Oshkosh (NYSE:OSK) Conference Transcript

Oshkosh (NYSE:OSK) Conference Summary Company Overview - Company: Oshkosh Corporation - Date: December 02, 2025 - Key Focus: Discussing the company's performance, challenges, and future outlook Key Points Industry and Market Dynamics - End Markets: Oshkosh serves various end markets including construction, firefighting, last-mile delivery, and refuse and recycling [3][4] - Technological Innovation: The company emphasizes the importance of technology in improving productivity and safety for customers in these end markets [3][4] Financial Guidance and Performance - Revenue Growth: Oshkosh expects revenue to grow to $13-$14 billion by 2028, with operating margins increasing by 200-400 basis points to 12%-14% [2] - Earnings Per Share (EPS): Projected to nearly double to $18-$22 by 2028 [2] - Cash Flow: Anticipated strong cash flow generation supporting growth targets [2] Challenges Faced - Tariff and Geopolitical Climate: The company has faced challenges due to tariffs and geopolitical issues, necessitating adjustments in supply chains and manufacturing [4][5] - Material Costs: Section 232 tariffs have led to increased raw material costs, complicating pricing strategies [22][23] Strategic Focus and Portfolio Management - Portfolio Strategy: Oshkosh aims to invest in businesses that value innovation and technology, particularly in the airport and vocational segments [6][8] - M&A Opportunities: The company is actively looking for acquisition opportunities that align with its technological capabilities [29][30] Segment Insights - Vocational Segment: The company has a significant backlog in vocational products, with some backlogs extending to three and a half years, driven by inflationary impacts and technological advancements [17][25] - Access Equipment: The access segment is expected to see growth driven by data centers and power generation, despite current market downturns [44] - Defense Segment: The defense business is undergoing a margin transformation, with new contracts expected to improve margins by 2026 [38][39] Future Outlook - 2028 Targets: Confidence in achieving 2028 targets is based on strong backlogs, technological innovations, and market dynamics [16][20] - AI Integration: The company is investing in AI to enhance operational efficiency and product offerings, with a focus on breaking down data silos for better insights [48][50] Conclusion - Growth Through Innovation: Oshkosh is committed to driving growth through innovation, with a strong focus on technology to deliver value to customers and achieve financial targets [52]