Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 28, 2026 · Beat 4 of last 7 quarters
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Oshkosh's Access segment is benefiting from mega projects, including data center construction, which is a key driver of AI infrastructure buildout. The company's strong order intake and backlog growth suggest sustained demand for aerial work platforms and telehandlers used in data center and other large-scale construction. Management's expectation for Access revenue growth in 2026, despite a soft private non-res market, underscores the strength of AI-related infrastructure spending.
Oshkosh reported Q2 FY2026 sales of $2.9B, up 6.7% YoY, and adjusted EPS of $2.87, beating consensus. Access sales grew 9.4% to $1.4B with a book-to-bill of 1.1 and double-digit operating margins of 11.3%, though margins were down YoY on mix and tariff costs. Vocational sales were flat at $967M with a 13.5% margin, as fire truck shipments were roughly flat and refuse sales declined. Transport sales rose 12% to $536M, with NGDV revenue of $262M (nearly half of segment sales) and a $17M favorable one-time item, but operating income fell to $16M on adverse mix and warranty costs. Free cash flow improved to $348M, and the company repurchased $92M of stock.
Management lowered full-year adjusted EPS guidance to $11.00 (from $11.50), reflecting a more moderate pace of fire truck production improvements, partially offset by stronger Access demand. They expect Q4 to be stronger than Q3, driven by increased fire truck production, an anticipated additional NGDV order, and continued ramp of NGDV production and revised defense contracts. Access segment revenue is now expected to grow in 2026 (vs. prior expectation of modest decline), supported by mega projects and improving demand. Free cash flow guidance of $550M-$650M was unchanged. Management reiterated confidence in achieving 2028 targets.
“We are building momentum and remain confident in our ability to deliver on our Investor Day targets.”
on Confidence in long-term targets
“We expect that this Q4 momentum carries forward into 2027 and beyond as we work towards our 2028 targets.”
on Q4 momentum and 2028 outlook
“We are confident that we can do that. We've been working for the last year on positioning our cost in the context of geopolitical tariff environments, really making sure that we're responding to that.”
on Pricing power and tariff management
Is the $0.50 reduction from fire truck throughput more than offset by Access upside?
Matt Field confirmed that the more moderate pace of fire truck production more than offsets the upside in Access, which drove the guidance revision.
Where do you expect industry access volumes to end this year versus prior peak?
John Pfeifer said the industry is being driven by mega projects (infrastructure, data centers) served by national rental companies, while private non-res construction is 'plodding along' but expected to improve by end of 2026 or early 2027. He noted strong utilization rates and building backlogs.
How much of a step forward do you expect in 2027 to bridge to 2028 targets, and what's your confidence on pricing ahead of inflation?
John Pfeifer expressed confidence in pricing ahead of inflation, citing tariff engineering and cost-first approach. He highlighted strong utilization, aged boom fleet, and mega projects as drivers of a strong recovery through 2028.