Key Highlights

  • Earnings per share of USD 2.41 trailed the consensus estimate of USD 3.06, while GAAP diluted EPS was USD 2.22.
  • Net sales rose 5.7% to USD 2.84 billion but fell short of the consensus estimate of USD 2.94 billion.
  • Operating income dropped 24.3% to USD 197.1 million, and the Operating Margin narrowed to 6.9% from 9.7%.
  • Full year EPS guidance fell to USD 8.00 to USD 9.00, and sales guidance to about USD 11.0 billion.

Oshkosh Corporation (NYSE:OSK) reported third quarter 2026 Earnings Per Share of USD 2.41, below the consensus estimate of USD 3.06, while GAAP diluted EPS was USD 2.22 compared with USD 3.04 a year earlier. Net sales of USD 2,841.6 million rose 5.7% from USD 2,688.6 million yet came in below the consensus estimate of USD 2.94 billion. Net Income was USD 138.4 million versus USD 196.2 million, and gross margin slipped to 15.5% from 17.5% on adverse sales mix and higher material costs, including Tariff and freight expense.

Access Gains Offset Vocational and Transport Weakness

Access segment sales jumped 20.7% to USD 1,339.6 million, with Operating Income up 23.5% to USD 145.7 million and a margin of 10.9%. North America Volume added USD 207 million and pricing added USD 31 million. Orders reached USD 2.0 billion for a book to bill ratio of 1.5, lifting segment Backlog to USD 2.7 billion.

Vocational sales fell 7.0% to USD 899.9 million and operating income dropped 38.2% to USD 87.6 million. Municipal fire apparatus volume was down USD 75 million as Pierce hit production problems while modernizing manufacturing, and refuse and recycling volume fell USD 23 million. Transport sales declined 4.4% to USD 562.0 million, and operating income fell to USD 8.2 million from USD 36.6 million, partly because a USD 25 million license of Joint Light Tactical Vehicle intellectual property in the prior year quarter did not repeat.

Revised Outlook and Stated Risks

The company lowered 2026 EPS guidance to USD 8.00 to USD 9.00, down USD 1.50 to USD 2.50 from the prior range, and adjusted EPS guidance to USD 8.50 to USD 9.50. Net sales are guided to about USD 11.0 billion versus USD 11.2 billion previously, reflecting lower municipal fire apparatus and delivery vehicle production, partly offset by Access volume. The low end of the range reflects the possibility of no additional Next Generation Delivery Vehicle order in 2026, which could affect earnings by up to USD 0.50 per share.

Segment targets now call for Access sales near USD 4.8 billion at a 9.4% margin, Vocational near USD 3.7 billion at 11.4%, and Transport near USD 2.3 billion at a 4.0% margin. Selling, general and administrative expense rose USD 32.7 million, including a USD 10 million increase in Bad debt expense tied mainly to a reserve on a note receivable from a prior divestiture. The effective tax rate was 22.8% versus 17.5%.

Data Points Behind the Next Report

The company stated that once fully implemented, high flow fire apparatus lines support production 25% to 30% above 2025 levels. The NGDV order decision carries the up to USD 0.50 per share swing noted above, and Access backlog of USD 2.7 billion includes 2027 annual purchase orders received from select national rental companies.

Capital items include USD 82 million of share repurchases in the quarter, USD 221 million for nine months, and 6,418,981 shares remaining under authorization. Operating Cash Flow for nine months was USD 533.2 million versus USD 183.3 million, cash was USD 558.0 million, and debt to total Capitalization stood at 19.5%.