Oshkosh (OSK) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales rose 6.7% year-over-year to $2.92 billion, driven by strong Access segment demand, higher sales volume, and improved pricing.

• Adjusted EPS for Q2 2026 was $2.87, down from $3.41 in the prior year, with net income at $183.2 million.

• Adjusted operating income declined 17.7% year-over-year to $257.6 million, with margin compressing to 8.8%.

• Fire truck production modernization is underway, leading to fewer shipments this year but positioning for growth in 2027-2028.

• Investments in AI, autonomy, and connectivity are ongoing to support future growth across segments.

Financial highlights

• Q2 2026 consolidated sales increased 6.7% year-over-year to $2,915.1 million, with adjusted EPS at $2.87.

• Adjusted operating income was $257.6 million, down from $312.9 million last year; gross margin declined to 16.5% from 19.2%.

• Free cash flow for Q2 2026 was $347.6 million, a significant increase from the prior year.

• Repurchased 667,158 shares for $91.6 million during Q2 2026.

• Debt to total capitalization was 19.6% at June 30, 2026.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance updated to approximately $11.00, with net sales expected at $11.2 billion.

• Diluted EPS guidance for 2026 is $10.50, both down $0.50 from previous guidance.

• Free cash flow guidance remains $550–$650 million.

• Q4 expected to be stronger than Q3, with momentum carrying into 2027 and beyond.

• Gradual improvement anticipated in fire truck throughput due to ongoing manufacturing modernization.