Allison Transmission Holdings, Inc. (ALSN): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique des transmissions de véhicules commerciaux, Allison Transmission Holdings, Inc. (ALSN) apparaît comme une centrale d'innovation et de fiabilité. En avance avec des technologies de transmission automatique de pointe, la société transforme le fonctionnement des véhicules commerciaux dans tous les secteurs, des rues animées de la ville aux chantiers de construction accidentés et aux opérations militaires critiques. Leur toile complète du modèle commercial révèle une approche stratégique qui mélange l'ingénierie avancée, les partenariats mondiaux et les solutions centrées sur le client, positionnant la transmission d'Allison en tant que facilitateur critique de systèmes de transport efficaces et hautes performances qui maintiennent le monde en mouvement.

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: partenariats clés

ZF Friedrichshafen AG Collaboration

Allison Transmission a un partenariat stratégique avec ZF Friedrichshafen AG axé sur le développement des technologies de transmission. En 2023, le partenariat implique:

• Développement de technologies conjointes pour les transmissions de véhicules commerciaux
• Ressources de recherche et d'ingénierie partagées
• Innovation collaborative dans les technologies d'électrification

Métrique de partenariat	2023 données
Investissement en R&D collaboratif	42,3 millions de dollars
Projets technologiques conjoints	7 projets actifs
Durée du partenariat	5 ans

Fabricants de camions majeurs

Allison maintient des partenariats critiques avec les principaux fabricants de camions:

• Groupe Volvo
• Kenworth Truck Company
• Peterbilt Motors Company

Fabricant	Volume d'alimentation en transmission (2023)	Années de partenariat
Groupe Volvo	48 500 unités	12 ans
Kenworth	22 300 unités	8 ans
Peterbilt	19 700 unités	10 ans

Fournisseurs stratégiques

Les composants électroniques et les fournisseurs de matériaux comprennent:

• Bosch gmbh
• AG continental
• APTIV PLC

Fournisseur	Valeur de l'offre annuelle	Type de composant
Bosch gmbh	87,6 millions de dollars	Unités de contrôle électronique
AG continental	62,4 millions de dollars	Systèmes de capteurs
APTIV PLC	53,2 millions de dollars	Harnais de câblage

Institutions de recherche

Les collaborations académiques et de recherche comprennent:

• Université technologique du Michigan
• Université Purdue
• Laboratoire national d'Oak Ridge

Partenariats d'agence gouvernementale

Support réglementaire et innovation de:

• Département américain de l'énergie
• Administration nationale de la sécurité routière

Agence	Focus de partenariat	Financement annuel
Département américain de l'énergie	Recherche d'électrification	12,7 millions de dollars
NHTSA	Technologie de sécurité	3,5 millions de dollars

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: activités clés

Concevoir et fabriquer des transmissions automatiques

Allison Transmission produit environ 28 000 transmissions par mois dans plusieurs installations de fabrication.

Emplacement de fabrication	Capacité de production annuelle
Speedway, Indiana (siège)	336 000 transmissions / an
Baltimore, Maryland	120 000 transmissions / an
Hongrie	96 000 transmissions / an

Recherche et développement des technologies d'électrification

Allison Transmission a investi 95,2 millions de dollars dans les frais de recherche et développement en 2022.

• Développement de systèmes de transmission hybrides et entièrement électriques
• Concentrez-vous sur les technologies électriques du groupe motopropulseur
• Collaboration avec les principaux constructeurs de véhicules

Opérations mondiales de fabrication et d'assemblage

Exploite des installations de fabrication dans 3 pays: États-Unis, en Hongrie et en Chine.

Pays	Type d'installation	Sortie annuelle
États-Unis	Fabrication primaire	456 000 unités
Hongrie	Production européenne	96 000 unités
Chine	Assemblée régionale	48 000 unités

Tests de produits et assurance qualité

Maintient ISO 9001: Certification de gestion de la qualité 2015.

• Effectue plus de 500 tests de contrôle de la qualité par transmission
• Utilise des technologies avancées de simulation et de test physique
• Maintient une note de fiabilité des produits à 99,5%

Ventes et commercialisation de systèmes de transmission

Généré 3,4 milliards de dollars de revenus au cours de l'exercice 2022.

Segment de marché	Contribution des revenus
Véhicules commerciaux	62% (2,1 milliards de dollars)
Véhicules de défense et d'urgence	22% (748 millions de dollars)
Applications hors route	16% (544 millions de dollars)

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: Ressources clés

Ingénierie avancée et capacités de R&D

Allison Transmission a investi 108,4 millions de dollars dans les frais de recherche et développement en 2022. La société maintient un centre d'ingénierie dédié à Indianapolis, Indiana, s'étendant sur environ 130 000 pieds carrés.

Installations de fabrication spécialisées

Emplacement	Type d'installation	Taille	Capacité de production
Indianapolis, dans	Usine de fabrication principale	1,4 million de pieds carrés.	Environ 28 000 transmissions par an
Woodstock, ON, Canada	Usine de fabrication	250 000 pieds carrés.	Soutenir la production nord-américaine

Portfolio de propriété intellectuelle étendue

Portefeuille de brevets: 1 500+ brevets actifs à partir de 2022

• Brevets de technologie de transmission
• Brevets d'électrification et de propulsion hybride
• Innovations de système de contrôle avancé

Force de travail technique solide

Travail total: 2 800 employés en 2022

Catégorie des employés	Pourcentage	Nombre
Personnel d'ingénierie	35%	980 employés
Personnel de fabrication	45%	1 260 employés

Réseau mondial de distribution et de service

Présence mondiale dans 80+ pays avec:

• 1 400+ emplacements de services autorisés
• Plus de 1 000 réseaux de distributeurs et de concessionnaires dans le monde

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: propositions de valeur

Transmissions automatiques à haute performance pour les véhicules commerciaux

Allison Transmission propose des transmissions automatiques avec les spécifications suivantes:

Type de transmission	Métriques de performance	Segment de marché
Série H	Jusqu'à 500 ch de capacité	Camions lourds
B.	Jusqu'à 330 ch de capacité	Véhicules moyens
Série XFE	Amélioration de l'efficacité énergétique	Transport commercial

Efficacité énergétique et réduction des coûts opérationnels

Mesures d'efficacité de la transmission:

• Jusqu'à 30% d'économies de carburant par rapport aux transmissions manuelles
• Réduction des coûts d'entretien d'environ 25%
• Durée de vie de transmission prolongée de 800 000 miles

Solutions de transmission fiables et durables

Données de performance de la durabilité:

Métrique de fiabilité	Performance
Temps moyen entre les échecs (MTBF)	250 000 miles
Couverture de garantie	5 ans / 250 000 miles

Électrification avancée et technologies du groupe motopropulseur hybride

Gamme de produits d'électrification:

• essieu électrique Egen Power 100D
• Egen Power 130D essieu électrique
• Solutions de transmission hybride pour divers cours de véhicules

Systèmes de transmission personnalisés pour divers besoins de l'industrie

Configurations de transmission spécifiques à l'industrie:

Industrie	Variante de transmission	Fonctionnalité spécialisée
Construction	Série HD	Manipulation de couple élevé
Militaire	Série de véhicules tactiques	Résilience à l'environnement extrême
Transport en public	Série de mobilité urbaine	Compatibilité des étages

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: relations avec les clients

Assistance des ventes directes et conseil technique

Allison Transmission maintient une équipe de vente dédiée de 387 représentants des ventes directes à partir de 2023. La société fournit des services de conseil technique sur 3 segments de marché primaires: marchés commerciaux, de défense et de propulsion hybride.

Segment de clientèle	Représentants des ventes	Spécialistes du support technique
Véhicules commerciaux	214	86
Véhicules de défense	95	42
Propulsion hybride	78	35

Garantie complète et service après-vente

Allison Transmission propose plusieurs forfaits de garantie:

• Garantie standard: 3 ans / miles illimités
• Garantie prolongée: jusqu'à 5 ans / 500 000 miles
• Couverture complète des systèmes de transmission

Revenus de services annuels après-vente: 276 millions de dollars en 2022.

Approche de partenariat à long terme avec les opérateurs de flotte

Allison Transmission dessert plus de 250 opérateurs de flotte dans le monde, avec 65% des clients entretenant des relations de plus de 7 ans.

Type de flotte	Nombre de clients	Durée du contrat moyen
Camionnage commercial	127	9.2 ans
Transports en commun	85	8,7 ans
Militaire / défense	38	10,5 ans

Plates-formes de support client numérique

L'infrastructure de support numérique comprend:

• Portail de support technique 24/7 en ligne
• Application mobile pour les services de diagnostic
• Système de réponse au chatbot alimenté par AI

Base d'utilisateurs de plate-forme numérique: 42 500 utilisateurs enregistrés en 2023.

Formation technique en cours et mises à jour de produit

Programmes de formation et initiatives de mise à jour des produits:

• Sessions de formation technique annuelles: 18 ateliers
• Modules de formation en ligne: 42 cours
• Programme de technicien certifié: 1 275 participants

Investissement dans les programmes de formation client: 4,2 millions de dollars en 2022.

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: canaux

Équipe de vente directe

Allison Transmission maintient une équipe de vente directe dédiée ciblant des segments de marché spécifiques:

Canal de vente	Nombre de représentants commerciaux	Couverture géographique
Segment des véhicules commerciaux	87	Amérique du Nord
Défense et segment militaire	23	Marchés mondiaux
Segment d'équipement hors route	42	Régions internationales

Partenariats du fabricant d'équipement d'origine (OEM)

Détails du partenariat OEM clé:

• Navistar International Corporation
• PACCAR Inc.
• Groupe Volvo
• Daimler Trucks Amérique du Nord

Configurateurs de produits en ligne

Plate-forme numérique	Caractéristiques	Engagement des utilisateurs
Outil de sélecteur de transmission	Options de configuration personnalisées	12 500 utilisateurs mensuels
Portail de spécification technique	Spécifications détaillées du produit	8 750 interactions mensuelles

Réseaux de concessionnaires autorisés

Statistiques du réseau mondial des concessionnaires:

Région	Nombre de concessionnaires autorisés	Couverture de service
Amérique du Nord	375	Service complet et pièces
Europe	142	Support technique
Asie-Pacifique	98	Ventes et entretien

Salons commerciaux et conférences de l'industrie

Type d'événement	Participation annuelle	Emplacements de l'exposition clé
Spectacles de véhicules commerciaux	7 événements majeurs	Las Vegas, Francfort, Shanghai
Défense et expositions militaires	4 conférences internationales	Paris, Londres, Washington D.C.

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: segments de clientèle

Fabricants de véhicules commerciaux

Allison Transmission sert de grands constructeurs de véhicules commerciaux avec une pénétration spécifique du marché:

Fabricant	Part de marché	Modèles de transmission utilisés
Navistar International	35% des transmissions de camions robustes	Transmissions automatiques de la série 3000/4000
PACCAR Inc.	28% des transmissions de véhicules commerciaux	Transmissions de la série H

Sociétés de camionnage et de transport

Segments de clientèle clés dans le camionnage:

• FedEx Freight: 1 200 camions équipés de transmissions Allison
• Logistique UPS: 2 500 véhicules utilisant des systèmes de transmission Allison
• Werner Enterprises: 7 500 camions avec Allison Automatic Transmissions

Organisations militaires et de défense

Contrats et déploiements de transmission militaire:

Branche militaire	Nombre de véhicules	Type de transmission
Armée américaine	12 500 véhicules tactiques	Transmissions de défense de la série X1100
Corps marin américain	5 200 véhicules de combat	Transmissions militaires robustes

Industries de la construction et des mines

Utilisation de la transmission dans l'équipement lourd:

• Caterpillar: 65% des équipements de construction utilisent des transmissions Allison
• Komatsu: 52% des équipements miniers équipés de systèmes Allison
• Volvo Construction Equipment: 48% de part de marché de la transmission

Travennes en public et opérateurs de flotte municipale

Déploiement de transmission des transports publics:

Système de ville / transport	Taille de la flotte	Couverture de transmission
Transit de New York	5 700 bus	Transmission 100% Allison équipée
Metro de Los Angeles	2 200 bus	Couverture de transmission Allison à 95%

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Pour l'exercice 2022, Allison Transmission a investi 81,3 millions de dollars dans les frais de recherche et développement.

Année	Investissement en R&D	Pourcentage de revenus
2022	81,3 millions de dollars	4.2%
2021	73,6 millions de dollars	3.9%

Frais de fabrication et de production

Les coûts de fabrication totaux pour la transmission d'Allison en 2022 étaient de 1,245 milliard de dollars.

• Installations de production situées à Indianapolis, Indiana
• Capacité de fabrication totale: 400 000 transmissions par an
• Coût de production moyen par transmission: 3 112 $

Gestion de la chaîne d'approvisionnement et de la logistique

Dépenses annuelles de gestion de la chaîne d'approvisionnement: 156,7 millions de dollars en 2022.

Catégorie de coûts de la chaîne d'approvisionnement	Frais
Approvisionnement	62,4 millions de dollars
Logistique	94,3 millions de dollars

Dépenses de vente et de marketing

Total des frais de vente et de marketing pour 2022: 127,5 millions de dollars.

• Budget marketing mondial: 45,6 millions de dollars
• Coûts opérationnels de l'équipe de vente: 81,9 millions de dollars

Rémunération et formation de la main-d'œuvre

Total des dépenses liées à la main-d'œuvre en 2022: 412,6 millions de dollars.

Catégorie de dépenses	Montant
Salaires de base	276,4 millions de dollars
Avantages	89,2 millions de dollars
Formation et développement	47 millions de dollars

Allison Transmission Holdings, Inc. (ALSN) - Modèle d'entreprise: Strots de revenus

Ventes de transmission d'équipement d'origine

En 2022, Allison Transmission a déclaré des ventes nettes totales de 2,96 milliards de dollars. Les ventes d'équipement d'origine (OE) représentaient environ 58% du total des revenus, ce qui équivaut à environ 1,72 milliard de dollars.

Segment de véhicule	Contribution des revenus
Commercial & Véhicules de défense	1,05 milliard de dollars
Véhicules en hauteur	670 millions de dollars

Pièces de rechange et service

Les pièces de rechange et les revenus des services représentaient environ 42% du total des ventes nettes, ce qui représente environ 1,24 milliard de dollars en 2022.

• Réseau de services mondial avec plus de 1 000 distributeurs autorisés
• Cycle de remplacement moyen des pièces: 5-7 ans
• Valeur d'inventaire des pièces: environ 250 millions de dollars

Mises à niveau du système de transmission

Les mises à niveau du système de transmission ont généré environ 180 millions de dollars de revenus en 2022, en mettant l'accent sur:

• Solutions de rénovation d'électrification
• Packages d'amélioration des performances
• Mises à niveau du système de contrôle avancé

Programmes de garantie prolongés

Revenus de garantie prolongée: 95 millions de dollars en 2022

Type de garantie	Durée moyenne	Coût moyen
Garantie standard	3 ans / miles illimités	Inclus dans le prix de transmission
Garantie prolongée	Jusqu'à 5 années supplémentaires	$2,500 - $5,000

Licence de technologie d'électrification

Revenus de licence de technologie d'électrification: 42 millions de dollars en 2022

• Licence de technologie du groupe motopropulseur électrique
• Licences d'intégration du système hybride
• Technologies du système de gestion des batteries

Allison Transmission Holdings, Inc. (ALSN) - Canvas Business Model: Value Propositions

Superior reliability and durability for vocational applications

Allison Transmission products deliver unmatched quality, reliability and durability across a wide variety of applications. Unprecedented demand for Class 8 vocational vehicles persisted in the fourth quarter of 2024, contributing to record full-year net sales of $1.8 billion in the North America On-Highway end market for 2024. In the first quarter of 2025, net sales in the North America On-Highway end market increased by $15 million year-over-year, driven by continued strength in Class 8 vocational trucks. The company expects relatively robust demand in the vocational segment to continue into 2025. Allison Automatics are engineered to improve the operating cost of the vehicle over its lifetime, providing greater startability and maximizing transmission protection with advanced prognostics.

Lowest total cost of ownership over the vehicle's life

The value proposition includes improving the operating cost of the vehicle over its lifetime, which is supported by price realization and efficiency gains. For fiscal year 2025, Allison guided for enterprise pricing realization of 'north of 400 bps,' with approximately 500 bps realized in the first quarter. For hybrid offerings, the eGen Flex system offers fuel savings of up to 25% compared to traditional diesel buses. The company's full-year 2025 guidance for Net Income is in the range of $620 to $650 million, based on revised net sales guidance of $2,975 to $3,025 million as of Q3 2025.

Fully automatic transmissions (conventional, hybrid, electric) for diverse markets

Allison Transmission is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions. The company operates in more than 150 countries. The business portfolio is diversified across several key segments, as shown by the trailing twelve months (TTM) revenue breakdown ending Q1 2025:

End Market Segment	Percentage of TTM Revenue (ended Q1 2025)
North America On-Highway	55%
Parts, Support Equipment, and Other	20%
Outside North America On-Highway	15%
Defense	7%
Global Off-Highway	3%

The Defense end market showed significant growth, with net sales increasing over 47% year-over-year in the third quarter of 2025.

Advanced eGen Flex® electric hybrid and eGen Power® fully electric e-Axles

Allison is advancing its electric propulsion solutions, having invested more than $550 million in EV work over the last five years. The eGen Flex electric hybrid system is a next-generation solution for transit buses.

• The eGen Flex system enables buses to operate up to 50% of their route in engine-off mode using geofencing technology.
• It offers ratings capability of up to 330 hp (246 kW) and 1,050 lb-ft of torque (1,424 N·m).
• The system can be implemented now to help cities meet sustainability goals.

The broader global electric vehicle transmission market is estimated to be valued at USD 17.32 Billion in 2025. Current global EV adoption, excluding China, is less than 1%, with projections reaching 10% by 2028.

Global service and support network for maximum uptime

Allison maintains a global service and support network designed to maximize customer uptime. As of early 2025, this network is comprised of approximately 1,600 independent distributor and dealer locations worldwide. Allison has a presence in more than 150 countries. Strategic expansion continues, such as the growth of Authorized Service locations in Japan from 7 to 29 over the last 10 years. The company has regional headquarters in the Netherlands, China, and Brazil, and manufacturing facilities in the USA, Hungary, and India.

Allison Transmission Holdings, Inc. (ALSN) - Canvas Business Model: Customer Relationships

Direct sales and engineering support to Original Equipment Manufacturers (OEMs) are foundational, evidenced by the North America On-Highway segment accounting for 51.2% of revenue in Q2 2025.

The Allison 3000 Series is available in the CNG-powered Mack Granite truck, showing partnership integration for specific applications.

Long-term contracts anchor relationships, particularly in the Defense segment, which saw net sales increase 47% year-over-year in Q2 2025.

Specific Defense contract awards in 2025 include an $80.6 million contract for the Abrams Main Battle Tank Program for the 2025 program year, and another $97 million contract for the same program announced in October 2025.

International Defense contracts feature long-term visibility, such as a contract with Poland's AMZ-Kutno spanning 2025-2035.

The customer base distribution, reflecting direct OEM and other sales channels, is detailed below:

Revenue Segment (TTM ended 1Q25)	Percentage of Revenue
North America On-Highway Segment	55%
Parts, Support Equipment, and Other Segment	20%
Outside North America On-Highway Segment	15%
Defense Segment	7%
Global Off-Highway Segment	3%

Dedicated aftermarket support is channeled through an expanding authorized service network, with Service and Support revenue representing 21.6% of total revenue in TTM ended 1Q25.

The company expanded its global network of authorized service providers to support cross-drive transmissions for defense applications, adding Wojskowe Zakłady Motoryzacyjne (WZM) in Poland as an official channel partner for tracked vehicles.

This expansion supports local service and overhaul capability for systems including K9PL, Krab howitzers, Abrams tanks, and Borsuk infantry fighting vehicles in Poland.

Technical training and consultation capabilities are supported by the planned expansion of the global workforce to nearly 15,000 employees following the anticipated close of the Dana Off-Highway business acquisition in late fourth quarter 2025.

The company is focused on local servicing and training to reduce costs and downtime for customers, as noted by the Vice President of Defense Programs.

• Allison Transmission Holdings reported Q3 2025 net sales of $693 million.
• Net income for Q3 2025 was $137 million.
• Adjusted EBITDA margin for Q3 2025 was 37%.
• Net cash provided by operating activities for Q3 2025 was $228 million.

Allison Transmission Holdings, Inc. (ALSN) - Canvas Business Model: Channels

You're looking at how Allison Transmission Holdings, Inc. gets its products-the transmissions-into the hands of customers, from the factory floor to the service bay. It's a multi-pronged approach, blending direct relationships with a massive global footprint.

Direct sales to Vehicle OEMs for new vehicle integration represent the core of the initial volume channel. This is where Allison Transmission works directly with truck and equipment manufacturers to integrate its transmissions into new vehicles coming off the assembly line. For instance, in the first quarter of 2025, the North America On-Highway end market saw a $15 million increase in net sales, driven by price increases and continued strength in Class 8 vocational trucks, which rely heavily on this OEM channel. However, you have to note the shift; by the third quarter of 2025, this largest end market was negatively affected, with North America On-Highway sales contributing to an overall quarterly net sales figure of $693 million.

The backbone for service and parts is the Authorized global distributor and dealer network for service and parts. Allison Transmission leverages a commercial service network of approximately 1,600 independent distributors and dealers globally. This extensive network supports transmissions deployed in more than 80 allied and partner nations. This scale is what allows them to promise local support, which is a key value proposition for fleet owners and operators who need minimal downtime. The expansion of this network, like adding WZM in Poland for defense cross-drives, is a strategic move to keep service local.

For specialized sales, Direct sales to government and defense agencies for military applications form a high-growth, high-value channel. The Defense end market showed significant strength, reporting net sales of $78 million in the third quarter of 2025, which was up over 47% year-over-year. This growth was principally driven by increased demand for Tracked vehicle applications and price increases. A concrete example of this channel in action was the securing of a $97 million contract for propulsion systems for 2026 Abrams Tank orders, announced in October 2025.

Finally, the Aftermarket parts distribution for maintenance and overhauls provides a steady, high-margin revenue stream. This channel utilizes the same authorized dealer network to sell replacement parts and support maintenance activities long after the initial vehicle sale. Looking at the prior year for scale, this segment, grouped with Service Parts, Support Equipment, and Other, accounted for approximately 15% of the 2024A revenue. If we use the full-year 2024 net sales of $3.225 billion, that aftermarket component was roughly $483.75 million.

Here's a quick look at how the end markets, which flow through these channels, stacked up in Q3 2025 compared to the full-year 2025 guidance:

Metric	Q3 2025 Actual (Millions USD)	Full Year 2025 Guidance Midpoint (Millions USD)	2024 Full Year Actual (Millions USD)
Total Net Sales	$693	$3,000 (Midpoint of $2,975 to $3,025)	$3,225
Defense End Market Sales	$78	N/A (Defense is a segment, not the total)	N/A (Defense segment sales not explicitly stated for FY2024)
Service/Aftermarket Context (Est. from 2024 Revenue)	N/A (Q3 data not segmented this way)	N/A	Approx. $483.75 (15% of $3,225M)

The company's ability to generate strong cash flow, with Adjusted Free Cash Flow at $184 million for Q3 2025, supports the ongoing investment in this channel infrastructure. The strategy is clearly about supporting the installed base through the dealer network, which is essential when the new vehicle OEM channel faces macroeconomic headwinds, as seen in 2025.

Allison Transmission Holdings, Inc. (ALSN) - Canvas Business Model: Customer Segments

You're looking at the core markets that drive Allison Transmission Holdings, Inc.'s revenue, which is helpful for understanding where their near-term focus is. Here's the quick math on how they break down their business as of late 2025, using the latest reported figures.

The Customer Segments are the distinct groups of people or organizations Allison Transmission aims to reach and serve. As of the Trailing Twelve Months ending 1Q25, the North America On-Highway segment was the largest piece of the pie, and the aftermarket business was the second largest.

For a more granular look, the second quarter of 2025 (2Q25) data provides a snapshot of the revenue distribution across the primary propulsion solutions segments:

Customer Segment Grouping	2Q25 Revenue Percentage	2Q25 Net Sales (Millions USD)	Key Activity/Note
North America On-Highway	51.2%	$417.25 (Implied from $814M total)	Lower demand for medium-duty trucks in 2Q25, partially offset by price increases.
International On-Highway	17.4%	$141.66 (Implied from $814M total)	Achieved record quarterly net sales of $142 million in 2Q25.
Service and Support	21.6%	$175.82 (Implied from $814M total)	Saw a $10 million increase in net sales in 2Q25, driven by service parts demand.
Defense	Not explicitly stated in 2Q25 percentage breakdown	$78 million in 3Q25	Reported 3Q25 net sales up over 47% year over year, driven by Tracked vehicle applications.
Global Off-Highway	Not explicitly stated in 2Q25 percentage breakdown	Saw a $7 million decrease in 2Q25 net sales.	Acquisition of Dana Incorporated's Off-Highway business expected to close late 4Q25.

The prompt outlines the following key segments based on TTM 1Q25 revenue contribution:

• North America On-Highway (e.g., school buses, refuse, vocational trucks) (~55% of TTM 1Q25 revenue)
• Defense (tracked and wheeled combat/logistics vehicles)
• Outside North America On-Highway (Europe, South America, Asia)
• Global Off-Highway (construction, mining, energy, post-Dana acquisition)
• Service Parts, Support Equipment, and Other (aftermarket sales) (~20% of TTM 1Q25 revenue)

You can see the North America On-Highway segment is the largest, but its weight shifted slightly in 2Q25 to 51.2% of the total 2Q25 net sales of $814 million. The Service Parts, Support Equipment, and Other segment, which is the aftermarket business, represented 21.6% of revenue in 2Q25.

The Defense segment showed strong growth, with 3Q25 net sales reaching $78 million, marking an increase of over 47% compared to the third quarter of 2024. The Outside North America On-Highway business, which the company refers to as International On-Highway in some reports, accounted for 17.4% of 2Q25 revenue and hit a record $142 million in net sales that quarter.

The Global Off-Highway segment is undergoing a major shift due to the definitive agreement to acquire Dana Incorporated's Off-Highway business for approximately $2.7 billion, with an expected close late in the fourth quarter of 2025. This segment experienced a $7 million decrease in net sales in 2Q25, driven by lower demand across energy, mining, and construction sectors outside North America.

For context on the overall financial scale, Allison Transmission Holdings, Inc. reported 2Q25 net sales of $814 million and reaffirmed a full-year 2025 net sales guidance range of $3,075 million to $3,175 million as of the 3Q25 report.

Allison Transmission Holdings, Inc. (ALSN) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Allison Transmission Holdings, Inc.'s operations as of late 2025. Understanding this structure is key because it shows where the company spends its revenue to build and sell its propulsion solutions.

The largest component of cost is definitely the Cost of Goods Sold (COGS), which covers the direct costs of manufacturing transmissions and related components. For the third quarter of 2025, with net sales at $693 million, the gross profit was $329 million. Here's the quick math: that implies a COGS of $364 million for the quarter, reflecting the costs of direct materials, labor, and manufacturing overhead.

The cost structure is also heavily influenced by investments in the future and managing the current business footprint. You can see the breakdown of key operating expenses for the third quarter of 2025 right here:

Expense Category	Q3 2025 Amount (Millions USD)	Notes
Cost of Goods Sold (Implied)	$364 million	Calculated from $693M Net Sales less $329M Gross Profit
Selling, General, and Administrative (SG&A)	$82 million	A decrease of $3 million from the same period in 2024
Research and Development (R&D)	$43 million	A decrease of $8 million from the same period in 2024

Research and Development expenses, which fuel innovation in electrification and next-generation products, were reported at $43 million for the third quarter of 2025. This figure reflects a strategic alignment of costs with current end market demand conditions, showing management is flexing spending where needed.

Selling, General, and Administrative (SG&A) expenses for the third quarter of 2025 totaled $82 million. This covers everything from sales commissions to corporate overhead. It's important to note that Allison Transmission achieved an adjusted EBITDA margin of 37% for the quarter, even with these fixed and semi-fixed costs in a challenging environment.

For long-term planning, capital expenditures (CapEx) are crucial for maintaining and upgrading facilities and tooling. Allison Transmission Holdings, Inc. reaffirmed its full-year 2025 guidance for this area, projecting CapEx to fall between $165 million and $175 million.

The acquisition of Dana Incorporated's Off-Highway business introduces specific, non-recurring costs that you need to track separately. These are integration costs that impact near-term profitability but are expected to lead to future synergies. Here are the key figures related to this strategic move:

• Full year 2025 expected expenses related to the acquisition: over $60 million.
• Third quarter 2025 expenses recognized: $14 million.
• Full year 2025 expected cash outlays for the acquisition: approximately $70 million.
• Third quarter 2025 cash payments for acquisition-related expenses: $13 million.

The company anticipates generating annual run-rate synergies of approximately $120 million from this acquisition, which will offset some of these upfront integration costs over time. Still, these upfront costs definitely weigh on the reported net income for 2025.

Allison Transmission Holdings, Inc. (ALSN) - Canvas Business Model: Revenue Streams

You're looking at how Allison Transmission Holdings, Inc. actually brings in the money, which is key for valuing the business, especially when the core truck market is soft. The revenue streams are built around selling new hardware and then servicing that hardware over its long life.

The overall expectation for the full year 2025 shows a slight pull-back from earlier projections, but still a massive revenue base. Allison Transmission now expects 2025 net sales in the range of $2,975 million to $3,025 million, putting the midpoint right around $3.0 billion. That's the top-line target you need to keep in mind for the whole year.

On the profitability side, the guidance for Net Income for 2025 sits in the range of $620 million to $650 million. Honestly, that range reflects the current market uncertainty, particularly in the main commercial truck segment.

The business model relies on a few distinct buckets of sales, which you can see broken down by end market. The Defense segment has been a real bright spot, showing significant growth even when other areas struggle. For the third quarter of 2025, Net Sales in the Defense end market hit $78 million, which was up a huge 47% year over year. That growth was driven by things like increased demand for Tracked vehicle applications and pricing actions.

The core business, New product sales to OEMs, lives primarily in the On-Highway segments. You saw the North America On-Highway market sales drop by $130 million year over year in Q3 2025, which is why the full-year guidance was revised down. Still, the company is pushing new products like e-Axles and working on strategic OEM integrations, such as the PACCAR standardizing Neutral at Stop feature with the Cummins X15N engine and Allison 4500 RDS integration, which validates their fuel-agnostic strategy.

Here's a quick look at the Q3 2025 revenue breakdown by segment, which helps map those OEM and Aftermarket streams:

End Market	Q3 2025 Net Sales (Millions USD)	Year-over-Year Change
Defense	$78 million	Up 47%
North America On-Highway	Not specified (Down $130M YoY)	Down 28%
Total Net Sales	$693 million	Down 16%

The Aftermarket parts and service revenue, which generally provides higher margins and is less cyclical, is represented by the Service Parts segment. While the overall Q3 2025 total sales were down 16% year over year to $693 million, the Service Parts segment was also down year over year, though it typically provides a steadier revenue floor. This part of the business is crucial because those service revenues are less tied to new truck orders and more to the installed base of transmissions already working out there.

The Defense contracts are a distinct, high-value revenue stream. Beyond the Q3 sales figure, the company secured a $97 million Abrams transmission contract, showing the depth of these long-term government relationships.

You can see the revenue sources are layered, which is the point of the Business Model Canvas structure:

• New product sales to OEMs (primarily On-Highway, facing near-term softness).
• Aftermarket parts and service revenue (Service Parts segment, high-margin component).
• Defense contracts for propulsion systems (Q3 2025 sales up 47% YOY).
• Full-year 2025 Net Sales guidance midpoint of approximately $3.0 billion.
• Net Income guidance for 2025 in the range of $620 million to $650 million.

Finance: draft 13-week cash view by Friday.