Allison Transmission Holdings Inc

Allison serves customers across North America, Asia, Europe, South America, and Africa, but its revenue base remains heavily concentrated in North America, which generated approximately 76% of revenue in 2025. Outside North America, the company relies on regional sales, service, and customer integration teams to support OEMs and end users in local markets. Manufacturing is distributed across the United States, India, Hungary, and other locations, which helps support global delivery and local responsiveness. The company also maintains customization and parts distribution centers in the United States, the Netherlands, Brazil, China, Hungary, India, and Japan, reflecting the importance of aftermarket service and regional support. This geographic footprint exposes Allison to foreign currency, geopolitical, and supply-chain risks, while also giving it access to non-U.S. growth opportunities.

Allison faces cyclical demand risk because many of its end markets, including commercial vehicles, construction, mining, and energy-related equipment, are tied to broader industrial and economic conditions. The company is also exposed to customer concentration, as sales were concentrated among its top five OEM customers in 2025, so the loss or consolidation of a major customer could materially reduce volume. Supply-chain disruption, raw material inflation, and labor cost inflation can pressure margins because the business depends on manufactured components and a global production footprint. Cybersecurity is a material operational risk because attacks could disrupt manufacturing, compromise proprietary technology, or affect in-product control modules. International expansion and the off-highway acquisition add integration, geopolitical, foreign exchange, and execution risk, while the dealer network creates reputational dependence on third-party service quality.