Oshkosh Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 July 2026: press release. Guidance figures: 2 raised, 2 lowered, 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Sales rose 6.7 percent: Consolidated sales rose $183.0 million, or 6.7 percent, to $2.92 billion, mainly on higher sales volume and improved pricing. Operating income fell 16.6 percent to $243.2 million, or 8.3 percent of sales. Source
• Diluted EPS fell to $2.92: Net income was $183.2 million, or $2.92 per diluted share, against $3.16 a year earlier. Adjusted diluted EPS was $2.87, against $3.41. Source
• Full-year EPS guidance lowered: Management cut full-year adjusted EPS to $11.00 from $11.50 and said fire truck throughput is improving more gradually than it previously expected. Source
• Mix and overhead weighed on profit: The operating income decline was mainly due to unfavorable sales mix and higher manufacturing overhead, partly offset by higher sales volume. Gross income was $480.3 million, against $524.5 million. Source
• Vocational sales flat on refuse decline: Vocational sales were $966.8 million, flat, as lower refuse and recycling shipments offset better pricing. Operating income fell 17.8 percent to $121.1 million, or 12.5 percent of sales. Source
• Fire truck throughput to improve gradually: Management expects a more gradual improvement in fire truck throughput than previously expected, as new material flow processes are implemented. Source
• Adjusted margin 8.8 percent: Adjusted operating income was $257.6 million, or 8.8 percent of sales, against $312.9 million, or 11.5 percent, a year earlier. Source
• Consolidated backlog rose: Consolidated period-end backlog was $14,752.2 million, up from $14,225.7 million a year earlier. Source

“Our second quarter earnings per share reflects the dedication of our team members and the strength of our innovative, purpose-built products,”

John Pfeifer, president and chief executive officer of Oshkosh Corporation

Guidance

What changed from last quarter

• Guidance lowered: Diluted EPS expectation cut to $10.50 from $10.90; adjusted EPS expectation cut to $11.00 from $11.50. Source
• Guidance raised: Full-year net sales expectation raised to approximately $11.2 billion from approximately $11.0 billion. Source

Results and growth drivers

• Sales rose 6.7 percent: Consolidated sales rose $183.0 million, or 6.7 percent, to $2.92 billion, mainly on higher sales volume and improved pricing. Operating income fell 16.6 percent to $243.2 million, or 8.3 percent of sales. Source
• Diluted EPS fell to $2.92: Net income was $183.2 million, or $2.92 per diluted share, against $3.16 a year earlier. Adjusted diluted EPS was $2.87, against $3.41. Source
• Full-year EPS guidance lowered: Management cut full-year adjusted EPS to $11.00 from $11.50 and said fire truck throughput is improving more gradually than it previously expected. Source
• Mix and overhead weighed on profit: The operating income decline was mainly due to unfavorable sales mix and higher manufacturing overhead, partly offset by higher sales volume. Gross income was $480.3 million, against $524.5 million. Source
• Six-month sales and net income: First-half net sales were $5.23 billion and net income was $226.3 million, or $3.59 per diluted share, against $5.04 billion and $317.0 million, or $4.88. Source

Segments and regions

• Access sales rose 9.4 percent: Access sales rose $117.8 million to $1.37 billion. Aerial work platforms and other lines grew, while telehandler sales fell to $263.3 million from $325.1 million. Source
• Access margin fell to 11.0 percent: Access operating income fell 16.5 percent to $151.6 million, or 11.0 percent of sales, from 14.5 percent of sales a year earlier. Source
• Vocational sales flat on refuse decline: Vocational sales were $966.8 million, flat, as lower refuse and recycling shipments offset better pricing. Operating income fell 17.8 percent to $121.1 million, or 12.5 percent of sales. Source
• Transport sales up on delivery vehicles: Transport sales rose 11.9 percent to $536.1 million. Delivery vehicle sales reached $261.6 million, against $107.1 million, while defense sales fell to $274.5 million from $372.0 million. Source
• One-time NGDV item lifted Transport: Transport operating income of $15.8 million, or 2.9 percent of sales, included a one-time NGDV performance obligation recognition of $16.6 million. Source
• Corporate costs down on impairment: Net operating costs for corporate and other were $45.3 million, down $9.7 million, as the prior year included an intangible asset impairment. Source

“Across the company, we believe our Innovate. Serve. Advance. strategy continues to strengthen our competitive position through investments in differentiated products, advanced technologies and manufacturing capabilities,”

John Pfeifer, president and chief executive officer of Oshkosh Corporation

Products and customers

• Fire truck throughput to improve gradually: Management expects a more gradual improvement in fire truck throughput than previously expected, as new material flow processes are implemented. Source
• Access demand and orders: Management described Access demand as robust, with orders of $1.5 billion in the quarter, and tied it to access equipment. Source
• Airport and fire apparatus sales rose: Airport products sales rose to $258.0 million from $246.1 million, and municipal fire apparatus sales rose to $423.9 million from $398.0 million. Refuse and recycling vehicle sales fell to $160.7 million. Source

Costs, margins and pricing

• Adjusted margin 8.8 percent: Adjusted operating income was $257.6 million, or 8.8 percent of sales, against $312.9 million, or 11.5 percent, a year earlier. Source
• Vocational price-cost and incentive offsets: Vocational operating income was helped by improved price/cost dynamics and lower incentive compensation accruals, which partly offset adverse mix and overhead. Source
• Selling and administrative costs rose: Selling, general and administrative expenses were $222.7 million in the quarter, against $213.3 million a year earlier. Source

“We are seeing strong demand for access equipment highlighted by robust orders of $1.5 billion.”

John Pfeifer, president and chief executive officer of Oshkosh Corporation

Demand and the order book

• Consolidated backlog rose: Consolidated period-end backlog was $14,752.2 million, up from $14,225.7 million a year earlier. Source
• Segment backlog shifted: Access backlog rose to $1,958.2 million from $1,189.0 million and Vocational rose to $6,618.8 million from $6,268.8 million. Transport fell to $6,050.8 million from $6,709.0 million. Source
• Access orders reached $1.5 billion: Management described Access demand as strong in the quarter, with orders of $1.5 billion. Source

Capital, cash and returns to shareholders

• Six-month operating cash flow positive: Operating cash flow was $213.3 million for six months, against a $305.7 million outflow a year earlier, after $174.4 million of working-capital outflows. Source
• Buybacks of $91.6 million in quarter: The company repurchased 667,158 shares for $91.6 million in the second quarter. Buybacks over the prior twelve months added $0.09 to second-quarter EPS compared with a year earlier. Source
• Quarterly dividend held at $0.57: The board declared a quarterly cash dividend of $0.57 per share, the same amount declared in the prior quarter. Source
• Cash and debt balances moved: Cash fell to $403.6 million from $479.8 at December 31. Long-term debt fell to $600.6 million from $1,100.3 million, and current debt and revolver borrowings were $502.2 million. Source
• Capital spending lower year over year: Additions to property, plant and equipment were $54.8 million for six months, against $80.9 million, and equipment held for rental additions were $11.2 million, against $18.1 million. Source

Strategy and investment

• Innovate. Serve. Advance. strategy: Management said the Innovate. Serve. Advance. strategy continues to strengthen competitive position through investment in differentiated products, advanced technologies and manufacturing capabilities. Source
• NGDV ramp and Vocational modernization: Management said it remains focused on ramping up NGDV production and modernizing legacy manufacturing processes in the Vocational segment. Source
• Fire truck operations transformation: Management said it is continuing actions to transform fire truck manufacturing and expand production to serve customer demand and support long-term growth. Source

Tax and below-the-line items

• Tax rate fell to 16.9 percent: Tax expense was $37.2 million, or 16.9 percent of pre-tax income, against 24.1 percent, including a $16.7 million discrete benefit from an expiring statute of limitations. Source
• Miscellaneous income fell: Miscellaneous income, net was $3.7 million, against $7.3 million, when the prior year benefited from an unrealized gain on an investment. Source
• Adjusted measures exclude intangible amortization: Adjusted operating income, net income and EPS exclude amortization of purchased intangibles, while the acquired companies' revenue and earnings remain in the adjusted figures. Source

Coming up, as management said on 28 July 2026

• Dividend payable August 27: The $0.57 quarterly dividend is payable on August 27, 2026, to shareholders of record as of August 13, 2026. Source

Risks management discussed

• Operational: Higher litigation reserves and adverse price/cost dynamics weighed on Access operating income, alongside higher new product development spending. Source
• Operational: Transport operating income also reflected higher warranty and manufacturing overhead costs and adverse sales mix this quarter. Source

Earlier plans management reported on

• Not stated: Management now expects fire truck throughput to improve more gradually than it had previously expected. Source
• Not stated: Management is updating its full-year adjusted EPS expectation to approximately $11.00 from the prior $11.50. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.