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© 2025 Allison Transmission, Inc. All Rights Reserved. Published November 3, 2025 Investor Relations Presentation Q3 2025
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Allison Transmission Confidential: Business Use Only Safe Harbor Statement The following information contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: risks relating to the pending acquisition of the Off-Highway business of Dana Incorporated, including: the acquisition may not be completed in a timely manner or at all; we may experience delays, unanticipated costs or restrictions resulting from regulatory review of the acquisition, including the risk that Allison may be unable to obtain governmental and regulatory approvals required for the acquisition or that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the acquisition; the financing intended to fund the acquisition may not be obtained; uncertainties associated with the acquisition may cause a loss of both companies' management personnel and other key employees, and cause disruptions to both companies' business relationships; the purchase agreement subjects Allison and Dana to restrictions on business activities prior to the effective time of the acquisition; Allison is expected to incur significant costs in connection with the acquisition and integration; litigation risks relating to the acquisition; the off-highway business of Dana and its operations may not be integrated successfully in the expected time frame; the acquisition may result in a loss of customers, vendors, and other business counterparties; the combined company may fail to realize all of the anticipated benefits of the acquisition or fail to effectively manage its expanded operations; our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, natural disasters, extreme weather events, wars and public health crises such as pandemics; global economic volatility; general economic and industry conditions, including the risk of prolonged inflation and recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; cybersecurity risks to our operational systems, security systems or infrastructure owned by us or our third-party vendors and suppliers; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including acts of war and increased trade protectionism and tariffs; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness. Allison Transmission cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial goals will be realized. All forward-looking statements included in this presentation speak only as of the date made, and Allison Transmission undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. In particular, Allison Transmission cautions you not to place undue weight on certain forward-looking statements pertaining to potential growth opportunities or long- term financial goals set forth herein. Actual results may vary significantly from these statements. Allison Transmission’s business is subject to numerous risks and uncertainties, which may cause future results of operations to vary significantly from those presented herein. Important factors that could cause actual results to differ materially are discussed in Allison Transmission’s Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. 2
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Allison Transmission Confidential: Business Use Only Business Overview 3© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Allison Transmission at a Glance Well-positioned for revenue and earnings growth Premier brand, offering superior performance, frequently specified by end users Leading designer and manufacturer of propulsion solutions for commercial and defense vehicles – World’s largest manufacturer of medium- and heavy-duty fully automatic transmissions – Established supplier of fully- integrated commercial-duty electrified propulsion systems – Premium price component – Differentiated technology – Lower total cost of ownership – Further adoption outside North America – Expanding addressable market – Funded growth opportunities in asset-light business model – $400 million of incremental annual revenue opportunities 4© 2025 Allison Transmission, Inc. All Rights Reserved. Strong cash flow generation and well- defined capital allocation policy – History of strong free cash flow generation – Capital allocation priorities include: investing to grow the business, strategic acquisition priorities, and returning cash to shareholders
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Allison Transmission Confidential: Business Use Only Allison Transmission at a Glance 21% 2% 16% 9% 52% LTM(1) Net Sales by End Market Parts, Support Equipment and Other Global Off-Highway Outside North America On-Highway Defense North America On-Highway LTM(1) Net Sales: $3.1 billion 5© 2025 Allison Transmission, Inc. All Rights Reserved. (1) LTM 9/30/2025
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Allison Transmission Confidential: Business Use Only Underserved Class 8 Tractor Sleeper (Linehaul) North America On-Highway End Market ~30-40% of Allison’s North America On-Highway market volume is driven by municipal spending, reducing end-market volatility Opportunity to further grow share in Class 6/7 with All-New Mack MD Series and Isuzu F-Series medium-duty truck models, exclusively featuring Allison fully automatic transmissions Uncertain demand environment stemming from geopolitical and regulatory impacts including tariffs and emissions regulations changes $100 million incremental annual revenue growth opportunity in the Class 8 Tractor Day Cab market with the Allison 4000 Series fully automatic transmission and the award-winning Allison 3414 Regional Haul SeriesTM(1) fully automatic transmission, with proprietary xFE and FuelSense® 2.0 technology, launched with International in 2020, and Daimler Trucks North America (paired with diesel engine) and Volvo Trucks North America in 2021. Further releases in 2023 with Daimler Trucks North America, paired with natural gas engine in their Freightliner Cascadia and diesel engine in their M2 truck. Note: Analysis excludes Allison’s Transit/Coach Bus, and Electric Hybrid Transit Bus volume. Class 8 Straight industry units include Dockspotters. Sources: Class 1-3 from WardsAuto North America Production (January 2025); Core Addressable Market from Allison Backcast, and Class 8 Tractor from Allison and ACT Research State of the Industry (January 2025) (1) Addressable market for the 3414 Regional Haul Series (RHS) consists of approximately 25,000 units within the Class 8 Tractor Day Cab segment. 6© 2025 Allison Transmission, Inc. All Rights Reserved. Class 1-3 Class 4-5 Underserved Class 8 Tractor Day Cab Core Addressable Market Motor Home School Bus Class 6-7 Class 8 Straight <14 lbs 12,882,971 0% 14-19 lbs 135,222 13% 16-33 lbs 16-33 lbs 19-33 lbs 33 lbs+ 33 lbs+ 33 lbs+ 12,722 30,291 130,051 115,633 102,972 118,084 50% 81% 77% 79% 4% 0% Vehicles Weight (000s of lbs) Industry Units Produced (2024) Allison Share (2024)
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Allison Transmission Confidential: Business Use Only Strategic Priorities 1000/2000 Series FracTran ® eGen Force 3000 Series eGen Flex ® 4000 Series Emerging markets penetration Continued focus on new technologies and product development Expand global market leadership Deliver strong financial results – Capitalize on improving developed markets demand – New vocational offerings to expand addressable market – Fully-integrated electrified propulsion solutions – Automaticity, fuel efficiency and safety trends – Lower total cost of ownership – Increasing number of vehicle releases – Alternative fuels and electrified propulsion – Advanced fuel efficient and emissions reduction technologies – Enhancements to core technologies for new products and variants – Exploit capacity availability and asset-light business model – Earnings growth and cash flow generation – Focus on margin sustainment – Well-defined capital allocation policy 7© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Elite EBITDA Margin 2024 EBITDA Margin(1) 36.1% (1) Fiscal year 2024 peer EBITDA provided by S&P Capital IQ Pro. EBITDA included above may not be consistent with such entity ’s reported EBITDA or Adjusted EBITDA, if available. EBITDA Margin: EBITDA or Adjusted EBITDA divided by net sales. *See appendix for comments regarding the presentation of non-GAAP financial information. 8© 2025 Allison Transmission, Inc. All Rights Reserved. 5% 10% 15% 20% 25% 30% 35% 40% Graco Parker Hannifin Gentex Eaton Rockwell Donaldson Sensata Cummins
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Allison Transmission Confidential: Business Use Only Leading Technology and Innovation Next Generation of Commercial Propulsion New Allison eGen Portfolio of Electric Products Allison eGen Flex® Electric Hybrid Propulsion Allison eGen Force Electrified Transmission 1 3 2 4 9© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Incremental growth opportunities for an established and experienced propulsion supplier such as Allison Positioning Allison to advance the next generation of commercial vehicle propulsion — Fully-Integrated Electric Axles — Extended Range Electric Hybrid Propulsion — Systems & Battery Management Next Generation of Commercial Propulsion Expertise in commercial propulsion, vehicle controls and vocational duty-cycles Deep experience in systems integration, battery management and power distribution State-of-the-art product development and testing capabilities Established service network Allison brand promise of quality, reliability and durability — Multi-Speed Centrally Located EV Drives — Transmission Integrated Generators — Electrification of Accessories Expertise in commercial propulsion, vehicle controls and vocational duty-cycles Deep experience in systems integration, battery management and power distribution 10© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only – Next generation zero-emission capable electric hybrid propulsion system – Enables transit bus fleets to utilize full electric capability without range limitations or infrastructure investment – Selected by multiple transit authorities across the United States – Released with major transit OEMs, GILLIG and New Flyer – Content per vehicle of 10x-15x compared to a fully automatic transmission for transit buses – Fully-integrated zero-emission electric axles for medium- and heavy-duty commercial trucks – Content per vehicle opportunity of more than 3x compared to a fully automatic transmission Portfolio of Electric Products – New electric hybrid propulsion system for tracked combat vehicles – Designed for 50-ton tracked vehicles, also scalable to 70-ton tracked vehicles meeting future Main Battle Tank requirements – Power distribution system featuring an electric motor and inverter for on-board vehicle power and parallel hybrid operation – Engine-off mobility for reduced enemy detection, both acoustic and thermal, increasing soldier survivability – Leverages use of content from X1100 transmission, used in Abrams Main Battle Tank 11© 2025 Allison Transmission, Inc. All Rights Reserved. ® ®
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Allison Transmission Confidential: Business Use Only Electric Hybrid Propulsion Over $1.5 billion in sales since 2003 launch Allison’s electric hybrid propulsion system for transit buses is among the most dependable and efficient electric hybrid systems in the world Demonstrated ability to operate in full engine-off mode for more than 50% of its time in operation across multiple routes Drive unit integrates multiple electric motors and multi-speeds to optimize vehicle performance and fuel economy Allison is the electrification and system integrator, controlling the entire powertrain including the engine Nearly 9,800 Allison electric hybrid propulsion systems delivered globally ― 457 million gallons of fuel saved ― Serving 230+ cities ― 3.9 billion miles of reliable operation Improved efficiency Improved packaging – one-third the size and 116 lbs. lighter WEG cooling – no oil- coolant lines from drive unit, reducing installation complexity and maintenance costs Lithium Titanate (LTO) chemistry, ideal for electric hybrid operation Increased energy capacity Industry-leading battery design life Faster charging than other chemistries Proven industry-leading reliability Disconnect clutch to enable disengaging input shaft from the engine Provides propulsion while the engine is at zero speed Drive Unit Inverter Rechargeable Energy Storage System 12© 2025 Allison Transmission, Inc. All Rights Reserved. ®
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Allison Transmission Confidential: Business Use Only Next-Generation Electrified Transmission Newest product in Allison’s extensive tracked vehicle portfolio Will enable electric hybrid propulsion, electric-only silent maneuverability and exportable power provisions for on- and off- board systems High efficiency range pack utilizes eight forward and three reverse gears providing an efficient 12:1 ratio coverage, generating 220 kilowatts of electrical power Designed to meet requirements across a broad spectrum of applications, including the heavy Infantry Fighting Vehicle and future Main Battle Tank markets Allison will provide the Next-Generation Electrified Transmission propulsion system for American Rheinmetall’s Lynx vehicle, competing for the U.S. Army’s XM30 Combat Vehicle (formerly, the Optionally Manned Fighting Vehicle) program XM30 program is a U.S. Army priority ground modernization initiative that could replace nearly 4,000 Bradley Infantry Fighting Vehicles In June 2023, the U.S. Army down-selected from 5 to 2 OEMs, including American Rheinmetall Vehicles, to continue into the Detailed Design and Prototype Build and Testing phases Development of prototype vehicles began late-2024, with government testing beginning in early 2026 and estimated start of production in 2029 — Strategic partnership with American Rheinmetall Vehicles, and its Team Lynx consortium including Raytheon Technologies, Textron Systems and L3 Harris 13© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Premier Industrial Company Global Market Leader and Premier Brand End User Value Proposition Leader in Commercial Propulsion Diverse End Markets Growth Opportunities / Dana Off-Highway Acquisition 1 3 5 2 4 6 Capital Allocation and Free Cash Flow Utilization 14© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only A Recognized Leader and Respected Brand The Allison brand is associated with: — High Quality — Reliability — Durability — Vocational Value and Expertise — Technological Leadership — Superior Customer Service — Attractive Total Lifecycle Value End users frequently request Allison Transmission products by name and pay a premium for them Proprietary and patented technology developed over many decades and over eight million global units Over 100-year history of providing high-quality innovative products and demonstrated value to end users 15© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only End User Value Proposition Advantages of a fully automatic Allison transmission 16© 2025 Allison Transmission, Inc. All Rights Reserved. Payback period for an Allison Transmission averages less than 3 yearsEnd users are willing to pay a premium price for Allison Productivity (acceleration) Maintenance Savings (life cycle costs) Fuel Agnostic and Fuel Efficiency / Reduced Emissions Driver Skillset / Wages Training (time, cost) Shift Quality Safety Residual Value
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Allison Transmission Confidential: Business Use Only Leader in Commercial Propulsion Allison’s addressable market encompasses a broad range of vocations with complex and diverse duty-cycles On-Highway • Fire and Emergency • Pick-up, Delivery and Distribution • Construction • Refuse • School, Transit, Shuttle and Coach Bus • Day Cab Tractors • Utility • Motorhome Off-Highway • Hydraulic Fracturing • Oilfield Service and Support • Rigid Mining Trucks • Articulated Mining Trucks • Underground Mining • Construction • Agriculture • Specialty Defense • Light / Medium / Heavy Wheeled ‒ US: FMTV, HEMTT, Stryker ‒ Other: Jackal, Eitan, Boxer IFV, Tigon • Light / Medium / Heavy Tracked ‒ US: M1 Abrams ‒ Other: K9, Krab, AS21 Redback, K200 KIFV Vocational diversity results in a complex application space that requires a range of propulsion solutions where Allison is a natural supplier • Internal combustion engine applications • Alternative fuel vehicles, including natural gas and propane, with proven performance advantages and a funded infrastructure • Electric hybrid systems, including flexible hybrid, range extender and plug-in options • Full electric solutions, including hydrogen fuel cell and battery electric applications 17© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Very Diverse End Markets Aftermarket 18© 2025 Allison Transmission, Inc. All Rights Reserved. British Airport Authority File:Prevost Logo.svg http://www.jereh.net/newweb/images/home-biao.gif On-Highway Off-Highway Light / Medium / Heavy Wheeled and Tracked Parts, Support Equipment & Other GlobalDefense Distribution Emergency Motorhome Rugged Duty School/Shuttle Bus Transit
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Allison Transmission Confidential: Business Use Only Over 350 OEMs Rely on Allison for Vehicle Propulsion Solutions 19© 2025 Allison Transmission, Inc. All Rights Reserved. North AmericaOutside North AmericaDefense On-Highway Transit Bus Off-Highway On-Highway Off-Highway Light / Medium / Heavy Wheeled and Tracked
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Allison Transmission Confidential: Business Use Only Growth Opportunities 20© 2025 Allison Transmission, Inc. All Rights Reserved. $400M of Incremental Annual Revenue Opportunities Outside North America On-Highway Growth Strategy Global Off-Highway Growth Strategy North America On-Highway Growth Strategy Global Defense Growth Strategy 2 4 6 3 5 7 Value Added On-Highway Variants & Enhancements Dana Off-Highway Acquisition1
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Allison Transmission Confidential: Business Use Only ▪ Total transaction value of ~$2.7bn ▪ Represents 6.8x Adjusted EBITDA (LTM 12/31/24) of ~$400mm(1) and 5.2x including estimated run-rate synergies of ~$120mm ▪ 100% cash consideration, financed with new debt and cash on-hand, pursuant to a carve-out transaction involving the sale of certain stock and assets ▪ Expected annual run-rate synergies of ~$120mm ▪ Cost savings primarily driven by operations, procurement, IR&D and SG&A ▪ Fully committed debt financing ▪ $778 million of cash and $745 million available under the revolving credit facility as of June 30, 2025 ▪ Approved by Allison’s and Dana’s Boards of Directors; subject to customary regulatory approvals ▪ Anticipated closing in late Q4 2025 Purchase Price 21 ▪ Expected net leverage of less than 3.0x at close with near-term target of less than 2.0x ▪ Anticipated to be immediately accretive to diluted earnings per share ▪ Combined company cash flow expected to preserve capital allocation flexibility Financial Highlights Synergies Financing Timing / Closing ____________________ (1) Represents Adjusted EBITDA associated with the acquired portions of the Dana Off -Highway business. Dana Off-Highway Acquisition – Transaction Highlights © 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only 4000 Series Expanding Product Portfolio and End Market Growth 22 Complementary product breadth with attractive portfolio mix that has historically been less cyclical than broader end market Expanding Core Transmissions / Axles Portfolio Category Expansion Transmissions Axles Helical Gearboxes Planetary Gearboxes Wheel & Track Drives Industrial Driveshafts Mobile Driveshafts E-Transmissions 1000/2000 Series 3000 Series FracTran eGen Force eGen Power Electric Axles E-Axles E-Hub DrivesE-Motions Heavy-Duty Power-shift (-split) Transmissions Compact Axles Agricultural Axles Dana Products Electrification Capabilities Deepening Off-Highway End Market Growth Rugged Duty Emergency School/Shuttle Bus Transit Energy Distribution Motorhome Defense Construction Agriculture Mining Material HandlingIndustrial Specialty Expanding End Markets New End Markets On-Highway 45% Off-Highway 51% Defense 4% Combined(1) (1) Combined financial results are arithmetic sums, not pro forma amounts presented in accordance with Article 11 of Regulation S -X
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Allison Transmission Confidential: Business Use Only Increasing Opportunities with Expanded Global Reach 23 Allison > 75% of 2024A revenue ~3,500 US employees (89% of global workforce) 90% of global manufacturing footprint located in US Americas Dana Off-Highway < 30% of 2024A revenue with ~850 Americas employees 4 manufacturing sites including 3 service and assembly centers, 1 tech center and 1 office Americas Combined Growth Opportunities to grow Dana Off-Highway products in North America and Allison products in South America Growth of key vertically-integrated components including gears, shafts and castings Utilization of Allison’s strong aftermarket distribution channel in North America Expansion of Allison products into underserved markets such as Agriculture in South America Allison ~15% of 2024A revenue India manufacturing location with announced expansion doubling footprint with completion in 2027 APAC Dana Off-Highway ~20% of 2024A revenue with ~4,500 employees including ~4,000 in India 16 facilities including 6 manufacturing sites, 5 service and assembly centers, 1 tech center and 3 offices APAC Combined Growth Ability to progress with EV products in mature, early- adopting markets and segments Utilization of footprint for more “Local for Local” production providing advantages in meeting both commercial and government customers’ requirements - Key in markets such as the Indian defense markets where content requirements are critical for program releases and awards Supply chain and logistics synergies allowing opportunities for cost reductions Allison ~10% of 2024A revenue Minimal human capital presence primarily in Hungary manufacturing location and regional sales offices EMEA Dana Off-Highway ~50% of 2024A revenue with ~5,600 employees 49 facilities including 19 manufacturing sites, 13 service and assembly centers, 8 tech centers and 8 offices EMEA Combined Growth Global technology centers for local development and cost synergy realization through combined engineering IR&D Expanded footprint supports localization and continued growth in products including key European defense markets Large human capital presence improves customer experience and relationships to drive revenue growth
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Allison Transmission Confidential: Business Use Only Compelling Future Global Growth 24 Facilities & People • Combined company has a strong global reach with more “Local for Local” production and markets presence • Strong and innovative leadership team with sophisticated global employee base • Manufacturing in best-cost countries and adapting to global market dynamics • ~14,500 global employees including ~5,600 in EMEA and ~4,500 in APAC Summary Growth Opportunities • Seasoned and innovative leadership team with sophisticated global employee base increasing in- regions capabilities • Combined company has strong global reach and footprint with more “Local for Local” production to meet commercial and government customers’ requirements and adapt to global market dynamics • Broader platform enabling further inorganic growth with established M&A playbook to grow in established end markets • Key capabilities in software & controls and fully integrated commercial-duty propulsion solutions • Complementary customer mix provides for potential cross-selling with enhanced ability and reach to support multiple end markets growth opportunities • Strong procurement, supply chain and logistics synergies with opportunities for cost reductions in current product portfolios with increased scale Dana Off-Highway acquisition accelerates combined businesses’ current growth objectives while multiplying future global growth opportunities Products & Customers • End markets revenue growth leveraging strategic localization near customers • Harmonious propulsion categories extending applications of existing and combined portfolios • Sales growth resulting from increased set of diverse drivetrain components & services and work solutions to current customers • Opportunity to support customers globally across Allison’s aftermarket network Engineering & Vertical Integration • Agile and market-driven technology, service and product development across diverse drivetrain components and work solutions • Accelerated product innovation with increased local IR&D and engineering capabilities • Best-in-class SG&A driven by effective deployment of centers of excellence and shared services • Opportunities for cost reductions in current product portfolios with increased scale M&A Platform • Broader platform enabling further inorganic growth • Combined company has established M&A playbook to grow share of wallet in established end markets • Footprint and capabilities provide for synergy development across future opportunities • Ability and reach to support multiple end markets growth opportunities Key Growth Drivers for Allison as a Premier Industrial Company
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Allison Transmission Confidential: Business Use Only 25© 2025 Allison Transmission, Inc. All Rights Reserved. Growth Strategy – $400M of Incremental Annual Revenue Opportunities Wide Body Mining Dump • Penetration of new market for Allison’s 4000 Series and 6000 Series On- Highway transmissions • ALSN is released in all OEMs operating in the WBMD truck market • Gaining market share in Chinese domestic market and export markets globally including India, South America, Africa and Indonesia • Represents $100M of incremental annual revenue opportunity • Next-generation, designed-from-the-ground-up Oil Field Series (OFS) transmission, purpose-built for hydraulic fracturing applications to maximize customer productivity with high reliability and powerful performance • Dual fuel compatibility for natural gas-powered engines, increased horsepower ratings and substantially reduced idle time • Introduced in 2021 and currently being tested in multiple oilfield fleets across the United States and Canada. Start of production began in mid-2023. • Represents $100M of incremental annual revenue opportunity FracTran® Class 8 Day Cab and Regional Haul Tractor Market • Allison 4000 Series transmission and 3414 Regional Haul Series transmission, an uprated variant of Allison’s proven 3000 SeriesTM fully automatic transmission designed to support the higher engine and torque requirements of Distribution and Regional Haul Class 8 Day Cab tractors • Lighter than competitive automated manual transmissions, and providing fleets with 25% faster acceleration and up to 8% fuel economy improvement • Secured releases with top OEMs, including vertically integrated OEMs, such as International, Daimler and Volvo • Represents $100M of incremental annual revenue opportunity • Growth opportunity based on increased global defense spending due to shifts in geopolitical dynamics, the war in Ukraine and US DoD modernization priorities • Maintain long-standing relationship with US DoD with primary opportunity in tracked vehicle programs and international growth accomplished through: ‒ Expansion of sales of existing products to international allies ‒ Growing relationships with global defense OEMs ‒ New products and variants gaining interest globally • Represents $100M of incremental annual revenue opportunity Defense End Market Total of $400M of Annual Incremental Revenue Opportunities
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Allison Transmission Confidential: Business Use Only 262 305 344 383 390 280 381 463 477 493 Outside North America On-Highway Growth Strategy Global market leadership expansion and emerging markets penetration – Substantial investments in the expansion of global sales presence – Ongoing OEM release activities – Targeted end user initiatives drive demand for the Allison brand – Facilitates service channel build out in developing markets – Labor availability of skilled drivers poses opportunity for further penetration of automatic transmissions – Increasing vehicle sophistication – Stricter emissions, fuel economy and safety standards – Growing demand for productivity improvements – Micro and demographic trends – Focus on reducing lifecycle costs Focus on high value vocational vehicles – Transit, refuse, fire & emergency, airport support, terminal tractors, dock spotters, mining and oil field support, construction, etc. – Cost of vehicle downtime is high – Enhanced value proposition supported by 2-3 year payback period Demand drivers vary by region 5 years of consecutive revenue growth pre-COVID in Outside North America On-Highway, followed by full-year record-setting net sales in 2022 and 2023 ($ in millions) Wide Body Mining Dump Truck market represents growth opportunity of $100 million in incremental annual revenue COVID-19 Impact 26© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only $13 $58 $86 $63 $8 $61 $83 $127 $104 $97 $38 $44 $50 $53 $42 $- $50 $100 $150 $200 $250 $300 2020 2021 2022 2023 2024 NA Off-Highway Net Sales ONA Off-Highway Net Sales Global Off-Highway Parts Net Sales Global Off-Highway Growth Strategy Energy Sectors – Demand expected to be less cyclical with continued supply issues solved by multi-year investments – Investments for energy security driven by national security threats – Market tightness remains with capital discipline and limited equipment availability – Continued investments in differentiated and higher horsepower solutions High Horsepower Hydraulic Fracturing Transmissions – Launched FracTran® in 2021, purpose-built to meet the harsh demands of global oil and gas fields – Addressing global market demand for higher horsepower, extended duty-cycles, lower days-to- depth, higher recovery factors and smaller footprints – New OFS models based on six decades of industry expertise Mining and Construction – Considerable end market cyclicality, recovering from trough levels due to pent up demand and aging fleets – Commodity prices support further expansion projects and continued demand – Global economic recovery and increasing global urbanization and sustainability initiatives, driving increased construction activity and raw material demand 27© 2025 Allison Transmission, Inc. All Rights Reserved. 5-Year Average
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Allison Transmission Confidential: Business Use Only 262 337 427 151 178 235 264 272 304 321 315 343 374 392 311 329 343 372 421 303 302 349 389 417 447 North America On-Highway Growth Strategy Uncertain demand environment stemming from geopolitical and regulatory impacts including tariffs and emissions regulations changes Structural growth drivers remain intact Increased penetration opportunities — Slowing demand for full-EV with OEMs increasingly interested in conventional fuel-efficiency features, such as Allison’s FuelSense® 2.0 and Neutral at Stop, to comply with emissions regulations — Continued growth in first- and last-mile delivery sector — Growth opportunity of $100 million in incremental annual revenue in the Class 8 Regional Haul Day Cab market with the Allison 4000 Series fully automatic transmission and 3414 Regional Haul Series (RHS) — 3414 RHS launched with International in 2020, Daimler Trucks North America (paired with diesel engine) and Volvo Trucks North America in 2021, and further release with Daimler Trucks North America for CNG engine in 2023 — In 2023, the 3414 RHS was specified by one of the largest global logistics and delivery companies as the propulsion solution in additional CNG Freightliner Cascadia Day Cab tractors added to its fleet — Mack MD Series line of medium-duty trucks and Isuzu F-Series Class 6/7 models, exclusive with the Allison fully automatic transmission — Class 4/5 commercial trucks launched by Chevrolet, International and Isuzu, exclusively with the Allison fully automatic transmission (1) Source: ACT Research, October 2025. Includes: Class 4 through 8 less Class 8 Tractor & Class 8 Straight with Sleeper. 2025: Total 459,319 less Class 8 Tractor of 153,412 less Class 8 Straight with Sleeper of 2,770. 1999 – 2009 North America Production in Allison’s Core Addressable Market (units in 000s)(1) 28© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only 29© 2025 Allison Transmission, Inc. All Rights Reserved. United States • Allison provides transmissions to the US Department of Defense for all wheeled vehicles heavier than the Humvee and more than half of the armored combat vehicles used by the US Military • Expectation of substantial growth in tracked vehicle programs including continuation of the Abrams Main Battle Tank contract • Growth and sustainment for numerous wheeled vehicle programs • Opportunities through expansion of sales of existing products ‒ US Government planning to sell over 300 X1100 transmissions for FMS Abrams Main Battle Tank sales over the next 3 years to Australia, Poland and Romania • Increased relationships with global defense OEMs ‒ Growing relationship with South Korea’s Hanwha Aerospace as Allison’s largest defense OEM ‒ Hanwha’s K9 Thunder Self-Propelled Howitzer planned sales to Egypt and Poland and further global opportunity with Hanwha’s new Redback Infantry Fighting Vehicle, selected for Australia’s LAND 400 program • Development of new products and product variants driving growth ‒ Allison’s new 3040 MX and 4040 MX medium-weight cross-drive transmissions ▪ 3040 MX was selected by all OEMs currently competing for India’s FICV (Future Infantry Combat Vehicle) program as well as programs in Turkey and Poland’s Borsuk Infantry Fighting Vehicle (IFV) ▪ 4040 MX selected by BAE Systems Hägglunds for CV90 Infantry Fighting Vehicle programs • Allison’s X1100 variant developed for the Turkish Firtina Self-Propelled Howitzer program International Global Defense Growth Strategy Allison is committed to investing in and pursuing opportunities resulting from increased global defense spending in a multi-year growth cycle, with expectation for realization of $100 million incremental annual revenue opportunity in 2025 Poised to capture growth through continuation of long-standing partnership with United States Department of Defense and diversifying revenue through increased international defense sales Opportunities for future long-term growth including eGen Force electric hybrid propulsion system for tracked combat vehicles. The eGen Force system has been selected by American Rheinmetall for their XM30 offering.
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Allison Transmission Confidential: Business Use Only Value Added On-Highway Variants & Enhancements FuelSense® 2.0 • Proprietary software launched in 2017, ideally suited for shift-dense vocations such as transit, school bus, refuse, construction and distribution • DynActive® Shifting utilizes learning algorithm to continuously find the ideal balance of fuel economy and performance • Neutral at Stop trims fuel consumption and emissions by reducing load on the engine when the vehicle is stopped • Acceleration Rate Management limits vehicle acceleration to a customized calibrated rate • New design leverages the proven reliability of the Allison six-speed 2000 SeriesTM • New benchmark in fuel efficiency and reduced emissions standards • Significant fuel savings due to deep first gear ratio, industry leading ratio coverage and advanced engine stop-start capability • Improved driver comfort and acceleration, allowing for a smoother launch and increased productivity 9-Speed Transmission xFE Models • New transmissions with redesigned torque converter damper, optimized gear ratios and coupled with FuelSense® Max packages • Represents the latest in fuel savings innovation ‒ Fuel savings of up to 7% over comparatively equipped models with FuelSense® features ‒ Best fuel economy from an automatic transmission • Available in the 1000, 2000 and 3000 Series fully automatic transmission models 30© 2025 Allison Transmission, Inc. All Rights Reserved. Allison Fully Automatic 9-Speed
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Allison Transmission Confidential: Business Use Only Capital Allocation & Free Cash Flow Utilization Significant Cash Flow Generation Capital Allocation Priorities Free Cash Flow Utilization 1 3 2 31© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Significant Cash Flow Generation Adj. Free Cash Flow Generation(1) 32© 2025 Allison Transmission, Inc. All Rights Reserved. Note: See appendix for comments regarding the presentation of non-GAAP financial information. (1) See appendix for a reconciliation of Adjusted Free Cash Flow. (2) LTM 9/30/25 (2)
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Allison Transmission Confidential: Business Use Only Capital Allocation Priorities Organic revenue and earnings growth New product and technology development Strategic acquisition opportunities Return of capital to shareholders Prudent balance sheet management Low-cost, flexible and pre-payable debt structure with long dated maturities As of 9/30/25, over 65% of shares outstanding repurchased since IPO with $1.2B of share repurchase authorization remaining Increased quarterly dividend by 80% in the last 6 years (1) Repurchased ~118M shares outstanding as of 9/30/25 Share Repurchase History Shares Outstanding in Millions Over 65% of S/O Repurchased Since IPO(1) 33© 2025 Allison Transmission, Inc. All Rights Reserved. 181 184 183 179 171 164 140 126 118 112 99 92 88 86 83 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 20 40 60 80 100 120 140 160 180 200 IPO (Mar'12) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD25 Shares Outstanding Cumulative % Repurchased Since IPO
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Allison Transmission Confidential: Business Use Only Free Cash Flow Utilization Well-Defined Capital Allocation Policy • Realize returns from completed investments in global commercial capabilities, and new product and technology development • Prudent balance sheet management • Return capital to shareholders ‒ Increased quarterly dividend to $0.27 per share in Q1 2025, the sixth consecutive annual increase ‒ Share repurchase authorization increased by $1.0 billion to $5.0 billion in Q1 2025(3) • Low-cost, flexible and pre-payable debt structure with long dated maturities 34© 2025 Allison Transmission, Inc. All Rights Reserved. Note: See appendix for comments regarding the presentation of non-GAAP financial information. (1) Net of change in Cash & Cash Equivalents (2) 2009 adjusted for certain non-recurring activity: (a) capitalized accrued interest on Senior Toggle Notes ($29) million, (b) cash restructuring charge $51 million, (c) accounts payable early payments $3 million, (d) delayed accounts receivable receipts $19 million and (e) Lehman LIBOR swap settlement $17 million. All periods adjusted for collateral for interest rate derivatives, purchase of available-for-sale securities, proceeds from disposal of assets, investments in technology- related initiatives and license expenses, and fee to terminate services agreement with Sponsors. (3) $1.2 billion of authorized share repurchase capacity remaining as of 9/30/25 (4) LTM 9/30/25 (4)
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Allison Transmission Confidential: Business Use Only 35 Financial Overview © 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Allison Financial Highlights Solid operating margins Low recurring (maintenance) capital expenditure requirements — End Markets diversity — Premium vocational pricing model — Cost controls and productivity improvements Positioned for long-term cash earnings growth — Multiple growth opportunities in asset-light business model Strong free cash flow Gross Margin Adj. EBITDA Margin(2) Adj. Free Cash Flow Capex LTM(1) Financial Metrics (% of Net Sales) 36© 2025 Allison Transmission, Inc. All Rights Reserved. (1) LTM 9/30/25 (2) Adjusted EBITDA margin: Adjusted EBITDA divided by net sales. Note: See appendix for comments regarding the presentation of non-GAAP financial information. 5.7% 20.5% 37.0% 48.3%
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Allison Transmission Confidential: Business Use Only Strong Liquidity Profile Cash and Available Borrowing Capacity of $1.6 billion as of September 30, 2025 — $902 million of cash and cash equivalents — $745 million of available revolving credit facility commitments History of robust free cash flow generation Staggered, flexible, long-dated and covenant light debt structure with the earliest maturity due in October 2027 Financial Covenants point to First Lien Net Leverage Ratio — Maximum threshold of 5.5x First Lien Net Leverage ratio (Net First Lien Debt to LTM Adj. EBITDA) — First Lien Net Leverage ratio of -0.35x as of September 30, 2025 Net Leverage ratio of 1.33x (Net Debt to LTM Adj. EBITDA) as of September 30, 2025 Capital Allocation — Increased quarterly dividend to $0.27 per share in Q1 2025, the sixth consecutive year of dividend increases — Repurchased over $280 million of outstanding shares in the first three quarters of 2025, with over 65% of outstanding shares repurchased since IPO in 2012 Long-Term Debt Profile & Credit Statistics Current Debt Maturity Profile 37© 2025 Allison Transmission, Inc. All Rights Reserved. (in millions) 9/30/2025 Cash and cash equilvalents $902 Revolving Credit Facility due Mar 2029 $0 Senior Secured Term Loan B due Mar 2031 $510 Total First Lien Debt $510 Senior Notes due Oct 2027 (Fixed 4.75%) $400 Senior Notes due Jun 2029 (Fixed 5.875%) $500 Senior Notes due Jan 2031 (Fixed 3.75%) $1,000 Total Debt $2,410 Net Debt $1,508 First Lien Net Debt -$392 Credit Statistics: 9/30/2025 LTM Adjusted EBITDA $1,135 First Lien Net Leverage Ratio -0.35x Net Leverage Ratio 1.33x
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Allison Transmission Confidential: Business Use Only Summary Allison Transmission is the global leader in the markets it serves – Premier fully automatic transmission brand – Established supplier of fully- integrated, commercial-duty electrified propulsion systems – Over 100-year operating history Strong financial position Substantial growth opportunities – Elite EBITDA margin – Asset-light business model – Significant free cash flow generation – Returning capital to shareholders – Expand global leadership – Penetrate emerging markets – Address underserved markets – Continuous product innovation 38© 2025 Allison Transmission, Inc. All Rights Reserved.
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39 Guidance/ Supplemental Financial Data © 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Given third quarter results and current end markets conditions, we are revising our full year 2025 guidance provided to the market on August 4, 2025 2025 Guidance Update *See Appendix for the Guidance Reconciliation Net Income Net Cash Provided by Operating Activities $2,975 - $3,025 Capital Expenditures Adjusted Free Cash Flow* Adjusted EBITDA*Net Sales $620 - $650 $1,090 - $1,125 $765 - $795 $165 - $175 $600 - $620 ($ in millions) 40© 2025 Allison Transmission, Inc. All Rights Reserved. We are maintaining the midpoint of the implied full year Adjusted EBITDA margin guidance
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Allison Transmission Confidential: Business Use Only Historical Financial Summary Financial Summary 41© 2025 Allison Transmission, Inc. All Rights Reserved. Note: See appendix for comments regarding the presentation of non-GAAP financial information. (1) LTM 9/30/25 In $ millions LTM(1) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Sales $1,986 $1,840 $2,262 $2,713 $2,698 $2,081 $2,402 $2,769 $3,035 $3,225 $3,069 % Growth (6.7%) (7.3%) 22.9% 19.9% (0.6%) (22.9%) 15.4% 15.3% 9.6% 6.3% (4.2%) Adj. EBITDA 720 644 868 1,128 1,083 732 844 961 1,108 1,165 1,135 % of Net Sales 36.3% 35.0% 38.4% 41.6% 40.1% 35.2% 35.1% 34.7% 36.5% 36.1% 37.0% Total CapEx 58 71 91 100 172 115 175 167 125 143 176 % of Net Sales 2.9% 3.8% 4.0% 3.7% 6.4% 5.5% 7.3% 6.0% 4.1% 4.4% 5.7% Adj. Free Cash Flow 530 530 567 737 675 458 460 490 659 658 628 % of Net Sales 26.7% 28.8% 25.1% 27.2% 25.0% 22.0% 19.2% 17.7% 21.7% 20.4% 20.5%
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Allison Transmission Confidential: Business Use Only 2016 2017 2018 Net Sales Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total NA On-Highway $274 $280 $232 $237 $1,023 $275 $314 $301 $287 $1,177 $339 $343 $332 $303 $1,317 Defense $25 $28 $25 $37 $115 $27 $30 $35 $25 $117 $37 $43 $42 $36 $158 ONA On-Highway $70 $74 $78 $83 $305 $72 $85 $89 $98 $344 $91 $101 $96 $95 $383 Global Off-Highway $8 $4 $3 $4 $19 $7 $15 $31 $39 $92 $45 $55 $58 $64 $222 Parts, Support Equipment & Other $85 $89 $96 $108 $378 $118 $136 $139 $139 $532 $151 $169 $164 $149 $633 Total Net Sales $462 $475 $434 $469 $1,840 $499 $580 $595 $588 $2,262 $663 $711 $692 $647 $2,713 2019 2020 2021 Net Sales Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total NA On-Highway $377 $398 $369 $330 $1,474 $352 $164 $281 $284 $1,081 $319 $302 $275 $281 $1,177 Defense $32 $37 $40 $42 $151 $40 $42 $56 $44 $182 $45 $48 $39 $54 $186 ONA On-Highway $94 $106 $99 $91 $390 $72 $60 $71 $77 $280 $84 $98 $93 $106 $381 Global Off-Highway $41 $49 $30 $19 $139 $35 $22 $5 $12 $74 $18 $27 $34 $62 $141 Parts, Support Equipment & Other $131 $147 $131 $135 $544 $138 $89 $119 $118 $464 $122 $128 $126 $141 $517 Total Net Sales $675 $737 $669 $617 $2,698 $637 $377 $532 $535 $2,081 $588 $603 $567 $644 $2,402 2022 2023 2024 Net Sales Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total NA On-Highway $346 $340 $340 $333 $1,359 $376 $397 $376 $380 $1,529 $420 $456 $457 $419 $1,752 Defense $35 $29 $35 $47 $146 $27 $33 $43 $63 $166 $48 $43 $53 $68 $212 ONA On-Highway $109 $105 $118 $131 $463 $108 $123 $118 $128 $477 $115 $128 $126 $124 $493 Global Off-Highway $48 $52 $60 $53 $213 $47 $49 $28 $43 $167 $46 $23 $20 $16 $105 Parts, Support Equipment & Other $139 $138 $157 $154 $588 $183 $181 $171 $161 $696 $160 $166 $168 $169 $663 Total Net Sales $677 $664 $710 $718 $2,769 $741 $783 $736 $775 $3,035 $789 $816 $824 $796 $3,225 2025 Net Sales Q1 Q2 Q3 LTM NA On-Highway $435 $417 $327 $1,598 Defense $53 $63 $78 $262 ONA On-Highway $112 $142 $122 $500 Global Off-Highway $18 $16 $7 $57 Parts, Support Equipment & Other $148 $176 $159 $652 Total Net Sales $766 $814 $693 $3,069 Allison Quarterly Sales Summary Quarterly Net Sales by End Market ($ in millions) 42© 2025 Allison Transmission, Inc. All Rights Reserved. (1) (1) LTM 9/30/25
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Allison Transmission Confidential: Business Use Only 43 Appendix Non-GAAP Financial Information © 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Appendix: Non-GAAP Financial Information We use Adjusted EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operational results of our business and increase the period-to-period comparability of our operating profitability and comparability with other companies. Adjusted EBITDA as a percent of net sales is also used in the calculation of management’s incentive compensation program. The most directly comparable U.S. generally accepted accounting principles (“GAAP”) measure to Adjusted EBITDA and Adjusted EBITDA as a percent of net sales is Net income and Net income as a percent of net sales, respectively. Adjusted EBITDA is calculated as the earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by Allison Transmission, Inc.’s, the Company’s wholly-owned subsidiary, Second Amended and Restated Credit Agreement. Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales. We use Adjusted Free Cash Flow to evaluate the amount of cash generated by our business that, after the capital investment needed to maintain and grow our business and certain mandatory debt service requirements, can be used for repayment of debt, stockholder distributions and strategic opportunities, including investing in our business. We believe that Adjusted Free Cash Flow enhances the understanding of the cash flows of our business for management, investors and creditors. Adjusted Free Cash Flow is also used in the calculation of management’s incentive compensation program. The most directly comparable GAAP measure to Adjusted Free Cash Flow is Net cash provided by operating activities. Adjusted Free Cash Flow is calculated as Net cash provided by operating activities, excluding non-recurring restructuring charges, after additions of long-lived assets. 44© 2025 Allison Transmission, Inc. All Rights Reserved.
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Allison Transmission Confidential: Business Use Only Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA Reconciliation 45© 2025 Allison Transmission, Inc. All Rights Reserved. $ in millions, Unaudited Last twelve months ended September 30, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net income (GAAP) $229 $182 $215 $504 $639 $604 $299 $442 $531 $673 $731 $699 plus: Income tax expense 139 107 126 23 166 164 94 130 114 154 166 168 Depreciation of property, plant and equipment 94 88 84 80 77 81 96 104 109 109 111 116 Interest expense, net 138 114 101 103 121 134 137 116 118 107 89 88 Amortization of intangible assets 99 97 92 90 87 86 52 46 46 45 10 7 Acquisition-related expenses — — — — — — — — — — — 38 Stock based compensation expense 15 10 9 12 13 13 17 14 18 22 26 26 Unrealized loss on foreign exchange 5 1 1 — 3 — 2 — 6 — 1 2 Technology-related investment expenses 2 — 1 16 3 — — (3) (6) (3) 2 1 Impairments of intangible assets — — — — — — — — — — 1 1 Equity earnings in equity method investments — — — — — — — — — — — (1) Unrealized (gain) loss on marketable securities — — — — — — — — 22 1 9 (10) UAW local 933 contract signing incentives — — — 10 — — — — — — 14 — Pension plan settlement loss — — — — — — — — — — 4 — Impairments of long-lived assets 15 1 — 32 4 2 — — — — 1 — Enviromental remediation — 14 — — — (8) — — — — — — Loss on redemptions and repayments of long-term debt 1 1 — — — — — — — — — — Stockholder activism expenses — — 4 — — — — — — — — — Dual power inverter module extended coverage 1 (2) 1 (2) — — — — — — — — UAW local 933 retirement incentive — — — — 15 5 7 (2) — — — — Trade name impairments — 80 — — — — — — — — — — Unrealized loss on commodity hedge contracts (1) 1 (2) — — — — — — — — — Expenses related to long-term debt refinancing — 25 12 — — 1 13 — — — — — Restructuring charges 1 — — — — — 14 (4) — — — — Other, net (111) 20 — — — 1 1 1 3 — — — Adjusted EBITDA (Non-GAAP) $627 $739 $644 $868 $1,128 $1,083 $732 $844 $961 $1,108 $1,165 $1,135 Net sales (GAAP) $2,127 $1,986 $1,840 $2,262 $2,713 $2,698 $2,081 $2,402 $2,769 $3,035 $3,225 $3,069 Net income as a percent of Net sales 10.8% 9.2% 11.7% 22.3% 23.6% 22.4% 14.4% 18.4% 19.2% 22.2% 22.7% 22.8% Adjusted EBITDA as a percent of Net sales 29.5% 36.2% 35.0% 38.4% 41.6% 40.1% 35.2% 35.1% 34.7% 36.5% 36.1% 37.0% For the year ended December 31,
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Allison Transmission Confidential: Business Use Only Adjusted Free Cash Flow Reconciliation Non-GAAP Reconciliations (2 of 3) 46© 2025 Allison Transmission, Inc. All Rights Reserved. $ in millions, Unaudited For the year ended December 31, Last twelve months ended September 30, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net cash provided by operating activities (GAAP) $573 $580 $591 $658 $837 $847 $561 $635 $657 $784 $801 $804 (Deductions) or additions: Long-lived assets (64) (58) (71) (91) (100) (172) (115) (175) (167) (125) (143) (176) Restructuring charges — — — — — — 12 — — — — — Technology-related license expenses 6 — — — — — — — — — — — Stockholder activism expenses — — 4 — — — — — — — — — Excess tax benefit from stock-based compensation 25 8 6 — — — — — — — — — Adjusted free cash flow (Non-GAAP) $540 $530 $530 $567 $737 $675 $458 $460 $490 $659 $658 $628
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Allison Transmission Confidential: Business Use Only Guidance Reconciliation Non-GAAP Reconciliations (3 of 3) 47© 2025 Allison Transmission, Inc. All Rights Reserved. $ in millions Low High Net income (GAAP) 620$ 650$ plus: Income tax expense 166 171 Depreciation of property, plant and equipment 117 117 Interest expense, net 99 99 Amortization of intangible assets 7 7 Acquisition-related expenses 63 63 Stock-based compensation expense 27 27 Other unrealized gains (9) (9) Adjusted EBITDA (Non-GAAP) 1,090$ 1,125$ Net cash provided by operating activities (GAAP) 765$ 795$ Deductions to reconcile to Adjusted free cash flow: Additions of long-lived assets (165)$ (175)$ Adjusted free cash flow (Non-GAAP) 600$ 620$ Guidance Year Ending December 31, 2025
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Allison Transmission Confidential: Business Use Only Certain Trademarks This presentation contains trademarks, service marks, copyrights and trade names of other companies, which are the property of their respective owners. We do not intend our use or display of other companies’ trademarks, service marks, copyrights or trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies. 48© 2025 Allison Transmission, Inc. All Rights Reserved.