OSK earnings analysis
What we found in OSK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Oshkosh delivered Q2 revenue of $2.915 billion, up 6.7% year over year and above the prior quarter, while GAAP EPS of $2.92 rebounded from $0.68 in Q1 but trailed $3.16 a year ago. Profitability deteriorated sharply: gross margin fell 270 bps to 16.5% and operating income fell 16.6% to $243.2 million, with tariffs, unfavorable mix, manufacturing overhead, and warranty costs outweighing volume and pricing. Backlog and cash generation improved, but the company raised sales outlook to $11.2 billion while reducing GAAP EPS outlook to $10.50 because municipal-fire production throughput is ramping more slowly than previously expected.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sequentially; EPS rebounded
- Q2 revenue rose $183.0 million, or 6.7% year over year, to $2.915 billion, and increased from $2.32 billion in Q1 2026. GAAP diluted EPS was $2.92, up from $0.68 in Q1 2026 but below $3.16 a year ago.
- Access demand and orders remained strong
- Access sales increased $117.8 million (9.4%) to $1.374 billion, driven by $91 million of volume and $21 million of pricing. Quarterly orders were $1.5 billion, producing a 1.1 book-to-bill ratio.
- Backlog supports forward revenue visibility
- Total backlog increased 3.7% year over year to $14.75 billion. Access backlog grew 64.7% to $1.96 billion and Vocational backlog rose 5.6% to $6.62 billion.
- Cash conversion improved materially
- First-half operating cash flow was an inflow of $213.3 million versus a $305.7 million outflow a year earlier, reflecting lower inventory and higher customer advances. First-half capex was $54.8 million, or about 1.0% of $5.233 billion of first-half sales.
- Liquidity and leverage remained stable
- Liquidity included $403.6 million of cash and $1.58 billion of unused revolver capacity at June 30, 2026. Total debt was essentially flat at $1.103 billion versus $1.101 billion at year-end, and debt-to-capital was 19.6%.
- Capital returns continued
- The company repurchased $92 million of stock in Q2 and $138.9 million in the first six months; prior-12-month repurchases added $0.09 to Q2 EPS versus the prior year.
- No material formal risk-factor changes
- Risk-factor update: Item 1A states that risks disclosed in the 2025 Form 10-K “have not materially changed.” The filing nevertheless identifies $55 million of higher material costs, primarily tariffs, as a Q2 operating-income headwind.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Sales growth did not translate to profit growth
- Gross margin fell 270 bps year over year to 16.5% and operating margin fell 240 bps to 8.3%; operating income declined $48.5 million (16.6%) to $243.2 million despite the $183.0 million sales increase.
- Tariffs, mix and costs pressured margins
- Management attributes the operating-income decline to $55 million of higher material costs, $52 million of unfavorable mix, $25 million of manufacturing overhead, and $10 million of higher warranty costs. Tariff-related material costs reduced consolidated gross margin by 170 bps.
- Vocational execution and refuse demand remain weak
- Vocational sales declined $2.9 million to $966.8 million and operating income fell $26.2 million (17.8%) to $121.1 million. Refuse and recycling unit backlog was down 29.5% year over year, while management now expects a more gradual municipal-fire throughput ramp.
- Transport backlog and margins contracted
- Transport backlog declined 9.8% to $6.05 billion, reflecting NGDV production, while Q2 Transport operating margin contracted 80 bps to 2.9%. The segment cited adverse mix, defense-program warranty expense, and overhead costs.
- Receivables and payables timing warrants monitoring
- Consolidated days sales outstanding increased from 43 days at December 31, 2025 to 48 days at June 30, 2026, while days payable outstanding decreased from 65 days to 53 days. These movements can raise working-capital cash requirements even as inventory turns improved from 3.6x to 3.7x.
- Backlog conversion and government exposure risk
- Approximately 67% of the $14.75 billion June 30 backlog is not expected to be filled in 2026, and the company notes backlog may be canceled, modified, or otherwise changed. Sales to the U.S. government were approximately 21% of first-half sales.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.92
- Gross margin
- 16.5%
- Operating margin
- 8.3%
- Segment
- Access revenue: $1.374 billion, up $117.8 million (9.4%) year over year; operating margin 11.0%, down 350 bps.
- Segment
- Vocational revenue: $966.8 million, down $2.9 million (0.3%) year over year; operating margin 12.5%, down 270 bps.
- Segment
- Transport revenue: $536.1 million, up $57.0 million (11.9%) year over year; operating margin 2.9%, down 80 bps.
- Segment
- Corporate and other revenue: $38.4 million, up $11.1 million (40.7%) year over year.
What they said about what is next.
2026 net-sales outlook increased to approximately $11.2 billion from $11.0 billion, but GAAP diluted EPS was reduced to approximately $10.50 from $10.90. Adjusted diluted EPS is expected to be approximately $11.00. Management expects 2026 operating cash flow of $750 million to $850 million and capital expenditures of $200 million. It expects Q4 results to exceed Q3 as municipal-fire capacity progresses, NGDV production rises, and it receives an expected additional NGDV order.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- Oshkosh Corporation's Q1 2026 results reflect a significant drop in earnings and margins compared to the prior year, with revenue coming in at $2.32 billion, slightly above last year's $2.31 billion but below estimates.…
- 10-K · February 17, 2026
- Oshkosh Corporation's 2025 10-K highlights a solid financial year amid challenging market conditions, reflecting careful management of resources and a focus on strategic growth through acquisitions and product…
- 10-Q · October 29, 2025
- Oshkosh Corporation's Q3 2025 results showed a slight decline in revenue and a modest improvement in EPS compared to the prior year, driven by strong performance in the Vocational segment. However, Access segment sales…
- 10-Q · August 1, 2025
- Oshkosh Corporation's Q2 2025 results showed a 4.0% decline in revenue to $2.73 billion compared to Q2 2024, but a significant improvement in EPS to $3.16, up from $2.56 year-over-year. Operating income increased by…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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