OSK - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Oshkosh Corporation's Fiscal 2024 Fourth Quarter and Full Year Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick Davidson, Senior Vice President, Investor Relations for Oshkosh Corporation. Thank you, sir.

You may begin.

Patrick Davidson

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

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

I'll Our it Executive and Field, and Executive to over President Chief turn presenters Vice to John. Financial and include turn Pfeifer, Officer; today X, Slide President John you, Chief and Matt Officer. Please

John Pfeifer

XXX an respectively. This our also increase experience. our and share time pleased the well We everyone. $XX.XX, our point operating announce strategy. we the revenue Oshkosh forward morning, XXXX. Field, innovate, you, results company serve, vocational I exceptional $XX.X work to I'm capitalize adjusted with exciting to growth to as over working in is extensive Matt XX.X%, our to margin and new of adjusted of an as billion opportunities, for financial Matt full Pat, with for good international and company. our advance as a to income execute team on solid per happy Thank XXXX as to basis CFO, Corporation welcome him segment. I'm to achieved strong brings year and particularly we earnings growth leadership look for continue

with the the fourth quarter. with Let's revenue recap quarter another X.X% quarter to a of started solid get of delivered of up XXXX. We compared fourth growth,

margin X.X%. Our was income adjusted operating

we demonstrated we Everyday and We for connectivity intuitive as work participated meaningful CES deliver well Our these sales safe, OshKosh's as strong prospects Access business innovative and making margins to adjusted products Vegas, the growth capabilities, showcased AI, Heroes in we our margin at at of aimed our practical projects, resilient strong approach remain centers this $X.XX vocational our for infrastructure robust, EPS with reflected softer market and month, in expect experiencing equipment. Earlier applying for demand segment. our benefits the to long-term driving technologies And Las is expansion and favorable technologies customers. thoughtful and deliver our near-term productive. conditions, more and this while including and where of segment data to our build-out autonomy mega

job the the future future, the these innovations. incorporating of side feature, display Our the and of airport neighborhood of the future the

ramping the the positive production early the most United vehicle, history of XXXX. new our one pleased building forward XXXX. the We to with also feedback featured Service NGDV on postal the in carriers We're we which and company. next-generation of started throughout in is our delivery for Postal look This significant from States products

With of products to the refuse the be recycling design pickup refuse Our as at request HARR-E refuse autonomous for neighborhoods show. award residents HARR-E, and on-demand able concept CES of best collection robot was recognized with an Picks a with new one robot will returned especially for or The assistant. base potential, this home virtual to significant central a to has communities. unload large homes, a or residential believe recharge. collect app recycling technology and autonomously and We to planned smartphone a will collection navigate

expectations. Jones were I'm to must Index Sustainability rated World year. Lastly, to Dow practices sustainable that index. a consecutive This business the and XX% be in considered Companies of their for well X to I'm benefits the commitment sustainable group performance pleased recap in XXXX. our to our growth the people, sixth our of Slide recognition share be we shareholders. Please of that the named reflects top for XXXX communities for peer to for our as as profitable, turn and driving environment XXXX proud

strong future. deliver continue a company to be growing, to team more XX,XXX-plus resilient Our results, positioning us the members for

XXXX, XX.X% to year adjusted by share revenue adjusted to XX.X% $XX.XX income to of full we grew $X.XX by $XX.XX. operating grew per and For leading earnings billion billion

pleased with are our We progress.

of our We and to by $X.XX reflects announcing per in percent our growth. strong flow also cash double-digit consecutive raising ability XXth profitable dividend are $X.XX our a in dividend Board's expectation the to our increase nearly generation XX% long-term This quarterly increase. sustain confidence our share,

Turning near-term get and X, to response This as We're Access equipment, range expect seeing and deliver activity in normalize. reflects our quarter industry outlook on rates. products team and $XX. in adjusted construction the EPS Access segment moderate Slide in defense softer technologies. Please and the a investments elevated The in to sales new vocational the started opportunities to we program interest ramp-up outlook the our for balanced continues to and expected nonresidential fourth NGDV and of XXXX. of assessment delivered turn demand solid to updates. we'll in of

half in sales lower mentioned, As in we've particularly previously first we year. XXXX, of the the anticipate

can execution resilient year. we and focused we that environment, in team on margins this deliver confident the for are Our is

conditions which $XXX expect are after the XXXX. year booking at improving into orders backlog the expected $X.X half XXXX, ended healthy in in of of provide going a with second momentum to quarter. We million the We billion

the first purchase quarter. We in on health. requirements Furthermore, XXXX orders book continue the in to engage confident with to additional we expect remain customers market's long-term and annual

its product's part XXX,XXX of productivity. over We one Customer enthusiasm its this was advance to world's connected have potential largest Fleet and productivity strong I'll site exhibit, and Site to as robot. segment. safety connectivity. mobile concepts the continues advanced fleets technology site connected of Slide future. Please job platform. job of CES Smart and featured our and attendees Vocational Future build productivity, ClearSky ability recharging This well team continues the machine state-of-the-art X, to the efficiency our These CES boost driving also our turn Job to ClearSky's adoption at to opportunities telehandler Access of as site. job of is now the for Galileo demonstrate site uptime. all-electric the experienced is enhance and equipment concept on job boom enhance technology Our assets rotating and as for our autonomous maximize companion, also review lift

also which growth meaningful The visibility across over the on excellent Increased Our margin strong remain the adjusted years. achieved providing And of backlog, robust, robust segment. XX%. product growth demand will price operating double-digit in into revenue a support and Vocational year-over-year key realization of a revenue nearly expect lines focused segment and in We demand. segment healthy drove and revenue deliver increasing and income strong we income backlog in is to strong coming quarter XX% fourth volume the the growth production levels

This Volterra loader eRCV, Another industry's the side provide Volterra our refuse integrated, recycling important the launch vehicles refuse collection and front-end loader vehicle. the recycling capable was first on announcement the of electric, purpose-built, and joins refuse from vehicle CES most our ZSL to ZSL fully market. all-new electric

We which in recycling hydraulics Global will stream eliminates waste quarter with features products expect to strengthen which saw fourth Air and highlighted to safety innovations productivity our autonomous the our we solutions, with growth AI revolutionize capabilities advanced believe these passenger growth and future industry, contamination will International showing loader AeroTech technologies, including as XXXX. of figures Association's market-leading autonomy identify well to strong our conditions, also more operation. metrics future We collection with and at technology continue X% side and believe November where our compared in connected innovations grow Transport combined drive arm, than We for all-electric of electrified product the air revenue growth. are fueling refuse year-over-year. as continue market the offerings iOPS we and X.X%

is pricing the sole improve our expected resiliency to extension FHTV for Slide similar forward recently half to to of improved price adjustment discussion a with vehicle. legacy results launch pricing terms improved In to TWV contracts. We be X-year over the and finalizing the of delivery time. contract fixed-price source of contract provisions the extension X the continue our impacted future, Defense on which better will and margins include XXXX. look FMTV of results segment. Defense programs by turn Let's expect in first next-generation contract to economic announced the we This

vehicles, in we We international wheeled expect the in solid, JLTVs including orders XXXX. additional year. see and for remains domestic international interest complete to early the during production JLTV potential tactical

pleased and fleet are an the are NGDVs two with decades. features NGDV are driver success enhancing delivery up Oshkosh's most latest and will support production component USPS' and that progress on safety state-of-the-art vehicles next ramp of be for are the decarbonizing for safety next the will important decade. vehicles USPS the the with which over modernizing the dramatically equipped productivity. growth the program, the We of while purpose-built industry's These

should growth rate ramp over the discuss production rates XXXX. production to revenue strong our have NGDV end programs, we in by outlook more increase When growth on for including for detail, provide profitable the and results turn achieved to XXXX expectations and XXXX Matt pricing I'll why throughout NGDV revised the year and our into with of the expect clear combine which FHTV that, a we We XXXX. beyond. With year full during it's to it FMTV our and strong the in

Matthew Field

CES. want accounting the thank and the Consolidated support million of Pack year. grateful and including those X% team my transition. Please last for also I'm John. excited X. were patience and Mike turn increase by for during team an ], to sales to the over highlighted the opportunities [ Slide [indiscernible] the join for fourth I growth billion Oshkosh at the $XXX quarter or at $XX company, Thanks, to their

growth top reflected increased in volume Our the line Vocational segment. pricing improved primarily and

the $XX dynamics, in driven solid performance $X.X defense. approximately price reflected million sales, and shares roughly impact in free was repurchased fact, over the expect We per with of largely stock same and by deliveries In last in improvement cost share in facility. delays This the expectation, defense capital credit quarter, million by million. at revolving per ] flow expenditures operating higher CCAs on of year an year. in a for $X.XX XXX,XXX flat essentially our expense The to Full including Adjusted the line about during of $XXX nearly the part on income our higher The or volume on Operating of $XXX $XXX due fourth Adjusted of and was income to earnings operating than of share income higher was interest of that quarter increase in [indiscernible]. sales unit we approximately our year, lower X% million earnings $X.XX timing million. in reverse was XXXX. quarter cost adjusted was the year. Vocational improved part adjusted prior [ cash offset

Turning to to for XXXX billion. we sales Slide our $XX.X expect approximately X, be expectations consolidated on

We we estimate share per $X $XX. be and earnings to be will are income adjusted estimating approximately adjusted billion, operating approximately that

that Defense reflecting While significant segments. sales material into to with are chain and and operating income we $X.X an both we grow in levels These adjusted supply Access, XXXX continue be approximately we conditions in sales rates, assume of disruption. North and the expect operating performance for lower XX%, America At adjusted of market estimates level, billion, tariff raw prices to about margin and Vocational segment present Europe. sales a without Access expect estimating

pronounced fourth margin the of see XX%. in for $X.X seasonality. to well will quarters, reflecting as sales softness approximately adjusted and In expect decline in market We most billion Vocational, be operating we approximately be as first traditional revenue expectations the with

continuation our cost price dynamics of drive a volume expect improved to margin We and outlook. favorable growth

with billion CCAs adverse adjusted $X.X and of approximately reflecting be less [ operating NGDV production. for to ] ramp-up approximately X%, sales of expectations expect we Defense, the For margin

year-over-year the differences to We $XXX our produced projected Vocational over CapEx, the time. These reflects adverse can cash about $XXX $XXX to from impact units free invest as of expect in estimate million down and of timing is the backlog. normalize million. flow from deposits work for million range on we cash vary This and

progressive well We be ramp-up from over be in the results as the Access for of This lowest expect our to impact the closing the to EPS some dynamics I'll in expectations first John as with approximately comments. defense. With year quarter industry to it around NGDV $X. that, the reflects adjusted back turn production

John Pfeifer

year and forward. finish we quarter to an reported continue expect at impressive We solid to moving healthy off to another results deliver OshKosh,

revenue segment, in visibility our supports grow planned ramp-up We last growth and have business. excellent to delivery in mile vocation our our NGDV

opportunities We it forward Q&A. we and XXXX, this and deliver from Additionally, for outlook back business we believe the details and leading with confident long-term industry just learn outstanding the more announced year. speaking in our longer-term at we will the we conditions. later share look Furthermore, strong continue businesses, driven This to will remain which an is about company opportunity products across to Investor to be We turn by for Pat, shareholder at current value. our growth to people, technologies you which about our the you, to Day leaders. balanced innovative expect event. I'll guidance our our realistic plan business given company our

Patrick Davidson

Thanks, please questions. you have remind John. a session. additional the queue ask question. begin and please stay everyone your After follow-up, questions Operator, if one like we limit to that you I'd disciplined Q&A the follow-up the to rejoin plus follow-up your please to on

Operator

Thank you.

be a question-and-answer [Operator now will session. conducting Instructions]. We

Revich Our with comes the first Jerry from question Sachs. of line Goldman

Jerry Revich

What outlook other in top a ]. about and Vocational business and broadly for is how you in obviously fourth the the and the more outstanding talk you growth 'XX the I'm don't margin could bit parts that business you're [indiscernible] bit quarter core line portfolio, [ the in the strength if the the in context, QX is for the just stands little ] a wondering with looking [ please, out more what performance outlook versus if quarter of mind?

John Pfeifer

do, Thanks to continuing Sure, it really continuing is Vocational we Yes. a be resilient, Jerry. business, which to the grow do to is for question. what just growing expect margins. Yes.

continue to expect going forward. margins We grow to

we Our important the the in -- backlog. municipal we've have of businesses across of part really truck municipal of that terms business. that fire backlogs that think we've truck the in really, strong our built had, fire big I But business is order all a intake is fire up big of and Vocational. kind business leader the this

and capacity plants some environmental our what our doing cabs in to even in business throughput adding -- but or we're driving investment getting pricing Murfreesboro we'll really that's increase which get both So us to this perform is and we X new to backlog continue to the we're throughput really, throughput really we're fire down continue we've effort and is our continued going our but got which business. some manufacturing through doing building there we'll vehicles, in continue to at units help get plant, also at primarily growth also in is to in drive continue well as realization,

they're And of new municipal this is fire So the municipalities Vocational municipal really technology, we're part in them margin general and that and giving -- ] foundational story. for technology a strong. their upgrading new want trucks the [ is fleets.

Jerry Revich

of of level production the contract Defense, the your rate U.S. other you terms for the And in from full year, run what thinking is margins guidance about the anticipating the are exiting think hit exiting postal rate as in of this rate or gears standpoint fair exit you to terms we an cadence segment? 'XX that should into for the what pieces And be within hit shifting it as year? rate moving about to margin

Matthew Field

Matt. it's Jerry,

the across we'll So progressively pace with year. ramp-up the of the we're mentioned, as we're really And you production seeing. pleased grow

to as business. our on USPS, While do defense overall we see guidance don't it accretive we provide specific

once but also, XXXX. obviously, that so talk about to at And get closer our Investor more we Day, we'll

Operator

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

Steven Fisher

the half mentioned mind half compares in the Just the improving of Access year first this the ask some that at little of second versus wanted time usual a bit in the And half the the Access? of you in your second to about visibility drivers in year? of on how conditions the maybe key to and

John Pfeifer

Yes. I'll Steve. your Thanks, take question.

a the customers. good kind we from good our quick But market is of rundown market relationship angle the visibility. of We the primary really give different have with at customers have our And always we're look of So I'll market. capability. communication on our lot -- the forecasting that They've you a and angles. got

at metrics, into look [ we the the of all give to metrics, course, Of a but from look we lot ] the at Momentum insight index market. nonresidential Doc construction customers us

goes are metrics unhealthy, not growth to combined fleet fleet we of happening more expecting, healthy. that, first what half, that into XXXX. expecting attention more pressure. in pay look combination metrics fleet a not of seeing lower to market, lot say, our private our why so that, gives construction, "Hey, a terms construction happening. to aged, a that because is in and us of see when got but you under nonresidential but But building customers we're it's still nonresidential are are And replacement bit It's that's And fleet seasonality, momentum typical really fleets the utilization insight in bit the half". much what at the second we're we market in And with little the that's the a fleet primarily So healthy. in

Steven Fisher

to relative at ownership? you things AeroTech are sort year come do the at XXXX that the of of to Vocational? to still CES follow from see as Vocational in parts incremental And some AeroTech particular, on of looking the had side just evolution best synergies embark this of how sense maybe contributions other you here. the here the and How up then just the see business We on things, integration of a of looking you still curious third in that maybe like

John Pfeifer

what leader for doing question. had It's secular really strong that We're expected a it the North business AeroTech markets These Yes. across Thanks America. are in us. would do. we is growth. for

to the technologies our is future. iOPS happen the to fit really by why concepts carrying what about luggage AeroTech, AeroTech we we we But autonomously. synergy was really near-term future connected together and vehicles I way when that we showed the saw healthy That are future are like needs we is portfolio of think and bridges today, in the tarmac great the see continued and acquired cutting-edge on autonomous future way, decided CES we to view will know accelerate a solutions. our that being technology excited see jet like a we that common, and the business. available I by AeroTech. autonomous a and can AeroTech AeroTech mean, knows Those biggest great really that's working that AeroTech. this We for like them

Operator

Our from Angel Morgan Stanley. comes next Castillo line the question of with

Angel Castillo Malpica

could Maybe specific give I versus to split kind deeper hoping guidance? was how decline. just if some dive And second to the Access a price be decline much is color that of half us wanted sales the kind in you first maybe in you embedded bit volume helpful. versus of little into could I also or just that decline would half,

Matthew Field

Angel, it's Matt.

this So half. first pronounced the in overall, do we see more

I think for our EPS. with that's our guidance QX embedded in

decline so to the do have as we Access going is disciplined see visibility to to be is price pricing to we're of that's we we we with think provide we really Access for In and approach think terms our good a shape how We've year. then most in half but into but kind is not of cost, had the dialogues of guidance, the the weaker. the year volume how going obviously take customers, see specific where going we first up, good

Angel Castillo Malpica

just your how or is you're of maybe level shaping and kind up maybe hearing hearing the then what on commentary customers. customers? around might you between or different from nationals versus from the out up channels you're demand suggesting key the And the kind activity of it. what independents it of split across parse Could kind that of point sort your Got be the

John Pfeifer

Yes. Sure, Angel.

the all So versus tend share talk day, and nationals continuing it and when of and the hear we and projects continuing lion's every actually the -- mega to to real, that independents, about that's we nationals to get it's talk can accelerate. the

they're the with really it dependent independents, upon So that is market serving. the

of serving might be big And that a they're markets private under of part healthy are where some the or little mega pressure. construction might be getting very projects. of a exposed they others And bit are to lot

of So bit they're some it's the markets a rental the between companies, end inconsistent on that depending serving.

is though from healthy. I think pressured utilization customers that with what to our is down their it's, off by It's due And interest level, private XXXX rates they mostly nonresidential think the where at are are. again, most important are. highs, construction comfortable just is, utilization a come being all-time healthy that thing but persistent we equipment

Angel Castillo Malpica

that's fair is clarify, and those to more Or anything? seeing? of have any maybe markets the smaller So assume mega driving That's just difference then you're it volume there? that kind of that much move independence some where than as in to the demand replacement projects, don't what's

John Pfeifer

had mix that rental companies XXXX, In I independent -- see we kind XXXX. you'll in of towards went the that think

think going rental come one tell to you. next. what national, national it's little bit it's XXXX, I in to than independents. more customer back from But very can the independent mix different I more That's to

Operator

the of from JPMorgan. line Our comes Tami Zakaria with question next

Tami Zakaria

on question first my is So NGDVs.

the end think you're I run rate hit I heard by to of you going say the year.

embedded in what's versus curious of terms assumption? that I'm ] BEV of [ ICE the in So mix

John Pfeifer

productivity industry ever this that the our given business increase all vehicle mix Service which Yes. for It's has delighted us to is the consistent with Postal they've time the it's they first and today seen we've little -- that like delivering delivering the vehicle, really postal the of continuing XXX,XXX in of is first with production for business as terms out pace talked with units, a been. usual, time production. it's of this. It's are for as service We're get talk We the the vehicles contract about is e-commerce and is that mail Tammy. all current have about on that That a usual. schedule to a XX,XXX benefits This the they what order while.

on there's what So nothing really mix. with the to consistent always about. talked we've It's report

Tami Zakaria

And in is should what countries? fluid. remind about how imports terms Canada? us And thinking just know there it, be on situation those second could of tariffs you're then my exposure any many your from imports But and this of around question I remains you is tariffs from Mexico

John Pfeifer

Yes, I will.

I think a up. to it's thing great bring

So thank you.

to want are the that American emphasize I majority First, -- products sell are in vast we make manufacturer. of The we an States. that States in the made United United

want of company, sure the get. of a tend We in to pretty to part the just the a adapt in global that need and some I that, sell best of be to in of so and U.S. global made movement based get we to that use what company chain. our U.S. cost Most in a global we clear. how make supply footprint resilient categories is certain have Sure, we of it we're we terms So out is we U.S. can the upon

make our European existing bricks product the we've you mortar of no Essentially, So production the for new to we adjustments vast China example, what Europe. mitigate in to in from there's an be majority U.S., of I'll telling operations, operations We supply the have an in to to Europe. from to to supplying from Europeans tariff more want the in to us. our already the typically affect Europe you us we products Europeans because we instituted will tariffs from we market shifted in We telling Europe. impact If Europe can that we relatively recently product do from make the U.S. might chain outside China quickly. to something to manufacture is understood serve or European coming one and from U.S. what that want were do bringing product the if and made of serve us Access plant U.S., we the from equipment of another, manufacturing from our us what but our the a similar tariffs move give the operation Europe do the and Europe is U.S. that were to terms China

Operator

comes of Jefferies. question line next from Our Volkmann the Steve with

Stephen Volkmann

Curious there's we the as how but maybe should as of we through the commentary year your to think guidance? of the about quarters any anything It about think sort timing the should FMTV defense the sort a of catalyst, progress if margin here. sounds trajectory relative just around like X% contract

Matthew Field

Steve, it's Matt.

as we as is to year transition X% NGDV. So said, up we guided ramping a this

So ramp that accordingly, I would margin to up across year. the expect

So obviously higher. and starting bit a ending lower little the is X% average

Stephen Volkmann

commentary business? how back to telehandlers? a fill then And hole bit potential you're of what that in any Access about to in think should specifically, think around 'XX? seeing I you that a had we in Just

John Pfeifer

take Yes. Thanks. I'll that, Steve.

that product. which encouraged with to First encouraged encouraged of all, recently, getting new gives we've we by really that made it. We've of and We've gains been [indiscernible] And also share been complements telehandlers we've been an telehandler -- we're get. with acquisition our business telehandler another expected in AUSA of developed. That we Spain. line agricultural we organically a got then agricultural

of us gives be continue provider of lot a the #X to in we another marketplace. that's that as telehandlers area optimism So the

good a XXXX So entering on we we're of that high new into market we kind note. finished ag momentum especially with in And the think that space. that's XXXX, the going

had agreement unexpected. up. for few of a years. bump. that course, is not I'll we've here -- change other speed bring about a bit a known with this in it's a This Now We've of That's the is, just CAT. comment

got We with dealers full a great still supply we with So do, we've a line their got really of relationship we've our product. dealers. CAT, good with relationship

and forward, with as feel go we We will our good priorities, on product and execute we their continue to it. supply about dealers continue we'll to very telehandler

Operator

line Our Jamie with comes of Truist. from next question Cook the

Jamie Cook

decline. the Congrats sales margin on guide given year a nice this Access

about here. question it Service out just second of and how with for what any contract, tariffs, versus pricing firm are healthy strategy that margins you. that the time, will coming in to Access relative price understand, or there change see to again, of DOGE. think John, Access EV any equipment happened possibility pricing that question, sound But Postal like under but I just the are my obviously, contract given trying guess to then last things doesn't do So to DOGE and on question just risk under you mean under a the risk using escalators? So award, I like out be? terms do in administration, push you see Obviously, risk you versus of what your new

So anything you could provide from that context?

John Pfeifer

is So on question, Access. going to first which your

Matthew Field

pricing. and Tariffs

John Pfeifer

back Pricing. I to sorry. I'm your and on first Tariffs Tariffs, go question

Jamie Cook

On and Tariffs Yes. specifically. Pricing,

John Pfeifer

-- So by. see deliver goes every to you can downturn becoming more in the the why that of resiliency have. face And JLG continuing they're year that a guidance that they our our because in is margins Access that's our ] healthy [ of resilient

-- got occur scenarios different So regard -- or different believe we'll plan, very we that a Access that may and has be tariffs. potential might on may unfold whole good what to with in on tariffs not we've a with mitigation playbook depending

a think can we that mitigate lot of it. we So

avoid with essentially in regard the to did tariffs using price kind result to or by more and chains, supply were we that of mitigate to try the where a sometimes most differently But things even is we there's we'll of got any right? supply those difficulty to footprint that's within This mitigating, chain, eliminate minimize have general you've tariffs. need for able the MO Now tariffs. increases manufacture tariffs. potentially that as global you our of to We have what Europe,

The Service can orders On is is XX-plus high-cost, needs happy of lot that years tell it's the a This the with today contract, using U.S. Postal from a vehicles vehicles. Postal mix I United Service you They're unproductive States whatever these designed that were vehicles. Postal us. great Service, what we're ago.

they new time every so their And up. from vehicle take productivity goes us, a

So this important is the States a United for Service. really Postal program

to delighted that We pleased pretty with think I every deliver want vehicles on And day. United them are States the progress And us again, program. the they're with pleased that We in to they're Postal we'll contact with with. deliver well is getting, Service we're absolutely the they them. this mix

I'll what So that's tell you.

Operator

line the Tim Raymond Thein of from comes next Our with question James.

Timothy Thein

the out -- influenced what I you year with not you largely educated to presumably want but it hearing businesses and back think to guess customers, I'll -- Access that the plays anyways. orders, your of and you're John, commentary from ask or [indiscernible] by how you respect forecasting do

you of expect seasonality of bluntly, around how has pickup second quite I maybe we gotten But as thrown a just year-over-year in orders kind you then post-COVID. Just the would into quarter and how see and the get you an expect think back little maybe that the the we looks with half year of order the the Or just respect accordingly stronger standpoint? any of through kind you timing year? go from a as guess in thoughts to

John Pfeifer

Yes.

patterns normalized order some order quarters. I happening seen unusual is general, And the more patterns. what's you've I think is to reverting the seasonal that's industry in think few last why

in backlog at X with I backlog, middle a a think backlog, $X.X the months to of for thing is is to billion JLGs, Access right we're healthy in backlog, billion our business to pay that most with of current $X.X backlog a attention billion. times our healthy $X.X and got in we've [indiscernible] normal the a business JLG X with our

times. And they so lead our times to our lead with and customers your going accordance okay, at order in we're look say,

Your lead purchase coming right with more in today. we've We annual they're but good lot order got first orders a that now, we're did times fourth get we'll quarter, in are the in now accordance normal, those. quarter orders purchase annual in right the

does thing the backlog backlog pay And billion the we're So like? happy what important look I the is think to to $X.X with most attention today.

Timothy Thein

on then Vocational. And just

mentioned -- margins. in expected being think price/cost 'XX to You tailwind you of an

through that of characterize X% X% in I kind pricing higher year-over-year expecting was a 'XX. similar tailwind we be 'XX in benefit least or kind of should a memory, in versus that terms -- months think to from thinking Is of pricing you number 'XX, you lower? X would the of first you're 'XX? How in realized the at what about

Matthew Field

Matt. Tim, it's

working and the backlog. So we're through still pricing the

to that has Certainly, cost, nice price Vocational. of price the job some dynamic I managing expect continue. a the and done team So would

and just quarter really would a and extremely business, talk a The fourth performed refuse and what is lot as we're us. [ recycling ], the the nice you other is but thing well proud sales highlight about well, in which our of for it's saw we in specifically business has numbers I what healthy also pierce

Operator

Mig the from question Dobre Baird. with next line of Our comes

Mircea Dobre

in terms going quarter? going try what what lower it one defense do to guidance, sort guess margin going I'm to fourth margin sequentially I'm the intense time I'm in be way question we I the Volkmann's you in more saw Is thinking of it, when QX Steve there? cadence. on have of versus to ask EPS baked about the

Matthew Field

So Mig, Matt. it's

taking for at thanks good a So stab a question. second

lowest kind defense. as expect quarter be our going but dynamics, you lowest -- quarter-over-quarter lowest least I'm our so quarter that quarter, not year about comment specifically think we obviously, quarter of the of the first USPS, think on that you defense well. on as would in can to to that's expect So I production at for that should

Mircea Dobre

a I to on are thinking be to will sticking you got contracts point? XXXX, as that we're And the other Should normalized the the premature still in production deemed getting at be that you've we factor starting previously ] segment. the full at this about margins? pricing [ with If my as in is follow-up, operating guess sounds normalize thinking like you it segment this Or from NGDV, end defense standpoint.

John Pfeifer

So I'll that, Mig. take

a price input what's of of is and taken called one of our programs, us costs. to to contract the allows which of of movers reset some think defense, I the to gone we've course, big contracts. pricing We've new big realities sole-source

look mediums shortly. will you at and already when done we've done So got be the it, that heavies the we've

start through and of the those benefit in pricing the pricing XXXX of the sort beyond. heavies the to be, the in contracts. getting part of And terms it of until then medium starting terms will of we contracts, and of 'XX benefit then the get late not in In XXXX,

NGDV bit increase continue production throughout the as we the get And margin little course, of builds week every we're there. to slower ramp a benefit as to year in production the So output.

Mircea Dobre

So I'm going to take that as a yes.

John Pfeifer

Okay.

Operator

from Our Citi. next Menges the with Kyle line comes question of

Kyle Menges

within Access of in -- you're XXXX? I for was outlook, range the versus year. telehandlers how just down some maybe XX% with so me ] just help [ -- thinking about you Could the implied Access AWPs just hoping

John Pfeifer

give got. we've guide really don't of that that guidance We the level within

nonresidential down I for we're suffice to continue the at the And expect agreement. strong expect to how XX%, think say Access nature and all includes look going also changing of it the telehandlers the of in $X.X But having that at metrics been with CAT in impact we it's with we most it -- guiding have equipment. us, at all construction the the revenue telehandlers to for market. billion be That's and line and that what the forward. look we customer to and strong going we're conversations

Kyle Menges

thinking just then how And the puts this telehandlers, takes now then curious thinking some you're and was how coming with capacity out with new hear to line I telehandler helpful but be with CAT that. about you're would of about contracts,

John Pfeifer

place in the Yes. in new with before we put time. happening Jefferson to more a Well, this And about long for about it Tennessee. We've what's news CAT plans not known us. is to known we've City, capacity put

X-plus over North of the continue because to product we make business globally. change the capacity we that So new X-year-plus projects, don't a markets them mega all that X-year happen our and market. talk being the et decisions, of because healthy cetera, them for of the years, we will America make reasons outlooks. X-year And in putting outlook when into continuously we're about next the make construction of a both see we in lot because We

when output need Tennessee continuing City, put of plans Jefferson plant, that's that to product. We're get continuing sight, and not we output the just months. our forward the XXX% what's those next we XX together, and So in line in increasing and

Operator

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

Charles Albert Dillard

a had on Access. question I

I So purchase annual about you XQ. think all, first guys in talked orders of

Just in bit seasonal that's I terms rounding? little about in the then suggest a standpoint, for seasonality first quarter? And Access, a if in your into other like capacity we guidance wondering of is think guess, the year? what baked would And orders to extent additions of absorption there should cadence normal words, any in shifted how than secondly, this terms in be would from stronger the

John Pfeifer

you. Thank Yes.

purchase think that I orders. shift been a terms of there's slight in annual

terms of "Hey, that due or we're are mean what and part purchase out mostly I to our saying, orders got months. working annual visibility backlog. of in used QX. in they In I've to think through I also And now is QX is Customers X come X

little bit little put this a happening. wait purchase a and that's bit a order annual to of dynamic to of that's going I'm So kind

maybe the So little seasonality bit different that's there from a of in past.

-- City We're products for products. that's all of half today. the the and the terms telehandler are the don't terms shipping guidance today, the ramp our We're in back our production costs production of In yes, we in that for plant, until doing those in get to Jefferson but of the full in guidance. year, all

Charles Albert Dillard

the the Second 'XX. through guess, And maybe the just then I shape question through fourth the, we you're on me as on that seeing, guess, Could rate exiting you go like I walk comment quarter? of production NGDV. ramp the

John Pfeifer

with onboarding kind States at and get deliberate will the us, start, we only right, which of but be year. we're every rate kind not go did and production vehicles full United Service. a We production helps production quarter the of goes progress increase continuing through it's every low Postal Postal of rate and the the also we work by. that consistent as XXXX. by Well, Service We onboard helps the to month and And end to

Operator

Our next Shlisky the question from D.A. line comes with Mike of Davidson.

Michael Shlisky

the half and first back about to wanted Access made, second one John, about your earlier to you first -- comments half. I go of

second yourself half, stronger be a said You could kind bit the in well and of positions that for XXXX. it it

the access? it's -- perhaps be January, better And course, 'XX more could an -- a you're the XXXX of that So in than is economy kind downturn phases first currently your still. in instinct I seeing a blip question ] is of [ to what ask but here? the year in only But that that's of know way of first fluid of and a you're kind up quite seeing is multiyear

John Pfeifer

Yes.

needed make we that's our -- when got for when backlog customers projects. all, into tell their those we And a now. needs closely. guide and of and -- what right gets XXXX coming to ultimately, work that. when of our a are know comments, So They But They've customers I us have can't backlog because first projects. equipment of what with visibility those I forecast think, we the baked equipment because really, online is our projects of

half. doing really that's back in half of what us we'll than that a say So the little insight the front be bit gives more kind to the

Michael Shlisky

you just at secondly, backlog quarter, Vocational. was deeper the maybe better in Could or order it? able if on Pierce dig be got deliver backlog into bit in what you you the book-to-bill least above if the you there one would year comment truck to ] can then today, if a And [ a little the fire would

Matthew Field

Mike, it's Matt.

the So backlog the continued quarter. over to book -- the to grow sorry,

So took Pierce. we orders specifically in more

So is demand continued really working with the ramp-up the pleased demand. team we to the have and support that production on

support can to I those was we're over believe, one we book-to-bill, build. everything with the is it So so customers continuing

Operator

Our next from ] comes with Steve question of the KeyBanc. [ line Barger

Christian Zyla

This is Christian Barger. on Steve Zyla for actually

XQ XXXX, on half does incremental and and margin respectively. Why that at of better your X% high in single-digit in Just get XQ in 'XX? that and was was the revenues, looking second mid-single-digit X%

Matthew Field

So in that, Matt, terms of sorry. it's

you're So couple really a of looking at there. things

as well. that business driving You're looking mix at

strong the obviously performance margins. the sequential incremental So Vocational. impacts

performance. of So Vocational that in lot the performance a drives in really strong quarter-over-quarter

Christian Zyla

that and saw Next you healthy. with most you could capabilities or AeroTech? think any balance the can like can of Are portfolio of M&A you your add parts your we question, incremental up which there frame and look M&A? benefit missing leverage pretty just sheet AUSA with via are just Or segments that

John Pfeifer

Yes.

healthy that's good. So think and sheet, balance do have a we we

a see us buybacks of saw a going in continue share fourth forward. And to more about share do lot aggressive because for you'll probably reasons. deliberate us be the quarter. You buybacks

sheet. have have of benefits balance we But we look when a the on healthy One M&A, at we process. an always of

looking at when we look Every debate. focused. we And We day, at at very things, that and look targets always are we're targets. there are

opportunity deliver we our purpose what their to for look technology synergy that's to technology adjacency everyday to near the apply difference, say hero. that's adjacent, better is lives we of hero and material capability everyday the the the we for a do. the have company i.e., make make where as So at We so and to ourselves our a the we and

in. the We a focus we AeroTech already in. this a a were us, that was can that this technology example. We with on it's worked So airports. for We We saw great weren't product. categories is said, is hey, it help in these we deal, on We're and drive be capability. -- saw where in JLG because to example. continuing is we us Hinowa in in is another Italy a for business example. lot synergy another accelerate great can of to AUSA synergies the Near you CES. that adjacencies of technology to goodness

but very So careful. that's always what We're targets we looking also at we're look at.

when we deliberate very targets. at look are We patient and

Operator

a David Evercore. with from is Raso question next Our final question

David Raso

mix incremental margins greedy, stronger, the be segment think shade to which that you why want the whole XX%, below below a implied within at and if maybe will I'm look it question. Maybe some that to Vocational within for maybe with to XX%. growth help be the us Can of of guided insight that you XX% being the little categories the above revenue do you lend

Matthew Field

David, the it's for Thanks Matt. question.

good business, growth incremental of at also the and time. in so So getting their our looking the but in otherwise, of some in -- terms business investment Vocational, the in at the you're same of investing capacity you're terms across

have in we little to I highlighted have I say. to guide. guys [indiscernible] the And to So the provides see what and income of you just again, call, strong on the operating that's don't the guidance you I Vocational provided the a enough point want overall business, think out

that products, good mentioned with McNeilus, In mix terms continues the a to of continues deliver. good is Pierce of margins business obviously, grow. which I strong to

is a You we well. AeroTech and saw numbers as and And well. bolt-on have sales new as business we there acquired that embedded fantastic a in the great posted leader that then

guidance the across So but provide I'm we year. the those where going specific growth not three, for see to that's

David Raso

it [ to say is a just growing not fastest? little So ] [ ] sorry Pierce Matt, the fair is

Matthew Field

going not more quarterly of we're good can at provide level certainly specificity in We but talk backlog don't ] [ that a to good to I Pierce about the healthy time. our has opportunities results, grow. with -- that

John Pfeifer

good Vocational that they're But in news David, is the growing. all business,

David Raso

leads Pierce, just show It's with if correct. No, margins, I Yes. I'm the think, there

curious plays That just the backlog defense of how was out the spirit can question. that year any the margins to of as wrinkles offset 'XX just or we the though. access So much around unleash in

John Pfeifer

for Access really to seeing know Vocational driving well. the think margins. our access You the that as both the another grow great pairs complement I itself business in positions really both one future. think They're in good with that business. David, And businesses. really They're we well And will continue two that Vocational XXXX we you're

Operator

Mr. Davidson, floor to the back to I like closing for comments. you turn over would

Patrick Davidson

little Yes. we Thanks dialing a Matt and for at hope a to both much got and see mentioned, in conferences Day of different up and very very this couple you we and John we've much. our year. bit as Investor be York, later coming there. Florida Between now then, today. in New will Thanks

Operator

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

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

Oshkosh (OSK) 30 Jan 252024 Q4 Earnings call transcript