OSK - Earnings call transcript Q1 2021

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Operator

Greetings, and welcome to the Oshkosh Corporation Fiscal 2021 First Quarter Results Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure of your Corporation. Investor my Senior Pat now President Vice Relations is to host, introduce Davidson, It for Oshkosh you, sir. Thank

You may begin.

Patrick Davidson

is also published being to will is which of available during thanks and Earlier our slide to GAAP website results. and presentation, joining Today's on is presentation. copy website our call that financial this audio months The now accompanied we measures oshkoshcorp.com. we be XX X a is please A so our presentation release morning, on use reconciliation will available replay XXXX and non-GAAP that on first includes for the Good slide website. approximately of of Slide a refer at our quarter call and webcast for today, available us. by

unless Our including at updated other be with quarter until remarks SEC results to filed the Litigation materially which that by from to are update year, our All a to forward-looking questions, or we we year statements contain include otherwise. X-K quarter are We quarterly different to on of Form all. our or statements stated to disclaim obligation references to matters not your such Reform a fiscal make in this next the filings conference morning the implied with and statements expressed to have we any SEC. this statements, within if cause among be a call, the those fiscal those These actual may Private call that earnings Securities risks forward-looking could statements. forward-looking These other meaning that described believe forward-looking or be answers Act. risks follow, subject

to Officer; Wilson include turn Executive Mike Pack, Financial X Operating it over Wilson. President and Jones, John and today you, Chief to Officer. turn presenters and Chief Please Chief Slide I'll President Vice Officer; and Pfeifer, Executive Our

Wilson Jones

morning you, everyone. Thank Good Pat.

first demonstrated disciplined execution the our quarter in team. the and of Our performance perseverance

by Just once and like I’m are of members on proud COVID-XX and Oshkosh challenges brought our work today, everyone again people. hard listening team efforts of navigating the the

quarter, have dedicated I up out plus stepped our shout As difficult during XX,XXX that serving our suppliers members to this I give last a consistently and to customers. continue want to did all period

quarter, billion outside For both that the sales $X.XX, significant per elevated face over suppliers. can adjusted where our operations in quickly of secret of expectations. Wisconsin control. counties we’ve first our are we what nearly located. responding which Much for call, levels our of exceeded delivered said our we I of related particularly $X.X control for and share our absenteeism like of This our or Defense similar challenges no shows the challenges and challenge last controlled to on facilities us to fire in It’s all and this COVID-XX primary truck the spread earnings fall,

of Our the to have keep people resiliency exception and in situations flexibility where done moving us an have to right changing job helped direction. adapting

may We challenges and face those ahead. rebounds suppliers. execution months as economy may supply risk with further focus the facilities absenteeism daily our of face critical also we with forward, and our weeks the remains broader in Going chain so

with segments, this is XX. going with our we about Pratt which fit Revenue and great to and consistent share remarks. quarter, capabilities to our Miller closed technology prior than in comments in our more January the announced Access intent Commercial and was During a softer his acquire on our quarter. Miller’s last Equipment are company year Pratt John

last are is the quarter, the X with second although timing that precise Compared As by I’ll uncertain. to magnitude sequential we have Slide our & confident And turn into half segments with and moderating. John. extend decline of in Fire more expected, Defense backlogs improvement our Please have are visibility course and are Emergency recovery both XXXX. a we outlook it segment bolstered pass seeing our and Equipment we in is which to as overall our as on sales Access still basis over

John Pfeifer

good and Wilson morning Thanks, everybody.

for has Before globe. He a to company I motivator moment been he the is and and an dramatic and been company team entire Wilson and get all our commitment us. and aspects. his has A unwavering of for want little our CEO leader over mentor the with great course leader take started, responsible years his Wilson a to leadership a driving in entire me our improvement ago has for I years the to Oshkosh. thank he leadership true this around for been over culture in became outstanding XX at X

have a and leadership a as strong team workforce. well We highly as engaged motivated

So in I and wish him am the confident our future all best.

to for the him thank with Wilson outstanding of through recognize the so will While call, and earnings last us his be wanted contributions end will be this his I his service. quarter,

Wilson Jones

Thank John. you

John Pfeifer

markets had Let’s our Since with key for calendar customers in earnings led segment with seen favourable our call get negotiations our with started expectations, improvements by last versus needs. major have America, North Access we updates Equipment. XXXX where equipment we’ve

our with current the in the backlog. are for and a quarter Access we encouraged are strengthening team very Equipment pleased at the JLG Given with market first orders environment the booked

had first the manufacturing segment growth this late quarter year-over-year and the as companies second our production levels. we discussed quarter return will capital begin available We rates gradually during expect refresh rental to first ramping benefited third confident last late year. deliveries, are We typical calendar customers up ran exit to its that rates JLG beginning at quarter in some aging some to their call, deployed as from they at our quarter and fleets. we more remain also in on the facilities production as reduced orders the

throughout operations the production lower confident shows of during delivering difficult demand been pandemic. very perform I process and in have our low a this the in time And lower margins kept am environment. difficult chain supply teams decremental in adjusted expenses We've ability to and and Our we've effectively. strong managed a it

to have a and the monitoring continued headwind Going prices forward be in rise we're closely year. later that will steel cost

working Our chain team global is manage material. diligently raw to this supply important

by electrification industry to very hydraulics We JLG lift With about are our DaVinci scissor zero XX% design our access scissor generation lift. emissions, push the the of and reduces of to zero in and electric revolutionary formal AEXXXX recent continues lift the traditional all energy innovative the innovation elevates launch the again. is next position upto once a compared excited DaVinci’s new also envelope. represents DaVinci scissor consumption

this turn to Slide product. we've Defense our I'll We Please are X outstanding new very encouraged and segment. by response for the strong customer had discuss

aftermarket Our during difficult and a of by seen including in our issues our U.S. of solid much for responded Defense challenges suppliers, quarter. area overcoming very to segment specifically, of sales improvement in in Early execute in operations government quarter, kicked spread XX% reliable for customer. recent The which fall to these of plan high it in with and made we to Wisconsin Coronavirus and results our significant our this by workforce increase have deliver were In caused spread. and absenteeism the in support team the off local be to of spotlight intensity our absenteeism. they region I'm continued in of the more the effectively pandemic. drove for the vehicles national a levels source as proud weeks, XXXX operational many high the and

During units the quarter we for customers. more valued received JLTV that million at several order international included another large than $XXX

JLTV international the of that years. portion visibility This beyond. XXXX will believe in to backlog the our provides continue quarter over end We to JLTV our also large and be that order contributed meaningful next several outstanding business

Motorsports their well-respected our segments for for years, They U.S. at Armed objectives. forward. important Miller partnership. U.S. FMTV, and impact team benefit our capabilities help recently in roadmaps we Pratt Pratt to in and functional going budget segment. FHTV we The strengths signed It's with connected innovation forward. Defense speed new other $XX supports from that additional that believe company Leveraging we Miller, have mid-December, goals among But our company for We our product and to and so in We've heritage. note with that other worked have XX supply will going the autonomous Miller our programs action funding was on budget important for million JLTV of Oshkosh systems a their the Defense an strengths us will FHTVs in expertise. and mentioned, will agility that Forces. robotics, already technology be our a and will contains outstanding to that also plans appropriated for part Wilson a an FMTVs, funding As addition including electrification great and a acquire development announced provides and many Pratt rich million

discussion Fire during a emergency to the technologies the for and turn Let's and right that to continued the success. quarter of have development make has and fire Slide supported innovative and investments Emergency and consistent their dealer well X performed segment.

backlog segment which high lower in Additionally, hard face finished billion, $X.X of were solid benefits in F&E improved recent margin segment, we in years challenges supplier quarter. of the worked as COVID-XX. Orders up during quarter X% year the largely generated due operating absenteeism F&E the XX.X% with robust the to the a as in to talk challenges some has on our and reflected from of focus they results year-over-year result to you've quarter heard prior margins quarter Defense a strong is the significant us deliver to in about The with expected, performance. year. its the experienced simplification, pandemic. the over operating the current as Similar They

continue the the we budgets may past, in experience tight pandemic related we softness. spending and as discussed believe fire American some that course, municipal that Of to market we've North truck monitor

modernizing ergonomics, they big taken vision unit. commercial over we our as and world's upgrading our to truck. the exciting ago better talk the a Emergency visibility most ARFF cockpit check made encourage a by We've and new out turn even all capable safety Fire systems airport products to about redesigned updated you intuitive segment. the a styling. and about with and has And to we'll increased this systems. website learn cab Striker, improved market the also while X team it Slide Finally, introduce global more the made Please The announcement week striker little leading new

to improvement to to Our make product continues driving design to commercial throughout on simplification delivery. initiatives from progress its business segment manufacturing sales and

that may divestment concrete You strategy focused implemented included London, to factory as that year rear discharge a well as of a our business. non-core Ontario, relocating we business last recall mixer

achieve and pleased pandemic, the of particularly to to results on date with the it's more been team's relocation due to ability to We our our the adjust I'm due with But and progress regard project solid proud track. remains to are travel. during move. challenging

As delayed availability quarter expected, volume pandemic the to impacted some due the was in OEM constrained. chassis as was and customers purchases,

from our However, customer demand mixers to is for CVS starting volatility. this recent normalize and

these expect some year rebound trending continued backlog levels with as We markets is up. choppiness but prior and consistent

we're S-Series X.X new As continuing I've expect mentioned demand for Front Discharged up in we The prior in customer for ramp and all business calls, is pleased the earnings revenue Mixer. our growth XXXX. with Concrete

and into key continue in units on partner products We our a OEM electric U.S. to for RCV several to with technology track working deliver integrate innovations our and customer XXXX. remain

opportunity it talk it to plan Mike up ship current business conditions. some results first going on segments. turn quarter breaking comments This and for we over electric our our I'm additional RCVs. year will wraps to when discuss more business to later this ground in to about these We the

Michael Pack

in was as and sales Access COVID-XX. by in lower to commercial than Thanks the sales start a and sales The the year of billion Equipment net both was were sales XXXX the decline expectations. adjusted X% delivered quarter turn XX% our of customer Defense Equipment $X.X partially prior offset solid driven Fire Please for operating Access and & quarter. increased good to be demand result sales Consolidated a We continued X. XX% by everyone. and John segments. morning higher decreases from to Emergency by sales, and income impacted down Slide

However, has and to XXXX. of QX QX, year-over-year rate compared the of moderated decline

increased the as near John sales product segment This divested favorable commercial concrete remained was our and deploying higher pandemic, emergency and higher the mix a the of and offset as to expectations sales due of lower sales, favorable to and dynamics shipments operating new RCV catch in unfavorable part protected to year Defense aircraft truck Consolidated was or several benefit customers rescue fourth prior pandemic, expected was income As December. adjusted quarter fighting plant in of business volume and year increased achieve $XXX.X X.X% the fire as adjusted Fire as of $XXX.X unfavorable first sales lower spending. quarter end sales for adjustments plant on-going more sales. mentioned, year during previously aftermarket quarter quarter. and a by the the down benefit favorable during quarter income a higher mix. operating have did million, result parts X.X% as of CapEx in Equipment in on partially product sales sales a lower and batch Access cautious in the by increased of customers or due result adjusted compared spending this higher global Defense prior sales development favorable we were service manufacturing amortization operating intangible deployed the sales cost shutdowns million, absence up the in facility of as sales the as the of asset declined quarter price XXXX. more to price of due versus the absorption than result income cumulative of sales. of the and capital offset and increased result

the primarily an of benefit volume to the of the material in in as prior and commercial And sales of operating by spending emergency $X.XX the income operating lower in result offset costs to lower the lower result pandemic. was is year. segment due decreased increased quarter, volume EPS of sales Adjusted income unfavorable EPS $X.XX For compared increased spending. year current for quarter COVID-XX the part and a

adjusted tax First of pleased to start tax solid including X year of a to $X.XX discussion remainder Please a discreet from We're a the audit. strong first share on X% Slide XXXX XXXX. a quarter per turn benefited margins the for results decremental benefits consolidated the of to resolution a related in quarter. favorable with of

both to deliver significant Fire quarter. year were sales our teams in the challenges prior availability segments, The affecting & both compared has Wisconsin the faced While through face workforce segments to to pandemic around our higher infection persevere our and we Emergency we Defense and resilient half the suppliers for headwinds continue introduce for our higher businesses evolve challenges the our creating likely in drive will additional operations. as we our steel expect rates country, back year. and of variability customers, to Further, and our challenges costs in

with variables, result As we're expectations in higher we we it's of customers the annual versus the pleased Access also -- with for demand Access over providing Equipment dynamic and this are not several also XXXX. our quantitative We're moving a environment key time, the negotiations months. At Equipment quarter discuss time our experienced for expectations. to our first past

full the year-over-year the basis segment. We year down expect that half second quarters that a sufficient quarter the to expect be will XXXX second the on yield And fourth will XXXX. return growth versus third will to of growth We and be now growth. for

Access of is approximately remains magnitude on shutdowns we week, the In to increase highly down two for the sales of the requirements. with we start segment, and production second full when year in quarter month. per as and on-going were and month and first uncertain recovery factories of vaccines the per the the represents align versus one U.S. an COVID-XX planning this quarter growth rate Equipment we're expected pandemic evolution availability. This shut production increased trajectory the dependent However, as customer weeks

strong And good Defense exit demand visibility and & for segment RCVs segment as back while the concrete our Emergency in improving back is mixers we year. Fire normalize offset to commercial be to provide production the the quarter. expect our We levels for

an last pre-tax in During by XXXX, cost of earnings reduction returning permanent discussed we we reductions headwind of temporary to expect of $XX million face call, in million cost XXXX, our consisting $XX benefits. million approximately $XXX offset cost XXXX, in

levels, at a about reductions higher the benefit second headwinds we of $XX permanent of we by We're million combination at year's half for from year-over-year as last quarter second Looking recovery. the Access offset expected forecasting temporary the ramp of spending cost announced. previously particularly we face up second will Equipment also reductions cost quarter,

year, the watching to past more closely and As over back the are weeks rapidly have the steel look earlier we fall. increased prices, we even the half several which of in

the of start third to expect We seeing impact in steel higher the prices fourth quarters. and

and time. However, the inflated duration unknown magnitude of are costs the this at

our liquidity past $XXX availability continue with approximately improvements capital in end the of Our of yielding our the to over quarter, million by balance million. of available cash Pratt of at as recent was revolving liquidity sheet of line demonstrated flexibility the during believe We acquisition under billion, credit quarter approximately further strong will working remains of provide cash $XXX of strengthened a $X.X strong Miller. consisting solid

financial and to later year are and of Wilson the now trajectory of over the expectations I'll detail we not the pandemic, the evolution While segment, Equipment of today, we providing in deliveries visibility for Access back some strive we the timing prices. steel closing quantitative provide more to it have in to comments. better turn the

Wilson Jones

us pandemic position opportunities growth anyone the markets recover. a of to Thanks again solid steel just manage their Mike. earnings and than costs, challenges take a prior allowing to deliver earnings as sales Challenges and XXXX wants. the result longer that advantage our adjusted us as prices, in remain further on has operations, lower We compared and potential share for once great We of per deliver announced including sales with we're rising kick to year stayed to much the quarter higher, believe, to and quarter. off controlled the

our I the and wanted of these doing over that people dialogue on investor I'm whether engaging team with or one have with show, events. in Pfeifer, a the it even that the years, over who know, to our in this be I've working XX them turn smooth with a all calls, ensure you with the the the I'll earnings be and place had John at for Oshkosh mentioned, next I'm of I'm all one to couple Pat honor confident them it's a with just want work a visit I'll working a these the conference, and an proud good we've I closely to to of team months. Oshkosh. our call past John it's say we been years. have even my of leadership participated of at to appreciated over transition company. back is very by will way here Q&A And proud strong John team. As last get trade more hands of Company leadership that to started. backed the leading And

Patrick Davidson

Thanks, limit Operator, are plus to over ask to ask the queue that for enjoyable. leadership thanks for back please calls started up additional you and follow Anyway, period and answer these there a this that of your a questions all everybody. like call. questions. after please I'd up like of more you'd begin thanks Wilson, years we a one question and We get your lot know remind to if in and get let's follow work. little making you the

Operator

Instructions]. [Operator Thank you

with first Our with David comes Raso the Evercore. your question. of Please proceed question from line

David Raso

sense back think that trying of for much you to at impact Hi, steel the adjusters, have the give Can have is of around about access half expecting much understandable of and And you'd internal sense rising get much least steel whatever the second will prices revenue us somewhat for be do spot based how the your some just inflation revenues? we're for on market, have a steel uncertainty congratulations to purchased about estimates your John. the to Wilson, My There, impact? is out but trying for have through good on, How to how you have of comment exposure half? contracted margins steel. the morning. access question the you best some luck you

Michael Pack

is this steel. just team's Mike. on Morning well. David, The Sure. with it I'll start managing

early an inflated identify the it to all quarter. be third XX specific the that And time are it we're If be that. segment. obviously, is impact to to million now, a continuing higher at believe we increase, What this to prices obviously we're while into plus dollar know able could seeing right we're not You manage is specifically we fourth It's, later it's it it's headwind. the though. see going really to quarter continues it, to than a in

David Raso

the And concentrated full Is the $XX it's the XQ year, and million was a that total XQ? way... for but company

Michael Pack

Correct.

David Raso

total mostly estimate in An that's Access, again, it's company. but

when cycle Street and And natural not to right? $X at again, stage, if that The when rental that bit steel for assume we incrementals? we be a companies, XX% $X steel Access say, of of a the back in about the least still have kind mom of mix, what you of for you think Because tele's, to over big a starts but customer that hit, million-or-so the better the half? get then mix the would would normal think the look of a XX%, this and assumption? hit, at then normal incrementals, have million then, a think way It's Access, fair is So at fair mix, it, tug-o-war of hit is of they little AWP to the you pops. negative more But I

Michael Pack

And we're really basis. set have on first QX. that should my QX last in all, We've as cost always prepared XX% through had the of just And very the a guess, had, a hits, strong meaningful for million. obviously $XX in decrementals. maybe to in we do headwinds, piece and that's about remarks in on consolidated there's We striving quarter. decrementals been quarter. that. well as talking the I And We incrementals that first while of XX% the access we level range the

a And that you So decrementals. into that factor add incremental impact meaningful steel into or that's certainly to equation as then well.

just pieces the So steel I think factor. more than there's there moving

David Raso

you for flow the you strong next starting How cash as That's the helpful. and of do up, balance And vision quarter? your portfolio. think follow reins Company, the take in sheet the John, my

John Pfeifer

of The of just first me up question side the let so about Yes, kind mix it. wrap access.

you're with to expect more are I age than do booms, looking aged there. fleet the We And more that's the booms mix products. right. the product of on other think out side see at the just favorable

that's So I'll something certainly confirm.

think the NRCs on in the consistent the IRCs stay terms both that and between pretty activity sure been small I kind recently of the seeing as I'm the it's though, of won't we mix, as not independence demand, have. because so it consistent, well we're the across customer that, big customers that

to your back got to sheet. I then great to strategy. Now, our affords a that's right go-forward position going allocation we've to going both will the main returning our great to you And of question tell And include And vision, us strategy. to do that disciplined going now, also but we're both. balance sheet. balance got -- a because money in that's include growth. that shareholders, And on it's we've capital a

strength our you'll one make think just yes, do sheet see more growth. to of use us seen the recently, us you've balance If to I acquisition drive

categories have we that core acquiring be because it enhance really or businesses, our they're and us growth think are technology technologies continue either they oriented that to need, do acquisitions going programs new to I and our I put continue also innovation an to see you're think near we accelerate said, new see we in adjacent a and that you'll us investment some could as continuously business. of business. And technologies going be lot to to leverage to in capability adjacent new acquisitions,

ability about our about our So capital we plan. responsibly feel execute our feel pretty pretty it We going to and balance sheet good forward. good

David Raso

time. appreciate Thank you very I much. the

John Pfeifer

Thanks.

Operator

line proceed The Cook from of Suisse. your with Please question. with Credit comes Jamie next question

Jamie Cook

on John. and Congrats a Hi, good congrats And quarter. morning. Wilson good

guess year. and just XX to wondering the what costs that shift access back I how face. sort about I'm question, of specifically, my steel just within first pricing this approaching company Equipment you million that if will the said But you're Business? we whole Just just headwinds could So understanding Access

question, markets, you in and sort were color growth, If seeing you then color the the And follow Biden, that's if of there China. is up any go were opportunity give changed. and set? I a has I give think the bid then of when that And vehicles to your if could postal change more, under you think any timing would that you're Thanks. on my update to just talking what there's view some -- sort you U.S. talking service out on specifically does you Europe the EV, that

Michael Pack

Jamie. start. is Thanks, Great. This I'll Mike

Just first all of with of access. talking about

us We've with mentioned gone we're continue John As in the always to early, it's as that the Equipment negotiations that. so talked Access annual steel, about remarks, that have prepared perspective. an disciplined you from we're perspective And, related his that a pleased price we how know well. we're facing remained from cost headwinds going to to manage

guess John? I that's of it a perspective. service, in terms from from what postal pricing overall, we're I think seeing So

John Pfeifer

me access. so Well, let talk about

all, We're about access. that to we've global by pleased in me a our guess as start let attention I'll I replacement. and talking that First, we've really about start, business market, wrapped a the time. the in recovery, shift shift to U.S. customers. say our perspective. -- question discussion sentiment we have exceeded fleet an of of expectations period access, people put we towards seen through just that talking to that want a but start that's would up been, of difficult more saying managing by incredibly really a We're, our with tribute certainly and the about of contract with in those most I U.S. outcome has towards more the essence, of annual that QX. negotiations. in the in first negotiations I We're what the pleased outcome I'm

the that market. And so that's all positive all that U.S. we for that's direction think

backlog Our healthy, good about feel we the we and in pretty it's U.S, and it. feel is strengthening

downturn, you've down from XX. quarter seen the quarter, So third moderate fourth to XX the through pandemic, actually, down

down we're right, we just Now that that's XX. think the And over conditions are support.

So into back again, in the half industry. the as growth, we get

think quite the see We is bottomed But behind momentum; we a see Europe's Going to don't the international we first I'll U.S. don't momentum quite say bit the more Europe. markets, in the the right Asia, term, And quickly. growth building now, terms the other in European the world of market positive. near in The in is recovered the very Asia China and market. of part

As we've Tianjin been opportunity a expanding past, continues said for have facility, that us. the in We're quarters. for doing China our growth significant be the past to few it

in and the position AWP are and high-end to We China. China, expect building a profitable, the in leader in continue long strong market term we

really to margin try pressure competition that will in of market grow there local share the profitably. we Now, lot certainly here. to we'll do we at as course, of have compete in to And there's China. stay we the do high disciplined there. same expect China And but it. continue don't don't a But end, we we there's low And

we're service. very meets of is our So going going the to with hoping hear the you service. your that were We've all we're that postal March the this to needs at of regard we're other bid expect a of really to of quarter. and this the end We what very got submitted U.S. what strong, know. to hearing. outcome question postal over We've hear bid, the comprehensive we as

type the they U.S. repeat one administration, want if ready meaning than We're I the more that. the under Biden we meet So all needs propulsion towards mean, postal that weight of service, do of another. for

to next fingers and Now our news got hope call. have crossed. We at earnings we've solutions we've believe, high good got the reliability

Jamie Cook

much. very you Thank great. Okay,

John Pfeifer

Jamie. Thanks,

Operator

with question Our question. UBS. comes Fisher from line Steven your the next proceed Please with of

Steven Fisher

best and Thanks. morning Good Wilson wishes.

expectation growth? important Is the to you revenue is second that across to growth need happen broad how say order things guys expect. second half all deliver curious that what half segments? the it And are of most in Just would that you

Michael Pack

Sure.

the not obviously, of number we and guidance range, there's with variables. reasons are of One a we is, -- a dealing we're providing

we've line So I in half think the recovery we're the what stronger that of first seen second course Access. of John's indicators over seeing at quarter, with comments,

that growth. So enough to now full recovery be to year yield going robust that it's appears we know that,

the get things ramping that closely, of range. predict. vaccines I -- watching to difficult So there? what's And economy but we're the are it do has those does it's that, Beyond do with quickly how a the start up? a to out How is quickly there lot think

Defense the be and of As year have growth. businesses we at backlogs. strong Emergency, both full and would other Both & real Fire at look look supportive

difficult some in challenging to through and through managing an we've They think I outstanding -- job, Emergency continues can absenteeism first the the quarter. We certainly, variables. Fire could impact could variable that. headwinds of one, there the supply couple as is as see back that on half & job well be there into evolve really have challenges a our our that's as an predict done it we get in worked Number pretty the outstanding pandemic Again, Defense of teams did the but as the suppliers. partners year. chain the an have to more did of

year the economic watching half back -- that? is chain execute other look that we're against well as of able just is up was So as to could area recovery. The be to the well. larger the supply a that general as How we to ramp variable

segments, it's supportive, Access So I two similar at our those very to point. Commercial, I think view think, this in

Steven Fisher

comments M&A. Okay, up just wanted about the great. on to then And pick

any segment considering? Just deals there's size the would frame that that particular sort how that is curious you're weighted if of and the of you towards,

Michael Pack

Yes.

a of have in really segments, So always-on a process, potential to our an the And regularly four We're we at We our grow reviewing we core four look targets. opportunity segments. like call pipeline. it targets. core We structured we all see lot. segments are they when each

board. across a or there that -- big growth I never on an look drive would We more will into And opportunities category not say look either but technology But I we're do us our M&A see out we anything, products huge help of consistent for and deals. or never enhance go plan. adjacent big, at That's targets, see think tuck-in aftermarket the you'll so acquisitions that we looking us type we not bolt-on, where we enhancer. we're looking a as these new in growth will executions forward. of at that When at size targets the transformative

Steven Fisher

Okay, thanks very much.

Operator

Dillard your proceed Our with with of Bernstein. the line question. comes next question Chad from Please

Chad Dillard

guys. morning, good Hi,

So of puts some in just want first takes side to from the quarter. cost the understand the and

a and what temporary mean spot talked second XX the you of end know, in the we'll I year sense the but million on a then have reversing $XX balance it out tailwinds the was to quarter, the been great it issues called extent quantify, of for about cross out impact in the from and happening SG&A you quarter? headwinds, of you COVID think and of absenteeism. had a know, like I an year. million Certainly production I looks some related get to that back how balances

Michael Pack

job yes, pleased quarter an The did teams the first we're very Sure, results. executing. outstanding with

did challenges an in So extra fire side. their we but see as quarter, standpoint the mentioned negatively first ago reading a did impacted a, through emergency business didn't of Defense minutes see We performance all, It managing just from job outstanding few I probably of labor a absenteeism on volume a with it. They and really segments. execution through. our it

on job plus, our the last outstanding efficiency in emergency great labor and so delivered an job best team facility the did call in I fact, by In and decade Appleton the team. fire actually our

Looking quarter. at see did spending the drivers, some of we in the favorable other

Some of pertaining to related environment really it was COVID.

saw are if at would item. reductions our cost about that So million Those I sort a that of XX expected remainder of that remain. our as about is, permanent of look I because the $X think, quarter was reductions, the favorable them first spending a million. you The of chunk quarter it, in half hit benefits, we permanent of say

spent The other timing see really related half that in more the we'll later year. are

important the large an We see segment our that's Defense think did order. favorable I JLTV with with adjustment point. So the contract and

come quarter. benefits further to See of backlog. the tax order that was was, the that had news course, in strengthening great And that in see. we So our

look the So think forward as a as it's we few quarter, items. we important second I to

we do contract cumulative We drive talked also last one, adjustment ramping year. positive in did going spending as about that's a for number levels. think, spend I the expect year, going we second the up of of half higher up to see that to be that is particularly the second quarter

that a be headwind So well. will as

just the few things are a as we as those we're So forward. move we that of that monitoring

Chad Dillard

Like CCA? year from prior QX, Defense in

Michael Pack

had QX of we this adjustment had -- I Yes. contract in Chad, so cumulative year. had cumulative that a we a mentioned just that, favorable

So the into headwind that comps quarter. going that wise a will be second

second quarter of We also year. had the last one in

challenge. year-over-year that a So will be comp

Chad Dillard

talk access? growth And expect just then in access. all. expectations you second In your about That's positive XXXX? price Do and question. Can for you pricing in realization

Michael Pack

were we $XX specifically, remained about We cost back and in the we we've And what and headwind, the at cost we're continuing point through disciplined talked look this year. was say constant it's looking we've year, price of million areas, early on of look the couple negotiations. what -- gone watching. at really a as a basis. at the is, it will what it's I that to And then we're and We things price our to happens steel, which again, that More net manage half through. net

of the So as of that’s that to the as those items I point would incremental go rest through the are margins really drivers we decremental year.

Chad Dillard

I’ll it Thanks. on. pass

Operator

with of from with line Ann JPMorgan. comes proceed Please your Duignan question next Our the question.

Ann Duignan

wishes. to Yes. morning. Best both And Wilson. Hi. of congrats of Good similar you,

of locked Or in business? mean, prices is backlogs, inflation in prize think on that Defense how clauses versus each fixed those Or And your inflation of all backlog clauses? there businesses? cost, cost about those any especially, all includes are of backlogs talk I commercial segments? could all I in Commercial? that you are much your there and the or

Michael Pack

Ann, segment, the Defense term the have that both kind to you we can supply contracts, have businesses we go at certainly you you look tend through side on not. long and our so that they're of as

segment. sort that Defense that’s So of

to comments in all what doing our that done. to If We're beyond the steel bit to inputs, good other steel, cost costs, We're down a see the of now all year. We're my varies it materials remained cost comes labor, not and of it price from segments, right But to we've later Again, go discipline look lot previous at we've a happens that the management not just until and a going really because of it. contracts. you going work see much back by with a at the again, of we've it unknowable. job little is dynamic. managing looked

evolves So we're is going how items the see that. year. cost for aforementioned to driver rest the price not But biggest beyond of that the is continue the it the not to

Wilson Jones

bid But clauses in always Defense think our them we had annual of in and inflationary period over programs. Mike, time. we've I a They're built

in clauses there, the So Defense Ann. backlog have does those

Ann Duignan

to on just for I was you going Okay, ask clarification that.

general when would guided to And on was And at year? that us And incremental much already I beginning for you the to color contract? Just those some million had year? that you perhaps, revenue the international Was being of Or your So see depends contract, incremental? in And thank in XXX again, this versus it how on billion expect what give then, just $X to that. shipped? whether appreciate more you. for on you can some is domestic? color that? it's expectation the

Patrick Davidson

your appreciate We'll But have interest -- about two color I Ann one so. to plus remind you for here.

Michael Pack

in delivered in orders Yes, and and I those a XXXX, years be of think, those, in lot Ann will a XXXX of future lot beyond.

John Pfeifer

XXXX in all beyond. and It’s

Michael Pack

that's. Yes

point. confidence. guess on-going that's, We So that's I certainly first the appreciate the

supports two dollar the our that defends this And view was this, billion further the in just order and business aligned so future. that expectations, with on-going plus

Wilson Jones

we eight the on. broken out to international numbers, that And countries haven't orders have different cases Ann taken that really now but exact FMS we're up we've

And So those international the started lacking had with development we're, how we're eight have in. business JLTV. we

John Pfeifer

Yes, bigger kind at a whole the of JLTV so of Ann perspective, looking the program. scope

the U.S. units. the the XX,XXX is So at about about XX,XXX objective, Marine units, U.S. acquisition Army at

that most has years, still to yet multiple of come. over that's Now,

in We've XXXX. re they're going we're Now, read, of to that compete been We course, that. going it. preparing for know to

this been the date to us about They've commitments they where to and re where, units. And time, call XX,XXX compete For on. of got those to a what and actually long objective I'd contract. commitments that's But placed to a more orders place when orders since is acquisition the come. big we long for on we've run they're program preparing typically won being way on that original with that, there's

Ann Duignan

concerned more potential Are isn't follow you on about prices, the finally, There quick of steel. I a concern? or the steel And Which the just lead? up is real availability Great. steel? the biggest just

Michael Pack

say visibility, our with closely have we're we this -- point, good would we at I have do Ann and suppliers there. working

availability. at point equation this than a more it's So pricing

Ann Duignan

Okay, appreciate get Thank back I'll that. you. in line.

Wilson Jones

Ann. Thanks,

Operator

Our next question. line Please with proceed with from Jefferies. Volkmann question comes your Stephen of

Stephen Volkmann

I first you on everybody. And up appreciated. the the margin mix assumption think catch some the quarter was much putting parts. years, high Mike, But service also contract, is that question Hi, good and cadence. Wilson, mentioned My but on thanks morning, for positive this the Defense about probably over year. the with the is point us for my up both

progresses? we what margin on to year the color relative should be Defense thinking any as So

Michael Pack

we're in Yes, past, consistent look quarter-to-quarter. at I confident It's business, the the talked it about single past. digit of we've you you with what year. talked the the what And high a about to still think variation in over will in really need see we've course

perspective, a nice chain on a what the mix happens I work if think aftermarket obviously volume a of that depending that certainly that the from watching that you we've have just nice to and and quarter that, nice piece a the is we're could did that particular team. job. had supply But really a and in the impact. We by great see quarter an was they bit certainly saw seen

Stephen Volkmann

order an like get you when did up follow quarter. quick a this you And

XX, longer you get margin going you you mean your before production order, it that be, forward run. was, booked will get that to Does points way the fixed higher think the costs a that that the works? over that XX, spread accounting I basis than is XX

Michael Pack

modest we're units it's out It's benefit getting there. not we're say a what we might there. did, And did not we more see we looking we that seeing improvement I at, see and constantly would at We're what there. out it's more a what to as certainly

it versus have many help you once a that So bigger it obviously a earlier in spread. units and under when dollar does you're has order, with impact cost more a certainly the contract, getting billion additional nearly contract,

Wilson Jones

was essentially is said correct. I you say Yes, what to going

Stephen Volkmann

Great.

and follow one See. That's a Okay. up.

Wilson Jones

you. Thank

Operator

the from Citi. line Please of your comes with proceed question with Thein question. next Tim Our

Timothy Thein

the And both. short, And you. make to Thank too you these sell Wilson congrats Great. again yourself and you enjoyable. way, by calls John, Pat don't

F&E, is terms growing it So a the line just -- here for its importance -- the of question Oshkosh. on yes. just The lot to bottom of obviously, in

So terms well a dealers appropriate get lag to more just bit headwinds others, customers? you're I as headline that as pretty equipment maybe just in but from or of think hearing state F&E Obviously, on impact Wilson color budgets, for airplane. Maybe doesn't what appears their muni big your and perspective, from some a some some that and spending that. a -- all directly there's and obviously, all

if we're segment, high some maybe just just but color in you So add backlog, terms more from a unfolds working potentially of that obviously, of, budgetary you. the that just in Thank how terms given pressures? potential

John Pfeifer

or put by in And we think going as America. you we're We've time, network, those saying culture let when everything. had forward, great phenomenal. it, it. that to start really all have for the segment the about dealer drives into simplification. deploy that perspective. And we've good term us I'm combine got F&E going it potent got North together, happens how then far at performance the simplification And whole company model things, it's to to is that on Yes, is a I'll business. operations, great that continue a we we our all really the in the about best longer innovation we culture we by And got drive people, to them a talk we go talked create me they got to Yes, that

XX%, a bigger we've XXXXs, the that maybe time, units, X,XXXish, Recession, the a it And was so and for fire time bit, and If and XXXX emergency products But to like we've something back we're units. now, that. in growing the the which over of And we period XXXX low growing XXXX the a very long and you market stumbled profitably. is market. much our And it’s Great go recovered very, since been even never throughout smaller units. been it's recovered quite bigger, market hit Recession, then, Great ago, actually now, down that it's was

is it and and guess, market I what thriving, would I guess, taken So, growing I call share. we've

expect we to continue continue, to We execute.

a that's but biggest not real there's which to there's the what budgetary about crisis. today, we prices. like closely. expect we there's estate It's because impact is some sure on has the Again, spending a market constraints. anything And Recession, not it it be the really real think municipalities do big -- going be watching Great to We're constraints. talking Now estate not some not municipal

some course, trucks powerful coupled what high foremost, I and good, fact backlog, is we first us, know priority fleet strong orders that is talked in business XXXX. of our equipment. softening is what you first with what? know takes You backlog us aged. And as at our how our look Well the see in fire are We The through makes really did about quarter. today, feel our

the on We way. of of healthy pandemic business this expected but, execute a a very impact softening of to orders primarily because fully the I but in overall, intend continuing

Wilson Jones

John. And add that's one would tidbit. great just color, other I what Tim, what,

hearing a run such the still watch. they're don't they investments. these to mature fun wavering and useful municipalities services of is favor to to in building budgets. very in and in truck our well started community because cycle talked lot I not addition the wishing majority think, lot I a to their them priority either me in fleet the fire the fun watched of them. I've talking I've adding to retirement few lot button know that negative out just, there. with math They're capabilities, last priority my business. They're see a of thing with me and a it last is And They is that calls the really One you know business I years, not been from emergency on those the they're spending, jumped had a just dealers at out they fire well it's majority all in of the they really holding conversations And of to fire investing over departments a they're weeks days. service sophisticated and they're point, their so their I John's

Timothy Thein

Very it there. Thanks leave right. lot. good. a We'll All

Wilson Jones

Thanks.

Operator

of line question Collier comes Shlisky proceed from next Our Please with your Mike Securities. with question.

Michael Shlisky

Hey, good guys. morning, wishes And Wilson, you. to best

Wilson Jones

Thank you.

Michael Shlisky

first adjacent question maybe ask already Miller other any the beyond cost in doing? does on place? to to anything on just Do buy just have grow they're spaces exit them anything contract wanted in? That plays provider? industrial that And your organically into a areas perhaps them you few paying Miller. the I on maybe Pratt the external plan segments? a you in are as keep I Or playing to what fence through more an they're a guess they Pratt, do you that It's plans or larger? not Pratt and cleaning, And Company, don't related why in four quick couldn't to currently broadly,

John Pfeifer

company relationship fit makes Pratt feel there's because standing what potential cultural a better there's question. long that a you said, take And I I'll with strong it, to really and I'll, like acquire, So a a do standing acquiring between you a my have long Miller innovation we lot had Oshkosh does. a them. it We And relationship with Miller, remarks, acquisition. as Pratt of cultural this prepared fit. we've what about when at

this. really really, we're with So pleased

us there's Defense grow a to Department with in Miller Now, Defense. adjacent two, one, why made probability going going spaces give reasons of of want believe I'm primary in the gives wins acquisition. we higher we forward that Number program we Pratt to that the two you

are one. enhancer number technology our number they that's And So to two, an is development.

our One we've it it Pratt really ability time. those allows time. it. way on working enhance specific what working develop Corporation in describe been Oshkosh I is us to capability Miller of long a spaces. does autonomy, best long on is for a We been our technology, the whether autonomy the to We've apply or electrification electrification like most to And to incredible cases for things can about use it's

industrial mentioned, cleaning. You

automation and this So so is It's industrial not that industrial to industrial specific that take automation such it's And That's it application. behind an but case. interesting was interesting, sounds the their like use the to thing. and cleaning ability a is that cleaning cleaning a the us. apply why interesting, interested strange

their culture aspects way, So behind industrial And is cleaning. motor to to very think the sports to there agility. it's that in today, not lot We of great the motor safety We business give automation It's are directly sports. lots of motor they're it industrial and intend big for speed it different And they into of systems grow and sports. by all continue cleaning. mobility as that's a that our sports, technology developed the segments. develop of a and including is motor transferable

that So a of good Miller. lot, Pratt of a with lot comes acquisition our

Michael Shlisky

color. Got follow another also USPS That's to ask contract. the quick it? I great Thanks. want question on a up about

a the for transit approval have you USPS’s substituting have opinion as out new comment that the heard and Your to that simple just or based coming believe, e-transit reopening new kind needs Is special switch? here quarter, address announcement announced of just we've the contract whatever the do power is as it on are Ford the make gotten you e-transit we train. our Transit, in to XXXX as this since the we so last just far can Ford I you on of the and as

John Pfeifer

agreement another, ban, back can some don't on So because to of the the an a with reopen contract. this anything things but that. pretty and I way there's with I if of needs do have to don't USPS. or not but have contract need comment will to we're can We arduous we that program, the task the under confidentiality, they we say I tight don't that the confidentiality reopening can't transit one to I really say that as have to want limited because not goes address because about go evolve

Wilson Jones

I think their is needs. vehicles the current there statement and a foundational that furnished future program we meet

best way to Mike. that's think it, leave I the

Michael Shlisky

I'll leave Thanks there. so guys. Okay, it much,

John Pfeifer

Mike. Thanks

Operator

from Nicole comes with with question your question line Deutsche proceed next Our Please DeBlase of Bank.

Nicole DeBlase

squeezing Wilson Yes, good luck appreciate to you guys. I thanks, retirement. And in in. me

starting maybe with So guess I SME.

the what of different past. period bit to in revenues some how that the into we've margin with downturn moving to like about, And a trying I'm future where challenged. what done think time simplification? tie could versus more you in guys a Just have performance seen be respect to could back be

a because margins to So room you environment. time cross I guess, much last there's a for Do from look cycle it's think F&E a margin what relative little perspective? decremental difficult you've faced done revenue better of

Michael Pack

Great double back to from volumes where we margin the we've business believe through a simplification digit transformed if Yes we're, on. is the process cycle. Recession, a struggled that this a you that solidly lower to and I the perspective. spot able we We being weather you're gone Nicole, through really different guess go business business the has throughout

it's to simplification, stern stem managing stern, the stem the And again, so that's and that efforts really through and business. to managing simplification all of from

Nicole DeBlase

that follow I you years, up, you Got hearing the over JLTV how it. any with the concerns spending. to Thanks. And dovetail is, several the then if see medium guys about of investor on that? just next new my term program we guess for the Defense administration know, impact And how durable would risks

John Pfeifer

previous are executes. not they was operates, be Vice you Defense We of operates part when We've wheeled of Defense the administration. executes. when of not. long to any very the President successful and And see if Tactical, it a will a a do of how specific It time. do to fundamental Biden. was and part the a vehicles it Biden continue the Department for fundamental how President, had new risks how Department consider We how administration really relationship

big as this for we as so us And change being forward. don't a go we see

Nicole DeBlase

clear. Thanks. that's Okay,

Wilson Jones

Nicole. Thanks,

Operator

Please line Stanley. Yakavonis proceed Courtney of Our question comes question. your Morgan from next with with the

Courtney Yakavonis

John. and Again congrats. Hi, Wilson

comments the the outlook. on go Just of sales, back to wanted to sales the quality

full sales good But on can growth. I of and you Access, think it gave supportive looks comments help -- Defense us about think about last F&E the year, just for that you I year? think some year we being you us be Commercial? you but starting backlog said up. the fairly should qualitatively about trend help to similar what it's for outlook to Commercial the mentioned you thinking Can just that think

John Pfeifer

as you we're business. And with improve. the actually there's like last backlog is We're, with a last degradation slight time orders I backlog consistent sequentially that. saying take have this there's some year. when divestment first pretty but a seeing look year, consistent and in we remember, looks that that still -- seen bit you is year of it of And I'll We the is Conoco, were last Yes, at seen the quarter, when year-over-year, the in the commercial, statement. pandemics positive orders, we've year-over-year take order at growth out of a little

pre last remember, first Now pandemic year's was us. quarter for

a that's positive statement. So also

XXXX. construction talking refuse and talking segment, primarily I'm you of rez at commercial commercial So markets. markets favorable now more about collection residential in and And very construction and very business the XXXX see residential we different favorable into improving construction, and right the is non markets when and residential construction projected residential throughout about look is drives from mixture be to

positive view had a favorable what's So maybe happening ago. quarter our outlook macroeconomic a a indicator more than with we also that of supports that that's

Courtney Yakavonis

That's And just Great. follow-ups. quick two helpful. Okay. then

outsized that steel Was previously, of pricing? headwind. million have guys you've And think $XX steel the when net or you gross I inflation. taken seen surcharges On

at then margins so margins. I contract, with million, at $XXX comment And can it's side, think just contemplated to I all imagine about similar contract, the DoD on the So the that? Defense point? is FMTV that you the on pretty it's being the this

If all? you can just comment at

John Pfeifer

tools course yet. this quite That's now, manage mitigating a done in disciplined down surcharges great to have what steel. we're not and the watching going been We're headwind in frankly, not, what to we're is. to the team's that right a all, in that cadence through today this a we're our going it going in over the to our that of it's evolves. of really of years talking first through that again, to a steel continue year that watch call do making very the few early manner, on number continuing in a manage what manage think, come job this ago over while we're toolbox we're it's already, about a we've we We're all to as it the met. And, to and And We manner. we'll it's at Sure, going a just risk I is disciplined point, again.

that I demand down. bit do we start think and steel, of believe getting equally or supply we more coming could equilibrium once a a, that start

Courtney Yakavonis

margin The on Defense.

John Pfeifer

on sorry. Oh, Margin Defense.

Sorry, again? program was that which

Courtney Yakavonis

$XXX million, over…

John Pfeifer

$XXX under the million. broader the that's, that's again, Oh That's, contract.

you there. as that's So units earlier, number get the had the consistent. total it's we it's, expanding And pricing natural question of out benefit of a

cumulative well is that the because in margin you quarter. that contract that you'll get the of adjustment recognize that that, remainder we over in get, improvement and that of a catch as So the up small reflected

Operator

comes from of Please line Dobre question. question next with Our W. Robert with Baird. your Mig proceed

Mircea Dobre

the here. here kind Yes, to going me this cost of this beat I'm fitting over of I I'm what all and sort because in net guess is it you see second price would extra trying to that pricing $XX have Thanks other than good understand be morning. death side? and I the for if and Is the to Wilson, looking So, into as of dynamic XXXX? offset going dead tools luck. just headwind? going best the buying to equipment. XXXX. progresses cost delivery, that pricing horse at headwind thinking, the what is on forward setup million and with it fourth applying year of customer I'm more the to mean? the gradually quarter different deployed of you're quarter You say a that Or be you've of I

Michael Pack

our I all the just I Yes. not line and guess, we're cost at is, so all -- at of dynamics. we're looking but guess -- commodities looking bottom

a what of the to call able dynamics. is, still other we're top And fully lot We dynamic have the cost different not is. line

So where going steel I we're exactly is not know guess, don't to foundationally, -- go. we

seeing going not to early. we're a still an to And half various there this headwind think not tools to opportunities hey, trying elevated steel until we're through and an we deploy. through past. the have in doesn't it our That's back of it's here, second well. the of mean really we we why the we're the half don't $XX And But QX we've indication impact further million-plus. that, is an that until we that through QX. prices We're impact of We're managed mitigate the it give see year. -- managing So think it

that managing So going and a we to headwind. continue we're to today guess, disciplined execute We're a our back know believe in to tool leverage it, there's manner. I just

Wilson Jones

great I'd has in is, I with as customers, and transparent Mig their their there they're think the add access relationships discussions. what very team

pricing strategies they're doesn't about the last work as through could as and that toolkit That Mike working lot nobody workforce this with don't talk I headwinds steel for our be one. on a issues competitive we there's call, the So says, to will we this but there team understand know like stay today. learned that there's We access some coming. time disciplined

Mircea Dobre

a I your quarter. I the Do build appreciate bottom third the this usually coming different But thought that. is lastly revenue And and to sequentially in off here, play might just the seasonality business that through on maybe seasonality Equipment. we're typically, know how expect strongest Thanks. and have quarter you year? here. Access

Michael Pack

-- though, the the once QX down. going QX, see to know believe a yield you I this be we at in customers think, we imply can are to ability it what time saw with now. we then you down, first back growth that lot around between has and will to that is be expect be the take prepared -- I for QX. equipment. at on to remarks, full start that it to our we we're we how the I that still So to is we And going to the that, two Mig, quarters half for what is the QX looking think year year do our what -- and seeing rates shakes infection of that just guess, moderating just The Exactly enough growth. out what country

of And half challenging call that then, a So a aspect QX recovery. I second and today that's think magnitude see here little timing QX. between you of course, the could to total sitting

the think our this, into can that and inputs there's that we're the I ultimate pandemic the with magnitude. timing again, through namely still So that input ultimately working And customers.

John Pfeifer

Mig, John. this is

was the pandemic really QX. the QX seasonality I and in in XXXX, change think, hit and QX, end general, of when that fully in most saw the in us we QX

to to more start seasonality. go to this a expect We of maybe back normal

market. get of vaccines, because choppiness upon Equipment in vaccines we're the there's all positive then think seen. and that on But get periods has the news really Spring time. as dependent to if the kind how going we're resume vaccines seasonality all see really in that's to interesting still been Now, more and But rollout XXXX continuing distribution, to we've of rolled we in news continue favorable impacted of Summer vaccine it's vaccine to Access out, expecting normal get I

Mircea Dobre

you. Thank it. Got

Wilson Jones

Thanks, Mig.

Operator

comes Our Jerry question Sachs. proceed Goldman Revich from next questions. with of with line Please your

Jerry Revich

John. my well. welcome, and morning, Good as Hi. Will congratulations, accept please

John Pfeifer

Thanks.

Jerry Revich

But sense spoke pipeline in $X confidence replace. I'm time? to the help the that that us you on we and how will Defense want number get you meaningful Humvee wondering the to wondering much you're obviously, if international the of the could JLTV I'm if How about earlier just for call decide they their opportunity? that just the And could of a obviously discussion billion having are size over relative the domestic today? expand conversations the the business and building ultimately customers consistently fleets around JLTV

John Pfeifer

the had We're ago. JLTV have orders. a make Montenegro lot different with quarter of several countries working The -- working Brazil a international we've on and from that up million time, the that a that that order and come with XX that we're we announced that. for for our as different at those subsequent in had of Macedonia, of Jerry, come are Yes. look in international get will with of countries. armored markets of those new the countries continue out in Slovenia JLTV. took bulk probably about and time. put fleet then XX,XXX There's Lithuania many interest market over Belgium we orders the And order etc. and And and you we when the $XXX-some-odd Humvees Humvees and to size JLTVs. all market the with allies. total, starts And a But with remembering into get orders there, the vehicles smaller replaced fleet, the these Usually, there's then after other out it

And opportunity the this early and that probably in beyond. believe of opportunity JLTV. international the is a really on to that XXXX long-term addressing we So innings go will we're

Jerry Revich

And seeing tracking in you're Okay. I'm I wondering, follow Thank the the you talk you. you're just that can what about actual guess, and telematics Europe then up on North in America? data equipment. normal outlook I'm for a are second call. bottom the the earlier quarter sales access the bit discussed positive off XX% than surprised were implies seasonality that despite developments weaker in that

you're So there? on seeing maybe you could just what expand Thanks.

John Pfeifer

Yes. I'll talk about utilization in general, also but rates. those

everybody the down big non-residential about talks and in is construction to projected is XXXX. the concern So was unfavorable XXXX continue that be in to

big to growth do year equipment that in it to. that why construction returning is based confident metric Number non-residential year? our where So a for is we offsetting ago. telematics Access data on the just was Equipment a back about world you utilization referred later in is feel one the now to and utilization us

So that's very a point. positive

good others with rates be talk down. nice improving backstop are: are improving age, coupled measuring rental non-residential with -- the construction utilization counter a couple being with or bodes always -- that fleet of one other to the about as The all rates customers, rental our we well

the of the a pandemic So recovery. equipment really that's adjusted about. speed we're seasonality, year-over-year. talking exact we exact What that on the dependent recovery, I'm back the utilization of probably that's the don't great really to is but talked in have pre-pandemic, But it still the timing little trajectory was where we for bit and confident clarity upon

Jerry Revich

In well. Europe as

Sorry, to well as North America. Europe John, just clarify as

John Pfeifer

front I utilization don't European in later. the have follow me. I'm data Jerry. sorry, of Pat and I'll up

Patrick Davidson

We'll try follow to up later. Thanks.

Jerry Revich

Thanks.

John Pfeifer

Thanks, Jerry.

Operator

with Lynch. proceed Ross of America question Please line question. Our Merrill from Gilardi Bank comes with next your of

Ross Gilardi

Thanks, want was guys and to just I well. been position, But about answered. add congratulations for squeezing I to me just my have And John I curious questions my Wilson all that. inventory -- as in.

meaningfully stepping know see discussions your that guiding revenue despite customers sense can inventory I give inventory quarter-on-quarter without Are down us to for right number to not more as in start you flat And $X year downtime. significant a again second production taking confidence production customer your quarter. you're are number ordering that up having inventories take you that the Your now like in ballpark? billion about you'd if broadly the any for you And XXXX. as where you're production? in that's Can consensus exiting fiscal under giving

Michael Pack

Sure, Ross.

think is I it's Equipment based I think on Access your quarter. its Equipment, actually question, in down that that the Access implying flat. just maybe stayed

with expectations our more that improvement revenue segments, bit. nice we our than up more those where segment some saw inventory in against a and a quarter, we So the which had is bit In also protect absenteeism in where some but -- during created on. so and production to -- stock interruption, bit in invested we a safety we segments, line higher stoppages

inventory. really managing positioned it. Access the job coming We're they're a production you're has that's managing outstanding doing done team what and The job So very great well into their cycle, seeing.

solid decrease year a in to expect the inventory. very with exit solid We at a --

we'll And through continue manage to so again, it.

Ross Gilardi

very Thanks much.

John Pfeifer

Ross. Thanks

Operator

a James. Our next questions. Boeschen your Felix proceed of question from Raymond with comes with line Please

Felix Boeschen

an here me And Hey, talked to know RCVs you're really in a real squeezing like the those good at and on been for here I sometime I with it delivering partner. the about. end. batch have everybody, touch the you've this first testing just I year thanks morning electric wanted already. you one. OE quick sounds

biggest here? see more you you you see? if in you've electric expand adoption changed offerings wondering adoption And better hurdle really what's guys past Just reactions Maybe to how broad-based customer the ask, on year? seen the broadly could could to how quickly still

John Pfeifer

a great going by that of start and first to capability engineering have incredible So we Oshkosh I'm work saying happening it's electrification. a lot question. at that's in

our the technology -- develop. really best-in-class that we that, all and are across segments. to suppliers the need doing partner we develop we electrification working we And to of in on So with hard

sale commercial better lift. mixer, to customer That's product. that about segment kind. user. Access, scissor on We've as a lot it prototype electrified of discharge our now, Commercial segment, And a examples, anticipated. a DaVinci work on the talk as incredible we doing than in an gives with the no will data fully much kind go-to-market OE that's we testing concrete been the refuse There's has customers all-electric any an that's of now. some hydraulics and on of front product, collection, that to -- vehicles the a working mixer, of had created feedback mentioned, and So that same it It's for benefits which you also is we're where -- with partner in a concrete get electrified demand

opportunity see We to that clearly go a electrified total the But synergy refuse. partnering to year. ultimately, coming really there's the equations. have this closer go engine, are drivability, the that of in benefits So lower. long time? periods that think others. with cases equation in to cases and ownership And period in of of fits, all put cost this base autonomy day? an there. more evolve they When upon electrifying adoption certain use market. very hear lot market there's an case of we're with ICE it cost lot specific use you benefits in, adoption nice there's there torque depends it's use that when But on product, same there's of time. of near total operating a into for than every you versus upon and are products opportunity it. out you'll future, start in are we a a dependent that's that So ownership manoeuvrability, in it that continue Do factors we from rates. lot to us be there's expense electrify that to and that's to why connectivity That's lots other units instant with when will put we're back really and the But do away come recharge to a an Or But OE infrastructure is station recharging very, they the address, a the long over announcements

time electrification.. So for an exciting

Felix Boeschen

Very you. Thank helpful.

John Pfeifer

Thanks, Felix.

Operator

Thank you.

to this floor would at turn like questions over you I We back for time. comments. now further closing Mr. Jones. the have to no

Wilson Jones

us Mike John, joining call know I look conference and I Corporation. speaking the or interest stay healthy appreciate that for to everybody today. thanks speak can they'll virtual Oshkosh you, Thank you operator everyone and your future, for in to We the earnings -- and in there. forward with really out Pat another the near

Let's care. work together this. to get Take through

Operator

teleconference. conclude does this gentlemen, and Ladies today's

wonderful may You your lines disconnect your and have Thank time. day. a at this you for participation

Oshkosh (OSK) 27 Jan 212021 Q1 Earnings call transcript