The $250 million contract is the single largest tracked defense order in Allison's history

INDIANAPOLIS, June 16, 2026 /PRNewswire/ -- Allison Transmission Holdings, Inc. (NYSE:ALSN), a global leader in high-performance mobility and work solutions, today announced that it has entered into a contract with BAE Systems Hägglunds to supply 4040 MX™ transmissions for the company's CV90 MkIV infantry fighting vehicles. The $250 million agreement, formalized today at the Eurosatory defense exhibition in Paris, includes an option for additional units valued at $50 million. The agreement is the largest single tracked defense program contract in Allison Transmission's history.

The CV90 MkIV program serves as the inaugural production platform for Allison's 4040 MX transmission, and production deliveries are scheduled to begin in 2028. Engineered as an evolution of the proven 3040 MX, the new 4040 MX cross-drive transmission delivers increased power ratings and updated electronic controls while maintaining the existing 3040 MX spatial footprint, allowing for seamless integration with the vehicle's Scania engine. Allison conducted extensive integration testing with BAE Systems Hägglunds over a two-year period to ensure the new solution is mission ready.