challenges. Notably, the report highlighted a slight drop in year-over-year net sales by 3% to $766 million. Despite this, there were commendable areas of growth, such as a 4% increase in the North American On Highway market, driven by price increments and a robust demand for Class 8 vocational trucks. However, a decline in medium-duty truck demand offset these gains, reflecting a mixed performance in this sector.