Oshkosh Corp

Consolidated sales in Q2 were $2.9 billion, up $183 million, or 6.7% year over year, and adjusted EPS was $2.87. Adjusted operating income was $258 million versus $313 million last year, free cash flow was $348 million versus $49 million last year, and the company repurchased about 667,000 shares for $92 million. Access sales were $1.4 billion, up 9.4%, with an 11.3% adjusted operating margin; Vocational sales were $967 million, relatively flat, with a 13.5% adjusted operating margin; Transport sales were $536 million, up 12%, with operating income of $16 million. For 2026, Oshkosh now expects full-year adjusted EPS to be in the range of $11, reduced by about $0.50 from slower fire truck throughput, while free cash flow guidance remains $550 million-$650 million. Management said Access full-year revenue is now expected to grow versus 2025, and they still expect Q4 to be stronger than Q3 as fire truck production, NGDV ramp, and revised defense contracts progress.

John Pfeifer emphasized that Oshkosh is building momentum across Access, Vocational, and Transport, with improving demand, robust backlogs, and continued investment in technologies such as autonomy, AI, connectivity, and electrification. He framed the fire truck manufacturing changes as a long-term transformation from bay build to high-flow lines, acknowledging slower near-term throughput but stressing that the work positions the business well for 2027, 2028, and the company's Investor Day targets. His tone was confident and constructive, with repeated references to confidence in the 2028 goals and a stronger back half of the year.

Matt Field walked through the quarter’s financial bridge: sales up 6.7% to $2.9 billion, adjusted operating income down to $258 million, and free cash flow up sharply to $348 million due to working-capital discipline, especially inventory, and higher customer advances. He said Access margins were pressured by adverse mix and tariffs, but the company still expects Access price-cost to be neutral for the full year, and Vocational margin benefited from favorable price-cost even as overhead and mix offset some of that benefit. He also said the company expects free cash flow of $550 million-$650 million for 2026, unchanged, and noted the company repurchased $92 million of stock in the quarter.

Analysts focused on how much of the $0.50 EPS reduction came from Vocational versus upside in Access, and management said the slower fire truck production more than offsets the Access upside. Questions also centered on Access margins, with management saying mix should improve over time and price-cost should get better as tariffs move into more favorable comps and pricing/cost reductions work through. In Transport, management said Q4 should benefit from NGDV production, a likely additional order, and revised defense contracts, while acknowledging the NGDV order timing could shift between Q3 and Q4; on fire trucks, they said second-half 2026 should start to show benefits from the production changes, with bigger gains in 2027 and 2028.