Allison Transmission Still Looking At A Multiyear Sales Effort Outside The U.S.
Stephen Simpson, CFA • Tue, Sep. 16
- Weaker medium-duty truck orders and Ford taking its transmissions in-house for larger trucks is a threat, but the new TC-10 transmission should create new opportunities in Class 8 trucks.
- Shortages of qualified drivers are driving more operators to adopt automatics in North America, but utilization outside North America is still low and a major potential driver for Allison.
- Allison still trades at a pretty hefty forward EBITDA multiple, but the company should be in position to generate significant free cash flow and looks more attractive on that basis.