Segment Information (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Segment Reporting Information

The following presents a financial summary of the Company’s reportable segments (dollars in millions):


	Three Months Ended June 30, 2026
	Allison Transmission		Allison Off-Highway		Total Segments
Total sales	$	860	$	709	$	1,569
less: Intersegment sales		—		3		3
Total Net Sales		860		706		1,566
less:
Cost of sales		463		588
Selling, general and administrative		75		56
Engineering — research and development		41		15
Segment Operating Profit	$	281	$	47	$	328
Depreciation of property, plant and equipment	$	31	$	33
Amortization expense	$	—	$	21
Additions of long-lived assets	$	20	$	11


	Three Months Ended June 30, 2025
	Allison Transmission		Allison Off-Highway		Total Segments
Total sales	$	814	$	—	$	814
less: Intersegment sales		—		—		—
Total Net Sales		814		—		814
less:
Cost of sales		411		—
Selling, general and administrative		72		—
Engineering — research and development		43		—
Segment Operating Profit	$	288	$	—	$	288
Depreciation of property, plant and equipment	$	29	$	—
Amortization expense	$	1	$	—
Additions of long-lived assets	$	31	$	—


	For the Six Months Ended June 30, 2026
	Allison Transmission		Allison Off-Highway		Total Segments
Total sales	$	1,593	$	1,385	$	2,978
less: Intersegment sales		—		6		6
Total Net Sales		1,593		1,379		2,972
less:
Cost of sales		840		1,211
Selling, general and administrative		140		112
Engineering — research and development		80		30
Segment Operating Profit	$	533	$	26	$	559
Depreciation of property, plant and equipment	$	61	$	60
Amortization expense	$	1	$	43
Additions of long-lived assets	$	64	$	20


	For the Six Months Ended June 30, 2025
	Allison Transmission		Allison Off-Highway		Total Segments
Total sales	$	1,580	$	—	$	1,580
less: Intersegment sales		—		—		—
Total Net Sales		1,580		—		1,580
less:
Cost of sales		799		—
Selling, general and administrative		137		—
Engineering — research and development		85		—
Segment Operating Profit	$	559	$	—	$	559
Depreciation of property, plant and equipment	$	57	$	—
Amortization expense	$	3	$	—
Additions of long-lived assets	$	57	$	—

Schedule of Reconciliation of Reportable Segment's Total Segment Operating Profit to Income Before Income Taxes

A reconciliation of reportable segments’ Total Segment Operating Profit to Income before income taxes included in the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2026 and 2025 is as follows (dollars in millions):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Total Segment Operating Profit	$	328		$	288		$	559		$	559
Interest expense, net		(54	)		(22	)		(115	)		(43	)
Other (expense) income, net		(9	)		8			(11	)		13
Central group function costs (a)		(37	)		(32	)		(73	)		(54	)
Income before income taxes	$	228		$	242		$	360		$	475

(a)

Central group function costs not allocated to the segments include certain executive management, finance, legal, information technology and public company costs, Acquisition-related costs and other general administrative expenses.