Oshkosh (US:OSK)2026-01-29 15:30Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue of $10.4 billion, adjusted operating income of just over $1 billion, and adjusted earnings per share (EPS) of $10.79 [8][9] - In Q4 2025, consolidated sales were nearly $2.7 billion, an increase of $91 million, or 3.5% from the same quarter last year [18] - Adjusted operating income for Q4 was $226 million, down about $20 million from the prior year, leading to an adjusted operating margin of 8.4%, down 100 basis points from last year [18][19] Business Line Data and Key Metrics Changes - The access segment achieved Q4 revenue of $1.2 billion, roughly equal to last year, with a book-to-bill ratio of 1.5 [11] - The vocational segment delivered full-year revenue of more than $3.7 billion, up nearly 13%, with an adjusted operating income margin of 15.8% [13] - The transport segment saw sales increase to $567 million in Q4, with delivery vehicle revenue growing by 13% sequentially compared to Q3 2025 [21][22] Market Data and Key Metrics Changes - The company noted that while there is underlying strength in data centers and infrastructure, many other construction sectors remain soft, leading to expectations of revenue decline in the first half of 2026 compared to 2025 [12] - The backlog for the access segment is $1.3 billion, which is considered reasonable in the current environment [11] - The vocational segment backlog exceeds $6.6 billion, providing excellent visibility for future revenue [16] Company Strategy and Development Direction - The company showcased its vision for the future at CES, focusing on robotics, autonomy, AI, connectivity, and electrification [4][5] - The strategy includes shifting from providing equipment that enables jobs at height to offering equipment that executes jobs autonomously [5] - The company plans to continue investing in innovation and expanding U.S. manufacturing while maintaining a strong focus on long-term profitable growth [26] Management's Comments on Operating Environment and Future Outlook - Management anticipates a continuation of recent economic conditions, with expected lower capital investments from industrial customers, particularly in access equipment and refuse businesses [10] - The outlook for 2026 includes an estimated adjusted EPS in the range of $11.50, reflecting strong performance in the vocational segment but weaker market conditions in the access segment [10][24] - Management expressed confidence in long-term growth opportunities driven by innovative products and strong business fundamentals [27] Other Important Information - The company announced a quarterly dividend of $0.57 per share, reflecting confidence in long-term cash flow generation [26] - Share repurchases in 2025 totaled $278 million, more than double the prior year, benefiting adjusted EPS in Q4 by $0.06 compared to Q4 2024 [19] Q&A Session Summary Question: Access guidance and disconnect with competitors - Management acknowledged a balanced approach to 2026, noting strong demand from mega projects but pressure in private non-residential construction [31][32] Question: Transport margins and pricing - Management indicated that transport margins are expected to improve as new pricing contracts are implemented and production increases [33] Question: Telematics data and equipment health - Management reported healthy utilization rates for equipment in both the U.S. and European markets, with a strong used market [34] Question: First Quarter versus Fourth Quarter earnings - Management expects Q1 adjusted EPS to be about half of last year, primarily due to lower sales in the access segment [36] Question: Pricing and cost dynamics - Management discussed ongoing cost reduction initiatives and the impact of tariffs on pricing strategies for 2026 [48][49] Question: Vocational segment backlog and revenue expectations - Management confirmed a healthy backlog in the vocational segment, particularly in fire and airport products, despite some pressure in refuse and recycling [50][51]