The Indianapolis-based manufacturer reported record quarterly net sales of $860 million for its core transmission business, bolstered by strong demand in North American truck markets and the defense sector. The newly acquired Allison Off-Highway unit contributed $706 million to the consolidated total, as the company pivots to capture synergies across its combined global operations.

Despite the revenue surge, net income fell from $195 million in the prior-year period to $181 million. Management attributed the decline to increased operating costs stemming from the integration process, alongside higher interest expenses and non-cash depreciation. Conversely, adjusted diluted EPS rose 8% to $2.73, and the company generated a record $281 million in adjusted free cash flow.

CEO David S. Graziosi noted that while construction, mining, and material handling sectors are showing signs of a rebound, the agriculture market remains sluggish. To bolster its balance sheet, the firm repaid $150 million on its revolving credit facility during the quarter and returned capital to shareholders through dividends and $46 million in stock repurchases. Based on these results, the company raised its full-year 2026 guidance, projecting consolidated net sales between $5.8 billion and $6.0 billion.