Oshkosh lowers 2026 profit forecast on slower fire truck output

Oshkosh Corporation (OSK) reported third-quarter adjusted earnings of $2.41 per share on Oct. 29, 2026, down from $3.20 a year earlier, as production problems at its fire truck business weighed on profit. Sales rose 5.7% to $2.84 billion.

The company said in a news release that it now expects 2026 adjusted earnings per share of $8.50 to $9.50, down from the approximately $11.00 it forecast on July 28.

Net income fell to $138.4 million, or $2.22 per diluted share, from $196.2 million, or $3.04 per diluted share, a year earlier.

Here's how the company did:

• Adjusted EPS: $2.41 vs. $3.20 a year earlier
• Diluted EPS (GAAP): $2.22 vs. $3.04 a year earlier
• Revenue: $2.84 billion vs. $2.69 billion a year earlier
• Operating income: $197.1 million vs. $260.4 million a year earlier

Operating income fell 24.3% to $197.1 million, or 6.9% of sales. The company said the decline was primarily due to unfavorable sales mix and higher selling, general and administrative expenses, offset in part by higher sales volume and improved price/cost dynamics.

Adjusted operating income decreased 20.9% to $216.9 million, or 7.6% of sales, excluding amortization of purchased intangibles and a $5.5 million reserve on a prior divestiture-related note receivable.

"Our results reflected challenges arising from our transformation of fire truck production," said John Pfeifer, president and chief executive officer of Oshkosh Corporation. "Improvements in throughput are taking longer than we previously expected, and we have identified the primary factors that affected production."

2026 guidance

The company now expects 2026 diluted EPS of $8.00 to $9.00 and adjusted EPS of $8.50 to $9.50, down between $1.50 and $2.50 from its most recent guidance.

It expects net sales of approximately $11.0 billion in 2026, down $0.2 billion from its previous guidance.

The revised outlook reflects lower fire apparatus and NGDV production, offset in part by higher sales volume in the Access segment. The bottom end of the EPS range reflects the possibility that the company does not receive an NGDV order in 2026, which could affect earnings by up to $0.50 per share.

Pfeifer said, "Given our short-term challenges in fire truck production, we are lowering our full-year expectation for adjusted earnings per share to a range of $8.50 to $9.50." He added that "our backlog for fire trucks remains elevated."

Segment results

Access sales rose 20.7% to $1.34 billion, primarily on higher sales volume in North America and improved pricing. Segment operating income increased 23.5% to $145.7 million.

Vocational sales fell 7.0% to $899.9 million, primarily on lower sales volume, offset in part by improved pricing. Segment operating income decreased 38.2% to $87.6 million. The company tied the decline in part to lower fire apparatus production and costs related to its fire apparatus manufacturing initiatives.

Transport sales decreased 4.4% to $562.0 million, primarily due to a license of JLTV-related intellectual property to the U.S. government in the third quarter of 2025. Segment operating income fell to $8.2 million from $36.6 million a year earlier.

Taxes, buybacks and dividend

Income tax expense was $40.5 million, or 22.8% of pre-tax income. That included a $5.4 million discrete tax charge tied to the recapture of a purchased federal income tax credit.

The company repurchased 556,138 shares for $82.4 million in the quarter. Its board declared a quarterly cash dividend of 57 cents per share, payable Nov. 30, 2026, to shareholders of record as of Nov. 16.

Consolidated backlog was $15.1 billion at quarter end, up from $13.7 billion a year earlier.