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Allison Transmission Holdings ALSN Standard Product Warranty Accrual

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Other financials

Income statement

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Revenue$1.6B+92.4%
Gross profit$515.0M+27.8%
Operating income$291.0M+13.7%
Net income$181.0M-7.2%
EPS (diluted)$2.15-6.1%

Balance sheet

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Cash & equivalents$399.0M-48.7%
Total debt$4.2B+75.0%
Total equity$2.0B+12.9%
Total assets$8.7B+61.1%

Cash flow

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Operating cash flow$312.0M+69.6%
CapEx$31.0M0.0%
Free cash flow$281.0M+83.7%

Valuation

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Market cap$9.6B+30.1%
Enterprise value$13.43B+48.9%
P/E18.2×+8.5×
P/S2.2×-0.1×

Profitability

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Gross margin36.4%-12.0pp
Operating margin19.6%-11.7pp
Net margin12%-11.8pp
FCF margin16.7%-3.7pp

Returns & leverage

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Return on equity28.3%-18.7pp
Debt / equity2.1×+0.8×
Current ratio1.8×-1.6×

Where this comes from

Reported directly by Allison Transmission Holdings in its filing.

Tagged under the XBRL concept us-gaap:ProductWarrantyAccrualClassifiedCurrent.

The source filing: Allison Transmission Holdings’s 10-Q, filed August 5, 2026.

Filed
Aug 5, 2026, 9:13 AM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001193125-26-334039
Line itemJune 30,2026December 31,2025
LIABILITIES
Current Liabilities
Accounts payable$806$190
Product warranty liability6534
Current portion of long-term debt205
Deferred revenue7334
Other current liabilities358197
Total Current Liabilities1,322460

ITEM 1. Financial Statements

FAQ

What is Allison Transmission Holdings's standard product warranty accrual?
Allison Transmission Holdings (ALSN) reported standard product warranty accrual of $65M in Q2 2026.
How has Allison Transmission Holdings's standard product warranty accrual changed year-over-year?
Allison Transmission Holdings's standard product warranty accrual increased by 103.1% year-over-year, from $32M to $65M.
What is the long-term trend for Allison Transmission Holdings's standard product warranty accrual?
Over 5 years (2020 to 2025), Allison Transmission Holdings's standard product warranty accrual has grown at a -1.1% compound annual growth rate (CAGR), from $36M to $34M.
What does standard product warranty accrual mean?
This reflects the estimated liability for future costs associated with repairing or replacing products under warranty. It is a critical metric for manufacturing firms, as it directly correlates with product quality and expected reliability over the warranty period.

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