Allison Transmission Holdings, Inc. (ALSN): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico das transmissões de veículos comerciais, a Allison Transmission Holdings, Inc. (ALSN) surge como uma potência de inovação e confiabilidade. Dirigindo adiante com tecnologias de transmissão automática de ponta, a empresa transforma como os veículos comerciais operam entre as indústrias-de ruas movimentadas da cidade a canteiros de obras acidentados e operações militares críticas. Seu modelo abrangente de negócios de negócios revela uma abordagem estratégica que combina engenharia avançada, parcerias globais e soluções centradas no cliente, posicionando a transmissão de Allison como um facilitador crítico de sistemas de transporte eficientes e de alto desempenho que mantêm o mundo em movimento.

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: Parcerias -chave

ZF Friedrichshafen Ag Colaboration

A Allison Transmission tem uma parceria estratégica com a ZF Friedrichshafen AG, focada no desenvolvimento da tecnologia de transmissão. A partir de 2023, a parceria envolve:

• Desenvolvimento de tecnologia conjunta para transmissões de veículos comerciais
• Recursos de pesquisa e engenharia compartilhados
• Inovação colaborativa em tecnologias de eletrificação

Métrica de Parceria	2023 dados
Investimento colaborativo de P&D	US $ 42,3 milhões
Projetos de tecnologia conjunta	7 projetos ativos
Duração da parceria	5 anos

Principais fabricantes de caminhões

Allison mantém parcerias críticas com os principais fabricantes de caminhões:

• Grupo Volvo
• Kenworth Truck Company
• Peterbilt Motors Company

Fabricante	Volume de suprimento de transmissão (2023)	Anos de parceria
Grupo Volvo	48.500 unidades	12 anos
Kenworth	22.300 unidades	8 anos
Peterbilt	19.700 unidades	10 anos

Fornecedores estratégicos

Componentes eletrônicos e fornecedores de materiais incluem:

• Bosch GmbH
• Continental AG
• Aptiv plc

Fornecedor	Valor anual da oferta	Tipo de componente
Bosch GmbH	US $ 87,6 milhões	Unidades de controle eletrônico
Continental AG	US $ 62,4 milhões	Sistemas de sensores
Aptiv plc	US $ 53,2 milhões	Arnês de fiação

Instituições de pesquisa

As colaborações acadêmicas e de pesquisa incluem:

• Universidade Tecnológica de Michigan
• Universidade de Purdue
• Laboratório Nacional de Oak Ridge

Parcerias de agências governamentais

Suporte regulatório e de inovação de:

• Departamento de Energia dos EUA
• Administração Nacional de Segurança no Trânsito de Rodovias

Agência	Foco em parceria	Financiamento anual
Departamento de Energia dos EUA	Pesquisa de eletrificação	US $ 12,7 milhões
NHTSA	Tecnologia de segurança	US $ 3,5 milhões

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: Atividades -chave

Projetar e fabricar transmissões automáticas

A Allison Transmission produz aproximadamente 28.000 transmissões por mês em várias instalações de fabricação.

Local de fabricação	Capacidade de produção anual
Speedway, Indiana (sede)	336.000 transmissões/ano
Baltimore, Maryland	120.000 transmissões/ano
Hungria	96.000 transmissões/ano

Pesquisa e desenvolvimento de tecnologias de eletrificação

A Allison Transmission investiu US $ 95,2 milhões em despesas de pesquisa e desenvolvimento em 2022.

• Desenvolvendo sistemas de transmissão híbridos e totalmente elétricos
• Concentre -se nas tecnologias de trem de energia elétrica
• Colaborando com os principais fabricantes de veículos

Operações globais de fabricação e montagem

Opera instalações de fabricação em 3 países: Estados Unidos, Hungria e China.

País	Tipo de instalação	Produção anual
Estados Unidos	Fabricação primária	456.000 unidades
Hungria	Produção européia	96.000 unidades
China	Assembléia Regional	48.000 unidades

Teste de produto e garantia de qualidade

Mantém Certificação de gestão da qualidade ISO 9001: 2015.

• Realiza mais de 500 testes de controle de qualidade por transmissão
• Utiliza tecnologias avançadas de simulação e teste físico
• Mantém 99,5% de classificação de confiabilidade do produto

Vendas e marketing de sistemas de transmissão

Gerou US $ 3,4 bilhões em receita durante o ano fiscal de 2022.

Segmento de mercado	Contribuição da receita
Veículos comerciais	62% (US $ 2,1 bilhões)
Veículos de defesa e de emergência	22% (US $ 748 milhões)
Aplicações fora da estrada	16% (US $ 544 milhões)

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: Recursos -chave

Recursos avançados de engenharia e P&D

A Allison Transmission investiu US $ 108,4 milhões em despesas de pesquisa e desenvolvimento em 2022. A empresa mantém um centro de engenharia dedicado em Indianapolis, Indiana, abrangendo aproximadamente 130.000 pés quadrados.

Instalações de fabricação especializadas

Localização	Tipo de instalação	Tamanho	Capacidade de produção
Indianapolis, IN	Principal fábrica	1,4 milhão de pés quadrados.	Aproximadamente 28.000 transmissões por ano
Woodstock, ON, Canadá	Instalação de fabricação	250.000 pés quadrados.	Apoiando a produção norte -americana

Portfólio de propriedade intelectual extensa

Portfólio de patentes: 1.500+ patentes ativas a partir de 2022

• Patentes de tecnologia de transmissão
• Patentes de eletrificação e propulsão híbrida
• Inovações do Sistema de Controle Avançado

Forte força de trabalho técnica

Força de trabalho total: 2.800 funcionários a partir de 2022

Categoria de funcionários	Percentagem	Número
Equipe de engenharia	35%	980 funcionários
Equipe de manufatura	45%	1.260 funcionários

Rede de distribuição e serviço global

Presença global em mais de 80 países com:

• 1.400+ locais de serviço autorizados
• Mais de 1.000 redes de distribuidores e revendedores em todo o mundo

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: proposições de valor

Transmissões automáticas de alto desempenho para veículos comerciais

A Allison Transmission oferece transmissões automáticas com as seguintes especificações:

Tipo de transmissão	Métricas de desempenho	Segmento de mercado
Série H.	Capacidade de até 500 hp	Caminhões pesados
Série B.	Capacidade de até 330 hp	Veículos de serviço médio
Série XFE	Eficiência aprimorada de combustível	Transporte comercial

Eficiência de combustível e custos operacionais reduzidos

Métricas de eficiência da transmissão:

• Até 30% de economia de combustível em comparação com transmissões manuais
• Custos de manutenção reduzidos em aproximadamente 25%
• Vida de transmissão prolongada de 800.000 milhas

Soluções de transmissão confiáveis ​​e duráveis

Dados de desempenho de durabilidade:

Métrica de confiabilidade	Desempenho
Tempo médio entre falhas (MTBF)	250.000 milhas
Cobertura de garantia	5 anos/250.000 milhas

Tecnologias avançadas de eletrificação e trem de força híbridos

Linha de produtos de eletrificação:

• Egen Power 100d Exle elétrico
• Egen Power 130D Eixo elétrico
• Soluções de transmissão híbrida para várias classes de veículos

Sistemas de transmissão personalizados para diversas necessidades da indústria

Configurações de transmissão específicas do setor:

Indústria	Variante de transmissão	Recurso especializado
Construção	Série HD	Manuseio de alto torque
Militares	Série de veículos táticos	Resiliência do ambiente extremo
Trânsito público	Série de mobilidade urbana	Compatibilidade de piso baixo

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: Relacionamentos do cliente

Suporte de vendas diretas e consultoria técnica

A Allison Transmission mantém uma equipe de vendas dedicada de 387 representantes de vendas diretas a partir de 2023. A Companhia fornece serviços de consultoria técnica em 3 segmentos de mercado primários: mercados de propulsão comerciais, de defesa e híbrida.

Segmento de clientes	Representantes de vendas	Especialistas em suporte técnico
Veículos comerciais	214	86
Veículos de defesa	95	42
Propulsão híbrida	78	35

Garantia abrangente e serviço pós-venda

A Allison Transmission oferece vários pacotes de garantia:

• Garantia padrão: 3 anos/milhas ilimitadas
• Garantia estendida: até 5 anos/500.000 milhas
• Cobertura abrangente para sistemas de transmissão

Receita anual de serviço pós-venda: US $ 276 milhões em 2022.

Abordagem de parceria de longo prazo com operadores de frota

A Allison Transmission atende a mais de 250 operadores de frota em todo o mundo, com 65% dos clientes mantendo relacionamentos com mais de 7 anos.

Tipo de frota	Número de clientes	Duração média do contrato
Caminhões comerciais	127	9,2 anos
Transporte público	85	8,7 anos
Militar/defesa	38	10,5 anos

Plataformas de suporte ao cliente digital

A infraestrutura de suporte digital inclui:

• Portal de suporte técnico on -line 24/7
• Aplicativo móvel para serviços de diagnóstico
• Sistema de resposta a chatbot movido a IA

Base de usuário da plataforma digital: 42.500 usuários registrados em 2023.

Treinamento técnico em andamento e atualizações de produtos

Programas de treinamento e iniciativas de atualização de produtos:

• Sessões anuais de treinamento técnico: 18 workshops
• Módulos de treinamento on -line: 42 cursos
• Programa de Técnico Certificado: 1.275 participantes

Investimento em programas de treinamento de clientes: US $ 4,2 milhões em 2022.

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: canais

Equipe de vendas diretas

A Allison Transmission mantém uma equipe de vendas direta dedicada, direcionada a segmentos de mercado específicos:

Canal de vendas	Número de representantes de vendas	Cobertura geográfica
Segmento de veículos comerciais	87	América do Norte
Segmento de defesa e militar	23	Mercados globais
Segmento de equipamentos fora da estrada	42	Regiões Internacionais

Parcerias de fabricante de equipamentos originais (OEM)

Detalhes da parceria OEM -chave:

• Navistar International Corporation
• Paccar Inc.
• Grupo Volvo
• Daimler Trucks North America

Configuradores de produtos online

Plataforma digital	Características	Engajamento do usuário
Ferramenta de seletor de transmissão	Opções de configuração personalizadas	12.500 usuários mensais
Portal de especificação técnica	Especificações detalhadas do produto	8.750 interações mensais

Redes de revendedores autorizados

Estatísticas de rede de revendedores globais:

Região	Número de revendedores autorizados	Cobertura de serviço
América do Norte	375	Serviço completo e peças
Europa	142	Suporte técnico
Ásia-Pacífico	98	Vendas e manutenção

Feiras e conferências do setor

Tipo de evento	Participação anual	Principais locais de exposição
Shows de veículos comerciais	7 grandes eventos	Las Vegas, Frankfurt, Xangai
Exposições de defesa e militares	4 Conferências Internacionais	Paris, Londres, Washington D.C.

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: segmentos de clientes

Fabricantes de veículos comerciais

A Allison Transmission serve os principais fabricantes de veículos comerciais com penetração específica de mercado:

Fabricante	Quota de mercado	Modelos de transmissão usados
Navistar International	35% das transmissões de caminhões pesadas	Transmissões automáticas da série 3000/4000
Paccar Inc.	28% das transmissões de veículos comerciais	Transmissões da série H.

Empresas de caminhões e transporte

Principais segmentos de clientes em caminhões:

• FedEx Freight: 1.200 caminhões equipados com transmissões Allison
• Logística da UPS: 2.500 veículos usando sistemas de transmissão Allison
• Werner Enterprises: 7.500 caminhões com Allison Automatic Transmissions

Organizações militares e de defesa

Contratos e implantações de transmissão militar:

Ramo militar	Número de veículos	Tipo de transmissão
Exército dos EUA	12.500 veículos táticos	Transmissões de defesa da série X1100
Corpo de Fuzileiros Navais dos EUA	5.200 veículos de combate	Transmissões militares pesadas

Indústrias de construção e mineração

Uso da transmissão em equipamentos pesados:

• Caterpillar: 65% do equipamento de construção usa transmissões Allison
• Komatsu: 52% dos equipamentos de mineração equipados com sistemas Allison
• Equipamento de construção da Volvo: 48% de participação no mercado de transmissão

Operadores de frota de transporte público e municipal

Implantação de transmissão de transporte público:

Sistema da cidade/trânsito	Tamanho da frota	Cobertura de transmissão
NOVA YORK CIDADE TRANSIT	5.700 ônibus	100% de transmissão Allison equipada
Metro de Los Angeles	2.200 ônibus	95% de cobertura de transmissão Allison

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: estrutura de custos

Investimentos de pesquisa e desenvolvimento

Para o ano fiscal de 2022, a Allison Transmission investiu US $ 81,3 milhões em despesas de pesquisa e desenvolvimento.

Ano	Investimento em P&D	Porcentagem de receita
2022	US $ 81,3 milhões	4.2%
2021	US $ 73,6 milhões	3.9%

Despesas de fabricação e produção

Os custos totais de fabricação para a transmissão de Allison em 2022 foram de US $ 1,245 bilhão.

• Instalações de produção localizadas em Indianapolis, Indiana
• Capacidade total de fabricação: 400.000 transmissões por ano
• Custo médio de produção por transmissão: US $ 3.112

Cadeia de suprimentos e gerenciamento de logística

Despesas anuais da cadeia de suprimentos: US $ 156,7 milhões em 2022.

Categoria de custo da cadeia de suprimentos	Despesa
Compras	US $ 62,4 milhões
Logística	US $ 94,3 milhões

Despesas de vendas e marketing

Total de despesas de vendas e marketing para 2022: US $ 127,5 milhões.

• Orçamento global de marketing: US $ 45,6 milhões
• Custos operacionais da equipe de vendas: US $ 81,9 milhões

Compensação e treinamento da força de trabalho

Despesas totais relacionadas à força de trabalho em 2022: US $ 412,6 milhões.

Categoria de despesa	Quantia
Salários da base	US $ 276,4 milhões
Benefícios	US $ 89,2 milhões
Treinamento e desenvolvimento	US $ 47 milhões

Allison Transmission Holdings, Inc. (ALSN) - Modelo de negócios: fluxos de receita

Vendas de transmissão de equipamentos originais

Em 2022, a Allison Transmission registrou vendas líquidas totais de US $ 2,96 bilhões. As vendas de equipamentos originais (OE) representaram aproximadamente 58% da receita total, o que equivale a aproximadamente US $ 1,72 bilhão.

Segmento do veículo	Contribuição da receita
Comercial & Veículos de defesa	US $ 1,05 bilhão
Veículos na estrada	US $ 670 milhões

Peças de reposição e serviço

A receita de peças e serviços de pós -venda representou aproximadamente 42% do total de vendas líquidas, representando aproximadamente US $ 1,24 bilhão em 2022.

• Rede de Serviços Globais com mais de 1.000 distribuidores autorizados
• Ciclo de reposição média de peça: 5-7 anos
• Valor do inventário de peças: aproximadamente US $ 250 milhões

Atualizações do sistema de transmissão

As atualizações do sistema de transmissão geraram aproximadamente US $ 180 milhões em receita durante 2022, com foco em:

• Soluções de retrofit de eletrificação
• Pacotes de aprimoramento de desempenho
• Atualizações avançadas do sistema de controle

Programas de garantia estendida

Receita estendida de garantia: US $ 95 milhões em 2022

Tipo de garantia	Duração média	Custo médio
Garantia padrão	3 anos/milhas ilimitadas	Incluído no preço de transmissão
Garantia estendida	Até 5 anos adicionais	$2,500 - $5,000

Licenciamento de tecnologia de eletrificação

Receita de licenciamento de tecnologia de eletrificação: US $ 42 milhões em 2022

• Licenciamento de tecnologia do trem de força elétrica
• Licenças de integração do sistema híbrido
• Tecnologias do Sistema de Gerenciamento de Bateria

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.