Allison Transmission (ALSN) Secures $250M Contract for BAE Systems CV90 MkIV Transmissions

Allison Transmission Holdings Inc. (NYSE:ALSN) is one of the best quality stocks to buy according to Wall Street analysts. On June 16, Allison Transmission announced a $250 million contract to supply 4040 MX transmissions for BAE Systems Hägglunds’ CV90 MkIV infantry fighting vehicles. Marking the largest tracked defense order in the company’s history, the agreement [...]

Allison Transmission Holdings Inc. (NYSE:ALSN) is one of the best quality stocks to buy according to Wall Street analysts. On June 16, Allison Transmission announced a $250 million contract to supply 4040 MX transmissions for BAE Systems Hägglunds' CV90 MkIV infantry fighting vehicles. Marking the largest tracked defense order in the company's history, the agreement also includes a $50 million option for additional units.

The 4040 MX is an evolution of the existing 3040 MX, offering increased power and updated electronic controls while maintaining the same physical footprint for seamless engine integration. The design follows two years of rigorous testing to ensure it meets modern combat requirements. Pixabay/Public Domain Deliveries for the program are scheduled to commence in 2028.

Both companies stated that the partnership reflects a shared commitment to providing robust propulsion solutions to support the evolving operational needs of global armed forces. Allison Transmission Holdings Inc. (NYSE:ALSN) designs and manufactures automatic transmissions and hybrid propulsion systems for commercial and military vehicles. The company produces buses, trucks, construction equipment, and defense vehicles across global markets.

It serves customers such as vehicle manufacturers, fleet operators, and government or defense organizations. While we acknowledge the potential of ALSN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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