Allison (ALSN) to Equip AM General's A2 Version of JLTV

·2-min read

Owing to its proven performances, Allison Transmission ALSN has received a contract from the U.S. Army to provide Allison 2500 Speciality Series transmission for AM General’s A2 Version of the Joint Light Tactical Vehicle (JLTV). Previously, Allison provided the 2500 SP for AM General’s A1 Version of the JLTV in 2015.

JLTV is a military vehicle designed to provide protection and off-road mobility in combat and non-combat situations. It is used by the U.S. Navy, Army, Marine Corps and Air Force. The 2500 SP transmission works in extreme environmental conditions and softer soil, providing exceptional speed and power. The 2500 SP transmission for JLTV A2 is expected to be delivered to the U.S. Army after 18 months from the contract date, Feb 9, 2023.

“We are providing innovative propulsion solutions that meet the needs of our customer and deliver fuel efficiency technologies that offer on-the-move fuel economy improvements and anti-idle capability that optimize combat effectiveness of tactical wheeled vehicles,” said Dana Pittard, VP of defense programs, Allison Transmission.

Over the next couple of years, the U.S. Defense Department forecasts the need for more than 55,000 A1 and A2 JLTV. Moreover, the JLTV’s superior mobility, unmatched reliability and proven performance have gained traction for 2500 SP transmission in the international market.

According to Zacks model, Allison’s total revenues for 2023 is expected in the band of $2,825-$2,925 million, driven by robust sales growth across all end-markets.

Zacks Rank & Key Picks

ALSN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few top-ranked players in the auto space are Geely Automobile GELYY, Modine Manufacturing MOD and Wabash National WNC, all of which sport a Zacks Rank #1.

Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of 57.54% and 7.38%, respectively.

Modine operates primarily in a single industry of manufacturing and selling heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.

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