Oshkosh Q1 2025 Earnings Report

Oshkosh EPS Results

• Actual EPS: $1.92
• Consensus EPS: $2.02
• Beat/Miss: Missed by -$0.10
• One Year Ago EPS: $2.89

Oshkosh Revenue Results

• Actual Revenue: $2.31 billion
• Expected Revenue: $2.42 billion
• Beat/Miss: Missed by -$105.45 million
• YoY Revenue Growth: -9.10%

Oshkosh Announcement Details

• Quarter: Q1 2025
• Date: 4/30/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, April 30, 2025
• Conference Call Time: 9:30AM ET

Oshkosh (NYSE:OSK) provides purpose-built vehicles and equipment worldwide. The company operates through three segments: Access, Defense, and Vocational segment. Its Access Equipment segment design and manufacture aerial work platform and telehandlers for use in construction, industrial, and maintenance applications; offers financing and leasing solutions including rental fleet loans, leases, and floor plan and retail financing; and towing and recovery equipment, which includes carriers, wreckers, and rotators, as well as provides equipment installation and sale of chassis and service parts. The Defense segment engages in the manufacture and sale of heavy, medium, and light tactical wheeled vehicles and related services for department of defense. Its Vocational segment offers custom and commercial firefighting equipment, fire apparatus, and emergency vehicles, including pumpers, aerial platform, ladder and tiller trucks, and tankers; light, medium, and heavy-duty rescue vehicles; and wildland rough terrain response, bomb squad, hazardous materials control vehicles, mobile command and control centers, and other emergency response vehicles. Additionally, this segment produces and sells custom and commercial firefighting vehicles, as well as command vehicles, ARFF vehicles; design and manufacture refuse collection vehicles for waste services industry; front discharge concrete mixers for the concrete ready-mix industry; and field service vehicles and truck-mounted cranes for construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Further, the company provides its products through direct sales representatives, dealers, and distributors. Oshkosh Corporation was formerly known as Oshkosh Truck Corporation. The company was founded in 1917 and is headquartered in Oshkosh, Wisconsin.

Oshkosh Q1 2025 Earnings Call Transcript

Key Takeaways

• In Q1, Oshkosh reported $2.3 billion in revenue, an 8.3% adjusted operating margin and $1.92 EPS, in line with guidance and supporting its full-year target of ~$11 EPS excluding tariffs.
• Oshkosh estimates tariffs could reduce FY EPS by ~$1, partially offset by up to $0.50 of cost and mitigation actions, with minimal Q2 impact due to existing inventories and a predominantly U.S. manufacturing footprint.
• The Access segment delivered an 11.3% margin on a $1.8 billion backlog and a 1.0 book-to-bill ratio, highlighted by rapid production localization in Italy to counter EU tariffs and the launch of a new microsized ES-1930 scissor lift.
• Vocational revenue rose 12% with nearly 15% margins and a $6.3 billion backlog, driven by strong refuse and recycling vehicle sales, electric fire truck orders in Calgary and new innovations like CAMS collision-avoidance and Clear Sky telematics.
• Defense remains on track to reach NGDV full-rate production by year-end for USPS, secured multiple DoD contracts for FMTV and PLS vehicles, added a 50-unit JLTV order with the Netherlands and announced a forthcoming segment leadership transition.

Presentation

[Operator]

Greetings, and welcome to the Oshkosh Corporation First Quarter two thousand twenty five Results Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick Davidson, Senior Vice President of Investor Relations. Thank you, sir. You may begin.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Good morning, and thanks for joining us. Earlier today, we published our first quarter twenty twenty five results. Copy of that release is available on our website at oshkoshcorp.com. Today's call is being webcast and is accompanied by a slide presentation, which includes a reconciliation of GAAP to non GAAP financial measures that we will use during this call and is also available on our website. The audio replay and slide presentation will be available on our website for approximately twelve months.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Please refer now to Slide two of that presentation. Our remarks that follow, including answers to your questions, contain statements that we believe to be forward looking statements within the meaning of the Private Securities Litigation Reform Act. These forward looking statements are subject to risks that could cause actual results to be materially different from those expressed or implied by such forward looking statements. These risks include, among others, matters that we have described in our Form eight ks filed with the SEC this morning and other filings we make with the SEC. We disclaim any obligation to update these forward looking statements, which may not be updated until our next quarterly earnings conference, if at all.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Our presenters today are John Pfeifer, President and Chief Executive Officer and Matt Field, Executive Vice President and Chief Financial Officer. Before we get started, I'd like to highlight our upcoming Investor Day. We are planning for a morning start on Thursday, June 5 at the New York Stock Exchange in Lower Manhattan. We look forward to sharing our plans for the future and you will get to hear from several of our key leaders in addition to both John and Matt. Please reach out to Victoria Connolly or myself if you are interested in attending in person.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Now please turn to Slide three, and I'll turn it over to you, John.

[John Pfeifer, President and CEO at Oshkosh]

Thank you, Pat, and good morning, everyone. We are off to a good start in 2025 with strong performance in our Vocational segment, good margins and resiliency in our Access segment and solid progress as we ramp up NGDV production in the Defense segment. For the quarter, we delivered revenue of $2,300,000,000 and adjusted operating income margin of 8.3. Our adjusted EPS of $1.92 was in line with our expectations of approximately $2 for the quarter.

[John Pfeifer, President and CEO at Oshkosh]

We are confident with the underlying trajectory of our operational performance across all our segments, which we believe would keep us on track to deliver our full year adjusted EPS guidance in the range of $11 excluding headwinds caused by the recent tariff announcements. Before Matt provides more details on potential tariff impacts on our results, I want to make some key tariff points upfront. First, as we've said previously, nearly all of what we sell in The United States is built in The United States, and we have a broad US production footprint, which we believe puts us in a strong competitive position in our industries. Second, we have a global supply chain, and we are proactively working to mitigate potential impacts from tariffs. Third, at this time, we are not experiencing significant secondary impacts of tariffs like supply chain disruptions or reductions in demand. And fourth, we continue to execute on our strategies despite near term volatility as we believe the trends that support our industry leading businesses align with our long term growth initiatives. Please turn to Slide four, and we'll get started on our segment updates. Access performance was in line with our expectations.

[John Pfeifer, President and CEO at Oshkosh]

We delivered a resilient adjusted operating margin of 11.3% despite lower sales. We remain confident in the long term opportunities arising from mega projects and infrastructure spending. Our backlog remains strong, ending the quarter at $1,800,000,000 equal to the end of last year as we booked orders in the quarter of $930,000,000 and achieved a book to bill ratio of one point o. We did not experience any notable order cancellations from customers in the quarter. We continue to stay close to our customers to respond quickly to any changes in the macroeconomic environment.

[John Pfeifer, President and CEO at Oshkosh]

A good example of our team's ability to respond quickly to tariffs was the localization of booms at our Hinoa facility in Italy in response to duties that the European Union applied to Chinese imports. I'm proud to report that it took our team less than a year to move production from China to Italy and begin shipping our first units to customers, thus mitigating the tariff impact. On the product front, the access team previewed our new microsized ES nineteen thirty m scissor lift at the ARA rental show in February. This category of scissor lifts is creating excitement in the market, growing at a solid clip and being used in places like data centers. Customers are particularly eager for our entry into this emerging category as they value JLG's quality, service, and support.

[John Pfeifer, President and CEO at Oshkosh]

Finally, JLG hosted international customers at the BAMA event in Munich earlier this month. Attendees were enthusiastic about our product innovations, including our new line of multi fuel booms and Clear Sky Smart Fleet with its many technological advantages. This was another outstanding opportunity for us to showcase our products and technology that lead the industry toward a connected and productive job site of the future. Please turn to slide five, and I'll review our vocational segment. We achieved strong year over year revenue growth of 12 in the quarter and a robust adjusted operating income margin of nearly 15%.

[John Pfeifer, President and CEO at Oshkosh]

The higher volume was led by higher rep use in recycling vehicle sales and strong price realization across the segment. The backlog remains robust at $6,300,000,000 providing excellent visibility to future revenue. We continue investing in people and resources toward our goal of increasing production levels across the segment to support strong demand, which we expect to lead to meaningful revenue and operating income growth. A great example of a growth opportunity that I'd like to share is with the city of Calgary in Alberta, Canada. Some of you may recall that Calgary was an early adopter of our Pierce Volterra electric fire truck.

[John Pfeifer, President and CEO at Oshkosh]

Previous to that, they purchased limited apparatus from Pierce, but their experience with our Volterra custom pumper EV helped us, along with our dealer commercial truck equipment in Canada, secure a multiyear order for 22 conventional Pierce fire trucks for the city of Calgary. Innovations are key to our success, and we continue to develop advanced technology such as our CAMS, that's collision avoidance mitigation system, and Clear Sky Intelligence fully integrated telematics solutions showcased at FDIC earlier this month. These are great examples of our neighborhood of the future technological advances. Additionally, we announced a new lineup of Oshkosh's IMT cranes at work truck week in March. The updated family delivers increased reach, lifting capacity, and reliability across 16 models.

[John Pfeifer, President and CEO at Oshkosh]

We've incorporated customer feedback in into the design and focused on commonality, ease of maintenance, and exceptional performance. Finally, Oshkosh Aerotech continues to perform very well and lead with innovative technologies like IOPS, fleet management software, and investments in autonomous baggage handling vehicles. Several of you on this call today experienced these products at our CES Airport of the Future display earlier this year. Customer demand for our jet bridges, ground support equipment, and advanced technologies continues to grow as customers seek to improve efficiency of airport operations. Let's turn to Slide six for a discussion of the defense segment.

[John Pfeifer, President and CEO at Oshkosh]

We're confident in the defense outlook for 2025. Although first quarter results reflected lower volume and higher cumulative catch up adjustments, we are pleased with our progress on the production ramp up for the NGDV program and deliveries to the United States Postal Service. We are on target to increase NGDV volume to full rate production by year end. This should provide strong revenue growth in the back half of twenty twenty five and into 2026. We continue to execute programs for the United States Department of Defense.

[John Pfeifer, President and CEO at Oshkosh]

During the quarter, we took orders for the FMTV low velocity airdrop vehicles as well as PLS a two autonomy ready vehicles for the US Army. We are also wrapping up negotiations for a sole source FMTV a two contract extension later this year. We expect the extension to include an economic price adjustment mechanism similar to our agreement for the FHTV program we announced in 2024. Just last week, we announced a 50 unit JLTV contract with the Netherlands Ministry of Defense for the Dutch Marine Corps. The contract calls for design modifications to the JLTV that fulfill requirements for the Dutch expeditionary patrol vehicles.

[John Pfeifer, President and CEO at Oshkosh]

This order is an excellent example of the attractive international opportunities for our tactical wheeled vehicles, and we look forward to sharing more of these successes in the future. Before I turn it over to Matt, I wanna note that our defense business is going through a leadership transition. I am overseeing the segment for the time being, and we expect to announce a new segment leader later this year.

[Matthew Field, Executive VP & CFO at Oshkosh]

Thanks, John. Please turn to Slide seven. Consolidated sales for the first quarter were $2,300,000,000 a decrease of $231,000,000 or 9% from the same quarter last year, primarily reflecting the softer market conditions for access equipment in North America, as we expected and highlighted on our previous call, primarily offset by improved pricing in the vocational segment. Adjusted operating income was $192,000,000 or 8.3% of sales. Adjusted operating income was down from the prior year as a result of lower sales volume, higher operating expenses, and higher new product development spending, partially offset by improved price cost dynamics.

[Matthew Field, Executive VP & CFO at Oshkosh]

Adjusted earnings per share was $1.92 in the first quarter, in line with our expectations of approximately $2 per share. Free cash flow for the quarter was also in line with our expectations and reflected a net use of cash of 435,000,000 due to seasonal working capital needs. During the quarter, we entered into a new $500,000,000 20 4 month term loan to provide additional liquidity. We used the proceeds to reduce the balance on our revolving credit facility. The term loan, which can be repaid early, carries a slightly lower interest rate than our revolver.

[Matthew Field, Executive VP & CFO at Oshkosh]

We also continued to repurchase shares steadily throughout the quarter, repurchasing nearly 290,000 shares of our stock for $29,000,000 Share repurchases during the previous twelve months benefited adjusted EPS by $03 compared to the first quarter of twenty twenty four. Please turn to slide eight. At the beginning of our call, John mentioned our confidence in the underlying trajectory of our operational performance, which we believe would keep us on track to deliver our full year adjusted EPS guidance in the range of $11 if not for the impact of announced tariffs. Based on current announcements and what we are seeing as of today, we estimate that the direct impact of tariffs, net of targeted mitigation actions, could be about $1 per share. We are monitoring conditions closely and proactively working to mitigate the impact of tariffs through cost actions across the company.

[Matthew Field, Executive VP & CFO at Oshkosh]

We believe these efforts may offset the impact of tariffs by up to $0.50 per share. We do not anticipate these tariffs will have a material impact on our second quarter results as we work through existing inventories. Our estimate of the direct impact of tariffs is based off currently announced rates and excludes potential future indirect impacts, which are difficult to predict at this time. We remain committed to execute on our strategies despite uncertainty introduced by tariffs, and we believe the trends that support industry leading businesses will provide long term growth opportunities. With that, I'll turn it back over to John for some closing comments.

[John Pfeifer, President and CEO at Oshkosh]

We delivered our first quarter in line with expectations, and I'm confident that we have the right team to execute our priorities regardless of the current macroeconomic environment. We believe our industry leading brands, strong product portfolio and strategic initiatives will serve us well and position us for long term growth. I'll now turn it back over to Pat for the Q and A.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Thanks, John. I'd like to remind everybody, please limit your questions to one plus a follow-up, and please stay disciplined on your follow-up question.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

After the follow-up, we ask that you rejoin queue if you have additional questions. Operator, please begin the q and a session.

[Operator]

Thank you. We will now be conducting a question and answer session. Again, we ask that all callers limit themselves to one question and one follow-up. If you have additional questions, you may requeue, and those questions will be addressed time permitting. If you would like to ask a question, please press star one on your telephone keypad.

[Operator]

A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Steven Volkmann with Jefferies. Please proceed with your question.

[Stephen Volkmann, Equity Analyst at Jefferies & Company Inc]

Hi. Good morning, guys. I'm gonna lead off with a question on tariffs, and I bet you didn't expect that. Yeah. So, big picture, I'm I'm curious, John, how you're thinking about this.

[Stephen Volkmann, Equity Analyst at Jefferies & Company Inc]

Last time we had tariffs, you were able to basically offset all that with price. But let's be clear. I mean, this time, it seems like the demand environment is not quite as robust. So, you know, do you think over time that we should still expect that that you'll be able to recapture whatever tariffs sort of hand you here?

[John Pfeifer, President and CEO at Oshkosh]

So I'll tell you the way. Thanks for the question, Steve. I'll tell you our MO. I mean, our MO right now is we wanna minimize impact that we pass on to our customers. Now you know we have pricing power in all of our end markets because we lead in all the end markets that we serve, but but our MO is to try to minimize impact to customers. And and so so we wanna use that as our last lever.

[John Pfeifer, President and CEO at Oshkosh]

We've got a lot of initiatives right now. These tariffs are targeted. There's we kinda have the top three areas that we have to mitigate tariffs in in terms of countries in the world. And if we mitigate those top three, we mitigate the vast majority of problem that we see ahead of us. That's what the tariffs as they are today.

[John Pfeifer, President and CEO at Oshkosh]

And so we're we are laser focused on doing that. I talked on the on my prepared remarks about what we were able to do in in Europe in a very short period of time to deal with European tariffs on China, and we'll continue to do that same type of work here. But, you know, we have pricing power, but the MO is we don't wanna pass a whole lot on to customers if we if we can avoid it, because of what you you said. There's, there's elasticity of demand in any market, and so so we wanna be prudent about how we go about this.

[Stephen Volkmann, Equity Analyst at Jefferies & Company Inc]

Got it. And and my extremely disciplined follow-up is last time it took, quite a while to to pass some of this through given long backlogs and various types of price. So just any comments there?

[John Pfeifer, President and CEO at Oshkosh]

Yeah. So so what we learned last time is what everyone learned is, a, we do have pricing power, but, b, when we had general inflation, and this was not just US inflation, it was general inflation that was global, it did take us a little bit of time in some of our end markets to realize the price because of big backlogs and contractual obligations and so forth. So we've been able to, to change the way we do business to to give ourselves more flexibility now versus what we had a few years ago during the rampant inflation years. So we definitely feel good about that. But but I'll come back to say, you know, our MO is to try to minimize disruption for our customers.

[Stephen Volkmann, Equity Analyst at Jefferies & Company Inc]

Thank you, guys.

[John Pfeifer, President and CEO at Oshkosh]

Thanks, Steve.

[Operator]

Our next question comes from the line of Mig Dobre with Baird. Please proceed with your question.

[Mircea Dobre, Associate Director of Research & Senior Research Analyst at Robert W. Baird & Co]

Alright. Thanks, and good morning. Just on this tariff topic, I'm I'm I'm curious if you can maybe give us a little more clarity in terms of where the cost headwinds are here. As you said, you manufacture things in The US. So, presumably, I would imagine this has to do with components.

[Mircea Dobre, Associate Director of Research & Senior Research Analyst at Robert W. Baird & Co]

Maybe you can highlight yeah. Maybe you can highlight some of the key countries that we need to watch for here just in case policy changes so that we get an understanding as to how your cost structure might evolve.

[Matthew Field, Executive VP & CFO at Oshkosh]

Morning, Meg. It's Matt. So if you think about our exposures, fundamentally, you think about the the three segments. Access is the most global of the segments. And so there, you know, you've got a a a broader supply chain.

[Matthew Field, Executive VP & CFO at Oshkosh]

Obviously, with the rate at which tariffs were put in, China has the outsized impact just given the the overall tariff amount there. And then we do source some from Europe in that global supply chain. The other two segments have a much more US focused supply chain. And so, really, in terms of mitigation, it's about negotiation, sourcing, and all those normal toolkit things you'd use for tariffs, which are slightly different than what you'd use for general inflation.

[Mircea Dobre, Associate Director of Research & Senior Research Analyst at Robert W. Baird & Co]

Alright. Understood. Then my follow-up is on the defense segment. First, I guess, thank you for starting to break out the NGDV so that we see the revenue there. Can can you comment at all in terms of that how that revenue should ramp, maybe what the exit run rate is going to look like in the fourth quarter?

[Mircea Dobre, Associate Director of Research & Senior Research Analyst at Robert W. Baird & Co]

And then relative to your initial guidance for segment margin, how should we think about the cadence of margin given that we're starting the year at breakeven, basically? Thank you.

[Matthew Field, Executive VP & CFO at Oshkosh]

So Mig, in defense, we've always talked about how we will exit the year at full year run rate, and that's 16,000 to 20,000 units of NGDB production. Obviously, the first quarter would be the lowest quarter, and we said that should be about linear across the year. So so that's really how I would how I'd think about the revenue In terms of, you know, margins in defense, you you would expect that to ramp up sequentially as well to support to support a reasonable rate as we guided earlier in the year. Net of I mean, crude tariffs, obviously.

[John Pfeifer, President and CEO at Oshkosh]

But

[John Pfeifer, President and CEO at Oshkosh]

Yeah. And the and the q one did not influence our our our outlook for the year at all. A little bit of tariff impact, but mostly the the q one being breakeven Mhmm. That did not influence our our confidence that defense was gonna do exactly what we expected to do.

[Mircea Dobre, Associate Director of Research & Senior Research Analyst at Robert W. Baird & Co]

Alright. Thank you.

[Operator]

Our next question comes from the line of Jamie Cook with Truist. Please proceed with your question.

[Jamie Cook, Managing Director - Equity Research at Truist Securities]

Hi. Good morning. I guess two questions, and sorry, more tariff questions for you there. But of the, you know, $1 headwind that you're talking about, is there any way you could allocate that sort of across the segment? It sounds like most of that would hit access, and then I'm just trying to figure out of the 50¢, does more go to access as well?

[Jamie Cook, Managing Director - Equity Research at Truist Securities]

So any, you know, help there would be helpful helpful. Thank you.

[Matthew Field, Executive VP & CFO at Oshkosh]

Hi, Jamie. Thanks for the question. So as I mentioned, most of the cost elements would be accessed in terms of how the cost flow through on tariffs. The cost offsets, those will be broad based across the company, so it'd be difficult for me to allocate that specifically to to the segments.

[Jamie Cook, Managing Director - Equity Research at Truist Securities]

But, I mean, I'm assuming the buck, like, over half, you know what mean? Like, 70¢ or the majority of that is is all access. Because I'm just trying to think about the implications for margins. I mean, I think before you guys were targeting a 13% margin for the year. So, obviously, that's off the table, but I'm just trying to think, you know, how how low margins go there.

[Matthew Field, Executive VP & CFO at Oshkosh]

We're not gonna provide specific guidance on margin by segment relative to the tariff impacts because we see this up to a up to a dollar. And, obviously, it's a dynamic environment, so we're gonna have to adjust as, you know, as policies evolve.

[Jamie Cook, Managing Director - Equity Research at Truist Securities]

Okay. And then, I guess, just back to access again. You know, John, any color you know, I guess, just broadly across the board, any color in terms of as you're talking, you know, to customers, you know, with regards to tariffs, just their, you know, their their sentiment. So far, the results, I think, across the board haven't been as bad as people would have thought. So just wondering what you're thinking or hearing how customers are, reacting. Thank you.

[John Pfeifer, President and CEO at Oshkosh]

Yeah. Sure. And, you know, we have great relationships with our customers, and we talk to them all the time, of course. So if you if you look at our customers, I think they've got a pretty balanced view on 2025. I think the the best indicator is our backlog coming out of the quarter at 1,800,000,000.0.

[John Pfeifer, President and CEO at Oshkosh]

1 point 8 billion dollars backlog for Access is a is a very healthy backlog coming into a to a q two, and as was the order rate throughout the first quarter. So so that's kind of a a metric that I always point to because it's it it indicates, you know, what what customers expect. But underneath that, you know, you you hear our customers talk about fleet productivity or they talk about utilization rates. Those are both, you know, in a in a healthy range. There's no defleeting that's happening in the market.

[John Pfeifer, President and CEO at Oshkosh]

So so the the customer sentiment is, continuing to be, what we would expect coming into to q two, and I think in line with with our expectations when we provided guidance, January ago. So so it's it's continuing to stay the course.

[Jamie Cook, Managing Director - Equity Research at Truist Securities]

Thank you.

[Operator]

Our next question comes from the line of Jerry Revich with Goldman Sachs. Please proceed with your question.

[Jerry Revich, Senior Investment Leader & Head of US Machinery, Infrastructure, Sustainable Tech franchise at Goldman Sachs]

Yes. Hi. Good morning, everyone. I'm wondering if I if I could ask hi. In terms of orders that you folks are taking today, can you just talk about the terms that you're implementing by business to provide protection just in case tariffs are at the high end of the expectation range?

[Jerry Revich, Senior Investment Leader & Head of US Machinery, Infrastructure, Sustainable Tech franchise at Goldman Sachs]

Can you just talk about the parameters for fire trucks in particular that are in backlog as well, John, in terms what kind of protection, you folks might have on on that book of business given the long lead times?

[John Pfeifer, President and CEO at Oshkosh]

Yeah. So I'll I'll tell you, a lot of the work that or all the work that you're referring to was already done, quite a while ago because as I mentioned earlier, you know, when we had the ramp in inflation a few years ago, we we have pricing power, but it took us a little while to realize it because of big backlogs. Mhmm. So we corrected that in our end markets. So some of those end markets have different t's and c's than others because, you know, you have, in one end market, a bonded order with municipality, and another end market is a is more private customer work.

[John Pfeifer, President and CEO at Oshkosh]

But we have those terms and conditions in, and they vary depending on the end market. We feel comfortable with with where those are, but but I wanna go back and reemphasize, you know, our MO, you know, the tariffs are probably gonna lead to some price increases, but our MO is to try to minimize that impact on the customer. Again, because any market has elasticity to demand, and and we we know that, and and we wanna minimize the impact. I think we have a better chance of minimizing this impact because in the inflationary period of twenty one to twenty three, it was broad based and global. I mean, there wasn't a lot of places you could run.

[John Pfeifer, President and CEO at Oshkosh]

When we have the tariff scenario, while it's relatively broad based, there there are we know exactly where the impact for us is and where it is not. And we know, therefore, in very targeted ways where we can where we can focus to be able to mitigate the impact of tariffs over time, and that's what we'll be doing.

[Jerry Revich, Senior Investment Leader & Head of US Machinery, Infrastructure, Sustainable Tech franchise at Goldman Sachs]

Super. And and just to shift gears, you know, capital deployment has been a big focus for you folks. AeroTech doing really well. Do you see an opportunity in the current environment for meaningful M and A? Or is the focus here, let's make sure we execute on the tariff manufacturing transition?

[John Pfeifer, President and CEO at Oshkosh]

Well, you know, mitigating tariffs is job one right now, of course. Right? I mean, I think probably everybody would tell you that. But, you know, we have an we have an m we we we do have an active corporate development group. We have what we always call an always on approach, and our team is looking at opportunities all the time.

[John Pfeifer, President and CEO at Oshkosh]

And we we, you know, we still have a strong balance sheet, so we have capacity. I'll tell you what we look at. You know, when we look at our m and a work to be a little bit more focused on it, we look at growth in healthy segments, like within our vocational segment and near adjacencies to that. We look at growth and resiliency in our access segments, and we look at targets with recurring good recurring revenue streams. But I wanna point out I I do wanna point out that, you know, we carefully scrutinize our our capital allocation priorities.

[John Pfeifer, President and CEO at Oshkosh]

And we'll always re always, no matter what the case, reinvest in our businesses organically. But but, really, right now, in this period of time, I will say that returning money to shareholders when our multiple is where it is becomes a bigger and bigger priority.

[Jerry Revich, Senior Investment Leader & Head of US Machinery, Infrastructure, Sustainable Tech franchise at Goldman Sachs]

Thank you.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Thanks, Jerry.

[Operator]

Our next question comes from the line of Angel Castillo with Morgan Stanley. Please proceed with your question.

[Brendan Shea, Senior Research Associate at Morgan Stanley]

Hi. This is Brendan on for Angel. If I could just touch on access quickly. So you noted not seeing material impacts from tariffs to customer demand yet, but volumes there were a bit of a headwind. So just kinda higher level, if you could give more color what you're seeing in terms of the overall construction market conditions in The US and Europe and how that might be impacting the, the higher sales discounts that you noted in the quarter? Thanks.

[John Pfeifer, President and CEO at Oshkosh]

Yeah. You know, I think that when you look at demand in the access equipment segment, demand is really still strong and healthy. And you hear our customers talk about it, those that are public companies, really solid with mega projects, thing you know, whether it's an infrastructure project or it's a data center, those in particular, you know, the the backlog certainly supports that outlook. And I think customers are seeing relatively healthy, demand in nonconstruction environments. You have to remember, our equipment goes into a lot of end markets that have nothing to do with construction, and those markets are holding up fairly well.

[John Pfeifer, President and CEO at Oshkosh]

I think the area that we're seeing weakness, and this is this is probably not new, it's in the kind of the private nonresidential construction markets. There's a lot of projects out there, but there's a lot of projects that are kind of in wait and see mode. We're kind of on hold right now. Interest rates are still high. And and I think that that's why we gave the original guide that we did when we came into the year that that, you know, we guided that we'll be down about 15% in our access market.

[John Pfeifer, President and CEO at Oshkosh]

We're kinda holding to that right now. We still think that that's our outlook. And that's driven again by that private nonres construction market that's there's a lot there's a lot on deck, just that, you know, with with with the conditions where they are, you know, people have to come up to bat. And we'll we'll you know, that but that's in line with our guidance. That's all in line with our guidance.

[Brendan Shea, Senior Research Associate at Morgan Stanley]

Okay. Great. Thank you for that. And then for my follow-up, if I if we could talk on vocational, you know, just what's driving the strong performance in refuse and recycling that you've seen? And how does that compare, I guess, to, your internal expectations? Thank you.

[John Pfeifer, President and CEO at Oshkosh]

Yeah. I think that, you know, the refuse and recycling market is one we've been optimistic about for a long time. We like the market. We like the resiliency of the market. We like the customers.

[John Pfeifer, President and CEO at Oshkosh]

We like the the the need and the desire for us to apply our technological capability, whether that's autonomous functionality or electrification to lower cost, those types of, of opportunities. But so we've made some investments in this marketplace, and and some of the the you've seen the product investments. If you went to the CES show, go if you if you go to, to Waste Expo that's coming up shortly, you'll see a lot of new technology that we've we've come out come out with to to drive productivity in the end markets. We also made an investment in our manufacturing capability. We really have state of the art manufacturing now, and we're getting you're seeing the fruits of that investment right now as as that, the productivity in our plants is up dramatically.

[John Pfeifer, President and CEO at Oshkosh]

The output is really healthy, and and that's what's driving some of these results, and and we expect that that will continue.

[Brendan Shea, Senior Research Associate at Morgan Stanley]

Got it. Thank you.

[John Pfeifer, President and CEO at Oshkosh]

Thanks, Brendan.

[Operator]

Our next question comes from the line of Tammy Zuccario with JPMorgan. Please proceed with your question.

[Tami Zakaria, Analyst at JPMorgan Chase]

Hey. Good morning. Thank you so much. So excess margins were quite impressive given the pullback in sales in the first quarter. So just wanted to get some color on the second quarter.

[Tami Zakaria, Analyst at JPMorgan Chase]

Usually, it's a sequential step up. But given all the tariffs, how should we think about access margin in 2Q versus what we saw in the first quarter?

[Matthew Field, Executive VP & CFO at Oshkosh]

Hi, Tammy. Thanks for pointing out the the resilience in Access. It's it's good to have a positive question like that. You know, we talked on our q four call about the work the Access team has done to improve resilience in in a a relatively down year. And what you're seeing in the first quarter and what we guided to for the year and inherent in the original $11 was that resilience in margin.

[Matthew Field, Executive VP & CFO at Oshkosh]

So, you know, set aside tariffs, I would expect your second, third quarter to be stronger than the first. We did talk about that on the the q four call. The first quarter would be our our lowest quarter. You you throw in tariffs. We still expect second quarter to be quite strong just because you don't really see a tariff impact because of inventories in the second quarter.

[Matthew Field, Executive VP & CFO at Oshkosh]

You know, beyond that, I'd reference the the the guidance we've provided in terms of the dollars and the offsets, but, you know, it's difficult to say how how the rest of the year shapes up.

[Tami Zakaria, Analyst at JPMorgan Chase]

Understood. And and to follow-up is the $1 EPS headwind, that's essentially a partial year number, not not not an annualized headwind, assuming the tech go ahead.

[Matthew Field, Executive VP & CFO at Oshkosh]

Yeah. No. No. That's that's that's right. So for this year, we see that as as a dollar, mostly back half loaded, obviously, just how tariffs will work.

[Matthew Field, Executive VP & CFO at Oshkosh]

Obviously, over time, we have more levers. Resourcing is is a bit of a lag. You can't do that in day one. And so that $1 would be the impact on this year. And and, again, we've got levers we pull over time depending on on how the tariffs work and how they're instituted.

[John Pfeifer, President and CEO at Oshkosh]

Yeah. Tammy, you know, a a a good point. The $1 is a partial year number, but we are not standing still. We are you know, I talked about how quickly we were able to move to mitigate European tariffs, which is a pretty big number, by the way, that we were able to mitigate. We are doing the exact same thing with these tariffs.

[John Pfeifer, President and CEO at Oshkosh]

We're not standing still. We will continue them to to drive activity and minimize any know, our intent is to minimize as much as we possibly can for 2026 and beyond and and that and that we believe we can minimize or minimize and mitigate, a significant portion of this.

[Tami Zakaria, Analyst at JPMorgan Chase]

That's wonderful. Thank you.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Thanks, Tammy.

[Operator]

Our next question comes from the line of Kyle Menges with Citi. Please proceed with your question.

[Kyle Menges, Vice President - Equity Research Analyst at Citi]

Hi. Thanks for taking the question. I just had a couple on just digging into the the segment revenue results a little bit more, like, starting with access. Telehandler sales were certainly down a little bit more than I anticipated and and down actually quite a bit more than the AWPs in the quarter. So if you could just provide some color, help me understand kinda what drove that.

[Kyle Menges, Vice President - Equity Research Analyst at Citi]

And, I guess, is that already seeing the impact of of the the loss of the cat contract? Like, is that what that is?

[John Pfeifer, President and CEO at Oshkosh]

It it's some of the cat impact is in there. Yeah. But I would caution you not to look too much into the first quarter revenue, across the the access, business because the first quarter is you know, second quarter and third quarter are much more indicative of the of what the health of the market looks like. While telehandler sales were down in the quarter, I'll I'll just point to the fact that our market share continues to climb in telehandler, business. So so this has not impacted our decision our our outlook at all in in the long term health of the telehandler market, where it's going, where we're going with it, why we put in investments into manufacturing these products.

[John Pfeifer, President and CEO at Oshkosh]

That all we're as confident about that today as we've ever been. And just because the sales were down in telehandlers in q one doesn't change that. And, again, I'll I'll point to the fact that we continue to have the the leading share in this market and and a growing share in the market.

[Kyle Menges, Vice President - Equity Research Analyst at Citi]

Helpful. Thanks. And then just looking at the refuse and recycling side, mean, those revenues were up quite a bit in the quarter. Could you just help us understand, like, how much of that is market growth versus you outgrowing the market? And then, I guess, layer in some impact as assumed as you stock dealers as as you move to more of a distribution model.

[Kyle Menges, Vice President - Equity Research Analyst at Citi]

And, I guess, could that create a tough comp for next year?

[John Pfeifer, President and CEO at Oshkosh]

I don't expect it to create a tough comp for next year. No. You you pointed out two two things. Number one, yeah, we have been able to because our production investments are paying off, we've been able to catch up a little bit in the backlog that drove some of it, but that was not the whole story. You mentioned about the dealer network now.

[John Pfeifer, President and CEO at Oshkosh]

So we've got a much more comprehensive go to market strategy that we've executed where we brought on fantastic a fantastic dealer network, highly professional, lot of after sales service centers around the country with our dealer network. That allows us to go into the small and midsized rep use companies and really make sure we're serving them well along with our our big customers, that are out there. And and you know the big customers' names that we've been serving for a long time, and they're they're growing nicely as well. So I think that that that that dealer network that we brought on, yes, that's starting to help us grow, But we don't see a scenario where it's gonna create, you know, a big spike in a comp problem next year. We do not see that.

[Kyle Menges, Vice President - Equity Research Analyst at Citi]

Helpful. Thank you.

[John Pfeifer, President and CEO at Oshkosh]

Thanks, Kyle.

[Operator]

Our next question comes from the line of Chad Dillard with Bernstein. Please proceed with your question.

[Chad Dillard, Senior Analyst, US Machinery at Bernstein]

Hi. Good morning, guys. Good morning, Chad. Good morning. So my question is on the $1 impact from some tariffs that you guys are guiding to.

[Chad Dillard, Senior Analyst, US Machinery at Bernstein]

So it sounds like it's it's very back end loaded. Is it fair to say, you know, we all the whole dollar goes into, you know, 3 q and four q? And then, you know, secondly, on the the 50¢ of mitigation efforts, like, is that mainly cost? Are you embedding some price increase? And then secondly, is is is that, you know, more of, a three q or four q event?

[Chad Dillard, Senior Analyst, US Machinery at Bernstein]

And then, I guess, like, what what do you think in terms of, you know, when that p and l impact actually hits?

[Matthew Field, Executive VP & CFO at Oshkosh]

Hi, Chad. So if you think about the dollar and the 50¢ offset, I would say they're both q three, q '4 primarily because, again, the the cost actions are really taking hold on spending, restraining growth, you know, slowing down hiring, all of those things. And then the the tariff impact, obviously, that net of mitigation efforts would be mostly q three, q '4 as well.

[Chad Dillard, Senior Analyst, US Machinery at Bernstein]

Got it. And the breakdown between cost versus price increases?

[Matthew Field, Executive VP & CFO at Oshkosh]

It it's all it's all in there. So so any of the cost actions and and any pricing associated with tariffs would be in the dollar, and the 50¢ really is on, you know, overall corporate costs, belt tightening, and so forth.

[John Pfeifer, President and CEO at Oshkosh]

Yeah. Chad, you know, our our plan is kind of, short term and then longer term. So, know because to to mitigate these tariffs, it takes work. It takes engineering work. You're doing supply chain reorganization, that type of of activity, and you can't do that overnight.

[John Pfeifer, President and CEO at Oshkosh]

That takes that takes some time. And so in the in the short term, what we do is we really tighten the belt up a few notches and go after any cost that we can go after in the short term period to to mitigate the tariffs until we get to the point where the longer term strategies kick in, and that that provides benefit in '26 and beyond. But that the '25 is really tightening up the belt to to to make sure we protect the year and protect our customers.

[Chad Dillard, Senior Analyst, US Machinery at Bernstein]

Okay. That's that's super helpful color. So just shifting gears on the the fire side of your business. Just more broadly, mean, like, where do you think we are in that replacement cycle? You've had, you know, a strong couple of years, and we just love to get some color on, you know, in terms of, like, what inning we are and and how are you thinking about that business as we look towards, you know, the next, you know, one to two years.

[John Pfeifer, President and CEO at Oshkosh]

Yeah. I think that the, fire markets are is gonna be a really healthy market for the foreseeable future. And we did see a spike in the market, coming out of COVID. It it went way up beyond anybody's forecast, and that's why lead times have gotten long for the industry. And and the industry will recover from that as we put capacity in place to be able to, to meet the current demand environment.

[John Pfeifer, President and CEO at Oshkosh]

So going forward, why are we confident this is gonna continue to be a healthy market for us? We're confident because there's aged fleets in the market. All over the country, there's aged fleets. We know what the fleet age is. We talk to fire departments all the time, and we know what their their desire is for, upgrading their fleets.

[John Pfeifer, President and CEO at Oshkosh]

The in addition to that, you see a lot of technological upgrades that we're introducing, and you we showed them off at at, at the the Consumer Electronics Show in Las Vegas and at FDIC. We had all sorts of technology on display at FDIC in Indianapolis just recently. And this is desired by municipalities. They they want these types of technologies that promote safety and productivity for the most important fleet of vehicles in just about any community that there is. And that demand, because of the aged fleet and because of this desire for that technology, we believe is going to when you look at the size of the fleet and where half the fleet age is is is fairly, aged, that tells us that this is gonna be a a healthy market for the foreseeable future in our forecast.

[John Pfeifer, President and CEO at Oshkosh]

Now I'm not saying it's gonna be at a you know, it went it spiked up coming out of the pandemic to a to a pretty high level. I'm not saying it's gonna stay up there, but it doesn't need to stay up there. It just needs to be healthy, consistent growth, over over a long period of time. Mhmm. And we'll be able to satisfy the industry, with the new innovations we're bringing forward.

[Chad Dillard, Senior Analyst, US Machinery at Bernstein]

Got it. Thank you.

[John Pfeifer, President and CEO at Oshkosh]

Thanks, Chad.

[Operator]

Our next question comes from the line of Steve Barger with KeyBanc. Please proceed with your question.

[Steve Barger, Managing Director, Equity Research at KeyBanc Capital Markets]

Hey, good morning. For the full year 2024, vocational incremental margin ran at 27%, and it was better than that in 1Q. So when you think about planned capacity actions and mix in the upcoming production schedule, should we think that segment can keep running at 27% or better for the year?

[Matthew Field, Executive VP & CFO at Oshkosh]

So the first quarter was very strong result in access. We're pleased to see that. Last year was strong. We are making a step in that. Sorry.

[Steve Barger, Managing Director, Equity Research at KeyBanc Capital Markets]

Vocational.

[Matthew Field, Executive VP & CFO at Oshkosh]

Too many questions on access. Sorry.

[Steve Barger, Managing Director, Equity Research at KeyBanc Capital Markets]

Yeah.

[Matthew Field, Executive VP & CFO at Oshkosh]

So Vocational has had strong results.

[Matthew Field, Executive VP & CFO at Oshkosh]

We continue to make investments in capacity. So some of those investments will reduce that, incrementality as we put down cost to drive volume over time. But overall, we do continue to believe, as we've talked about before, in the the strength of vocational and the opportunities we have there, whether that's in, fire where we talked earlier, but also in refuse where you see continued strength based off the, capacity we put in place over the last couple of years.

[Steve Barger, Managing Director, Equity Research at KeyBanc Capital Markets]

Capacity notwithstanding, you you don't expect a a negative mix? Like, you'll you'll still continue to monetize better pricing and that sort of thing in the backlog?

[Matthew Field, Executive VP & CFO at Oshkosh]

Yeah. We we we have considerable pricing still in the backlog to to flush out as we we build. And so the more capacity we can put in place, the more we build ahead units that are planned for the future.

[Steve Barger, Managing Director, Equity Research at KeyBanc Capital Markets]

Got it. And I know you're agnostic to drivetrain, and it's mostly ice to start. But any update on guidance you're getting in terms of mix for internal combustion versus battery electric for NGDV?

[John Pfeifer, President and CEO at Oshkosh]

You know, we talk to Postal Service all the time. We had the entire leadership team of the Postal Service at our plant in Spartanburg, South Carolina. Just recently, it was a phenomenal visit. They saw the product being produced down the down the production line. We were just with them earlier this week at the their national postal forum.

[John Pfeifer, President and CEO at Oshkosh]

It is stay the course. We need vehicles. The vehicle is performing exceptionally well, and we feel really good about it. So the simple answer to your question is there has not been any mixed shifts. They're taking both internal combustion, and they're taking battery electric.

[John Pfeifer, President and CEO at Oshkosh]

They're they're staying the course that they've been on. We're happy to supply them with whatever mix that they want, and we'll let them make that decision. But at this point, we're we're continuing, we're continuing to stay the course per their direction.

[Steve Barger, Managing Director, Equity Research at KeyBanc Capital Markets]

Alright. Thanks.

[Matthew Field, Executive VP & CFO at Oshkosh]

Thanks, Steve.

[Operator]

Our next question comes from the line of Judah Aronowitz with UBS. Please proceed with your question.

[Judah Aronovitz, Equity Research Associate at UBS Group]

Hey. Good morning. Calling you for Steve Fisher. Just on the catch up adjustment in defense, which programs was that tied to, and, how should we think about risk, going forward?

[Matthew Field, Executive VP & CFO at Oshkosh]

Hi, Judah. It's Matt. So, in terms of the CCA, really, that's a function of continued line rebalancing we're doing in defense. And so you had a catch up adjustment on JLTV as as we're building up those lost units as well as FMTV. Those are the two primary programs.

[Matthew Field, Executive VP & CFO at Oshkosh]

You shouldn't you can't expect future CCAs necessarily because the very nature of the accounting that results in a CCA is you're you're putting forward your projection of of what's gonna happen in the future into that. So I wouldn't expect any material CCA going forward based off what we see today.

[Judah Aronovitz, Equity Research Associate at UBS Group]

Thanks.

[Operator]

Our next question comes from the line of David Raso with Evercore. Please proceed with your question.

[David Raso, Senior Managing Director & Partner at Evercore]

Hi. Thank you. Just so I'm clear, I apologize. I've been hopping between calls. There's no change in the segment guidances from before except for allocating the 50¢ drag in the guide and that most of that hit or if you can help me with the mix of the hit that goes to access versus the other businesses.

[David Raso, Senior Managing Director & Partner at Evercore]

I know it's a large part of it. But is that correct? No change to the to the to the revenue by segments, just a change on the net 50¢ cost, mostly second half and majority access. Is that correct?

[Matthew Field, Executive VP & CFO at Oshkosh]

Hey, David. I I think that's a fair characterization. I mean, this is a dynamic environment. So, you know, spreading out the exact revenue impacts and how that works exactly by segment is difficult to do. You know, we reiterated that without tariffs, we would be comfortable with the $11 and the guidance we put out, including by segments and margins.

[Matthew Field, Executive VP & CFO at Oshkosh]

With the tariff impact, the dollar, and then the cost offset of 50¢, more difficult to provide, you know, specific guidance to the level we did earlier. But I think broad based, you you've characterized it fairly.

[David Raso, Senior Managing Director & Partner at Evercore]

But it's fair to say of the net, call it 42 and a half million, 40 2 million dollars pretax. Right? The net, not the dollar, the 50¢. It is a large majority, just to be clear, should be accessed. Because I'm just trying to think through the margins for the rest of the year.

[David Raso, Senior Managing Director & Partner at Evercore]

Ex tariffs, you're implying decrementals at around 30% for Access. And, again, this is keeping the original revenue guide, which seems, you know, a pretty impressive result given the magnitude of the revenue decline. And then, obviously, I have to layer in the the the related tariffs. So I was just looking for a little guidance. Of the 42 of pretax hit in the second half net, should we apply again a large majority, 30,000,000 plus, 35,000,000 plus to access? Just if we had a

[Matthew Field, Executive VP & CFO at Oshkosh]

So we're we're to brush out a little bit. Yeah. I can't be as explicit and precise as what you're asking, but I think you can think of the broad brush of the the dollar hitting Access. The 50¢ will be more spread across the company based off our cost structure. You know, decrementals when we set up our guidance in Access was about 33 percent.

[Matthew Field, Executive VP & CFO at Oshkosh]

With the with the allocation of of the dollar and tariff impact, you know, obviously, that'll move around some.

[David Raso, Senior Managing Director & Partner at Evercore]

Alright. That that no. It's helpful. I know it's not easy. I'm just we're we're on the same boat here trying to model the unknown. And when it comes to the cadence of the revenues for the rest of the year, right, the rest of the year, access revenue growth implied down 12 after the down 23 we just saw. Just just curious, any from independents to majors to know, just curious when we think about that cadence. Has anything changed from the original view of how we stepped down from the first quarter decline to, you know, the rest of the year only being down 12? Is it pushed out a little bit due to uncertainty? Is it customers saying, hey.

[David Raso, Senior Managing Director & Partner at Evercore]

If you can promise me a price, I'll take it a little bit earlier. Just curious on the cadence.

[John Pfeifer, President and CEO at Oshkosh]

Well, at at this point, David, it it has not changed. You know, in the in the first quarter, we we had a higher mix towards independents than we did to the to the big nationals. And that's primarily because in the first quarter, people are positioning fleet for the construction season. So, you know, some want it in the end of the first quarter, some want it early in the fourth quarter depending on what their situation is. So so we expect the the mix to shift back more towards the nationals as the year as the year goes on, and and that's what we're seeing.

[John Pfeifer, President and CEO at Oshkosh]

I'd say that's you know, in total, that's in line with what we expected at the beginning of the year. We have not seen any any significant moves that that would cause us to to change that outlook at this time on the revenue side. You know? And and going back to your first question on the tariffs, you know, this this does change on a regular basis. You know?

[John Pfeifer, President and CEO at Oshkosh]

We we have had multiple different, scenarios that we've been addressing as the as the situation continues continues to evolve. And and as things continue to evolve over the next between now and July, that'll continue. But we have we have pretty good, fairly aggressive plans for what we know now to address those tariffs, which will you know, again, short term, it's tighten your belt, reduce cost in 2025. Longer term, the initiatives kick in on resourcing and negotiations with suppliers and all that kind of stuff you have to do. You know, that that starts to kick in more, you know, from 2026 onward.

[David Raso, Senior Managing Director & Partner at Evercore]

So Yeah. I mean, you're just in a hard situation of do we go ahead and make the move to mitigate, and then we get a tweet and the changes. But I thought it was interesting the AWB assembly moved to Italy following the, you know, the EU duties on China. Yeah. Just curious, like, what what made that let's just go let's just do it versus maybe some hesitancy around, you know, scissors out of Mexico or whatever it may be.

[David Raso, Senior Managing Director & Partner at Evercore]

I mean, I assume the general premises in tariffs on China are gonna stay fairly high, so maybe it's a little bit easier to say we have to do something. Is it the other countries where you're just sort of, again, tightening the belt, but we're not dying to to make some real structural changes to our supply chain till we really know what's going on?

[John Pfeifer, President and CEO at Oshkosh]

So with the European tariff about a year ago, it was you know, we knew what they were what they were gonna do. It it evolved over a over a, you know, a relatively reasonable amount of time. And when when the when the writing was on the wall, we knew that that was something we could rely on, and we had to react to it. And we did very, very quickly. In the in the tariffs that we're dealing with today, you know, what's still going on is you you said the the rate in China is still in question, but it's a big rate and probably will be.

[John Pfeifer, President and CEO at Oshkosh]

So so we'll we'll move forward with mitigation actions on that. You've got lots of other countries that have blanket 10% but are trying to negotiate down from much higher tariffs that were that were announced in early April. And the outcome of that is is important to us. You know, does a country stay at the announced rate in early April of 24% or sometimes in the forties, or does it does it get does it stay at 10%? And and so those outcomes will impact some of the things that we do.

[David Raso, Senior Managing Director & Partner at Evercore]

I appreciate that. Thank you so much for the conversation.

[Matthew Field, Executive VP & CFO at Oshkosh]

Thanks, David. Have a great day.

[Operator]

We have reached the end of the question and answer session. Mister Davidson, I'd like to turn the floor back over to you for closing comments.

[Patrick Davidson, Senior Vice President, Investor Relations at Oshkosh]

Alright. Thanks, Christine, and thanks, everybody, for joining us on this busy earnings day. We look forward to speaking with you at a conference or perhaps during our Investor Day scheduled for Thursday morning, June fifth in New York. So have a great rest of the day and and week.

[Operator]

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Participants

Executives

• Patrick Davidson, Senior Vice President, Investor Relations
• John Pfeifer, President and CEO
• Matthew Field, Executive VP & CFO

Analysts

• Stephen Volkmann, Equity Analyst at Jefferies & Company Inc
• Mircea Dobre, Associate Director of Research & Senior Research Analyst at Robert W. Baird & Co
• Jamie Cook, Managing Director - Equity Research at Truist Securities
• Jerry Revich, Senior Investment Leader & Head of US Machinery, Infrastructure, Sustainable Tech franchise at Goldman Sachs
• Brendan Shea, Senior Research Associate at Morgan Stanley
• Tami Zakaria, Analyst at JPMorgan Chase
• Kyle Menges, Vice President - Equity Research Analyst at Citi
• Chad Dillard, Senior Analyst, US Machinery at Bernstein
• Steve Barger, Managing Director, Equity Research at KeyBanc Capital Markets
• Judah Aronovitz, Equity Research Associate at UBS Group
• David Raso, Senior Managing Director & Partner at Evercore