ALSN · CIK 1411207
What Allison Transmission Holdings, Inc. told the SEC could break it.
Allison is concentrated at both ends of its supply chain. On the demand side, a few truck OEMs drive its business — its top five customers were about 52% of 2025 net sales, with Daimler at 18%, PACCAR at 11% and Traton at 10% — so the loss or consolidation of any one would materially hurt results. On the supply side, roughly 75% of its component spending came from about 40 suppliers, many of them the single source for those parts, concentrating risk on a narrow validated base. In between sits commodity exposure: purchased components make up about 66% of its cost of sales, a substantial portion built from aluminum and steel, so metal-price swings pressure margins (partly indexed and passed through to customers on a 6-to-12-month lag).
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- top 5 OEM customers = 52% of net sales; top 3 (Daimler, PACCAR, Traton) = 39%high
Allison's sales are concentrated in a few truck OEMs — its top five OEM customers were ~52% of net sales in 2025, with Daimler AG (18%), PACCAR (11%) and Traton SE (10%) the largest — so loss or consolidation of any one would materially hurt results.
“For the years ended December 31, 2025, 2024 and 2023, our top five OEM customers accounted for approximately 52%, 55% and 52% of our net sales, respectively. Our top three customers, Daimler AG, PACCAR Inc. and Traton SE, accounted for approximately 18%, 11% and 10%, respectively, of our net sales during 2025.”
SEC filing →As of 2026
Commodity & input dependence
- aluminum and steel (purchased components ~66% of cost of sales)medium
About 66% of Allison's cost of sales is purchased components, a substantial portion made of aluminum and steel, exposing margins to aluminum/steel price moves (partly indexed and passed through to customers with a 6-12 month lag).
“We are subject to changes in our cost of sales caused by movements in underlying commodity prices. As of December 31, 2025, approximately 66% of our cost of sales consisted of purchased components. A substantial portion of the purchased parts are made of aluminum and steel.”
Sole-source dependency
- 75% of component spend from ~40 suppliers, many single-sourcemedium
In 2025 roughly 75% of Allison's total component spending came from about 40 suppliers, many of which are the single source for those components, concentrating supply risk on a narrow validated supplier base.
“In 2025, approximately 75% of our total spending on components was sourced from approximately 40 suppliers, many of which are the single source for such components.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“Our top three customers, Daimler AG, PACCAR Inc. and Traton SE, accounted for approximately 18%, 11% and 10%, respectively, of our net sales during 2025.”
Cited →Traton SE
“Our top three customers, Daimler AG, PACCAR Inc. and Traton SE, accounted for approximately 18%, 11% and 10%, respectively, of our net sales during 2025.”
Cited →Daimler AG
“Our top three customers, Daimler AG, PACCAR Inc. and Traton SE, accounted for approximately 18%, 11% and 10%, respectively, of our net sales during 2025.”
Cited →“Sales and service of MTU, Allison, and Daimler products accounted for approximately 12% of the Company's revenues during 2025.”
In the MyPRIA app, this is checked against the companies you actually own.
← World Watch