Allison Transmission Delivers First Next-Generation Hydraulic Fracturing Transmissions to Multiple Industry Partners

Rhea-AI Summary

Allison Transmission has successfully delivered the first FracTran transmissions to several industry partners, enhancing their hydraulic fracturing operations.

This innovative product is estimated to generate an additional $100 million in annual revenue for Allison's Off-Highway markets. The FracTran offers unmatched reliability, with a lifespan of up to 25,000 hours, and can deliver up to 3,500 horsepower without hardware modifications. This next-gen solution underlines Allison's commitment to sustainability and efficiency in the energy sector.

Positive

• Projected additional revenue of $100 million annually from FracTran.
• High reliability with a service life of up to 25,000 hours.
• Capable of delivering up to 3,500 horsepower without modifications.
• Designed specifically for the hydraulic fracturing industry, catering to market demands.

Negative

• None.

Compatible with dual fuel engines capable of running on natural gas, while offering increased horsepower and substantially reduced idle time, Allison’s FracTran^TM offers a unique combination of versatility, power and efficiency

INDIANAPOLIS--(BUSINESS WIRE)-- Allison Transmission, a leading designer and manufacturer of conventional and electrified propulsion solutions, is pleased to announce the delivery of the first Allison FracTran^TM transmissions to multiple industry partners.

Allison Transmission delivers first FracTran to multiple industry partners. This next-generation automatic transmission will provide the improved sustainability, efficiency and profitability fracturing fleets desire as they work to reduce their environmental footprint. (Photo: Business Wire)

Allison’s FracTran is an all-new Oil Field Series^TM transmission designed from-the-ground-up to meet the unique demands of the hydraulic fracturing industry and represents an incremental growth opportunity of $100 million dollars in annual revenue for Allison’s global Off-Highway end markets. This next-generation solution is the result of extensive voice of customer insights, as well as an analysis of duty cycle information from decades of Allison products operating in oil and gas fields throughout the world.

“The delivery of the first FracTran units marks a significant milestone in Allison’s commitment to bring our energy customers the purpose-built solution they demanded,” said Kartik Ramanan, Executive Director, Global Off-Highway and Service Engineering at Allison Transmission. “The FracTran will provide the improved sustainability, efficiency and profitability fracturing fleets desire as they work to reduce their environmental footprint.”

The robust hydraulic fracturing transmission will deliver unparalleled performance in high pressure duty cycles in the harshest of operating environments. The FracTran is designed for high reliability with a service life up to 25,000 hours and an overhaul designed to provide a second life without hard parts replacement, resulting in low total cost of ownership.

The FracTran incorporates eight gear ranges, and is available with multiple gear ratio options to meet the unique performance demands of our customers. The FracTran is launched with a rating of 3,300 horsepower and 10,000 lb.-ft. of input torque to meet current market requirements. However, the product is capable of up to 3,500 horsepower with no hardware modifications required. In addition, the FracTran offers filter and fluid life prognostics, a transmission-mounted control module, torsional measuring diagnostics, and an on-rig telematics gateway.

For more information on the Allison revolutionary hydraulic fracturing transmission, please visit this link.

About Allison Transmission

Allison Transmission (NYSE: ALSN) is a leading designer and manufacturer of vehicle propulsion solutions for commercial and defense vehicles, the largest global manufacturer of medium- and heavy-duty fully automatic transmissions, and a leader in electrified propulsion systems that Improve the Way the World Works. Allison products are used in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining and construction applications) and defense vehicles (tactical wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. With a presence in more than 150 countries, Allison has regional headquarters in the Netherlands, China and Brazil, manufacturing facilities in the USA, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. Allison also has more than 1,400 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com.

Allison Transmission Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements, including all statements regarding future financial results. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plans,” “project,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “forecast,” “could,” “potential,” “continue” or the negative of these terms or other similar terms or phrases. Forward-looking statements are not guarantees of future performance and involve known and unknown risks. Factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made include, but are not limited to: the duration and spread of the COVID-19 pandemic, including new variants of the virus and the pace and availability of vaccines and boosters, mitigating efforts deployed by government agencies and the public at large, and the overall impact from such outbreak on economic conditions, financial market volatility and our business, including but not limited to the operations of our manufacturing and other facilities, the availability of labor, our supply chain, our distribution processes and demand for our products and the corresponding impacts to our net sales and cash flow; increases in cost, disruption of supply or shortage of labor, freight, raw materials or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of the COVID-19 pandemic; our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including increased trade protectionism; general economic and industry conditions; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; risks related to our indebtedness; and other risks and uncertainties associated with our business described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information is as of the date of this press release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220209005403/en/

Claire Gregory

Director, Global External Communications

Claire.Gregory@allisontransmission.com

317-694-2065

Source: Allison Transmission

FAQ

What is the significance of Allison Transmission's FracTran delivery on ALSN stock?

The delivery of FracTran marks a major milestone for Allison Transmission, potentially contributing an estimated $100 million in annual revenue, positively influencing ALSN stock.

How does the FracTran improve hydraulic fracturing operations?

FracTran enhances operations by offering increased horsepower, reduced idle time, and improved sustainability for fracturing fleets.

What are the key features of the FracTran transmission?

FracTran features eight gear ranges, high reliability with up to 25,000 hours of service life, and delivers up to 3,500 horsepower.

When was the first FracTran transmission delivered?

The first FracTran transmissions were delivered recently to multiple industry partners.

What company does the ticker symbol ALSN represent?

The ticker symbol ALSN represents Allison Transmission, a leader in vehicle propulsion solutions.