Allison Transmission Is Accelerating Growth Post-Major, Off-Highway Transaction
Allison Transmission offers fully automatic transmissions for vocational trucks and other commercial vehicles. Because of its high-quality products and the significant efficiency gains its customers achieve, the company has a dominant market share in its core North American on-highway market. Allison operates an asset-light model, requiring relatively modest capital investment. As a result, it is a highly cash-generative business that can fund its product development, growth initiatives, and generous shareholder remuneration policies. Because many of its customers are municipalities, demand for its products is generally less volatile, though we think its total addressable market is somewhat limited.
United States