Oshkosh Corporation Q1 FY2026 earnings call

• Customer engagement around new products and technologies strong, demonstrated at CES and trade shows. • First quarter earnings per share modestly below expectations. • Focus on execution and improved performance as year progresses. • Access segment demand improving, supported by megaprojects, orders exceeded $1.5 billion, book-to-bill ratio 1.6, backlog $1.8 billion. • Vocational segment demand healthy, strong backlog $6.6 billion, increased fire truck production but shipments below expectations due to weather and travel disruptions, focused on modernizing production flow. • Transport segment making progress on key programs, NGDV production on track, FMTV program progressing.

Access: First quarter sales of $943 million were roughly flat with prior year. Adjusted operating income margin 4.1%. Demand robust with book-to-bill ratio 1.6. Vocational: Sales of $825 million down on lower shipment volume, partially offset by improved pricing. Adjusted operating income $94 million, margin 11.4%. Strong backlog of $6.6 billion. Transport: Sales increased $50 million to $513 million due to higher sales volume and cumulative catch-up adjustments. Transport segment operating income $4 million, up $3.6 million compared with last year.

• Continue to expect full year adjusted EPS in range of $11.50. • Expect roughly 30% of earnings in first half, back half stronger. • Still expect free cash flow of $550 to $650 million unchanged from prior guidance. • Not updating or reaffirming expectations by segment. • Access seeing promising order activity, book-to-bill ratio 1.6 may result in modestly greater contribution. • Vocational growth and margins still expected to be robust, but first quarter delivery shortfalls and facility construction timing likely reduce contribution this year. • Transport remains on plan. • Outlook for tariff impact largely unchanged as IEPA tariff recoveries expected to offset additional costs of 232 expansion.

• Factors listed in release this morning and matters in recent Form 10-K and other SEC filings, as well as matters noted at Investor Day in June 2025 could cause actual results to differ from forward-looking statements. • Dynamic cost environment, including impact of tariffs. • Weather and travel-related disruptions impacting vocational segment shipments. • Geopolitical uncertainty and inflationary impacts from events like Iran conflict.

Q: David Rosso of Evercore ISI asked about 2Q EPS and why vocational catch up isn't quicker.

A: Matt Field said elements in Q2 largely unchanged, vocational had shipment slips and facility delays.

Q: Tammy Zakaria of JP Morgan asked about pre-buy driven demand in vocational.

A: No significant pre-buy expected, if happens upside to expectations.

Q: Meg Dobry of Baird asked about evolving tariff picture.

A: IEPA refund and 232 expansion considered, team working on mitigation.

Q: Angel Castillo of Morgan Stanley asked about vocational margins.

A: Volume and mix drivers, margins within 16-18% range.

Q: Jerry Rivich of Wells Fargo asked about access telematics and USPS production.

A: Utilization improving, USPS program moving smoothly.

Q: Kyle Menges of Citigroup asked about access segment demand by region and NGDV production.

A: Demand driven by mega projects, NGDV production on track.

Q: Stephen Volkman of Jefferies asked about Aerotech.

A: Backlog strong, double-digit margins, working on capacity.

Q: Tim Stein of Raymond James asked about access margin and vocational garbage truck volumes.

A: Access backlog and book to bill positive, garbage truck volumes down.

Q: Mike Shulsky of DA Davidson asked about fire truck inventories and orders.

A: Inventory management good, order rates consistent, weather caused shipment delays but resolved.

Q: Chad Dillard of Bernstein asked about vocational sequential ramp and IEPA benefit.

A: Q2 and beyond to see stronger fire truck deliveries, IEPA claim process explained.

Q: Steven Fisher of UBS asked about tariffs and vocational fire truck investments.

A: Assumed present tariff landscape continues, investments in fire truck production nearing completion.

Q: Jamie Cook of Truist Securities asked about M&A and guide control.

A: Always-on M&A process, second half supported by access, fire trucks, NGDV ramp, and FMTV contract.

Q: Steve Barger of KeyBank Capital Markets asked about Aerotech capacity and 2028 targets.

A: Aerotech capacity expansion details to come later, 2028 targets achievable with strong backlogs and capacity planning.