$97M Abrams Tank Contract Awarded

Allison Transmission (NYSE: ALSN) announced a $97 million contract to supply propulsion systems for the U.S. Army’s Abrams Main Battle Tank program, covering the 2026 variants of the iconic armored vehicle.

The deal, announced October 13, 2025, extends Allison’s decades-long partnership with the Army and underscores its continued role as a core defense mobility supplier.

X1100 Cross-Drive Transmission: Proven Reliability

The Abrams tank uses Allison’s X1100 cross-drive transmission, first introduced in the 1970s.
The system remains central to the vehicle’s mobility, survivability, and maintainability, meeting evolving battlefield requirements through modernized engineering and durability enhancements.

Allison emphasized its alignment with the Army’s “right to repair” initiative, ensuring service continuity and component support at domestic depots to strengthen operational readiness.

Next-Generation Military Propulsion

In parallel with the new contract, Allison is advancing:

Hybrid-electric propulsion systems for future combat vehicles.
Digital control technologies designed to optimize powertrain performance and diagnostics in dynamic military environments.

Market Reaction

Shares of Allison Transmission (ALSN) rose 1.67% premarket to $80.80, reflecting investor confidence in the company’s growing defense segment backlog and its expanding role in next-gen military mobility solutions.