Oshkosh (NYSE:OSK) reported second-quarter 2026 sales of $2.9 billion, up 6.7% from a year earlier, while adjusted earnings per share totaled $2.87. The company raised its outlook for Access segment revenue but reduced its full-year adjusted EPS expectation to about $11, citing a more gradual-than-expected ramp in fire-truck production.
Adjusted operating income was $258 million, compared with $313 million in the prior-year quarter. Chief Financial Officer Matt Field said unfavorable product and customer mix, along with higher manufacturing overhead costs tied partly to investments for future production, outweighed the benefit of higher sales volume. Free cash flow rose to $348 million from $49 million a year earlier, reflecting working-capital management, inventory discipline and higher customer advances.
Access demand strengthens on mega projects
Access segment sales increased 9.4% year over year to $1.4 billion, supported by higher volume and improved pricing. The segment posted an adjusted operating margin of 11.3%, down from the prior year because of adverse product and customer mix and unfavorable price-cost dynamics related primarily to tariffs.
Chief Executive Officer John Pfeifer said demand has improved, particularly from large infrastructure investments, data centers and other mega projects. Quarterly Access orders reached $1.5 billion, producing a book-to-bill ratio of 1.1, and the segment ended the quarter with a $2 billion backlog.
Oshkosh now expects Access revenue to grow in 2026 compared with 2025, improving from its previous expectation for a modest decline. Field said price-cost dynamics should improve over the course of the year through pricing actions, cost reductions and easier comparisons once tariff costs are included in year-over-year results.
Pfeifer said demand from large national rental companies has been a major driver of the current environment. He added that the broader private nonresidential construction market has been “plodding along,” but the company sees indicators that it could improve late this year or in 2027. Strong equipment utilization, a growing backlog and an aging fleet of boom lifts support the company’s view that the Access recovery can extend through 2028 and beyond, he said.
Fire-truck production changes weigh on 2026 outlook
The company’s Vocational segment generated sales of $967 million, roughly flat from a year earlier. Lower sales of refuse and recycling vehicles more than offset improved pricing, while fire-truck shipments were approximately in line with the prior year. The segment’s adjusted operating margin was 13.5%.
Oshkosh is working to transform fire-truck manufacturing from a bay-build approach into higher-flow production lines. Pfeifer said the company has implemented production changes and new material-flow processes, but the transition for a complex product involving thousands of parts has progressed more gradually than expected.
As a result, Oshkosh expects to produce and ship fewer fire trucks in 2026 than previously planned. Field said the slower production ramp more than offsets the benefit from stronger Access demand and reduced the company’s full-year EPS expectation by approximately $0.50.
Still, management said it expects to see production benefits in the second half of 2026. Pfeifer said Oshkosh anticipates approximately a 10% increase in fire-truck output this year and ultimately expects a 25% to 30% production-rate increase, with additional gains expected in the third and fourth quarters and through 2027.
Demand and backlog for fire apparatus and airport products remained strong. Oshkosh AeroTech won passenger boarding bridge business in Chicago, Denver and Philadelphia, according to the company. Refuse vehicle sales were lower year over year, though Pfeifer said fleets remain aged and the business could return to a more normal state in 2027. The company also cited a significant order from the New York City Department of Sanitation.
Delivery vehicle ramp supports Transport sales
Transport segment sales increased 12% to $536 million, as delivery-vehicle revenue rose $155 million to $262 million. Delivery represented nearly half of Transport revenue during the quarter, and delivery revenue increased more than 20% sequentially from the first quarter.
Oshkosh continued ramping production of its Next Generation Delivery Vehicle for the U.S. Postal Service. The fleet has surpassed 35 million miles, Pfeifer said, and feedback from USPS and drivers has been positive. The company is working through its initial and supplemental delivery-vehicle orders and expects an additional order in the second half, likely during the fourth quarter, according to management.
Transport operating income was $16 million, down $2 million from a year earlier. Field attributed the decline to adverse mix, higher warranty costs and manufacturing overhead, partly offset by a favorable $17 million one-time item related to the NGDV program. Pfeifer said the warranty cost was a one-time, engine-related issue on a defense program.
Management expects Transport margins to improve in the second half as it transitions out of past fixed-price defense contracts, increases NGDV production and benefits from revised defense pricing. Oshkosh also received a $142 million order for the FMTV A2 program and a $92 million order supporting the U.S. Marine Corps’ ROGUE-Fires platform during the quarter.
Fourth quarter expected to be stronger
Field said Oshkosh expects fourth-quarter results to be stronger than the third quarter, driven by increased fire-truck production, higher NGDV output, an anticipated NGDV order and greater contribution from revised defense contracts. Management said third-quarter EPS could be flat to down on a year-over-year basis before the expected fourth-quarter acceleration.
Despite the revised 2026 earnings outlook, Pfeifer said the company remains confident in its plans to meet its 2028 financial targets. Oshkosh continues to invest in connected equipment, autonomy, artificial intelligence and electrification across its Access, Vocational and Transport businesses.
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.
