Allison Transmission Holdings Inc

Previous wording

The statements in this discussion regarding industry trends, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” and Part II, Item 1A “Risk Factors” below, and in Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the Securities and Exchange Commission ("SEC") on February 24, 2026. Our actual results may differ materially from those contained in or implied by any forward-looking statements.

Current wording

The statements in this discussion regarding industry trends, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” and Part II, Item 1A “Risk Factors” below, and in Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the Securities and Exchange Commission ("SEC") on February 24, 2026 (the "2025 Annual Report on Form 10-K"). Our actual results may differ materially from those contained in or implied by any forward-looking statements.

Previous wording

Following the Acquisition, we continue to operate under the Allison name, but our operations are now comprised of two operating and reportable segments: Allison Transmission and Allison Off-Highway Drive & Motion Systems ("Allison Off-Highway"). All prior period reportable segment information has been reclassified to conform to the current presentation. For additional discussion regarding our segments, including the changes made, see “Note T. Segment Information” in Part I, Item 1 of this Quarterly Report on Form 10-Q. Segment leadership is located globally, reflecting the international nature of our operations and the importance of local market insights, sourcing, production and customer support.

Current wording

Systems ("Allison Off-Highway"). All prior period reportable segment information has been reclassified to conform to the current presentation. For additional discussion regarding our segments, including the changes made, see “Note T. Segment Information” in Part I, Item 1 of this Quarterly Report on Form 10-Q. Segment leadership is located globally, reflecting the international nature of our operations and the importance of local market insights, sourcing, production and customer support.

Previous wording

In 2026, we expect to have higher net sales driven by the addition of Allison Off-Highway and higher net sales in Allison Transmission driven primarily by the Defense and On-Highway end markets.

Current wording

In 2026, we expect to have higher net sales driven by the addition of Allison Off-Highway and higher net sales in Allison Transmission driven primarily by the On-Highway and Defense end markets.

Previous wording

Our primary components of cost of sales are purchased parts, the overhead expense related to our manufacturing operations and direct labor associated with the manufacture and assembly of vehicle propulsion solutions and parts. For the six months ended June 30, 2026, direct material costs were approximately 64%, overhead costs were approximately 30%, and direct labor costs were approximately 6% of cost of sales. We are subject to changes in our cost of sales caused by movements in underlying commodity prices. We seek to hedge against this risk by using long-term agreements (“LTAs”), as appropriate. See Part I, Item 3, “Quantitative and Qualitative Disclosures about Market Risk—Commodity Price Risk” included below.

Current wording

Our primary components of cost of sales are purchased parts, the overhead expense related to our manufacturing operations and direct labor associated with the manufacture and assembly of vehicle propulsion solutions and parts. For the nine months ended September 30, 2026, direct material costs were approximately 65%, overhead costs were approximately 29%, and direct labor costs were approximately 6% of cost of sales. We are subject to changes in our cost of sales caused by movements in underlying commodity prices. We seek to hedge against this risk by using long-term agreements (“LTAs”), as appropriate. See Part I, Item 3, “Quantitative and Qualitative Disclosures about Market Risk—Commodity Price Risk” included below.

Previous wording

The Allison Off-Highway segment generated $706 million of net sales for the three months ended June 30, 2026.

Current wording

The Allison Off-Highway segment generated $653 million of net sales for the three months ended September 30, 2026.

Previous wording

The Allison Transmission segment generated $860 million of net sales for the three months ended June 30, 2026. Net sales increased $46 million, or 6%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Current wording

The Allison Transmission segment generated $881 million of net sales for the three months ended September 30, 2026. Net sales increased $188 million, or 27%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

North America On-Highway end market net sales decreased $47 million, or 6%, principally driven by lower demand for medium-duty trucks and class 8 vocational trucks, partially offset by price increases on certain products and increased demand for hybrid transit buses.

Current wording

North America On-Highway end market net sales increased $135 million, or 41%, principally driven by higher demand for medium-duty trucks and class 8 vocational trucks, price increases on certain products and increased demand for hybrid transit buses.

Previous wording

Service Parts, Support Equipment and Other end market net sales increased $1 million, or 1%, principally driven by price increases on certain products.

Current wording

Service Parts, Support Equipment and Other end market net sales increased $22 million, or 14%, principally driven by price increases on certain products.

Previous wording

Defense end market net sales increased $36 million, or 57%, principally driven by increased demand for Tracked vehicle applications, price increases on certain products and the continued execution of our growth initiatives.

Current wording

Defense end market net sales increased $16 million, or 21%, principally driven by increased demand for Tracked vehicle applications, price increases on certain products and the continued execution of our growth initiatives.

Previous wording

Global Off-Highway net sales increased $6 million, or 38%, principally driven by higher demand from the energy sector in North America.

Current wording

Global Off-Highway net sales increased $8 million, or 114%, principally driven by higher demand from the energy sector outside North America.

Previous wording

Cost of sales for the three months ended June 30, 2026 was $1,051 million compared to $411 million for the three months ended June 30, 2025, an increase of 156%. $588 million of cost of goods sold was attributable to Allison Off-Highway, including $18 million of depreciation expense related to the stepped-up basis in property, plant and equipment. The remaining increase of $52 million was principally driven by unfavorable direct material costs, higher direct material expense commensurate with increased net sales and higher incentive compensation expense, all within Allison Transmission.

Current wording

Cost of sales for the three months ended September 30, 2026 was $1,029 million compared to $363 million for the three months ended September 30, 2025, an increase of 183%. $555 million of cost of goods sold was attributable to Allison Off-Highway, including $10 million of depreciation expense related to the stepped-up basis in property, plant and equipment. The remaining increase of $111 million was principally driven by higher direct material and manufacturing expense commensurate with increased net sales, unfavorable direct material costs and higher incentive compensation expense in Allison Transmission.

Previous wording

Gross profit for the three months ended June 30, 2026 was $515 million compared to $403 million for the three months ended June 30, 2025, an increase of 28%. $118 million of the increase in gross profit was attributable to Allison Off-Highway, while gross profit attributable to Allison Transmission decreased $6 million, principally driven by unfavorable direct material costs and higher incentive compensation expense, partially offset by $34 million from price increases on certain products. Gross profit as a percent of net sales for the three months ended June 30, 2026 decreased 16.6 percentage points compared to the same period in 2025 principally driven by the addition of Allison Off-Highway, the products of which have a lower average gross profit as a percent of net sales profile compared to Allison Transmission products.

Current wording

Gross profit for the three months ended September 30, 2026 was $505 million compared to $330 million for the three months ended September 30, 2025, an increase of 53%. $98 million of the increase in gross profit was attributable to Allison Off-Highway, while gross profit attributable to Allison Transmission increased $77 million, principally driven by higher volume in the North America On-Highway end market and $39 million of price increases on certain products, partially offset by higher direct material and manufacturing expense commensurate with increased net sales, unfavorable direct material costs and higher incentive compensation expense. Gross profit as a percent of net sales for the three months ended September 30, 2026 decreased 14.7 percentage points compared to the same period in 2025 principally driven by the addition of Allison Off-Highway, the products of which have a lower average gross profit as a percent of net sales profile compared to Allison Transmission products.

Previous wording

Selling, general and administrative expenses for the three months ended June 30, 2026 were $168 million compared to $104 million for the three months ended June 30, 2025, an increase of 62%. Selling, general and administrative expenses of $56 million were attributable to Allison Off-Highway, including $20 million of amortization expense for intangible assets recognized from the Acquisition. The remaining increase of $8 million was principally driven by increased commercial activities spending, partially offset by decreased expenses related to the Acquisition.

Current wording

Selling, general and administrative expenses for the three months ended September 30, 2026 were $142 million compared to $83 million for the three months ended September 30, 2025, an increase of 71%. Selling, general and administrative expenses of $52 million were attributable to Allison Off-Highway, including $20 million of amortization expense for intangible assets recognized from the Acquisition. The remaining increase was principally driven by increased incentive compensation expense, partially offset by decreased expenses related to the Acquisition.

Previous wording

Engineering expenses for the three months ended June 30, 2026 were $56 million compared to $43 million for the three months ended June 30, 2025, an increase of 30%. The increase was primarily due to engineering expenses of $15 million attributable to Allison Off-Highway.

Current wording

Engineering expenses for the three months ended September 30, 2026 were $59 million compared to $43 million for the three months ended September 30, 2025, an increase of 37%. The increase was primarily due to engineering expenses of $14 million attributable to Allison Off-Highway.

Previous wording

Interest expense, net for the three months ended June 30, 2026 was $54 million compared to $22 million for the three months ended June 30, 2025, an increase of 145%. The increase was principally driven by $17 million of interest expense related to the Incremental Term Loan, $8 million of interest expense related to the 5.875% Senior Notes 2033 and $6 million of lower interest income.

Current wording

Interest expense, net for the three months ended September 30, 2026 was $51 million compared to $24 million for the three months ended September 30, 2025, an increase of 113%. The increase was principally driven by $17 million of interest expense related to the Incremental Term Loan, $7 million of interest expense related to the 5.875% Senior Notes 2033 and $6 million of lower interest income.

Previous wording

Other (expense) income, net for the three months ended June 30, 2026 was other expense of ($9) million compared to other income of $8 million for the three months ended June 30, 2025. The change was principally driven by a $17 million change in unrealized mark-to-market adjustments for marketable securities.

Current wording

Other (expense) income, net for the three months ended September 30, 2026 was other expense of ($15) million compared to other income of $2 million for the three months ended September 30, 2025. The change was principally driven by $17 million of restructuring charges related to Allison Off-Highway footprint optimization activities.

Previous wording

Income tax expense for the three months ended June 30, 2026 was $47 million, resulting in an effective tax rate of 21%, compared to $47 million of income tax expense and an effective tax rate of 19% for the three months ended June 30, 2025.

Current wording

Income tax expense for the three months ended September 30, 2026 was $47 million, resulting in an effective tax rate of 20%, compared to $45 million of income tax expense and an effective tax rate of 25% for the three months ended September 30, 2025. The increase in income tax expense was principally driven by higher income before income taxes, partially offset by a lower effective tax rate. The decrease in the effective tax rate was primarily driven by impacts related to the One Big Beautiful Bill Act enacted in 2025.

Previous wording

The following table sets forth certain financial information for the six months ended June 30, 2026 and 2025. The following table and discussion should be read in conjunction with the information contained in our condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

The following table sets forth certain financial information for the nine months ended September 30, 2026 and 2025. The following table and discussion should be read in conjunction with the information contained in our condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

The Allison Off-Highway segment generated $1,379 million of net sales for the six months ended June 30, 2026.

Current wording

The Allison Off-Highway segment generated $2,032 million of net sales for the nine months ended September 30, 2026.

Previous wording

The Allison Transmission segment generated $1,593 million of net sales for the six months ended June 30, 2026. Net sales increased $13 million, or 1%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

The Allison Transmission segment generated $2,474 million of net sales for the nine months ended September 30, 2026. Net sales increased $201 million, or 9%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

Defense end market net sales increased $70 million, or 60%, principally driven by increased demand for Tracked vehicle applications, price increases on certain products and the continued execution of our growth initiatives.

Current wording

Defense end market net sales increased $86 million, or 44%, principally driven by increased demand for Tracked vehicle applications, price increases on certain products and the continued execution of our growth initiatives.

Previous wording

Service Parts, Support Equipment and Other end market net sales increased $6 million, or 2%, principally driven by price increases on certain products.

Current wording

Service Parts, Support Equipment and Other end market net sales increased $28 million, or 6%, principally driven by price increases on certain products.

Previous wording

Global Off-Highway end market net sales decreased $4 million, or 12%, principally driven by lower demand from the energy, mining and construction sectors outside of North America, partially offset by increased demand from the energy sector in North America.

Current wording

Global Off-Highway end market net sales increased $4 million, or 10%, principally driven by increased demand from the global energy sector, partially offset by lower demand from the global mining and construction sectors.

Previous wording

Outside North America On-Highway end market net sales decreased $12 million, or 5%, principally driven by lower demand in Asia and South America, partially offset by price increases on certain products.

Current wording

Outside North America On-Highway end market net sales decreased $5 million, or 1%, principally driven by lower demand in Asia and South America, partially offset by price increases on certain products and higher demand in Europe.

Previous wording

Cost of sales for the six months ended June 30, 2026 was $2,051 million compared to $799 million for the six months ended June 30, 2025, an increase of 157%. $1,211 million of cost of goods sold was attributable to Allison Off-Highway, including purchase price accounting allocations of $63 million of expense related to the stepped-up basis in inventory and $31 million of depreciation expense related to the stepped-up basis in property, plant and equipment. The remaining $41 million increase was principally driven by unfavorable direct material costs, higher incentive compensation expense and higher direct material expense commensurate with increased net sales in Allison Transmission.

Current wording

Cost of sales for the nine months ended September 30, 2026 was $3,080 million compared to $1,162 million for the nine months ended September 30, 2025, an increase of 165%. $1,766 million of cost of goods sold was attributable to Allison Off-Highway, including purchase price accounting allocations of $64 million of expense related to the stepped-up basis in inventory and $41 million of depreciation expense related to the stepped-up basis in property, plant and equipment. The remaining $152 million increase was principally driven by higher direct material and manufacturing expense commensurate with increased net sales, unfavorable direct material costs and higher incentive compensation expense in Allison Transmission.

Previous wording

Gross profit for the six months ended June 30, 2026 was $921 million compared to $781 million for the six months ended June 30, 2025, an increase of 18%. $168 million of the increase in gross profit was attributable to Allison Off-Highway, while the gross profit attributable to Allison Transmission decreased $28 million, principally driven by unfavorable direct material costs and higher incentive compensation expense, partially offset by $57 million of price increases on certain products. Gross profit as a percent of net sales for the six months ended June 30, 2026 decreased 18.4 percentage points compared to the same period in 2025 principally driven by the addition of Allison Off-Highway, the products of which have a lower average gross profit as a percent of net sales profile compared to Allison Transmission products.

Current wording

Gross profit for the nine months ended September 30, 2026 was $1,426 million compared to $1,111 million for the nine months ended September 30, 2025, an increase of 28%. $266 million of the increase in gross profit was attributable to Allison Off-Highway, while the gross profit attributable to Allison Transmission increased $49 million, principally driven by $96 million of price increases on certain products and increased net sales in the North America On-Highway and Defense end markets, partially offset by higher direct material and manufacturing expense commensurate with increased net sales, unfavorable direct material costs and higher incentive compensation expense. Gross profit as a percent of net sales for the nine months ended September 30, 2026 decreased 17.3 percentage points compared to the same period in 2025 principally driven by the addition of Allison Off-Highway, the products of which have a lower average gross profit as a percent of net sales profile compared to Allison Transmission products.

Previous wording

Selling, general and administrative expenses were $325 million for the six months ended June 30, 2026 compared to $191 million for the six months ended June 30, 2025, an increase of 70%. Selling, general and administrative expenses of $112 million were attributable to Allison Off-Highway, including $41 million of amortization expense for intangible assets recognized from the Acquisition. The remaining increase of $22 million was principally driven by increased commercial activities spending and higher incentive compensation.

Current wording

Selling, general and administrative expenses were $467 million for the nine months ended September 30, 2026 compared to $274 million for the nine months ended September 30, 2025, an increase of 70%. Selling, general and administrative expenses of $164 million were attributable to Allison Off-Highway, including $61 million of amortization expense for intangible assets recognized from the Acquisition. The remaining increase of $29 million was principally driven by higher incentive compensation expense and increased commercial activities spending, partially offset by decreased expenses related to the Acquisition and lower product warranty expense.

Previous wording

Engineering expenses for the six months ended June 30, 2026 were $110 million compared to $85 million for the six months ended June 30, 2025, an increase of 29%. Engineering expenses of $30 million were attributable to Allison Off-Highway. The remaining decrease of $5 million was principally driven by reduced product initiatives spending in Allison Transmission.

Current wording

Engineering expenses for the nine months ended September 30, 2026 were $169 million compared to $128 million for the nine months ended September 30, 2025, an increase of 32%. Engineering expenses of $44 million were attributable to Allison Off-Highway. The remaining decrease was principally driven by decreased product initiatives spending in Allison Transmission, partially offset by higher incentive compensation expense.

Previous wording

Interest expense, net for the six months ended June 30, 2026 was $115 million compared to $43 million for the six months ended June 30, 2025, an increase of 167%. The increase was principally driven by $33 million of interest expense related to the Incremental Term Loan, $15 million of interest expense related to the 5.875% Senior Notes 2033, and $11 million of lower interest income.

Current wording

Interest expense, net for the nine months ended September 30, 2026 was $166 million compared to $67 million for the nine months ended September 30, 2025, an increase of 148%. The increase was principally driven by $49 million of interest expense related to the Incremental Term Loan, $22 million of interest expense related to the 5.875% Senior Notes 2033 and $17 million of lower interest income.

Previous wording

Other (expense) income, net for the six months ended June 30, 2026 was other expense of ($11) million compared to other income of $13 million for the six months ended June 30, 2025. The change was principally driven by a $17 million change in unrealized mark-to-market adjustments for marketable securities and $8 million of unfavorable foreign exchange.

Current wording

Other (expense) income, net for the nine months ended September 30, 2026 was other expense of ($26) million compared to other income of $15 million for the nine months ended September 30, 2025. The change was principally driven by a $22 million change in unrealized mark-to-market adjustments for marketable securities and $17 million of restructuring charges related to Allison Off-Highway footprint optimization activities.

Previous wording

Income tax expense for the six months ended June 30, 2026 was $67 million, resulting in an effective tax rate of 19%, compared to $88 million of income tax expense and an effective tax rate of 19% for the six months ended June 30, 2025. The decrease in income tax expense was principally driven by lower taxable income.

Current wording

Income tax expense for the nine months ended September 30, 2026 was $114 million, resulting in an effective tax rate of 19%, compared to $133 million of income tax expense and an effective tax rate of 20% for the nine months ended September 30, 2025. The decrease in income tax expense was principally driven by lower taxable income.

Previous wording

We use Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“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”) measures to Adjusted EBITDA and Adjusted EBITDA as a percent of net sales are Net income and Net income as a percent of net sales, respectively. Adjusted EBITDA is calculated as earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by the Credit Agreement governing ATI's term loan facility in the amount of $506 million due March 2031 (“Term Loan”), the Incremental Term Loan and the Revolving Credit Facility (together, the "Senior Secured Credit Facility"). Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales.

Current wording

We use Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“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”) measures to Adjusted EBITDA and Adjusted EBITDA as a percent of net sales are Net income and Net income as a percent of net sales, respectively. Adjusted EBITDA is calculated as earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by the Credit Agreement governing ATI's term loan facility in the amount of $505 million due March 2031 (“Term Loan”), the Incremental Term Loan and the Revolving Credit Facility (together, the "Senior Secured Credit Facility"). Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales.

Previous wording

Represents losses (recorded in Other (expense) income, net) on intercompany financing transactions for our facility in Chennai, India.

Current wording

Represents losses (recorded in Other (expense) income, net) on intercompany financing transactions.

Previous wording

Net cash provided by operating activities (GAAP) and Adjusted free cash flow (Non-GAAP) included $12 million and $14 million for the three months ended June 30, 2026 and 2025, respectively, and $41 million and $17 million for the six months ended June 30, 2026 and 2025, respectively, of payments for expenses related to the Acquisition.

Current wording

Net cash provided by operating activities (GAAP) and Adjusted free cash flow (Non-GAAP) included $5 million and $13 million for the three months ended September 30, 2026 and 2025, respectively, and $46 million and $30 million for the nine months ended September 30, 2026 and 2025, respectively, of payments for expenses related to the Acquisition.

Previous wording

Allison Transmission - Comparison of the three and six months ended June 30, 2026 and 2025

Current wording

Allison Transmission - Comparison of the three and nine months ended September 30, 2026 and 2025

Previous wording

The following tables set forth certain financial information for the three and six months ended June 30, 2026 and 2025 and should be read in conjunction with the information contained in our condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

The following tables set forth certain financial information for the three and nine months ended September 30, 2026 and 2025 and should be read in conjunction with the information contained in our condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

For a discussion of the year-over-year changes in Net sales in each end market, see “Results of Operations – Allison Consolidated Comparison of the three months ended June 30, 2026 and 2025 – Net sales” and “Results of Operations – Allison Consolidated Comparison of the six months ended June 30, 2026 and 2025 – Net sales” above.

Current wording

For a discussion of the year-over-year changes in Net sales in each end market, see “Results of Operations – Allison Consolidated Comparison of the three months ended September 30, 2026 and 2025 – Net sales” and “Results of Operations – Allison Consolidated Comparison of the nine months ended September 30, 2026 and 2025 – Net sales” above.

Previous wording

Segment Operating Profit for the three months ended June 30, 2026 and 2025 was $281 million and $288 million, respectively, a decrease of 2%. For the six months ended June 30, 2026 and 2025 Segment Operating Profit was $533 million and $559 million, respectively, a decrease of 5%. The decreases were principally driven by lower gross profit, as described in “Results of Operations – Allison Consolidated Comparison of the three months ended June 30, 2026 – Gross profit” and “Results of Operations – Allison Consolidated Comparison of the six months ended June 30, 2026 – Gross profit” above.

Current wording

Segment Operating Profit for the three months ended September 30, 2026 and 2025 was $300 million and $232 million, respectively, an increase of 29%. For the nine months ended September 30, 2026 and 2025 Segment Operating Profit was $833 million and $791 million, respectively, an increase of 5%. The increases were principally driven by higher gross profit, as described in “Results of Operations – Allison Consolidated Comparison of the three months ended September 30, 2026 – Gross profit” and “Results of Operations – Allison Consolidated Comparison of the nine months ended September 30, 2026 – Gross profit” above.

Previous wording

Allison Off-Highway - Operating results for the three and six months ended June 30, 2026

Current wording

Allison Off-Highway - Operating results for the three and nine months ended September 30, 2026

Previous wording

The Allison Off-Highway reportable segment is comprised solely of the Acquired Off-Highway Business. The following table sets forth certain financial information for the three and six months ended June 30, 2026 and should be read in conjunction with the information contained in our condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

The Allison Off-Highway reportable segment is comprised solely of the Acquired Off-Highway Business. The following table sets forth certain financial information for the three and nine months ended September 30, 2026 and should be read in conjunction with the information contained in our condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q.