Oshkosh (OSK) Jefferies Mining and Industrials Conference 2025 summary

Strategic Overview and Growth Targets

• Focus on innovation, lifecycle service, and advancing into adjacent categories, with disciplined capital allocation and operational excellence.

• Technology advancements target integrated, intelligent solutions and electrified, autonomous, and connected vehicles across segments.

• Targeting 7%-10% annual revenue growth and operating income margin expansion to 12%-14% by 2028, with EPS expected to nearly double from $11 to $18-$22.

• 2028 financial targets include $13-14 billion in revenue, 12-14% adjusted operating margin, and $18-22 adjusted EPS, with free cash flow conversion above 90% by 2028.

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

Segment Performance and Market Dynamics

• Vocational segment demand driven by aging fleets, COVID-related funding, and property tax windfalls, resulting in significant backlog and long lead times.

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

• Access segment features smart fleet technology but faces a down cycle due to weaker construction activity and loss of a major contract.

• Transport segment poised for margin expansion with new defense contracts and next-generation delivery vehicle production.

• Vocational segment focuses on advanced safety and visibility features for specialized vehicles.

Tariffs, Pricing, and Demand Trends

• Recent tariffs under Section 232 expected to impact costs starting in Q4, with ongoing evaluation of magnitude.

• Tariffs have minimal impact on Transport and Vocational segments; Access segment more exposed to construction cycles and interest rate changes.

• Pricing in Access managed through experienced teams, value-added services, and technology, with incentives and headwinds in line with historical cycles.