Oshkosh (OSK) Jefferies Global Industrial Conference 2024 summary

Company transformation, strategy, and technology focus

• Evolving from a traditional industrial company to a technology leader, emphasizing electrification, autonomy, and digital products for productivity and safety.

• Pursuing programmatic M&A, including acquisitions of AeroTech and AUSA, to expand in airport ground service and European compact equipment markets.

• Investing in advanced analytics, intelligent connected products, and disciplined capital allocation through reinvestment, dividends, M&A, and share repurchases.

• Recognized for sustainability and workplace culture, with awards for ethics, innovation, and inclusion, and membership in Dow Jones Sustainability Indices.

• Provides forward-looking statements subject to risks such as market cyclicality, input costs, labor, acquisition integration, and government contract uncertainties.

Financial performance and guidance

• Achieved strong Q1 and Q2 results, raising 2024 EPS guidance to $11.75, with Q2 adjusted EPS of $3.34 and projected 2024 revenues of $10.7 billion.

• Q3 2024 expectations include adjusted EPS of ~$3.00 and sales up ~10% year-over-year.

• Free cash flow for 2024 expected at $375 million, with a tax rate of 24% and CapEx of $300 million.

• Access equipment business delivered 17.7% margins, vocational segment showed margin improvement, and defense segment margin at 2.2%.

• Backlogs: Access segment at $3.3 billion (down 25.2%), defense at $6.4 billion (down 4.8%), vocational at $5.7 billion (up 47.4%).

Segment and market trends

• Municipal fire truck market rebounding with strong demand, backlogs over three years, and gradual pricing improvements expected.

• Anticipated shift toward electric fire trucks as stricter diesel emissions rules arrive in 2027.

• Telehandler market growth driven by capacity expansion and entry into agriculture, with demand outpacing production.

• Ongoing partnership with Cat expected to evolve but remain positive.

• Orders in access equipment normalized to seasonal patterns, with healthy backlogs but some uncertainty for 2025 non-residential construction demand.