Oshkosh (OSK) investor relations material

Strategic Overview and Innovation

• Growth strategy centers on innovation, lifecycle service, and expansion into adjacent categories, with a focus on customer support and operational excellence.

• Technology advancements include autonomous jet docks, electric refuse vehicles, and integrated intelligent solutions for airports, neighborhoods, and job sites.

• Product portfolio evolves with electrified, autonomous, and connected vehicles across three main segments: access, vocational, and transport.

• Emphasis on disciplined capital allocation, healthy margins, and scaling reach as part of the long-term strategy.

• 2028 targets include 7–10% annual revenue growth, operating income margin increase to 12–14%, and nearly doubling EPS.

Financial Performance and Targets

• 2024 revenue reached $10.7 billion with adjusted EPS of $11.74.

• 2028 targets project $13-14 billion in revenue, 12-14% adjusted operating margin, and $18-22 adjusted EPS.

• Cash conversion expected to reach over 90% by 2028, up from 55-70% in 2025.

• Financial targets exclude future M&A and are based on a defined strategic plan.

• Sizable backlogs and pricing provide strong revenue visibility.

Segment Performance and Market Dynamics

• Vocational segment demand driven by aging fleets, COVID-related funding, and property price increases, resulting in significant backlog.

• Access segment features smart fleet technology but faces a down cycle due to weaker construction activity and loss of a major contract; lower interest rates could provide a tailwind.

• Refuse vehicle demand supported by municipal growth, fleet age, and technology upgrades, including electric models.

• Transport segment poised for margin expansion with new defense contracts and ramp-up of postal vehicle production, supporting global logistics and mobility.

• Intelligent capacity expansions, including robotics, aim to reduce lead times and address labor constraints.