Oshkosh NYSE: OSK reported first-quarter 2026 results that came in modestly below its internal expectations, but management maintained its full-year outlook and said demand remains solid across its major businesses.
President and CEO John Pfeifer said the company delivered consolidated sales of approximately $2.3 billion and adjusted earnings per share of $0.85 in the quarter. He said earnings were below the expectations discussed on the prior call, primarily because of fewer fire truck shipments in the Vocational segment, where some planned customer pickups were not completed.
“Our outlook for the company has not changed, and we are maintaining our full-year consolidated guidance,” Pfeifer said. “Demand across our segments remains solid, and we have good visibility for the remainder of the year.”
Oshkosh Maintains Full-Year Earnings Guidance
Executive Vice President and CFO Matt Field said consolidated sales were flat compared with the prior-year quarter. Pricing, favorable currency and changes in cumulative catch-up adjustments in the Transport segment offset lower sales volume.
Adjusted operating income declined to $96 million from $192 million a year earlier. Field attributed the decrease primarily to unfavorable mix across segments and products, Access channel mix that included higher national rental company sales, higher manufacturing overhead costs tied partly to future production investments and lower sales volume.
Free cash flow was negative $189 million, an improvement from negative $435 million in the prior-year period. Field said the improvement came despite lower earnings and reflected more disciplined working capital management and higher customer advances. During the quarter, Oshkosh repurchased approximately 300,000 shares for $47 million and refinanced its revolving credit facility with a five-year, $1.6 billion agreement at a slightly lower interest rate.
Oshkosh maintained its full-year adjusted EPS expectation of $11.50 and free cash flow guidance of $550 million to $650 million. Field said the company now expects roughly 30% of its earnings in the first half of the year, with the second half supported by improved price-cost dynamics in Access, higher fire truck production, growth under the FMTV contract and higher NGDV production, along with an expected additional NGDV order.
Access Orders Improve, Driven by Mega Projects
The Access segment generated first-quarter sales of $943 million, roughly flat with a year earlier. Adjusted operating margin was 4.1%, which Field said was about in line with expectations.
Pfeifer said demand in Access is improving, supported by mega projects, including data center-related construction. Orders exceeded $1.5 billion in the quarter, producing a book-to-bill ratio of 1.6. Backlog ended the quarter at $1.8 billion.
Management said demand remains uneven across end markets. Mega projects continue to be a source of strength, while broader non-residential construction is still affected by macroeconomic factors. In response to a question from Jerry Revich of Wells Fargo, Pfeifer said telematics data and customer feedback indicate utilization is improving, and he described the used equipment market as healthy.
Oshkosh also highlighted new products and technologies from its JLG business, including boom lifts, a 26-foot micro-sized scissor lift, Canvas robotics for drywall finishing and a robotic welding end effector. Pfeifer said the micro-sized scissor lifts are seeing strong adoption in data center applications.
Vocational Segment Faces Fire Truck Delivery Timing Issues
Vocational sales were $825 million, down from the prior year because of lower shipment volume, partly offset by improved pricing. Field said refuse vehicle sales were lower as expected, while municipal fire truck deliveries were below plan despite modest year-over-year production growth.
Management said weather and travel disruptions prevented some customers from completing fire truck pickups late in the quarter. Pfeifer said the company has seen “a lot more fire truck deliveries” early in the second quarter as those delayed pickups moved forward.
The Vocational segment ended the quarter with a $6.6 billion backlog. Oshkosh is investing in Pierce fire apparatus facilities and working to modernize production flow, remove bottlenecks and improve lead times. Field said the company expects fire truck production to rise roughly 10% this year, similar to the increase in the second half of 2025.
Vocational adjusted operating income was $94 million, with an 11.4% margin. Field said full-year margins for the segment are still expected to be within the company’s long-term 2028 guidance range of 16% to 18%, although likely below the 17% level previously outlined.
Oshkosh also discussed its AeroTech business, where demand from airports remains strong. Pfeifer said orders were solid for air cargo loaders and jetway passenger boarding bridges, with wins in Reno, Orlando and Nashville. The jetway backlog now extends beyond 12 months, and the company is investing in capacity to improve delivery times.
Transport Segment Ramps NGDV and FMTV Programs
Transport segment sales increased $50 million to $513 million. Field said the increase reflected higher sales volume and cumulative catch-up adjustments. Delivery vehicle revenue rose by $166 million to $217 million, representing 42% of segment sales and growing more than 30% sequentially from the fourth quarter of 2025.
Defense revenue declined from a year earlier because of lower tactical wheeled vehicle and aftermarket sales volumes. Field noted that Oshkosh was still building JLTV units in the first quarter of 2025, with the final units built in May 2025.
Transport operating income was $4 million, up $3.6 million from the prior year. Management expects margins to improve in the back half of the year as Oshkosh transitions out of older fixed-price contracts, ramps NGDV production and expects additional NGDV orders.
Pfeifer said NGDV production is on track, with the fleet surpassing 20 million miles and operating in 48 states. Feedback from the U.S. Postal Service and drivers remains positive, he said. Field later clarified that Oshkosh expects to be at the low end of its 16,000-to-20,000-unit annual production range for the full year, with the back half larger than the first half.
Tariffs, Inflation and 2028 Targets Remain in Focus
Management said the tariff environment remains dynamic. Field said Oshkosh recorded an IEEPA refund benefit of about $13 million in the first quarter and expects a full-year impact of about $23 million. He said the company expects IEEPA tariff recoveries to broadly offset additional costs from the Section 232 expansion, leaving a negligible to zero impact for the year.
Pfeifer said geopolitical conflict is primarily affecting Oshkosh through inflation, including higher steel, aluminum and oil costs. He said those impacts are embedded in the company’s guidance.
Asked about the company’s longer-term targets, Pfeifer said Oshkosh still expects to be around the midpoint of its 2028 scenarios, citing end-market demand, existing backlogs, capacity investments and technology embedded in its products.
“All the ingredients to deliver on our 2028 targets are in place or underway,” Field said.
About Oshkosh NYSE: OSK
Oshkosh Corporation NYSE: OSK is a leading designer, manufacturer and marketer of specialty trucks, military vehicles and access equipment. The company's offerings span critical end markets, including defense, fire and emergency services, commercial construction and industrial sectors. By combining engineering expertise with advanced technologies, Oshkosh delivers solutions that enhance mobility, safety and productivity for its customers.
Founded in 1917 and headquartered in Oshkosh, Wisconsin, the company has evolved from producing heavy-duty dump trucks to a diversified portfolio of products and services.
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