# EDGAR Filing Document

**Accession Number:** 0001411207
**File Stem:** 0001193125-25-265028
**Filing Date:** 2025-11
**Character Count:** 101691
**Document Hash:** 1931dcd24c37f016d81422af6adbe0ff
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-265028.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001193125-25-265028

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251104

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Allison Transmission Holdings Inc
- **CENTRAL INDEX KEY:** 0001411207
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLE PARTS & ACCESSORIES [3714]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35456
- **FILM NUMBER:** 251450813

**BUSINESS ADDRESS:**
- **STREET 1:** ONE ALLISON WAY
- **CITY:** Indianapolis
- **STATE:** IN
- **ZIP:** 46222
- **BUSINESS PHONE:** (317) 242-5000

**MAIL ADDRESS:**
- **STREET 1:** ONE ALLISON WAY
- **CITY:** Indianapolis
- **STATE:** IN
- **ZIP:** 46222

?xml version='1.0' encoding='ASCII'? 8-K

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, DC 20549

### FORM 8-K

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d)

#### of the Securities Exchange Act of 1934

#### Date of report (Date of earliest event reported): November 4, 2025

## ALLISON TRANSMISSION HOLDINGS, INC.

#### (Exact Name of Registrant as Specified in its Charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-35456** | **26-0414014** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **One Allison Way, Indianapolis, Indiana** | **46222** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

#### Registrant's telephone number, including area code: (317) 242-5000

#### Not Applicable

#### (Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **Symbol(s)** | **Name of each exchange**<br> **on which registered** |
| Common stock, $0.01 par value | ALSN | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 17 CFR (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

---

| | |
|:---|:---|
| **Item 7.01** | **Regulation FD Disclosure.**  |

---

On November 4, 2025, Allison Transmission Holdings, Inc. (the "Company") announced that Allison Transmission, Inc. ("ATI"), the Company's wholly owned subsidiary, commenced an offering of approximately $500 million in aggregate principal amount of senior notes, (the "Notes") in a private placement (the "Offering") exempt from registration under the Securities Act of 1933 (the "Securities Act"), subject to market conditions. As previously disclosed by the Company in its Current Report on Form 8-K furnished with the Securities and Exchange Commission on October 30, 2025, the Company announced that ATI is seeking to enter into an amendment (the "Credit Agreement Amendment") to the Second Amended and Restated Credit Agreement, dated as of March 29, 2019, as amended October 11, 2019, November 19, 2020, February 28, 2023 and March 13, 2024, among ATI, as borrower, the Company, Citibank, N.A., as administrative agent, Citicorp North America, Inc., as collateral agent, and the other lenders and letter of credit issuers party thereto, which, among other things, provides for a senior secured first-lien incremental term loan facility (the "Incremental Term Facility") in an aggregate principal amount equal to $1.2 billion.

To the extent the Company completes the Offering and entry into the Credit Agreement Amendment, the Company intends to use the net proceeds from the Offering and borrowings under the Incremental Term Facility and its revolving credit facility, together with cash on hand, to finance the consummation of the Company's previously announced acquisition of the off-highway business of Dana Incorporated and to pay related fees and expenses. There can be no assurance that ATI will be able to complete the Offering or enter into the Credit Agreement Amendment on terms and conditions favorable to it or at all.

The Company is making available certain portions of a preliminary offering memorandum that is expected to be provided to prospective purchasers of the Notes in connection with the Offering, which portions are attached hereto as Exhibit 99.1.

This Current Report on Form 8-K, including the information contained in Exhibit 99.1, does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offering, solicitation or sale would be unlawful. The Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act or the securities laws of any other jurisdiction.

The information contained in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.

#### Forward-Looking Statements
This Current Report on Form 8-K contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including expectations regarding consummation of the Company's previously announced acquisition of the off-highway business of Dana Incorporated, the ability to complete the Offering or enter into the Credit Agreement Amendment on terms and conditions favorable to it or at all, and the expected use of proceeds to finance the acquisition. Statements regarding future events are based on the parties' current expectations and are necessarily subject to associated risks related to, among other things, that the acquisition may not be completed in a timely manner or at all, that the financing intended to fund the acquisition, including the Notes Offering and the Credit Agreement Amendment, may not be obtained, and general economic conditions. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. For information regarding other related risks, see the "Risk Factors" section of the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements included herein are made only as of the date hereof, and the Company undertakes no obligation to revise or update any forward-looking statements, except as required by applicable law.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.**  |

---

(d) Exhibits.

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | [Portions of the Preliminary Offering Memorandum related to the Offering of the Notes.](d54630dex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | Allison Transmission Holdings, Inc. | Allison Transmission Holdings, Inc. |
|  Date: November 4, 2025 |  |  |
|  | By: | /s/ Eric C. Scroggins |
|  | Name: | Eric C. Scroggins |
|  | Title: | Vice President, General Counsel and Secretary |

---

## Exhibit 99.1

**Exhibit 99.1** 

**SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS** 

The following information contains, or may be deemed to contain, "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995) including, without limitation, information concerning possible or assumed future results of operations, including our ability to achieve the synergies reflected in our presentation of Pro Forma Adjusted EBITDA, the preliminary financial results for the Dana Business (as defined herein) for the three months ended September 30, 2025 and descriptions of our business plan and strategies,. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: risks related to the Dana Business Acquisition (as defined herein), including, but not limited to: (i) that the Dana Business Acquisition may not be completed in a timely manner or at all; (ii) we may experience delays, unanticipated costs or restrictions resulting from regulatory review of the Dana Business Acquisition, including the risk that we may be unable to obtain governmental and regulatory approvals required for the Dana Business Acquisition or that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Dana Business Acquisition; or (iii) the full amount of the financing intended to finance the Dana Business Acquisition may not be obtained; 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; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, natural disasters, extreme weather events, wars and public health crises such as pandemics; global economic volatility; general economic and industry conditions, including the risk of prolonged inflation and recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; 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; cybersecurity risks to our operational systems, security systems or infrastructure owned by us or our third-party vendors and suppliers; 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 acts of war and increased trade protectionism and tariffs; 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; and risks related to our indebtedness.

Allison Transmission cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial goals will be realized. All forward-looking statements included herein speak only as of the date made, and Allison Transmission undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. In particular, Allison Transmission cautions you not to place undue weight on certain forward-looking statements pertaining to the *pro forma* financial information, potential growth opportunities or long-term financial goals set forth herein. Actual results may vary significantly from these statements.

Allison Transmission's business is subject to numerous risks and uncertainties, which may cause future results of operations to vary significantly from those presented herein. Important factors that could cause actual results to differ materially are discussed in Allison Transmission's Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025.

------

**NON-GAAP FINANCIAL INFORMATION** 

This Exhibit 99.1 contains financial measures which have not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA, Adjusted EBITDA Margin, Pro Forma Adjusted EBITDA, Adjusted Net Leverage, Free Cash Flow, Free Cash Flow Conversion, Pro Forma Adjusted Free Cash Flow, Adjusted Free Cash Flow and the presentation of our *pro forma* financial data for the 12 months ended June 30, 2025 (collectively, the "non-GAAP financial measures"). These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's or the Dana Business' financial results, as applicable. We believe that the presentation of these non-GAAP financial measures enhances an investor's understanding of our financial performance. We further believe that these non-GAAP financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain of these non-GAAP financial measures for business planning purposes and in measuring our performance relative to that of our competitors. Because not all companies calculate non-GAAP financial information identically (or at all), this presentation herein may not be comparable to other similarly titled measures used by other companies. Further, such non-GAAP financial measures of the Company or the Dana Business, as applicable, should not be considered in isolation or as a substitute for the information contained in the historical financial information of the Company, if any, prepared in accordance with GAAP included herein. The adjustments made to calculate these non-GAAP financial measures are significant components in understanding and evaluating our financial performance and liquidity. The presentation of these non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. For a reconciliation of these non-GAAP financial measures to the most comparable measures calculated in accordance with GAAP, see "Certain Summary Historical and Pro Forma Financial Data".

In addition, this Exhibit 99.1 contains the Dana Business' unaudited preliminary operating results for the three months ended September 30, 2025. The preliminary financial data for the three months ended September 30, 2025 has been prepared by, and is the responsibility of, the management of Dana (as defined herein) and is subject to the finalization of quarter-end financial and accounting procedures. Dana's independent auditors have not audited, reviewed, examined, compiled nor applied agreed upon procedures with respect to the accompanying preliminary financial data, and, accordingly, they do not express an opinion or any other form of assurance with respect thereto. This information, while based on the good faith expectations of Dana's management as of the date of this Form 8-K, is based on a preliminary analysis, is not final and may materially differ from the actual results once completed. This preliminary financial data should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP or as a measure of performance.

------

**DEFINITIONS** 

As used in this Exhibit 99.1, except where noted or the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Dana" refers to Dana Incorporated, a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Dana Business" refers to Dana Incorporated's off-highway business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Dana Business Acquisition" refers to Holdings' Stock Purchase Agreement with Dana Incorporated
to acquire the Dana Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Dana Business Acquisition Closing" refers to the closing of the Dana Business Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Existing Revolving Credit Facility" refers to the Company's senior secured revolving facility
in the initial aggregate principal amount of up to $750.0 million (with a $75.0 million sublimit for the issuance of letters of credit thereunder), maturing on March 13, 2029.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Existing Term Loan Facility" refers to the Company's senior secured term loan facility in the
initial aggregate principal amount of $518.0 million, maturing on March 13, 2031.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Holdings", "Allison" and the "Company" refer to Allison Transmission
Holdings, Inc., a corporation incorporated under the laws of the State of Delaware, and the direct parent of the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Incremental Term Loan Facility" refers to the incremental term loan facility the Company began
public marketing for on October 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Issuer" refers to Allison Transmission, Inc., a corporation incorporated under the laws of the State
of Delaware

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Notes" refers to new senior notes that the Issuer intends to issue to finance a portion of the Dana
Business Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Revolver Refinancing Facility" refers to the Existing Revolving Credit Facility to extend its
maturity and increase the commitment amount therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Senior Secured Credit Facilities" refers to, collectively, the Revolver Refinancing Facility, the
Incremental Term Loan Facility and the Existing Term Loan Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Transactions" refers to (a) the issuance of the Notes and the use of proceeds therefrom,
(b) the Dana Business Acquisition, (c) the expected entry into and the effectiveness of an amendment to the credit agreement governing the Senior Secured Credit Facilities; and (d) the payment of fees, costs and expenses related to
the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "6/30 LTM Period" refers to the 12 months ended June 30, 2025, which, with respect to financial
information, has been derived by subtracting amounts included in the unaudited financial statements for the six months ended June 30, 2024 from the audited consolidated financial statements for the year ended December 31, 2024 and then adding
amounts included in the unaudited financial statements for the six months ended June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "9/30 LTM Period" refers to the 12 months ended September 30, 2025, which, with respect to financial
information, has been derived by subtracting amounts included in the unaudited financial statements for the nine months ended September 30, 2024 from the audited consolidated financial statements for the year ended December 31, 2024 and then adding
amounts included in the unaudited financial statements for the nine months ended September 30, 2025.

------

**PRELIMINARY THIRD QUARTER OPERATING RESULTS OF THE DANA BUSINESS** 

The Dana Business' unaudited preliminary operating results for the three months ended September 30, 2025 are set forth herein. The preliminary financial data for the three months ended September 30, 2025 has been prepared by, and is the responsibility of, the management of Dana and is subject to the finalization of quarter-end financial and accounting procedures. This information, while based on the good faith expectations of Dana's management as of the date hereof, is based on a preliminary analysis, is not final and may materially differ from the actual results once completed.

Based on the preliminary analysis of Dana's management performed for the three months ended September 30, 2025, the Dana Business anticipates the following operating results:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue is expected to be between $570 million and $690 million, compared to $620 million for the
three months ended September 30, 2024, a change of between (8.1)% and 11.3%, driven by decreased revenue from the agriculture, material handling, construction and forestry end markets, offset by improved performance in the industrial end
market, tariff recoveries and favorable foreign currency fluctuations (primarily the Euro);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EBITDA is expected to be between $85 million and $105 million, compared to $104 million for the
three months ended September 30, 2024, a change of between (18.3)% and 1.0%, driven by unfavorable end market mix, higher bonus accruals, tariffs, and lower customer recoveries as compared to the prior year period, partially offset by favorable
foreign currency fluctuations (primarily the Euro); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital Expenditures are expected to be between $8 million and $12 million, compared to
$11 million for the three months ended September 30, 2024, a change of between (27.3)% and 9.1%.

**RISK FACTORS** 

***The Dana Business preliminary financial results for the three months ended September 30, 2025 were prepared by the Dana's management based solely on estimates using information currently available as of the date hereof. The final results for the Dana Business for the three months ended September 30, 2025 may vary from the preliminary financial results included herein.***

The preliminary financial results included herein were prepared by Dana's management in connection with the preparation of Dana Business financial statements and are based upon a number of assumptions. Dana's management is still in the process of preparing the Dana Business full financial statements for the three months ended September 30, 2025. Additional items that may require adjustments to the preliminary financial results may be identified and could result in material changes to the estimated preliminary financial results. In addition, our expectations relating to the Dana Business financial results for the three months ended September 30, 2025 may not be realized and we provide no assurance that the Dana Business' actual results will not vary from current expectations. As a result, the Dana Business' final results for these periods may vary from the preliminary financial results included herein.

***Our actual financial position and results of operations may differ materially from the unaudited pro forma financial data included herein.***

The unaudited *pro forma* financial data included herein are presented to reflect the Dana Business Acquisition for illustrative purposes only. If the Dana Business Acquisition had occurred in the past, the operating results might have been materially different from those presented in the unaudited *pro forma* financial data. The unaudited *pro forma* financial data should not be relied upon as an indication of operating results that would have been achieved if the Dana Business Acquisition contemplated herein had taken place on the specified date. The unaudited *pro forma* condensed combined financial statements are not necessarily indicative of our future operating results. The unaudited *pro forma* financial data has been derived from our audited and unaudited financial statements and the Dana Business' audited and unaudited financial statements, and reflects assumptions and adjustments that are based upon preliminary estimates and our successful completion of the Transactions. The fair value of the assets and liabilities of the Dana Business have been estimated based on discussions with Dana's management, preliminary valuation studies and financial due diligence. The process for estimating the fair value of acquired assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. These estimates will be revised as additional information becomes available and as additional analyses are performed. Accordingly, the final acquisition accounting adjustments may differ materially from the *pro forma* adjustments reflected herein. The assumptions used in preparing the unaudited *pro forma* financial data, including assumptions as to the successful completion of the Transactions, may not prove to be accurate, and other factors may adversely affect our financial condition or results of operations following the Dana Business Acquisition Closing.

------

**CERTAIN SUMMARY HISTORICAL AND PRO FORMA FINANCIAL DATA** 

**Allison Transmission and Pro Forma Financial Information** 

The following table sets forth our summary historical consolidated financial information and summary unaudited *pro forma* condensed combined financial information for the periods and dates indicated. The summary historical financial data of Allison for the fiscal years ended December 31, 2023 and 2024 were derived from the audited consolidated financial statements of Allison. The summary historical financial data of Allison as of and for the nine months ended September 30, 2025 were derived from the unaudited condensed consolidated financial statements of Allison.

We have also presented summary unaudited consolidated financial data for the 9/30 LTM Period, which has been derived by subtracting amounts included in the unaudited financial statements for the nine months ended September 30, 2024 from the audited consolidated financial statements for the year ended December 31, 2024 and then adding amounts included in the unaudited financial statements for the nine months ended September 30, 2025. These figures are not presented in accordance with GAAP, but we believe they provide investors with useful information to assess our recent performance. The summary historical audited and unaudited consolidated financial information is derived from historical consolidated financial statements and certain financial data of Holdings in lieu of consolidated financial statements and financial data for the Issuer.

The summary unaudited *pro forma* condensed combined financial information for the 6/30 LTM Period and as of June 30, 2025 has been derived from the unaudited *pro forma* condensed combined financial statements. The summary unaudited *pro forma* condensed combined statement of operations data for the 6/30 LTM Period have been calculated by subtracting amounts included in the unaudited *pro forma* condensed combined statement of operations information and cash flow data for the six months ended June 30, 2024 from the unaudited *pro forma* condensed combined statement of operations information and cash flow data for the year ended December 31, 2024 and then adding amounts included in the unaudited *pro forma* condensed combined statement of operations information and cash flow data for the six months ended June 30, 2025. These figures are not presented in accordance with GAAP, but we believe they provide investors with useful information to assess our recent performance.

The summary unaudited *pro forma* condensed combined statement of operations information has been adjusted to give effect to the Transactions as if each of these events occurred on January 1, 2024. The summary unaudited *pro forma* condensed combined balance sheet data have been adjusted to give effect to the Transactions as if they occurred as of June 30, 2025. For a further description of the *pro forma* adjustments, see "Unaudited Pro Forma Condensed Combined Financial Information."

The unaudited *pro forma* financial data presented herein are presented to reflect the Dana Business Acquisition for illustrative purposes only. If the Dana Business Acquisition had occurred in the past, the operating results might have been materially different from those presented in the unaudited *pro forma* financial data. The unaudited *pro forma* financial data should not be relied upon as an indication of operating results that would have been achieved if the Dana Business Acquisition contemplated herein had taken place on the specified date. Neither the historical nor unaudited *pro forma* condensed combined financial statements are necessarily indicative of our future operating results. The summary historical and unaudited *pro forma* condensed combined financial statements presented below are qualified in their entirety by reference to, and should be read in conjunction with, the historical and unaudited *pro forma* condensed combined financial statements and related notes.

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**Statement of Operations Data:** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Historical** | **Pro Forma** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Nine Months Ended<br>September 30,** | **9/30 LTM<br>Period** | **6/30 LTM Period** |
| (in millions) | **2023** | **2024** | **2025** | **2025** | **2025** |
|  Net sales | $3035 | $3225 | $2273 | $3069 | $5675 |
|  Cost of sales | 1565 | 1696 | 1164 | 1587 | 3719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit** | 1470 | 1529 | 1109 | 1482 | 1956 |
|  Selling, general and administrative | 357 | 337 | 270 | 354 | 592 |
|  Engineering – research and development | 194 | 200 | 130 | 184 | 192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income** | 919 | 992 | 709 | 944 | 1172 |
|  Interest expense, net | (107) | (89) | (67) | (88) | (207) |
|  Other income (expense), net | 15 | (6) | 15 | 11 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income before income taxes** | 827 | 897 | 657 | 867 | 991 |
|  Income tax expense | (154) | (166) | (133) | (168) | (185) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income**  | $673 | $731 | $524 | $699 | $806 |

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**Balance Sheet Data:** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Pro Forma** |
|  | **As of December 31,** | **As of December 31,** | **As of September 30,** | **As of June 30,** |
| (in millions) | **2023** | **2024** | **2025** | **2025** |
|  Cash and cash equivalents | $555 | $781 | $902 | $297 |
|  Total assets | $5025 | $5336 | $5517 | $8879 |
|  Current liabilities | $501 | $506 | $438 | $1393 |
|  Long-term debt | $2497 | $2395 | $2393 | $4378 |

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**Other Financial Data:** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Historical** | **Pro Forma** | **Pro Forma** | **Pro Forma** |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **6/30<br>LTM<br>Period** | **9/30<br>LTM<br>Period** | **Year Ended<br>December 31,** | **Six<br>Months<br>Ended<br>June 30,** | **6/30<br>LTM<br>Period** |
| (in millions) | **2023** | **2024** | **2025** | **2025** | **2024** | **2025** | **2025** |
|  **Net Income** | $673 | $731 | $762 | $699 | $676 | $423 | $806 |
|  *Adjusted for*: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 154 | 166 | 172 | 168 | 189 | 79 | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property, plant and equipment | 109 | 111 | 114 | 116 | 198 | 97 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 107 | 89 | 85 | 88 | 219 | 101 | 207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 45 | 10 | 6 | 7 | 87 | 41 | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition-related expenses<sup>(a)</sup> |  |  | 24 | 38 | 44 | 24 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory step-up<sup>(b)</sup> |  |  |  |  | 87 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expenses<sup>(c)</sup> | 22 | 26 | 26 | 26 | 26 | 14 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss (gain) on marketable securities<sup>(d)</sup> | 1 | 9 | (9) | (10) | 9 | (8) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UAW Local 933 contract signing incentives<sup>(e)</sup> |  | 14 |  |  | 14 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension plan settlement loss<sup>(f)</sup> |  | 4 |  |  | 4 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, net<sup>(g)</sup> |  |  |  |  | 9 | 3 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(h)</sup> | (3) | 5 | 4 | 3 | 8 | 1 | 6 |
|  **Adjusted EBITDA** | $1108 | $1165 | $1184 | $1135 | $1570 | $775 | $1533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost Synergies<sup>(i)</sup> |  |  |  |  |  |  | $120 |
|  **Pro Forma Adjusted EBITDA** |  |  |  |  |  |  | $1653 |
|  Capital Expenditures | $125 | $143 | $168 | $176 | $212 | $80 | $240 |
|  **Free Cash Flow** | $983 | $1022 | $1016 | $959 | $1358 | $695 | $1293 |
|  Net sales | $3035 | $3225 | $3200 | $3069 | $5921 | $2842 | $5675 |
|  Net income as a percent of Net sales | 22.2% | 22.7% | 23.8% | 22.8% | 11.4% | 14.9% | 14.2% |
|  Adjusted EBITDA as a percent of Net sales | 36.5% | 36.1% | 37.0% | 37.0% | 26.5% | 27.3% | 27.0% |
|  Net cash provided by operating activities | $784 | $801 | $822 | $804 | $816 | $460 | $959 |
|  Deductions to reconcile to Adjusted free cash flow: |  |  |  |  |  |  |  |
|  Additions of long-lived assets | (125) | (143) | (168) | (176) | (212) | (80) | (240) |
|  **Adjusted free cash flow** | $659 | $658 | $654 | $628 | $604 | $380 | $719 |

---

(a) Represents acquisition-related expenses (recorded in Selling, general and administrative), primarily consulting
and legal fees, related to the acquisition of the Dana Business.

------

(b) Represents non-cash charges related to the fair value adjustment of
inventory acquired from the acquisition of the Dana Business.

(c) Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative,
and Engineering — research and development).

(d) Represents unrealized losses (gains) (recorded in Other income (expense), net) related to an investment in the
common stock of Jing-Jin Electric Technologies Co. Ltd.

(e) Represents non-recurring incentives (recorded in Cost of sales,
Selling, general and administrative, and Engineering—research and development) to eligible employees as a result of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America ("UAW") Local
933 represented employees ratifying a four-year collective bargaining agreement effective through November 2027.

(f) Represents a non-cash settlement charge (recorded in Other income
(expense), net) for a pro rata portion of previously unrecognized pension plan actuarial net losses associated with the pension risk transfer of a portion of our salaried defined benefit pension plan obligations to a third-party insurance company.

(g) Represents restructuring plan expenses of the Dana Business.

(h) Represents other adjustments as permitted pursuant to the Credit Agreement, as amended.

(i) Represents cost synergies and operational improvements expected to result from the acquisition of the Dana
Business.

**Dana Business Financial Information** 

The following table sets forth the Dana Business' summary historical combined financial information for the periods and dates indicated. The summary historical financial data of the Dana Business for the fiscal years ended December 31, 2023 and 2024 were derived from the audited combined financial statements of the Dana Business, as restated. The summary historical financial data of the Dana Business as of and for the six months ended June 30, 2025 were derived from the unaudited condensed combined financial statements of the Dana Business, as restated.

We have also presented summary unaudited combined financial data of the Dana Business for the 6/30 LTM Period, which has been derived by subtracting amounts included in the Dana Business' unaudited condensed combined financial statements for the six months ended June 30, 2024, as restated, from its audited combined financial statements for the year ended December 31, 2024, as restated, and then adding amounts included in the Dana Business' unaudited condensed combined financial statements for the six months ended June 30, 2025, as restated. These figures are not presented in accordance with GAAP, but we believe they provide investors with useful information to assess the Dana Business' recent performance.

**Statement of Operations Data:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** | **Historical** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Six Months Ended June 30,** | **6/30 LTM Period** |
| (in millions) | **2023** | **2024** | **2025**<br>**(as Restated)** | **2025<br>(as Restated)** |
|  Net sales – External | $3034 | $2635 | $1241 | $2423 |
|  Net sales – Related party | 51 | 61 | 21 | 52 |
|  **Net Sales** | 3085 | 2696 | 1262 | 2475 |
|  Costs and Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales – External | 2550 | 2194 | 1042 | 2028 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales – Related party | 35 | 39 | 15 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales | 2585 | 2233 | 1057 | 2062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 162 | 137 | 77 | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangibles | 5 | 5 | 3 | 5 |
|  Restructuring charges, net | 3 | 9 | 3 | 11 |
|  Interest |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – External | 4 | 4 | 3 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – Related party | 10 | 9 | 4 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 14 | 13 | 7 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense – External | 2 | 4 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense – Related party | 27 | 25 | 12 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 29 | 29 | 12 | 28 |
|  Other income, net | 17 | 16 | 10 | 18 |
|  **Income before income taxes** | 332 | 312 | 127 | 262 |
|  Income tax expense | 94 | 107 | 19 | 67 |
|  **Net income** | $238 | $205 | $108 | $195 |

---

------

**Balance Sheet Data:** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** |
|  | **As of December 31,** | **As of December 31,** | **As of June 30,** |
| (in millions) | **2023** | **2024** | **2025**<br>**(as Restated)** |
|  Cash and cash equivalents | $82 | $128 | $147 |
|  Total assets | $2359 | $2248 | $2498 |
|  Current liabilities | $1028 | $829 | $927 |
|  Total liabilities | $1952 | $1717 | $1919 |

---

**Other Dana Business Financial Data:** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Historical** | **Historical** | **Historical** | **Historical** |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **6/30 LTM<br>Period** |
| (in millions) | **2023** | **2024** | **2024** | **2025**<br>**(as Restated)** | **2025**<br>**(as Restated)** |
|  **Net Income** | $238 | $205 | 118 | $108 | $195 |
|  *Adjusted for*: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 94 | 107 | 59 | 19 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property, plant and equipment | 93 | 63 | 35 | 28 | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 15 | 16 | 6 | 5 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 5 | 5 | 3 | 3 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges, net<sup>(a)</sup> | 3 | 9 | 1 | 3 | 11 |
|  **Adjusted EBITDA** | $448 | $405 | $222 | $166 | $349 |
|  Capital Expenditures | $68 | $69 | $20 | $23 | $72 |
|  **Free Cash Flow** | $380 | $336 | $202 | $143 | $277 |
|  Net sales | $3085 | $2696 | $1483 | $1262 | $2475 |
|  Net income as a percent of Net sales | 7.7% | 7.6% | 8.0% | 8.6% | 7.9% |
|  Adjusted EBITDA as a percent of Net sales | 14.5% | 15.0% | 15.0% | 13.2% | 14.1% |
|  Net cash provided by operating activities, as Restated | $466 | $181 | $107 | $120 | $194 |
|  Deductions to reconcile to Adjusted free cash flow: |  |  |  |  |  |
|  Additions of long-lived assets | (68) | (69) | (20) | (23) | (72) |
|  **Adjusted free cash flow** | $398 | $112 | $87 | $97 | $122 |

---

(a) Represents restructuring plan expenses of the Dana Business.

------

**UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION** 

The following unaudited *pro forma* condensed combined financial information has been prepared to give effect to the Transactions as discussed further below. The unaudited *pro forma* condensed combined financial information was derived from the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the audited consolidated financial statements of Holdings for the year ended December 31, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the unaudited condensed consolidated financial statements of Holdings as of June 30, 2025 and for the six
months ended June 30, 2024 and 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the audited combined financial statements of the Dana Business for the year ended December 31, 2024 as
restated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the unaudited condensed combined financial statements of the Dana Business as of June 30, 2025 and for the
six months ended June 30, 2024 and 2025, as restated.

The *pro forma* financial statements have not been prepared in accordance with Article 11 of Reg. S-X because the *pro forma* financial information is not presented at and for the appropriate dates and time periods. The unaudited *pro forma* condensed combined statement of operations data for the 6/30 LTM Period have been calculated by subtracting the unaudited *pro forma* condensed combined statement of operations data for the six months ended June 30, 2024 from the unaudited *pro forma* condensed combined statement of operations data for the year ended December 31, 2024 and then adding the unaudited *pro forma* condensed combined statement of operations data for the six months ended June 30, 2025. The unaudited *pro forma* condensed combined statements of operations data have been adjusted to give effect to the Transactions as if each of these events occurred on January 1, 2024. The unaudited *pro forma* condensed combined balance sheet has been adjusted to give effect to the Transactions as if they occurred on June 30, 2025.

The *pro forma* adjustments are based on the information available and certain assumptions that management believes are reasonable under the circumstances. The assumptions underlying the *pro forma* adjustments are described in the accompanying notes, which should be read in conjunction with the unaudited *pro forma* condensed combined financial statements.

The Dana Business Acquisition will be accounted for using the acquisition method of accounting for business combinations under US GAAP. Under the acquisition method of accounting, the acquisition date fair value will be allocated to the underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair market value, with any excess of the consideration allocated to goodwill. The allocation of the fair value of consideration transferred reflected herein is based on estimates of the fair market value of the tangible and intangible assets and liabilities of the Dana Business as described in the accompanying notes to the unaudited *pro forma* condensed combined financial information. As of the date hereof, the valuation studies necessary to determine the fair market value of the acquired assets and liabilities and the related allocation are preliminary. The final allocation will be based, in part, on third-party appraisals and may be different from that reflected in the allocation used herein and any differences may be material.

Our historical audited and unaudited financial statements described above have been adjusted in the unaudited *pro forma* condensed combined financial statements to give effect to the effect of the Transactions on the historical financial information of the Company. The unaudited *pro forma* condensed combined financial statements should be read in conjunction with the accompanying notes.

The unaudited *pro forma* condensed combined financial information does not include the realization of any future cost savings or synergies or the incurrence of restructuring or integration charges that are expected to result from the Dana Business Acquisition.

------

The unaudited *pro forma* condensed combined financial information is presented for illustrative and informative purposes only and is not intended to represent or be indicative of what our results of operations and financial position would have been had the Transactions actually occurred on the dates indicated, and it is neither representative of nor projects our results of operations for any future period or our financial condition at any future date. The unaudited *pro forma* condensed combined financial information should be read in conjunction with "Special Note Regarding Forward-Looking Statements" and "Use of Non-GAAP Financial Measures," and our audited and unaudited financial statements and the accompanying notes, as well as the other financial information included herein.

On June 11, 2025, Allison entered into the Purchase Agreement with Dana to acquire the Dana Business. Pursuant to the Purchase Agreement, the Company plans to acquire the Dana Business for a purchase price of approximately $2,732 million, subject to certain adjustments, using a combination of cash on hand and debt. The closing of the transaction is not subject to a financing condition or to the approval of Dana's or Allison's stockholders and is projected to occur late in the fourth quarter of 2025, pending customary regulatory approvals. The Company will be required to pay Dana a termination fee of $120 million if the Purchase Agreement is terminated due to the failure of the transactions contemplated by the Purchase Agreement to be completed by a specified outside date as a result of the failure to obtain required approvals or clearances under, or as a result of an injunction or order relating to, competition and foreign investment laws.

Also on June 11, 2025, in connection with the entry into the Purchase Agreement, the Company entered into the Commitment Letter, pursuant to which the Bridge Lenders have committed to provide the Bridge Facility, in an aggregate principal amount of $2,000 million, subject to customary conditions.

The unaudited *pro forma* condensed combined financial information assumes that Allison does not draw down on the Bridge Facility but instead finances the Dana Business Acquisition with the Incremental Term Loan Facility and the Notes (the "Debt Financing"). The Debt Financing, together with a $300 million draw on the Company's Revolver Refinancing Facility, is assumed to be sufficient for purposes of financing the cash consideration and expenses in connection with the Dana Business Acquisition.

Allison has not secured the Debt Financing or drawn down on the Bridge Facility, and any financing related to the Dana Business Acquisition may be different from the amount assumed for purposes of the unaudited *pro forma* condensed combined financial information. These assumptions and expectations are subject to change, and the debt issuance costs to be incurred and related interest expense could vary significantly from what is assumed in the unaudited *pro forma* condensed combined financial information. Other factors that are subject to change include, but are not limited to, the timing of borrowings, the amount of cash on hand at the time of closing, and inputs into interest rate determination on debt instruments issued.

The unaudited *pro forma* condensed combined statement of operations data for the 6/30 LTM Period have been calculated by subtracting the unaudited *pro forma* condensed combined statement of operations data for the six months ended June 30, 2024 from the unaudited *pro forma* condensed combined statement of operations data for the year ended December 31, 2024 and then adding the *pro forma* condensed combined statement of operations data for the six months ended June 30, 2025.

The Dana Business Acquisition has been accounted for in the following unaudited *pro forma* condensed combined statements of operations for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period, giving effect to the Dana Business Acquisition as if it had occurred on January 1, 2024. The unaudited *pro forma* condensed combined balance sheet as of June 30, 2025 gives effect to the Dana Business Acquisition as if it had occurred on June 30, 2025.

The following unaudited *pro forma* condensed combined financial statements and related notes as of and for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period have been derived from, and should be read in conjunction with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the historical audited consolidated financial statements of Allison and accompanying notes included in the
Allison Annual Report on Form 10-K as of and for the year ended December 31, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the historical unaudited condensed consolidated financial statements of Allison and related notes included in the
Allison Quarterly Report on Form 10-Q as of and for the six months ended June 30, 2024 and 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the historical audited combined financial statements of the Dana Business and related notes as of and for the
year ended December 31, 2024 as restated;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the historical unaudited condensed combined financial statements of the Dana Business and related notes as of and
for the six months ended June 30, 2024 and 2025 as restated.

The unaudited *pro forma* financial information contained herein is not presented on a *pro forma* basis in accordance with Article 11 of Regulation S-X because the *pro forma* financial information is not presented at and for the appropriate dates and time periods.

The Dana Business has historically been managed and operated in normal course with other Dana businesses through multiple legal entities not solely dedicated to the Dana Business. Therefore, the accompanying historical combined financial statements of the Dana Business have been derived from the accounting records of Dana as if the Dana Business' operations had been conducted independently from those of Dana and were prepared on a stand-alone basis in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The historical combined statements of operations of the Dana Business reflect allocations of general corporate expenses from Dana including, but not limited to executive management, research and development, sales and marketing, information technology, human resources, finance, accounting, legal, supply chain, and insurance. These allocations were based on direct usage when identifiable or, when not directly identifiable, on the basis of proportional net revenues or headcount or other reasonable driver, as applicable. The unaudited *pro forma* condensed combined financial statements include Dana assets and liabilities that are specifically identifiable or otherwise attributable to the Dana Business.

The unaudited *pro forma* condensed combined financial statements were prepared for illustrative and informational purposes only and are not intended to represent what our results of operations or financial position would have been had the Dana Business Acquisition occurred on the dates indicated, or what they will be for any future periods. The unaudited *pro forma* combined financial information has not been adjusted to give effect to certain expected financial benefits of the transaction, such as cost synergies or revenue synergies, or the anticipated costs to achieve these benefits, including the cost of integration activities. Also, the unaudited *pro forma* combined financial information does not reflect possible adjustments related to integration activities that have yet to be determined or transaction or other costs following the Dana Business Acquisition that are not expected to have a continuing impact on the business of the combined company.

------

**ALLISON TRANSMISSION HOLDINGS, INC.** 

**UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET** 

**AS OF JUNE 30, 2025** 

**(in millions)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Allison**<br>**Historical** | **Dana Off-Highway**<br>**Adjusted**<br>**(Note 3)** | **Pre-Merger<br>Adjustments** | **Note Ref** | **Transaction<br>Accounting<br>Adjustments** | **Note Ref** | **Financing<br>Adjustments** | **Note<br>Ref** | **Pro<br>Forma**<br>**Combined** |
|  **Assets** |  |  |  |  |  |  |  |  |  |
|  **Current assets**: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $778 | $147 | $(44) | 5(a) | $(2568) | 6(b) | $1984 | 7(a) | $297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - net of allowance for doubtful accounts | 375 | 781 | (361) | 5(b) |  |  |  |  | 795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 341 | 560 |  |  | 87 | 6(f) |  |  | 988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 93 | 126 |  |  |  |  |  |  | 219 |
|  **Total current assets** | 1587 | 1614 | (405) |  | (2481) |  | 1984 |  | 2299 |
|  Marketable securities | 19 |  |  |  |  |  |  |  | 19 |
|  Property, plant and equipment, net | 814 | 444 |  |  | 222 | 6(e) |  |  | 1480 |
|  Intangible assets, net | 818 | 72 |  |  | 1044 | 6(d) |  |  | 1934 |
|  Goodwill | 2076 | 188 |  |  | 635 | 6(g) |  |  | 2899 |
|  Other non-current assets | 97 | 180 | (8) | 5(b) | (21) | 6(c), 6(h) |  |  | 248 |
|  **Total assets** | $5411 | $2498 | $(413) |  | $(601) |  | $1984 |  | $8879 |
|  **Liabilities** |  |  |  |  |  |  |  |  |  |
|  **Current liabilities:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $231 | $539 | $— |  | $— |  | $— |  | $770 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Product warranty liability | 32 | 22 |  |  |  |  |  |  | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term debt | 5 | 55 | (55) | 5(b) |  |  |  |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 36 | 28 |  |  |  |  |  |  | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 168 | 283 |  |  | 49 | 6(c) |  |  | 500 |
|  **Total current liabilities** | 472 | 927 | (55) |  | 49 |  |  |  | 1393 |
|  Product warranty liability | 47 | 13 |  |  |  |  |  |  | 60 |
|  Deferred revenue | 100 |  |  |  |  |  |  |  | 100 |
|  Long-term debt | 2394 | 662 | (662) | 5(b) |  |  | 1984 | 7(a) | 4378 |
|  Deferred income taxes | 496 | 27 |  |  | 336 | 6(h) |  |  | 859 |
|  Other non-current liabilities | 149 | 290 |  |  | (50) | 6(i) |  |  | 389 |
|  Total liabilities | 3658 | 1919 | (717) |  | 335 |  | 1984 |  | 7179 |
|  **Stockholders' equity:** |  |  |  |  |  |  |  |  |  |
|  Common stock, $0.01 par value, 1,880,000,000 shares authorized, 85,776,801 shares issued and outstanding | 1 |  |  |  |  |  |  |  | 1 |
|  Non-voting common stock, $0.01 par value, 20,000,000 shares authorized, none issued and outstanding |  |  |  |  |  |  |  |  |  |
|  Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding |  |  |  |  |  |  |  |  |  |
|  Paid in capital | 1946 |  |  |  |  |  |  |  | 1946 |
|  Accumulated deficit | (157) |  |  |  | (53) | 6(c) |  |  | (210) |
|  Net parent investment |  | 787 | 304 | 5(a), 5(b) | (1091) | 6(a) |  |  |  |
|  Accumulated other comprehensive loss, net of tax | (37) | (208) |  |  | 208 | 6(a) |  |  | (37) |
|  **Total stockholders' equity** | 1753 | 579 | 304 |  | (936) |  |  |  | 1700 |
|  **Total liabilities and stockholders' equity** | $5411 | $2498 | $(413) |  | $(601) |  | $1984 |  | $8879 |

---

*See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Information* 

------

**ALLISON TRANSMISSION HOLDINGS, INC.** 

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS** 

**FOR THE SIX MONTHS ENDED JUNE 30, 2025** 

**(in millions, except per share data)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Allison**<br>**Historical** | **Dana Off-**<br>**Highway**<br>**Adjusted**<br>**(Note 4)** | **Pre-Merger<br>Adjustments** | **Note<br>Ref** | **Transaction<br>Accounting<br>Adjustments** | **Note<br>Ref** | **Financing<br>Adjustments** | **Note<br>Ref** | **Pro Forma**<br>**Combined** | **Note<br>Ref** |
|  Net sales | $1580 | $1262 | $— |  | $— |  | $— |  | $2842 |  |
|  Cost of sales | 800 | 1051 |  |  | 12 | 6(e) |  |  | 1863 |  |
|  Gross Profit | 780 | 211 |  |  | (12) |  |  |  | 979 |  |
|  Selling, general and administrative | 188 | 86 |  |  | 35 | 6(d) |  |  | 309 |  |
|  Engineering - research and development | 87 |  |  |  |  |  |  |  | 87 |  |
|  Operating income | 505 | 125 |  |  | (47) |  |  |  | 583 |  |
|  Interest expense, net | (43) | (5) | 8 | 5(b) |  |  | (61) | 7(a) | (101) |  |
|  Other income (expense), net | 13 | 7 |  |  |  |  |  |  | 20 |  |
|  Income before income taxes | 475 | 127 | 8 |  | (47) |  | (61) |  | 502 |  |
|  Income tax expense | (88) | (19) |  |  | 12 | 6(k) | 16 | 7(b) | (79) |  |
|  Net income | $387 | $108 | $8 |  | $(35) |  | $(45) |  | $423 |  |
|  Basic earnings per share attributable to common stockholders | $4.55 |  |  |  |  |  |  |  | $4.98 | 6(l) |
|  Diluted earnings per share attributable to common stockholders | $4.50 |  |  |  |  |  |  |  | $4.92 | 6(l) |

---

*See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Information* 

------

**ALLISON TRANSMISSION HOLDINGS, INC.** 

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS** 

**FOR THE YEAR ENDED DECEMBER 31, 2024** 

**(in millions, except per share data)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Allison**<br>**Historical** | **Dana**<br>**Off-**<br>**Highway**<br>**Adjusted**<br>**(Note 4)** | **Pre-Merger<br>Adjustments** | **Note<br>Ref** | **Transaction<br>Accounting<br>Adjustments** | **Note**<br>**Ref** | **Financing<br>Adjustments** | **Note<br>Ref** | **Pro Forma**<br>**Combined** | **Note<br>Ref** |
|  Net sales | $3225 | $2696 | $— |  | $— |  | $— |  | $5921 |  |
|  Cost of sales | 1696 | 2215 |  |  | 111 | 6(e), 6(f) |  |  | 4022 |  |
|  Gross Profit | 1529 | 481 |  |  | (111) |  |  |  | 1899 |  |
|  Selling, general and administrative | 337 | 160 |  |  | 119 | 6(c), 6(d), 6(j) |  |  | 616 |  |
|  Engineering - research and development | 200 |  |  |  |  |  |  |  | 200 |  |
|  Operating income | 992 | 321 |  |  | (230) |  |  |  | 1083 |  |
|  Interest expense, net | (89) | (16) | 16 | 5(b) | (9) | 6(c) | (121) | 7(a) | (219) |  |
|  Other (expense) income, net | (6) | 7 |  |  |  |  |  |  | 1 |  |
|  Income before income taxes | 897 | 312 | 16 |  | (239) |  | (121) |  | 865 |  |
|  Income tax expense | (166) | (107) |  |  | 53 | 6(k) | 31 | 7(b) | (189) |  |
|  Net income | $731 | $205 | $16 |  | $(186) |  | $(90) |  | $676 |  |
|  Basic earnings per share attributable to common stockholders | $8.40 |  |  |  |  |  |  |  | $7.77 | 6(l) |
|  Diluted earnings per share attributable to common stockholders | $8.31 |  |  |  |  |  |  |  | $7.68 | 6(l) |

---

*See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Information* 

------

**ALLISON TRANSMISSION HOLDINGS, INC.** 

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS** 

**FOR THE LAST TWELVE MONTHS ENDED JUNE 30, 2025** 

**(in millions, except per share data)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Allison**<br>**Historical** | **Dana Off-**<br>**Highway**<br>**Adjusted**<br>**(Note 4)** | **Pre-Merger<br>Adjustments** | **Note<br>Ref** | **Transaction<br>Accounting<br>Adjustments** | **Note Ref** | **Financing<br>Adjustments** | **Note<br>Ref** | **Pro Forma**<br>**Combined** | **Note<br>Ref** |
|  Net sales | $3200 | $2475 | $— |  | $— |  | $— |  | $5675 |  |
|  Cost of sales | 1651 | 2044 |  |  | 24 | 6(e) |  |  | 3719 |  |
|  Gross Profit | 1549 | 431 |  |  | (24) |  |  |  | 1956 |  |
|  Selling, general and administrative | 357 | 161 |  |  | 74 | 6(d), 6(j) |  |  | 592 |  |
|  Engineering - research and development | 192 |  |  |  |  |  |  |  | 192 |  |
|  Operating income | 1000 | 270 |  |  | (98) |  |  |  | 1172 |  |
|  Interest (expense) benefit, net | (85) | (16) | 16 | 5(b) |  |  | (122) | 7(a) | (207) |  |
|  Other income, net | 19 | 7 |  |  |  |  |  |  | 26 |  |
|  Income (loss) before income taxes | 934 | 261 | 16 |  | (98) |  | (122) |  | 991 |  |
|  Income tax (expense) benefit | (172) | (67) |  |  | 23 | 6(k) | 31 | 7(b) | (185) |  |
|  Net income (loss) | $762 | $194 | $16 |  | $(75) |  | $(91) |  | $806 |  |
|  Basic earnings per share attributable to common stockholders | $8.66 |  |  |  |  |  |  |  | $9.48 | 6(l) |
|  Diluted earnings per share attributable to common stockholders | $8.66 |  |  |  |  |  |  |  | $9.37 | 6(l) |

---

*See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Information* 

**Note 1. Basis of Presentation** 

The unaudited *pro forma* condensed combined financial statements have been prepared using the acquisition method of accounting for business combinations under US GAAP, in accordance with Accounting Standards Codifications (ASC) 805, Business Combinations. Under the acquisition method of accounting, the purchase price is allocated to the underlying tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values as of the acquisition date, with any excess purchase price allocated to goodwill. The allocation of the purchase price used in the unaudited *pro forma* condensed combined financial information is based on preliminary estimates. The estimates and assumptions are subject to change at the effective time of the Dana Business Acquisition. The Company has not completed the detailed valuation studies necessary to determine the fair value of the Dana Business' assets to be acquired and liabilities to be assumed and the related allocations of purchase price. The final determination of the allocation of the purchase price will be based on the identification of the Dana Business assets acquired and liabilities assumed from the Dana Business and their respective assigned fair values as of the effective date of the Dana Business Acquisition.

The Company estimated the fair value of the Dana Business assets and liabilities based on discussions with Dana's management, preliminary valuation studies and financial due diligence. Accordingly, the final purchase accounting adjustments may be materially different from the preliminary unaudited adjustments presented herein.

The unaudited *pro forma* condensed combined financial information has been compiled in a manner consistent with the accounting policies adopted by the Company. The Company believes these accounting policies are similar in most material respects to those of Dana. Certain reclassifications have been made to conform the presentation of the Dana Business financial information to that of the Company. Please refer to Notes 3 and 4 for additional information.

------

Upon completion of the Dana Business Acquisition, or as more information becomes available, the Company will perform a more detailed review of Dana's accounting policies in an effort to determine if differences in accounting policies require adjustment or reclassification of the Dana Business results of operations or reclassification of assets or liabilities to conform to the Company's accounting policies and classifications. As a result of that review, differences could be identified between the accounting policies of the two companies that, when conformed, could have a material impact on the combined financial information.

The Company is not aware of any material transactions between the Company and the Dana Business during the periods presented. Accordingly, adjustments to eliminate transactions between the Company and the Dana Business have not been reflected in the unaudited *pro forma* condensed combined financial information.

**Note 2. Preliminary Purchase Price Calculation and Preliminary Purchase Price Allocation** 

The table below represents the preliminary calculation of estimated consideration to acquire the Dana Business. The adjustments to the base purchase price are preliminary and in accordance with the Purchase Agreement. Amounts are subject to change based upon final settlement and actual information as of the Dana Business Acquisition Closing.

---

| | |
|:---|:---|
| **(in millions)** | |
|  Base purchase price | $2732 |
|  Net indebtedness | (61) |
|  Working capital decrease | (103) |
|  Total cash consideration transferred | $2568 |

---

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed of the Dana Business are recognized and measured at fair value. The allocation and the fair value assessments are preliminary and are based on currently available information and certain assumptions, which management believes are reasonable. For the preliminary estimate of fair values of assets acquired and liabilities assumed of the Dana Business, the Company primarily used income-based, market-based, and/or cost-based valuation approaches to conclude upon a preliminary estimate of fair values. The Company also used publicly available benchmarking information as well as a variety of other assumptions, including market participant assumptions, when estimating fair value. The preliminary allocation of the purchase price to the acquired assets and assumed liabilities was based upon this preliminary estimate of fair values. Accordingly, the *pro forma* purchase price allocation is subject to further adjustments as additional information becomes available and detailed analyses and final valuation are completed, and the adjustments could be material.

The table below represents a preliminary allocation of the estimated consideration to the Dana Business identified tangible and intangible assets acquired and liabilities assumed based on preliminary estimated fair values as of June 30, 2025. The table below is also prepared on a post elimination and reclassification basis, which is further discussed in Notes 3 and 4.

---

| | |
|:---|:---|
| **(in millions)** | |
|  **Fair value of assets acquired:** |  |
|  Cash and cash equivalents | $103 |
|  Accounts receivable | 420 |
|  Inventories | 647 |
|  Other current assets | 126 |
|  Property and Equipment | 666 |
|  Intangible assets | 1116 |
|  Other non-current assets | 155 |
|  **Amount attributable to assets acquired** | $3233 |
|  **Fair value of liabilities assumed:** |  |
|  Accounts payable | $539 |
|  Current product warranty liability | 22 |
|  Deferred revenue | 28 |
|  Other current liabilities | 283 |
|  Non-current product warranty liability | 13 |
|  Deferred income taxes | 363 |
|  Other non-current liabilities | 240 |

---

------

---

| | |
|:---|:---|
|  **Amount attributable to liabilities assumed** | $1488 |
|  **Fair value of net assets acquired** | $1745.0 |
|  Goodwill | 823.0 |
|  **Total estimated purchase price** | $2568.0 |

---

The Dana Business's preliminary identifiable intangible assets and the preliminary step-up in property, plant and equipment along with their estimated useful lives consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | | | | |
| **Identifiable Intangible assets** | **Estimated useful**<br>**life in years** | **Estimated useful**<br>**life in years** | **Estimated fair**<br>**value** | **Estimated fair**<br>**value** |
|  Developed Technology |  | 6 |  | 245 |
|  Customer Relationships |  | 17.5 |  | 638 |
|  Trade Name |  | Indefinite |  | 233 |

---

---

| | | |
|:---|:---|:---|
| **(in millions)** | | |
| **Property, plant and equipment** |<br>**Estimated useful**<br>**life in years** |<br>**Estimated fair**<br>**value** |
|  Step-up in Real property | 25 | 78 |
|  Step-up in remaining Property, plant and equipment | 7 | 144 |
|  Total step-up in Property, plant and equipment |  | 222 |

---

**Note 3. The Dana Business Unaudited *Pro Forma* Condensed Combined Balance Sheet Reclassification Adjustments** 

During the preparation of the *Pro Forma* condensed combined balance sheet, management performed a preliminary analysis of the Dana Business financial information to identify differences in accounting policies as compared to those of Allison and differences in financial statement presentation as compared to the presentation of Allison.

The following table summarizes the various reclassification adjustments made to the Dana Business Balance Sheet for the period ended June 30, 2025 to align with the required *pro forma* presentation.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in millions)** | **Dana's Off-**<br>**Highway<br>Business as<br>Restated,<br>Before<br>Reclassification** | **Reclassification** | **Note<br>Ref** | **Dana's Off-**<br>**Highway<br>Business,<br>Adjusted** | **Allison Transmission**<br> **Holdings Inc. Financial**<br> **Statement Line** |
|  **Assets** |  |  |  |  |  |
|  Cash and cash equivalents | $147 | $— |  | $147 | Cash and cash equivalents |
|  Accounts receivable |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade, less allowance for doubtful accounts of $4 in 2025 and $4 in 2024 | 411 | 370 | (a) | 781 | Accounts receivable - net of allowance for doubtful accounts of $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party receivables | 9 | (9) | (a) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 37 | (37) | (b) |  |  |
|  Inventories | 560 |  |  | 560 | Inventories |
|  Due from Parent, short term | 361 | (361) | (a) |  |  |
|  Other current assets | 89 | 37 | (b) | 126 | Other current assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current assets** | 1614 |  |  | 1614 |  |
|  Goodwill | 188 |  |  | 188 | Goodwill |
|  Intangibles | 72 |  |  | 72 | Intangible assets, net |
|  Deferred tax assets | 74 | (74) | (c) |  |  |
|  Other noncurrent assets | 54 | 126 | (c) | 180 | Other non-current assets |
|  Due from parent | 8 | (8) | (c) |  |  |
|  Operating lease assets | 44 | (44) | (c) |  |  |
|  Property, plant and equipment net | 444 |  |  | 444 | Property, plant and equipment, net |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $2498 | $— |  | $2498 |  |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in millions)** | **Dana's Off-**<br>**Highway<br>Business as<br>Restated,<br>Before<br>Reclassification** | **Reclassification** | **Note<br>Ref** | **Dana's Off-**<br>**Highway<br>Business,<br>Adjusted** | **Allison Transmission**<br> **Holdings Inc. Financial**<br> **Statement Line** |
|  **Liabilities and equity** |  |  |  |  |  |
|  Current debt obligations | 2 | (2) | (d) |  |  |
|  Accounts payable | 481 | 58 | (e) | 539 | Accounts payable |
|  Accounts payable – Related party | 58 | (58) | (e) |  |  |
|  Accrued payroll and employee benefits | 87 | (87) | (d) |  |  |
|  Income taxes payable | 82 | (82) | (d) |  |  |
|  Non-income taxes payable | 28 | (28) | (d) |  |  |
|  Due to Parent, short term | 55 | (55) | (f) |  |  |
|  |  | 55 | (f) | 55 | Current portion of long-term debt |
|  Customer advances | 28 |  |  | 28 | Deferred revenue |
|  Warranties | 22 |  |  | 22 | Product warranty liability |
|  Other accrued liabilities | 84 | 199 | (d) | 283 | Other current liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** | 927 |  |  | 927 |  |
|  Due to parent | 662 |  |  | 662 | Long-term debt |
|  Noncurrent operating lease liabilities | 34 | (34) | (g) |  |  |
|  Pension and postretirement obligations | 121 | (121) | (g) |  |  |
|  Deferred income taxes | 27 |  |  | 27 | Deferred income taxes |
|  |  | 13 | (g) | 13 | Product warranty liability |
|  Other noncurrent Liabilities | 148 | 142 | (g) | 290 | Other non-current liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | 1919 |  |  | 1919 |  |
|  Net parent investment | 787 |  |  | 787 | Net parent investment |
|  Accumulated other comprehensive loss | (208) |  |  | (208) | Accumulated other comprehensive loss, net of tax |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total equity** | 579 |  |  | 579 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and equity** | $2498 | $— |  | $2498 |  |

---

a. Reclassification of Related party receivables, and Due from Parent, short term to Accounts receivable-net of allowance for doubtful accounts of $1.

b. Reclassification of Other accounts receivable to Other current assets.

c. Reclassification of Deferred tax assets, Due from Parent, and Operating lease assets to Other non-current assets.

d. Reclassification of Current debt obligations, Accrued payroll and employee benefits, Income taxes payable, and Non-income taxes payable to Other current liabilities.

e. Reclassification of Accounts payable-Related party to Accounts payable.

f. Reclassification of Due to Parent, short term to Current portion of long-term debt.

g. Reclassification of Noncurrent operating lease liabilities and Pension and postretirement obligations to Other non-current liabilities, along with the break-out of the noncurrent portion of the Product warranty liability of $13 million from Other noncurrent liabilities.

**Note 4. The Dana Business Unaudited *Pro Forma* Condensed Combined Statements of Income Reclassification Adjustments** 

During the preparation of the *pro forma* condensed combined financial information, a preliminary analysis of the Dana Business financial information was completed in order to identify differences in accounting policies and financial statement presentation when compared to Allison.

------

The following tables summarize the various reclassification adjustments made to the Dana Business Statements of Operations for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period, to align with the required *pro forma* presentation.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | |
| **(in millions)** | **Dana's Off<br>Highway<br>Business as<br>Restated** | **Reclassification** | **Note<br>Ref** | **Dana's Off-**<br>**Highway<br>Business,<br>Adjusted** | <br>**Allison Transmission**<br>**Holdings Inc. Financial<br>Statement Line** |
|  Net sales – External | $1241 | $21 | (a) | $1262 | Net sales |
|  Net sales – Related party | 21 | (21) | (a) |  |  |
|  **Net sales** | 1262 |  |  | $1262 |  |
|  Costs and expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales – External | 1042 | 9 | (b) | 1051 | Cost of sales |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of Sales – Related party | 15 | (15) | (b) |  |  |
|  Cost of sales | 1057 | (6) |  | 1051 |  |
|  Selling, general and administrative expenses | 77 | 9 | (b) | 86 | Selling,<br>general and<br>administrative |
|  Amortization of intangibles | 3 | (3) | (b) |  |  |
|  Restructuring charges, net | 3 | (3) | (c) |  |  |
|  Interest |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – External | 3 | (3) | (d) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – Related party | 4 | (4) | (d) |  |  |
|  Interest income | 7 | (7) |  |  |  |
|  Interest expense – Related party | 12 | (7) | (d) | 5 | Interest<br>expense, net |
|  Other income, net | 10 | (3) | (c) | 7 | Other income (expense), net |
|  **Income before income taxes** | 127 |  |  | 127 |  |
|  Income tax expense | 19 |  |  | 19 | Income tax<br>expense |
|  **Net income** | $108 | $— |  | $108 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | |
| **(in millions)** | **Dana's Off<br>Highway<br>Business** | **Reclassification** | **Note<br>Ref** | **Dana's Off-**<br>**Highway<br>Business,<br>Adjusted** | <br>**Allison Transmission Holdings**<br>**Inc. Financial Statement Line** |
|  Net sales – External | $2635 | $61 | (a) | $2696 | Net sales |
|  Net sales – Related party | 61 | (61) | (a) |  |  |
|  **Net sales** | 2696 |  |  | 2696 |  |
|  Costs and expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales – External | 2194 | 21 | (b) | 2215 | Cost of sales |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of Sales – Related party | 39 | (39) | (b) |  |  |
|  Cost of sales | 2233 | (18) |  | 2215 |  |
|  Selling general and administrative expenses | 137 | 23 | (b) | 160 | Selling,<br>general and<br>administrative |
|  Amortization of intangibles | 5 | (5) | (b) |  |  |
|  Restructuring charges, net | 9 | (9) | (c) |  |  |
|  Interest |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – External | 4 | (4) | (d) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – Related party | 9 | (9) | (d) |  |  |
|  Interest income | 13 | (13) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense – External | 4 | 12 | (d) | 16 | Interest<br>expense, net |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense – Related party | 25 | (25) | (d) |  |  |
|  Interest expense | 29 | (13) |  | 16 |  |
|  Other income, net | 16 | (9) | (c) | 7 | Other (expense) income, net |
|  **Income before income taxes** | 312 |  |  | 312 |  |
|  Income tax expense | 107 |  |  | 107 | Income tax<br>expense |
|  **Net income** | $205 | $— |  | $205 |  |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **6/30 LTM Period** | **6/30 LTM Period** | **6/30 LTM Period** | **6/30 LTM Period** | |
| **(in millions)** | **Dana's Off<br>Highway<br>Business as<br>Restated** | **Reclassification** | **Note<br>Ref** | **Dana's Off-**<br>**Highway<br>Business,<br>Adjusted** |<br>**Allison Transmission Holdings**<br>**Inc. Financial Statement Line** |
|  Net sales – External | $2423 | $52 | (a) | $2475 | Net sales |
|  Net sales – Related party | 52 | (52) | (a) |  |  |
|  **Net sales** | 2475 |  |  | 2475 |  |
|  Costs and expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales – External | 2028 | 16 | (b) | 2044 | Cost of sales |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of Sales – Related party | 34 | (34) | (b) |  |  |
|  Cost of sales | 2062 | (18) |  | 2044 |  |
|  Selling general and administrative expenses | 138 | 23 | (b) | 161 | Selling,<br>general and<br>administrative |
|  Amortization of intangibles | 5 | (5) | (b) |  |  |
|  Restructuring charges, net | 11 | (11) | (c) |  |  |
|  Interest |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – External | 5 | (5) | (d) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income – Related party | 8 | (8) | (d) |  |  |
|  Interest income | 13 | (13) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense – External | 4 |  | (d) | 4 | Interest<br>expense, net |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense – Related party | 25 | (13) | (d) | 12 |  |
|  Interest expense | 29 | (13) |  | 16 |  |
|  Other income, net | 18 | (11) | (c) | 7 | Other (expense) income, net |
|  **Income before income taxes** | 261 |  |  | 261 |  |
|  Income tax expense | 67 |  |  | 67 | Income tax<br>expense |
|  **Net income** | $194 | $— |  | $194 |  |

---

a. Reclassification of Net sales-Related party to Net sales.

b. Reclassification of Cost of sales-Related party to Cost of sales, along with the reclassification of
$6 million, $18 million and $18 million from Cost of sales-External related to warranty expense, to Selling, general and administrative for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30
LTM Period, respectively. Amortization of intangibles was also reclassified to Selling, general and administrative.

c. Reclassification of Restructuring charges, net to Other income (expense), net.

d. Reclassification of Interest income-External, Interest income-Related party, and Interest expense-Related party
to Interest expense, net.

**Note 5. Pre-Merger *Pro Forma* Adjustments and Assumptions** 

The historical balance sheet of the Dana Business reflects certain assets that will not be acquired and certain liabilities that will not be assumed as part of the Dana Business Acquisition. Therefore, the following adjustments are included in the unaudited condensed combined *pro forma* balance sheet and in the unaudited condensed combined *pro forma* statements of operations to reflect the impact of the exclusion of these costs, assets and liabilities, as necessary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Reflects the minimum and maximum operating cash requirements by jurisdiction per the Purchase Agreement. As of
June 30, 2025, several jurisdictions did not meet the minimum cash amount and one jurisdiction exceeded the maximum cash amount. At close of the Dana Business Acquisition, it is assumed that the jurisdictions that did not meet the minimum cash
amount would meet that minimum threshold at close of the Dana Business Acquisition, and that the jurisdiction that exceeded the maximum cash amount at close of the Dana Business Acquisition would meet the maximum cash amount at close of the Dana
Business Acquisition.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. As per the Purchase Agreement, all intercompany accounts between Dana and any transferred entity will be
settled or otherwise eliminated prior to the close of the Dana Business Acquisition. Therefore, the following *pro forma* adjustments have been posted to reflect the impact of the elimination of intercompany accounts on the unaudited *pro forma* condensed combined balance sheet:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. A decrease of $361 million to Accounts receivable -net of
allowance for doubtful accounts to reflect the elimination of a Due from parent, short term receivable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. A decrease of $8 million to Other non-current assets to reflect
the elimination of a Due from parent, long-term receivable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. A decrease of $55 million to Current portion of long-term debt to reflect the elimination of Due to
parent, short-term of $55 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. A decrease of $662 million to Long-term debt to reflect the elimination of Due to parent, long-term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. An increase of $348 million to Net parent investment to reflect the net impact of the elimination of
intercompany accounts and third party debt on the balance sheet.

Additionally, *pro forma* adjustments have been posted to reverse the interest expense and interest income related to the intercompany amounts on the historical balance sheet. The adjustments have the following impact on the unaudited *pro forma* condensed combined statements of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. A decrease in interest expense of $8 million for the six months ended June 30, 2025, $16 million
for the year ended December 31, 2024 and $16 million for the 6/30 LTM Period.

**Note 6. Transaction Accounting *Pro Forma* Adjustments and Assumptions** 

The *pro forma* adjustments are based on preliminary estimates and assumptions that are subject to change. The following adjustments have been reflected in the unaudited *pro forma* condensed combined balance sheet and the unaudited *pro forma* condensed combined statements of operations. All taxable adjustments were calculated using a 24.21% blended statutory tax rate to arrive at deferred tax asset or liability adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Reflects the elimination of the Dana Business's historical equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Reflects estimated cash consideration paid in connection with the Acquisition. The amount is equal to the base
purchase price and preliminary and other adjustments based on contractual terms of the Purchase Agreement. See Note 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Represents non-recurring transaction costs expected to be incurred post
June 30, 2025. Estimated acquisition-related transaction costs include investment banker, advisory, legal, valuation, other professional fees, and fees paid and yet to be paid for the Bridge Facility. Allison's total estimated
acquisition-related transaction costs are $78 million. Of the $78 million, $25 million has been expensed to date, and $4 million in Bridge Facility set-up fees were capitalized on
Allison's historical balance sheet. These costs will not affect the combined statement of operations beyond 12 months after the Dana Business Acquisition Closing. This resulted in the following *pro forma* adjustments to the unaudited *pro forma* condensed combined balance sheet:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The accrual of transaction costs $49 million to Other current liabilities, which includes $44 million
of acquisition-related transaction costs and $5 million of Bridge Facility related fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The removal of Bridge Facility set-up fees of $4 million from
Other non-current assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The increase to Accumulated deficit of $53 million related to the associated impact of the transaction
costs incurred post June 30, 2025.

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This resulted in the following *pro forma* adjustments to the unaudited *pro forma* condensed combined statements of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The non-recurring transaction costs of $44 million charged to
Selling, general and administrative for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The non-recurring transaction costs related to the Bridge Facility of
$9 million (inclusive of the $4 million Bridge Facility set-up fee and an additional $5 million that will be paid at the earlier of closing or when permanent financing is put in place) charged
to interest expense for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Reflects the preliminary estimate of fair value of identifiable intangible assets acquired along with the
elimination of historical intangible assets associated with the Dana Business as follows:

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| | |
|:---|:---|
| **(in millions)** | **Transaction<br>Accounting<br>Adjustments** |
|  **Adjustments to intangible assets, net:** |  |
|  Elimination of the Dana Business' historical intangible assets | $(72) |
|  Estimated fair value of Developed Technology acquired | 245 |
|  Estimated fair value of Trade Name acquired | 233 |
|  Estimated fair value of Customer Relationships acquired | 638 |
|  **Total** | $1044 |

---

This resulted in the following *pro forma* adjustments to Amortization of intangibles in the unaudited *pro forma* condensed combined statements of operations as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **Six months ended<br>June 30, 2025** | **Year ended<br>December 31, 2024** | **6/30 LTM Period** |
|  Reversal of historical amortization expense related to the Dana Business' intangible assets | $(3) | $(5) | $(5) |
|  Amortization of acquired Customer Relationships | 18 | 36 | 36 |
|  Amortization of acquired Developed Technology | 20 | 41 | 41 |
|  **Total incremental amortization expense** | $35 | $72 | $72 |

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A 10% change in the fair value of Customer Relationships and Developed Technology would increase or decrease amortization expense on a *pro forma* basis by $4 million, $8 million and $8 million for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Reflects the preliminary estimate of the step-up in fair value of
property, plant and equipment acquired of $222 million, and the associated impact of depreciation as follows:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **Six months ended<br>June 30, 2025** | **Year ended<br>December 31, 2024** | **6/30 LTM Period** |
|  Depreciation expense related to the step-up value of property, plant and equipment, net | $12 | $24 | $24 |

---

A 10% change in stepped up value of property, plant and equipment would increase or decrease depreciation expense on a *pro forma* basis by $1 million, $2 million and $2 million for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Reflects the preliminary estimate of the step-up in fair value of
inventory of $87 million acquired related to the Dana Business along with the associated increase to Cost of sales for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Reflects the recognition of preliminary estimated goodwill arising from the Dana Business Acquisition in the
amount of $823 million and the elimination of goodwill associated with the Dana Business in the amount of $188 million for a total *pro forma* adjustment of $635 million.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Reflects the deferred tax impact associated with the incremental difference in book and tax basis created from
the preliminary purchase price allocation. Allison has estimated that the fair value adjustment to increase deferred income taxes, net would be $336 million along with a decrease to the deferred tax asset balance of $17 million included
within Other current assets, relating to estimated fair value adjustments at estimated blended statutory tax rate of approximately 24.21% for the combined company. The effective tax rate of the combined company could be significantly different
(either higher or lower) depending on the post-acquisition activities, including cash needs and the geographical mix of taxable income. The estimate is preliminary and subject to change based upon the final determination of fair value of the
identifiable assets and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Dana Business employees participate in Dana sponsored defined benefit plans and the Dana Business sponsored
defined benefit plans. The Dana Business financial statements included a Dana Business sponsored defined benefit plan that would be retained by Dana at close of the Dana Business Acquisition and would not transfer to the combined company. As such,
the under-funded amount of this plan must be removed from the unaudited *pro forma* condensed combined balance sheet, netted with the addition of under-funded balances related to Dana Business employees of Dana sponsored plans. The net impact
resulted in a reduction of $50 million from Other non-current liabilities. The actual funding status of the defined benefit plans as of the Dana Business Acquisition Closing depends on the fair value of
plan assets and actuarial estimate of pension liability that has not yet been completed. Accordingly, the final funding status could differ significantly from the current estimate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. The one-time-post-combination expense of $3 million and
$2 million charged to Selling, general and administrative, for the year ended December 31, 2024 and the 6/30 LTM Period, consisting of retention bonuses for certain key employees. The retention bonuses are conditional upon future services
to be completed within one year of the close of the Dana Business Acquisition. Dana employment agreements included these provisions, where Dana is responsible to pay 50% while Allison is required to pay the remaining 50% of the retention bonuses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. The *pro forma* income tax adjustments included in the unaudited *pro forma* condensed combined
statements of operations for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period, reflect the income tax effects of the *pro forma* adjustments. The Dana Business Acquisition-related expenses
are assumed to be 50% deductible, and the effective blended tax rate used of the combined company could be significantly different from the 24.21% that has been used in these *pro forma* financial statements for a variety of reasons, including
post-merger activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. The following table sets forth the computation of *pro forma* basic and diluted earnings per share for the
six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period:

---

| | | | |
|:---|:---|:---|:---|
| **(in millions, except per share data)**<br> **Numerator (basic and diluted):** | **Six months ended<br>June 30, 2025** | **Year ended<br>December 31, 2024** | **6/30 LTM Period** |
|  *Pro forma* net income attributable to common shares | $423 | $676 | $806 |
|  **Denominator:** |  |  |  |
|  Weighted average number of common shares outstanding – basic | 85 | 87 | 85 |
|  Weighted average number of common shares outstanding – diluted | 86 | 88 | 86 |
|  ***Pro forma* income per share:** |  |  |  |
|  Basic | $4.98 | $7.77 | $9.48 |
|  Diluted | $4.92 | $7.68 | $9.37 |

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**Note 7. Financing *Pro Forma* Adjustments and Assumptions** 

The *pro forma* adjustments are based on preliminary estimates and assumptions that are subject to change. The following adjustments have been reflected in the unaudited *pro forma* condensed combined balance sheet and the unaudited *pro forma* condensed combined statements of operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Reflects the impact of the Debt Financing, which includes the issuance of the Incremental Term Loan Facility,
or $1,189 million, net of debt issuance costs of $11 million, the issuance of the Notes, or $495 million, net of debt issuance costs of $5 million, and a $300 million draw on the Company's Revolver Refinancing Facility
for a total of $1,984 million. A blended rate of approximately 6% was used to calculate the estimated interest expense in the unaudited p *ro forma* condensed combined statements of operations for the Incremental Term Loan Facility, the
Notes and the Revolver Refinancing Facility. The incremental interest expense and amortization of debt issuance costs associated with the Incremental Term Loan Facility, the Notes and the Revolver Refinancing Facility is shown below:

---

| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **Six months ended<br>June 30, 2025** | **Year ended<br>December 31, 2024** | **6/30 LTM Period** |
|  Estimated amortization of deferred financing costs on Incremental Term Loan Facility | $1 | $1 | $1 |
|  Estimated amortization of deferred financing costs on Notes |  |  |  |
|  Estimated interest expense on Incremental Term Loan Facility | 36 | 73 | 73 |
|  Estimated interest expense on Notes | 15 | 30 | 30 |
|  Estimated interest expense on Revolver Refinancing Facility | 9 | 18 | 18 |
|  Elimination of commitment expense on Revolver Refinancing Facility |  | (1) |  |
|  **Net adjustment to interest expense** | $61 | $121 | $122 |

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A 0.125% change in interest rates would increase or decrease interest expense on a *pro forma* basis by $1 million, $2 million and $2 million for the six months ended June 30, 2025, the year ended December 31, 2024 and the 6/30 LTM Period, respectively.

The *pro forma* income tax adjustments included in the unaudited *pro forma* condensed combined statements of operations for the six months ended June 30, 2025, the year ended December 31, 2024, and the LTM period ended June 30, 2025 reflect the income tax effects of the financing *pro forma* adjustments. The effective blended tax rate of the combined company could be significantly different from the 26.00% that has been used in the financing *pro forma* adjustments in these *pro forma* financial statements for a variety of reasons, including post-merger activities.