Oshkosh Corporation — 2026 Third Quarter Earnings Summary

Financial Performance:

• Consolidated sales for the third quarter of 2026 reached $2.84 billion, an increase of 5.7% ($153.0 million) compared to $2.69 billion in the third quarter of 2025.
• Net income for the third quarter of 2026 was $138.4 million ($2.22 per diluted share), down from $196.2 million ($3.04 per diluted share) in the third quarter of 2025.
• Adjusted net income for the third quarter of 2026 was $150.1 million ($2.41 per diluted share), down from $206.6 million ($3.20 per diluted share) in the third quarter of 2025.
• Consolidated operating income decreased 24.3% to $197.1 million (6.9% of sales) from $260.4 million (9.7% of sales) in the prior year quarter.
• Adjusted operating income decreased 20.9% to $216.9 million (7.6% of sales) from $274.3 million (10.2% of sales) in the prior year quarter.
• For the first nine months of 2026, net sales were $8.07 billion and net income was $364.7 million ($5.81 per diluted share), compared to $7.73 billion and $513.2 million ($7.92 per diluted share) in the same period of 2025.
• Adjusted net income for the first nine months of 2026 was $384.0 million ($6.12 per diluted share), down from $552.0 million ($8.52 per diluted share) in 2025.
• Cash and cash equivalents were $558.0 million as of September 30, 2026, compared to $479.8 million as of December 31, 2025.
• Total debt (revolving credit facilities and current maturities plus long-term debt) was $1.10 billion as of September 30, 2026, compared to $1.10 billion as of December 31, 2025.
• Net cash provided by operating activities for the first nine months of 2026 was $533.2 million, compared to $183.3 million in the same period of 2025.

Guidance and Future Outlook:

• Full-year 2026 diluted earnings per share guidance was lowered to a range of $8.00 to $9.00, down from previous expectations.
• Full-year 2026 adjusted earnings per share guidance was lowered to a range of $8.50 to $9.50, down $1.50 to $2.50 from previous guidance.
• Full-year 2026 net sales guidance was lowered to approximately $11.0 billion, down $0.2 billion from previous guidance.
• The revised guidance reflects lower fire apparatus and Next Generation Delivery Vehicle (NGDV) production, partially offset by higher sales volume in the Access segment.
• The bottom end of the earnings per share range accounts for the possibility of not receiving an NGDV order in 2026, which could impact earnings by up to $0.50 per share.
• Management remains confident that actions to move to high-flow lines will result in increased fire truck production levels over time, supporting a strong long-term outlook for the Vocational segment.

Business Segments and Product Lines:

• Access Segment: Sales increased 20.7% to $1.34 billion, driven by higher sales volume in North America and improved pricing. Operating income increased 23.5% to $145.7 million (10.9% of sales). Adjusted operating income was $149.9 million (11.2% of sales).
• Vocational Segment: Sales decreased 7.0% to $899.9 million due to lower sales volume, specifically lower fire apparatus production related to manufacturing modernization initiatives. Operating income decreased 38.2% to $87.6 million (9.7% of sales). Adjusted operating income was $102.4 million (11.4% of sales).
• Transport Segment: Sales decreased 4.4% to $562.0 million, primarily due to a $25.0 million license of JLTV-related intellectual property to the U.S. government recognized in the third quarter of 2025. Operating income decreased 77.6% to $8.2 million (1.5% of sales).
• Corporate and Other: Net operating costs increased $8.5 million to $44.4 million, primarily due to the timing of healthcare charges.
• Backlog: Period-end backlog as of September 30, 2026, was $15.15 billion, up from $13.69 billion in the prior year. Access backlog was $2.66 billion, Vocational backlog was $6.74 billion, and Transport backlog was $5.64 billion.

Market and Competitive Landscape:

• The Access segment reflected strong customer demand and improved execution.
• The Vocational segment faces challenges associated with initiatives to modernize fire apparatus manufacturing, resulting in lower production compared to the prior year and second quarter of 2026.
• Management cited favorable price/cost dynamics in the Access segment and improved pricing across all three segments as key drivers for sales volume.

Risks and Challenges:

• Transformation of fire truck production is causing near-term challenges, with improvements in throughput taking longer than expected.
• Factors affecting results include unfavorable sales mix, higher selling, general and administrative expenses, and higher manufacturing overhead related to fire apparatus initiatives.
• The third quarter of 2026 included a $5.4 million discrete tax charge related to the recapture of a purchased federal income tax credit.
• Risks mentioned in forward-looking statements include cyclical market nature, trade wars/tariffs, input cost volatility, labor retention, and government budget uncertainty.

Management Commentary and Tone:

• John Pfeifer, President and CEO, stated that results reflected challenges from the fire truck production transformation but characterized the issue as near-term.
• Management noted they are taking focused actions to improve material flow and strengthen production scheduling.
• Pfeifer expressed confidence in the company's strong market positions, differentiated products, and investments in technology and manufacturing capabilities.
• Management emphasized a focus on disciplined execution and a belief that the company is well-positioned for future success.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.57 per share, payable on November 30, 2026, to shareholders of record as of November 16, 2026.
• The Company repurchased 556,138 shares of common stock in the third quarter of 2026 for $82.4 million.
• Share repurchases completed during the previous twelve months benefited earnings per share by $0.08 in the third quarter of 2026 compared to the prior year.
• Miscellaneous income, net in the third quarter of 2026 included the recognition of an indemnification receivable related to a recapture of a purchased federal income tax credit.
• The Transport segment's operating income decline was significantly impacted by the one-time $25.0 million license revenue recognized in the third quarter of 2025.