Oshkosh (US:OSK)2026-02-18 19:52Summary of Oshkosh Corporation 2026 Conference Call Company Overview - Company: Oshkosh Corporation (NYSE: OSK) - Industry: Industrial Technology - 2026 Revenue Guidance: Approximately $11 billion - Segments: - Access Segment: Construction equipment, projected revenue of $4.2 billion - Vocational Segment: Equipment for neighborhoods (fire trucks, refuse equipment), projected revenue of $4.2 billion - Transport Segment: Defense vehicles and delivery vehicles, projected revenue of $2.5 billion [4][5][6] Core Insights and Arguments - Segment Growth: The vocational segment has shown significant growth, particularly after the acquisition of airport products in 2023. The transport segment is expected to improve margins from 4% in 2026 to 10% by 2028 due to new contracts with the Department of Defense [6][6]. - Technological Advancements: Emphasis on electrification, connectivity, robotics, autonomy, and AI across all segments. The company aims to leverage technology to enhance productivity and differentiate its products [11][12][15]. - Market Positioning: JLG and SkyTrak brands are positioned strongly in the AWP and telehandler space, focusing on quality, reliability, and strong residual value, which is crucial for rental companies [20][21]. - Access Segment Outlook: Despite a weak non-residential construction sector, large projects and national contractors are expected to drive growth. The company remains optimistic about the access segment's performance in 2026 and beyond [28][30]. - Vocational Segment Dynamics: The fire apparatus segment is experiencing a backlog extending into 2028, with a focus on increasing production capacity by 25%-30%. The refuse segment is currently facing a pause in new contracts due to municipalities hesitating to lock in long-term contracts at peak pricing [37][40][42]. - Transport Segment Challenges: The Next Generation Delivery Vehicle (NGDV) production ramp has been slower than anticipated, with current production at the lower end of the capacity range (16,000 units). The company is taking a methodical approach to improve production efficiency [72][73][85]. Additional Important Points - Margin Improvement Strategy: The transport segment aims to increase its operating income margin from 4% to 10% by 2028 through new contracts and improved production efficiency [85][89]. - Capital Allocation: The company prioritizes maintaining a healthy balance sheet, funding business growth, and returning cash to shareholders through dividends and share repurchases. An 11% increase in dividends was announced for the year [125][126]. - M&A Strategy: Oshkosh is focused on bolt-on acquisitions to support existing businesses, with a pipeline for potential acquisitions [126][127]. This summary encapsulates the key points discussed during the Oshkosh Corporation conference call, highlighting the company's strategic direction, market positioning, and financial outlook.