Oshkosh Q2 profit beats on improved pricing

Overview

• U.S. specialty vehicle maker's Q2 sales rose 6.7%, beating analyst expectations

• Adjusted EPS for Q2 was $2.87, beating analyst expectations

• Company cut full-year adjusted EPS outlook to about $11.00, citing slower fire truck throughput improvement

Outlook

• Oshkosh sees 2026 diluted EPS at about $10.50 and adjusted EPS at about $11.00

• Company raises 2026 net sales outlook to about $11.2 bln, up $200 mln from prior guidance

• Oshkosh expects more gradual improvement in fire truck throughput than previously anticipated

Result Drivers

• HIGHER SALES VOLUME AND PRICING - Q2 sales rose mainly due to increased sales volume and improved pricing

• UNFAVORABLE SALES MIX AND HIGHER COSTS - Operating income declined mainly due to unfavorable sales mix and higher manufacturing overhead costs, partly offset by higher sales volume

• SEGMENT PRESSURES - Access segment margins were hurt by adverse sales mix, price/cost dynamics, higher litigation reserves, and increased expenses; Vocational segment was impacted by lower refuse and recycling vehicle shipments and higher overhead costs

Company press release: ID:nBw9n7ZRva

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Oshkosh Corp is $168.00, about 8.4% above its July 27 closing price of $154.95

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 28 - Herc Holdings beats Q2 revenue estimates, lifts 2026 outlook

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• July 28 - Polaris Q2 sales rise 9%, lifts 2026 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)