ALSN (Allison Transmission Holdings) EBIT: $835 Mil (TTM As of Mar. 2026)


ALSN Allison Transmission Holdings Inc ALSN
95 GF Score
Price $119.68
GF Value $124.08
Valuation Fairly Valued
! 3 Warning Signs
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What is Allison Transmission Holdings EBIT?

Allison Transmission Holdings ALSN +2.29% 95 EBIT is $835 Mil as of Mar. 2026. GuruFocus rates ALSN with a GF Score™ of 95/100 and a GF Value™ of $124.08 (Fairly Valued). The stock has 3 warning signs investors should review.

Allison Transmission Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $193 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $835 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Allison Transmission Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 11.37%. Allison Transmission Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 45.80%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Allison Transmission Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.02%.


Allison Transmission Holdings  (NYSE:ALSN) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Allison Transmission Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=780 * ( 1 - 15.15% )/( (4268 + 7372)/ 2 )
=661.83/5820
=11.37 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Allison Transmission Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=772/( ( (657 + max(283, 0)) + (1667 + max(764, 0)) )/ 2 )
=772/( ( 940 + 2431 )/ 2 )
=772/1685.5
=45.80 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(333 + 316 + 89) - (319 + 34 + 102)
=283

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(892 + 835 + 264) - (1020 + 76 + 131)
=764

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Allison Transmission Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=835/13881.779
=6.02 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Allison Transmission Holdings EBIT Related Terms


Allison Transmission Holdings EBIT Historical Data

* Premium members only.

The historical data trend for Allison Transmission Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Allison Transmission Holdings EBIT Chart

Allison Transmission Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 688.00 763.00 934.00 986.00 896.00

Allison Transmission Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 254.00 264.00 206.00 172.00 193.00

ALSN vs ALV, MBLY, LEA: EBIT Comparison

For the Auto Parts subindustry, Allison Transmission Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Allison Transmission Holdings EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Allison Transmission Holdings's EV-to-EBIT falls into.


ALSN
95GF Score
Allison Transmission Holdings Inc ALSN
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Allison Transmission Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $835 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $835 Mil mean?
Allison Transmission Holdings (ALSN) has a EBIT of $835 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Allison Transmission Holdings.
Is Allison Transmission Holdings' EBIT too high?
Allison Transmission Holdings' current EBIT is $835 Mil. Overall, Allison Transmission Holdings has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' EBIT compare to ALV and MBLY?
Allison Transmission Holdings' EBIT of $835 Mil can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Vehicles & Parts company?
A good EBIT depends on the Vehicles & Parts industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Allison Transmission Holdings. Allison Transmission Holdings's current EBIT is $835 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allison Transmission Holdings stock overvalued right now?
Based on GuruFocus' analysis, Allison Transmission Holdings (ALSN) is currently considered Fairly Valued. The stock's GF Value™ is $124.08, compared to a current price of $119.68 — trading 3.5% below its estimated fair value. The current EBIT is $835 Mil. Allison Transmission Holdings' overall GF Score™ is 95/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current EBIT is $835 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Allison Transmission Holdings (ALSN) Overvalued in 2026?

Based on GuruFocus' analysis, Allison Transmission Holdings stock appears to be undervalued. The current stock price of $119.68 is trading 3.5% below its estimated GF Value™ of $124.08. GuruFocus considers Allison Transmission Holdings to be Fairly Valued.

Key valuation signals for ALSN:

  • EBIT: $835 Mil
  • GF Value™: $124.08 vs. price of $119.68 (3.5% below fair value)
  • GF Score™: 95/100 with 3 warning signs

No single metric tells the full story. See the ALSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Allison Transmission Holdings Business Description

Other Exchanges 1A7:Germany
Address One Allison Way, Indianapolis, IN, USA, 46222
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
95GF Score

Get the complete analysis for ALSN

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$119.68
Price
$124.08
GF Value