Core Insights - Oshkosh Corporation (OSK) reported fourth-quarter 2025 adjusted earnings of $2.26 per share, missing the Zacks Consensus Estimate of $2.33 and down from $2.58 in the same quarter last year. However, consolidated net sales increased by 3.5% year over year to $2.69 billion, surpassing the Zacks Consensus Estimate of $2.56 billion [1]. Segment Performance - **Access Segment**: Sales increased by 1.3% year over year to $1.17 billion, driven by higher sales volume in North America, exceeding the Zacks Consensus Estimate of $981 million [2]. - **Vocational Segment**: This segment reported sales of $922.4 million, up 4.7% year over year, attributed to improved pricing, but fell short of the estimate of $1 billion [3]. - **Transport Segment**: Sales reached $566.7 million, a 6.2% increase year over year, benefiting from the ramp-up of the U.S. Postal Service's Next Generation Delivery Vehicle production and higher international sales, beating the estimate of $532 million [5]. Financial Overview - As of December 31, 2025, Oshkosh had cash and cash equivalents of $479.8 million, up from $204.9 million a year earlier. Long-term debt increased to $1.10 billion from $599.5 million [7]. - The company declared a quarterly cash dividend of 57 cents per share, payable on March 3, 2026, to shareholders on record as of February 17, 2026 [7]. 2026 Guidance - Oshkosh expects adjusted earnings per share for 2026 to be approximately $11.50, with full-year net sales projected to be around $11 billion [8]. Zacks Rank & Comparisons - Oshkosh currently holds a Zacks Rank 3 (Hold). In comparison, Ford Motor (F), REV Group (REVG), and PHINIA Inc. (PHIN) are better-ranked stocks in the auto sector, each holding a Zacks Rank 1 (Strong Buy) [9].

Core Insights - Oshkosh Corporation (OSK) reported third-quarter 2025 adjusted earnings of $3.20 per share, exceeding the Zacks Consensus Estimate of $3.12 and the $2.93 from the same quarter last year [1][10] - Consolidated net sales decreased by 1.9% year over year to $2.69 billion, falling short of the Zacks Consensus Estimate of $2.82 billion [1][10] Segment Performance - **Access Segment**: Sales declined by 18.6% year over year to $1.11 billion, primarily due to lower sales volume in North America and increased discounts, missing the Zacks Consensus Estimate of $1.18 billion [2] - **Vocational Segment**: Sales increased by 18.9% year over year to $968 million, driven by higher production rates and improved pricing, surpassing the estimate of $955 million [3] - **Transport Segment**: Sales rose by 8.8% to $587.9 million, benefiting from the ramp-up of the U.S. Postal Service's Next Generation Delivery Vehicle production and higher international sales, but missed the estimate of $640 million [5] Financial Overview - Operating income decreased by 43.2% year over year to $118 million, representing 10.6% of sales, missing the estimate of $126 million [3] - Operating income for the Vocational segment increased by 42.3% to $141.7 million, representing 14.6% of sales, but fell short of the estimate of $144 million [4] - Operating income for the Transport segment surged by 226.8% to $36.6 million, or 6.2% of sales, reflecting IP license income and improved pricing, but missed the estimate of $40.05 million [6] - As of September 30, 2025, the company had cash and cash equivalents of $211.8 million and long-term debt of $1.09 billion, up from $599.5 million at the end of 2024 [7] Guidance Revision - The company revised its 2025 adjusted earnings per share guidance to a range of $10.50 to $11, down from the previous estimate of $11, and projected full-year net sales to be between $10.3 billion and $10.4 billion, reduced from $10.6 billion [8]

Financial Data and Key Metrics Changes - The company reported adjusted operating margin of 10.2% on revenue of $2.7 billion for Q3 2025, leading to adjusted earnings per share (EPS) of $3.20, an increase of 9.2% year-over-year [6][14] - Consolidated sales decreased by $53 million, or 2%, from the same quarter last year, primarily due to lower sales volume in the access segment [14] - Adjusted operating income was $274 million, down slightly from the prior year, reflecting lower volume [14] Business Line Data and Key Metrics Changes - The access segment delivered adjusted operating income margins of 11% on sales of $1.1 billion, with sales down $254 million, or nearly 19% year-over-year, due to weaker market conditions in North America [15] - The vocational segment achieved adjusted operating income margin of 15.6% on $968 million in sales, with sales growing $154 million, or nearly 19% from last year, driven by improved throughput for municipal fire apparatus [16] - The transport segment saw sales increase by $48 million to $588 million, with delivery vehicle revenue growing by $114 million to $146 million, representing approximately one quarter of transport segment revenue [16] Market Data and Key Metrics Changes - The company noted that end market activity in the access segment remains healthy, but customers are being cautious with capital expenditures due to tariffs and the current economic environment [7][9] - The vocational segment continues to advance initiatives to support increased production of fire trucks, with strong orders recorded at $1.1 billion for the quarter [11] Company Strategy and Development Direction - The company is focusing on a local-for-local strategy in the access equipment world to manage the tariff landscape and minimize costs [47] - The long-term vision shared at the Investor Day aims to roughly double adjusted EPS to a range of $18 to $22 per share by 2028 [19] - The company is aggressively pursuing cost levers to offset the impact of tariffs and plans to raise prices in 2026 to keep pace with input costs [9][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic year in 2025, including the impact of tariffs and sustained higher interest rates, but expressed confidence in managing the near term while supporting long-term growth objectives [19] - The updated full-year adjusted EPS guidance is in the range of $10.50 to $11.00, reflecting lower revenue expectations for both access and transport segments [18] Other Important Information - The company repurchased approximately 666,000 shares for $91 million during the quarter, bringing year-to-date share repurchases to $159 million [15] - Free cash flow for the quarter was strong at $464 million compared to $272 million in the same quarter last year [15] Q&A Session Summary Question: What is the outlook for access equipment demand in 2026? - Management indicated that while there is hesitancy in the near term, long-term demand drivers remain strong, with ongoing mega projects and a positive sign in commercial construction activity [30] Question: How has the tariff situation changed and what is the mitigation strategy? - The estimated tariff impact for the year is $30 to $40 million, with plans to implement pricing adjustments in 2026 to offset these costs [32] Question: Can the company offset tariff headwinds in 2026? - Management stated that their approach includes negotiating supply chain adjustments and tariff engineering, with a focus on minimizing customer impact [40][41] Question: What is the expected order activity for the fourth quarter? - Management noted that order activity is uncertain, with potential for orders to slip into January due to price negotiations [95] Question: How is the company addressing warranty costs? - Warranty costs were attributed to a one-time charge related to defense sector vehicles, and management expects this issue to be resolved moving forward [53][54]

Financial Data and Key Metrics Changes - The company reported adjusted operating margin of 10.2% on revenue of $2.7 billion for Q3 2025, with adjusted earnings per share (EPS) of $3.20, reflecting a 9.2% increase year-over-year [5][14] - Consolidated sales decreased by $53 million, or 2%, compared to the same quarter last year, primarily due to lower sales volume in the access segment [14] - Adjusted operating income was $274 million, slightly down from the prior year, with an adjusted operating income margin of 10.2% remaining consistent year-over-year [14] Business Segment Data and Key Metrics Changes - The access segment reported sales of $1.1 billion, down nearly 19% year-over-year, with adjusted operating income margins of 11% [15][16] - The vocational segment achieved sales of $968 million, up nearly 19% from last year, with an adjusted operating income margin of 15.6% [16] - The transport segment saw sales increase by $48 million to $588 million, with delivery vehicle revenue growing by 37% sequentially compared to Q2 2025 [16] Market Data and Key Metrics Changes - The access segment's sales decline was attributed to weaker market conditions in North America and higher discounts [15] - The vocational segment's growth was driven by improved throughput for municipal fire apparatus and robust growth in airport products, with airport product revenue up 17% year-over-year [16] - The transport segment's improved operating income margin of 6.2% was influenced by a one-time licensing agreement and improved pricing on new contracts [17] Company Strategy and Development Direction - The company is focused on increasing production efficiency in the vocational segment, particularly for fire trucks, and is advancing initiatives to streamline production [10] - The company aims to double adjusted EPS to a range of $18 to $22 per share by 2028, with each quarter representing a step toward that goal [19] - The company is pursuing cost levers to offset the impact of tariffs and plans to raise prices in 2026 to keep pace with input costs [9][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic external environment, including tariffs and sustained higher interest rates, impacting customer demand, particularly in the access segment [19] - Despite the challenges, management expressed confidence in the company's ability to manage near-term conditions while supporting long-term growth objectives [19] - The company updated its 2025 adjusted EPS guidance to a range of $10.50 to $11.00, reflecting lower revenue expectations for the access and transport segments [6][18] Other Important Information - The company repurchased approximately 666,000 shares for $91 million during the quarter, with year-to-date repurchases totaling $159 million [15] - Free cash flow for the quarter was strong at $464 million, compared to $272 million in Q3 2024, primarily due to working capital changes [15] Q&A Session Summary Question: What is the outlook for demand in the access segment for 2026? - Management indicated that while there is hesitancy in the near term, long-term demand drivers remain strong, with ongoing mega projects and a positive sign in commercial construction activity [24][26] Question: How has the tariff situation changed and what is the strategy to mitigate it? - The estimated tariff impact for the year is $30 to $40 million, with plans to implement pricing adjustments in 2026 to offset these costs [29][33] Question: What is the expected pricing environment for access equipment? - Management noted a negative pricing environment in access due to external demand weakness, but anticipates a different pricing landscape in 2026 due to tariffs [47][66] Question: How is the company addressing warranty costs? - Warranty costs were attributed to one-time issues related to defense sector vehicles, and management expects this to be resolved moving forward [43][44] Question: What is the impact of the federal government shutdown on the business? - Management stated that there has not been a material impact from the shutdown, but potential future effects could arise if it extends significantly [53]

Core Insights - Oshkosh Corporation reported weaker-than-expected earnings for Q1, with adjusted earnings of $1.92 per share, missing market estimates of $2.05 per share [1] - Quarterly sales were $2.31 billion, below expectations of $2.41 billion [1] Group 1 - The company expressed satisfaction with its start to 2025, highlighting strong performance in the Vocational segment and double-digit margins in the Access segment [2] - CEO John Pfeifer noted that the results reflect the strength of the team and the resilience of the operating model [2] - Oshkosh shares increased by 3.8% to $86.96 following the earnings announcement [3] Group 2 - Analysts adjusted their price targets for Oshkosh after the earnings report, with Baird maintaining an Outperform rating but lowering the target from $163 to $135 [8] - Truist Securities maintained a Hold rating and reduced the price target from $94 to $93 [8] - JP Morgan kept a Neutral rating and lowered the price target from $100 to $92 [8]