Q & A Highlights

Q : Can you elaborate on the growth outlook for the Vocational segment, particularly the Pierce business? A : John Pfeifer, CEO, explained that the Vocational segment is resilient and growing, with strong order intake and backlogs, especially in the municipal fire truck business. The company is investing in increasing production capacity to meet demand and expects continued margin growth.

Q : What are the expected margins for the Defense segment as you ramp up production for the USPS contract? A : Matthew Field, CFO, stated that while specific guidance on USPS margins isn't provided, the ramp-up is expected to be accretive to the overall Defense business. More details will be shared at the Investor Day and closer to 2026.

Q : How do you see the Access segment performing in the first half versus the second half of 2025? A : John Pfeifer, CEO, noted that the Access segment is expected to experience more typical seasonality, with lower sales in the first half and improving conditions in the second half. This is based on customer insights and market metrics.

Q : Can you discuss the impact of tariffs on your pricing strategy for Access equipment? A : John Pfeifer, CEO, mentioned that Oshkosh has a playbook for potential tariff scenarios and aims to mitigate impacts through its global footprint. The company plans to minimize or eliminate the need for price increases due to tariffs.

Q : What is the outlook for the NGDV production ramp-up and its impact on the Defense segment? A : John Pfeifer, CEO, stated that NGDV production will progressively increase throughout 2025, reaching full rate by year-end. This ramp-up, along with revised pricing on other Defense contracts, supports a strong outlook for 2026 and beyond.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .