Oshkosh Corporation (Holding Company)Common Stock

Greetings and welcome to the Oshkosh Corporation Second Quarter 2026 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Pat Davidson, Senior Vice President of Investor Relations for Oshkosh Corporation. Thank you, sir. You may begin.

Good morning and thanks for joining us. Earlier today we published our second quarter 2026 results. A copy of that release is available on our website at OshkoshCorp.com. Today's call is being webcast and is accompanied by a slide presentation which includes a reconciliation of GAAP to non-GAAP financial measures that we will use during this call and is also available on our website. The audio replay and slide presentation will be available on our website for approximately 12 months. Please refer now to slide two of that presentation. Our remarks that follow including answers to your questions contain statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and other factors that could cause actual results to be materially different from those expressed or implied by such forward-looking statements. These risks and factors include, among others, factors that we listed in our release this morning and matters that we have described in our most recent Form 10-K and other filings we make with the SEC, as well as matters noted at our Investor Day in June 2025. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. Our presenters today are John Pfeifer, President and Chief Executive Officer, and Matt Field, Executive Vice President and Chief Financial Officer. Please turn to slide three and I'll turn it over to you, John.

Good morning, everyone, and thank you for joining us today. In the second quarter, we delivered consolidated sales of $2.9 billion and adjusted earnings per share of $2.87. We continue to benefit from growth in our access segment with strong order intake of $1.5 billion. Additionally, we have robust backlogs at our transport and vocational segments, and we're focused on increasing production, which is foundational to delivering our 2028 goals. We are building momentum and remain confident in our ability to deliver on our investor day targets. Within our vocational segment, we are continuing actions to modernize our fire truck manufacturing and expand production to better serve strong customer demand and support long-term growth. Over the past quarter, we have implemented production changes to improve throughput. To support these changes, we are implementing new in-plant material flow processes that shift from a reliance on individuals and experience to standardized modern process flows that will support our continued transformation to high flow production lines. As a result of these changes, we expect to produce and ship Fewer fire trucks this year than we previously planned. However, the work we are doing positions us well for 2027 and 2028. As a result of our revised expectations for production this year, we now expect full year adjusted earnings per share in the range of $11. Across the company, we continue to hear a common theme from customers who are looking for solutions that are safe, We are investing in AI-enabled technologies, autonomy, and connectivity that are shaping the airport of the future, the job site of the future, the neighborhood of the future, and the battlefield of the future. Please turn to slide five and we'll continue to review some highlights since our last call. As expected, Our access segment delivered double-digit operating income margins with strong Q2 sales in a dynamic environment. We now expect full-year access segment revenue to grow compared to 2025 and improvement from our original expectation for a modest decline. Large infrastructure investments and megaprojects remain important sources of demand, and our newest products, including micro-sized scissors, and Clear Sky Smart Fleet Connected Technologies continue to resonate with customers. We remain focused on managing the business with discipline, improving price-cost dynamics, driving operational productivity and innovating our products and services. These innovations will drive the job site of the future where we see tremendous promise in bringing autonomous AI-enabled solutions to construction sites. Orders in the quarter were strong at $1.5 billion, resulting in a book-to-bill ratio of 1.1. We enter the second half of the year with good visibility, supported by a $2 billion backlog at the end of the quarter. Mega projects are continuing to drive demand for our access equipment, and we are working to ensure we have the inventory and production flexibility to support the demand. Turning to slide six in our vocational segment. Backlog and demand for fire apparatus and airport products provides excellent visibility and supports our investment in our manufacturing operations to drive long-term growth. We are making meaningful progress in modernizing our manufacturing operations and implementing the changes needed to improve material flow and assembly efficiency. These initiatives represent a transformation of our manufacturing operations for fire trucks. and while production throughput is improving more gradually than we initially expected in the near term, these steps remain the right actions to reduce lead times and better serve our customers. Demand for Oshkosh Aerotech remains strong as airports continue investing in expansion and modernization. Once again, order intake during the quarter was solid. particularly for passenger boarding bridges with key wins in Chicago, Denver, and Philadelphia. In addition, we continue to advance our vision for Airport of the Future including testing an autonomous AI-enabled ground support robot at Grand Rapids Airport in the quarter. Refuse collection vehicle sales were lower than last year as we previously discussed. Even amidst lower sales, the quality of our products has resulted in notable recent orders, including a significant order with the Sanitation Department of New York. Overall, we believe the long-term outlook for our vocational segment remains strong. Our backlog and market position continue to provide an excellent foundation for future growth, and we are confident in achieving our long-range targets. Please turn to slide seven. In the transport segment, we continue to ramp production of the next generation delivery vehicle. We are excited to see more of our vehicles serving postal carriers in communities across the country. The fleet has now surpassed 35 million miles, and feedback from both the United States Postal Service and its drivers remains positive, reinforcing the safety, productivity, and reliability benefits of the platform. Our defense business also continued to build momentum during the quarter. Participation at the Euro Satori exhibition in France highlighted the growing interest we are seeing from both existing and potential customers. As defense priorities continue to evolve globally, we believe Ashkosh is well positioned to leverage our engineering capabilities, manufacturing scale, and proven mobility platforms to to pursue additional opportunities in both domestic and international markets. During the quarter, we received orders from the U.S. and international customers, including a $142 million order for the FMTV A2 program and a $92 million order supporting the United States Marine Corps Rogue Fires platform. which combines next-generation autonomy with the protection, mobility, speed, and off-road capability Marines rely on in harsh environments. These awards reinforce the confidence our customers place in Oshkosh Defense while providing additional visibility beyond 2026 for these products. I'll hand it over to Matt to review our financial results and provide additional details on our outlook.