Allison Transmission Holdings Inc (NYSE: ALSN)

Allison Transmission Holdings Inc., often simply referred to as Allison Transmission, is a major player in the global manufacturing industry, specializing in the production of fully automatic transmissions and electrified propulsion solutions for a diverse range of commercial and defense vehicles. The company's stock is publicly traded on the New York Stock Exchange under the symbol ALSN.

Allison Transmission's primary business activities involve the design and manufacture of vehicle propulsion solutions, including commercial-duty on-highway and off-highway fully automatic transmissions, as well as electric hybrid and fully electric systems. These solutions are utilized in various industries and regions across the globe, including North America, Asia, Europe, South America, and Africa.

The company's revenue is generated primarily through the sale of its products, which include fully automatic transmissions, electric hybrid propulsion solutions, and fully electric propulsion solutions. Allison Transmission's customer base is varied, encompassing industries such as on-highway, off-highway, and defense.

The on-highway segment is the largest contributor to Allison Transmission's revenue, making up approximately 50% of the company's total sales. This segment involves the sale of fully automatic transmissions for medium- and heavy-duty commercial vehicles, such as trucks, buses, and motorhomes. The company's products are used in various applications within this segment, including distribution, refuse, construction, fire and emergency, and school and shuttle bus.

The off-highway segment accounts for approximately 16% of the company's total sales. This segment includes the sale of fully automatic transmissions for off-highway equipment, such as energy, mining, and construction applications. The company's products are used in a variety of applications within this segment, including hydraulic fracturing equipment, well-stimulation equipment, and mining trucks.

The defense segment makes up approximately 5% of the company's total sales. This segment involves the sale of propulsion solutions for defense vehicles, including tracked and wheeled vehicles. The company's products are used in a variety of applications within this segment, such as the Abrams M1A2 Main Battle Tank and the Family of Medium Tactical Vehicles.

The service parts, support equipment, and other segment accounts for approximately 23% of the company's total sales. This segment includes the sale of branded replacement parts, support equipment, and other products necessary to service the installed base of vehicles utilizing Allison Transmission's solutions.

Allison Transmission operates in a highly competitive market, with key competitors including BAE Systems plc, Caterpillar Inc., Cummins Inc., Dana Incorporated, Ford Motor Company, Komatsu Ltd., Renk AG/Renk America, SAPA S.p.A, ST Kinetics, Twin Disc, Inc., and Volvo Group. The company's competitive advantages include its reputation for quality, reliability, and fuel efficiency, as well as its extensive network of distributors and dealers.

Allison Transmission's customers are diverse, spanning various industries. The company serves OEMs such as Daimler Trucks North America, Freightliner Trucks, and International Truck and Engine Corporation, as well as end-users such as refuse and construction companies.