Oshkosh reported higher sales but lower earnings for the third quarter, as strong growth in its Access business was offset by weaker results in Vocational and Transport. The company also lowered its 2026 adjusted earnings-per-share outlook, citing a slower-than-expected improvement in fire-truck production as it modernizes manufacturing.
The results highlight a split between solid customer demand in Access and near-term operational challenges in fire apparatus production. Oshkosh said it has identified the main production issues and is working to improve material flow and scheduling.
Key details
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Companywide results: Third-quarter sales rose 5.7% to $2.84 billion from a year earlier. Net income fell to $138.4 million, or $2.22 per diluted share, from $196.2 million, or $3.04 per share. On an adjusted basis, earnings were $150.1 million, or $2.41 per share, compared with $206.6 million, or $3.20 per share.
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Profitability weakened: Operating income declined 24.3% to $197.1 million, equal to 6.9% of sales, from $260.4 million, or 9.7% of sales. Adjusted operating income fell 20.9% to $216.9 million, or 7.6% of sales. Oshkosh attributed the decline mainly to unfavorable sales mix and higher selling, general and administrative expenses, partly offset by higher volume and improved pricing relative to costs.
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Access grew: Segment sales increased 20.7% to $1.34 billion, supported by higher North American volume and improved pricing. Operating income rose 23.5% to $145.7 million. Adjusted operating income was $149.9 million, up from $121.8 million a year earlier. The company cited strong customer demand and improved execution, while noting that adverse sales mix and higher incentive compensation partly offset the gains.
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Vocational was hurt by lower production: Sales fell 7.0% to $899.9 million, mainly because of lower volume, including reduced fire apparatus production. Operating income dropped 38.2% to $87.6 million, and adjusted operating income declined to $102.4 million from $151.1 million. Oshkosh cited lower volume, higher overhead and expenses tied to its fire-truck manufacturing initiatives.
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Fire-truck production is taking longer to improve: Oshkosh said throughput improvements are behind its prior expectations as it modernizes fire apparatus manufacturing. It is focused on improving material flow and production scheduling and plans to move to high-flow production lines. The company described the issue as near term and said its fire-truck backlog remains elevated.
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Transport earnings were affected by a prior-year item: Segment sales declined 4.4% to $562.0 million. Operating income fell to $8.2 million from $36.6 million, in large part because the year-ago quarter included a $25 million intellectual-property license related to the Joint Light Tactical Vehicle program. This quarter, improved pricing and lower warranty costs were offset by unfavorable sales mix and higher production costs.
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2026 outlook lowered: Oshkosh now expects adjusted earnings of $8.50 to $9.50 per share for the full year, citing the fire-truck production challenges. The release did not state the previous outlook range.
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Corporate costs increased: Net operating costs for corporate and other rose by $8.5 million to $44.4 million, primarily because of the timing of healthcare charges between corporate and the business segments.
The quarter’s higher overall sales did not translate into higher earnings, as weaker Vocational and Transport performance and increased expenses weighed on margins. The reduced full-year earnings range reflects the company’s expectation that fire-truck production constraints will affect results in the near term, while Oshkosh says its backlog remains strong.