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Here's How Much You'd Have If You Invested $1000 in Allison Transmission a Decade Ago

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Allison Transmission (ALSN - Free Report) ten years ago? It may not have been easy to hold on to ALSN for all that time, but if you did, how much would your investment be worth today?

Allison Transmission's Business In-Depth

With that in mind, let's take a look at Allison Transmission's main business drivers.

Allison Transmission Holdings, Inc. is headquartered in Indianapolis, IN. The company manufactures fully automatic transmissions for medium- and heavy-duty commercial vehicles and heavy-tactical U.S. defense vehicles. Allison is the largest producer of fully automatic transmissions and holds leading positions in several niche markets. The company also offers electric hybrid and fully electric propulsion systems.

On Jan. 1, 2026, Allison completed the acquisition of Dana Incorporated’s Off-Highway Drive & Motion Systems business. Following the transaction, the company reports results through two operating business units, Allison Transmission and Allison Off-Highway Drive & Motion Systems, with certain functional costs centralized in an Allison Central Group cost center that supports global operations.
   
Allison segregates revenue by geography and business categories. In North America, it serves On-Highway, which contributed 51.2% of 2025 revenue. Outside North America, it serves On-Highway, which contributed 16.8% of 2025 revenue. The company also reports Global Off-Highway at 1.8% in 2025, Defense at 8.9%, and Service Parts, Support Equipment and Other at 21.3%.

Within the On-Highway market, Allison sells fully automatic transmissions in North America, primarily for Class 4-5, Class 6-7 and Class 8 straight trucks, transit and coach buses, school buses and motorhomes. Outside North America, Europe, the Middle East and Africa represent the company’s largest On-Highway market.

In the Off-Highway market, the company offers products used in vehicles and equipment supporting energy, mining, construction, agriculture and material handling applications across North America and overseas. Outside North America, Asia-Pacific and EMEA are key markets for Off-Highway products.

Allison’s Defense end market provides transmissions for medium- and heavy-tactical wheeled vehicle platforms, including the Joint Light Tactical Vehicle, Light Armored Vehicle, Stryker Armored Vehicle, Mine Resistant Ambush Protected Vehicle, Heavy Dump Truck and Heavy Equipment. 

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Allison Transmission a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in November 2016 would be worth $4,085.96, or a gain of 308.60%, as of November 6, 2026, and this return excludes dividends but includes price increases.

In comparison, the S&P 500's gained 252.67% and the price of gold went up 203.70% over the same time frame.

Looking ahead, analysts are expecting more upside for ALSN.

Allison Transmission benefits from strong North American truck demand, rising defense sales and the expansion of its Off-Highway business following the Dana acquisition. Improving operating performance, upward revisions to 2026 guidance and healthy cash generation support its growth prospects and shareholder returns. However, subdued agricultural and industrial demand, dependence on major truck manufacturers and tariff-related cost pressures remain concerns. Moreover, higher debt and interest expenses following the acquisition could constrain financial flexibility and weigh on future profitability. While strong end-market demand and business diversification provide growth opportunities, uneven market conditions and balance-sheet pressures warrant a neutral stance.

Over the past four weeks, shares have rallied 6.73%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2026 compared to none lower. The consensus estimate has moved up as well.

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