Oshkosh Corporation

What they do

Oshkosh operates three reportable segments: Access, Vocational, and Transport. The Access segment designs aerial work platforms, telehandlers, and towing equipment under brands like JLG and SkyTrak, sold primarily to equipment rental companies. Vocational manufactures fire apparatus under Pierce and Maxi-Metal, airport ground support equipment, refuse collection vehicles under McNeilus, and other specialty vehicles. Transport produces tactical vehicles for the U.S. Department of Defense and the Next Generation Delivery Vehicle (NGDV) for the U.S. Postal Service.

Revenue drivers

• Access segment — Aerial work platforms and telehandlers under JLG and SkyTrak, generating 43% of 2025 consolidated net sales. Customers are equipment rental companies, construction contractors, and home improvement centers. Segment sales were down 13.0% in 2025 but operating margin held at 11.2%.
• Vocational segment — Fire apparatus (Pierce, Maxi-Metal), airport ground support equipment (Oshkosh AeroTech), refuse vehicles (McNeilus), and concrete mixers. Accounted for 36% of 2025 net sales. Sales grew 12.6% in 2025 with operating margin of 14.7%, up 270 basis points year-over-year.
• Transport segment — Tactical vehicles for the U.S. Department of Defense and NGDV for the U.S. Postal Service. Represented 20% of 2025 net sales. Delivery vehicle sales rose $365 million, or 352%, in 2025 compared to 2024, driven by increased NGDV production rates.
• U.S. government sales — Approximately 20% of net sales in both 2025 and 2024 came from U.S. government contracts, primarily multi-year defense vehicle programs including FHTV, FMTV, MCWS, and NGDV.

Recent performance

In the second quarter of 2026, Oshkosh reported sales of $2.92 billion, up 6.7% year-over-year, driven by higher volume and improved pricing. Net income was $183.2 million, or $2.92 per diluted share, compared to $204.8 million, or $3.16 per share, in the prior-year quarter. Consolidated operating income fell 16.6% to $243.2 million, or 8.3% of sales, due to unfavorable sales mix and higher manufacturing overhead. Access segment sales rose 9.4% to $1.37 billion, but operating income declined 16.5% to $151.6 million on adverse mix and higher litigation reserves. Vocational segment sales were flat at $966.8 million, with operating income down 17.8% to $121.1 million.

Strategy

Oshkosh is focused on ramping up NGDV production and modernizing legacy manufacturing in the Vocational segment, particularly fire truck throughput. The company is investing in autonomy, artificial intelligence, connectivity, and electrification across its portfolio. It continues a disciplined capital allocation strategy of reinvesting in core businesses, paying dividends, repurchasing shares, and pursuing strategic acquisitions like AUSA in September 2024. In 2025, the company repurchased nearly 2.3 million shares for $278 million and announced an 11.8% increase in its quarterly dividend to $0.57 per share, the twelfth straight year of double-digit percentage dividend increases.

Risks

• Cyclical end markets — The access equipment, municipal fire apparatus, refuse collection, and airport products markets are highly cyclical and sensitive to U.S. and European economic conditions, construction spending, and municipal tax receipts.
• USPS NGDV contract execution — The USPS contract allows for up to 165,000 vehicles over 10 years, but as of December 31, 2025, only 51,500 vehicles had been ordered; production ramp-up and timing risks could materially impact results.
• Tariff costs — Tariffs enacted in the U.S. during 2025 cost the company $35 million, or $0.42 per share, and management estimates tariffs will total approximately $200 million in 2026, an increase of $165 million.
• Government budget uncertainty — Budget uncertainty for the U.S. federal government, including risks of future budget cuts, continuing resolutions, or a prolonged shutdown, could affect defense and USPS orders.

Outlook

For full-year 2026, Oshkosh now estimates adjusted earnings per share of approximately $11.00, updated from a prior outlook, and expects adjusted net income of about $180 million. The company anticipates gradual improvement in fire truck throughput as it implements new material flow processes. Management expects Access segment sales to be approximately $4.2 billion in 2026, a decrease of roughly 7% from 2025.