OSK Q2 Earnings Beat on Higher Sales, Strong Access Orders

Oshkosh Corporation OSK reported second-quarter 2026 adjusted earnings of $2.87 per share, down 15.8% year over year. Earnings, however, beat the Zacks Consensus Estimate of $2.60 by 10.39%. Consolidated adjusted operating income declined 17.7% to $257.6 million, while adjusted operating margin fell to 8.8% from 11.5%. Unfavorable sales mix and higher manufacturing overhead costs impacted the results.

Revenues rose 6.7% to $2.92 billion and beat the consensus mark of $2.75 billion by 6.18%. Higher sales volume and improved pricing supported the top line. Period-end backlog reached $14.75 billion, led by sizable Vocational and Transport order books.

OSK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

OSK's Access Sales Rise on Strong Orders

Access segment sales increased 9.4% year over year to $1.37 billion, driven by higher sales volume and improved pricing. Aerial work platform revenues rose to $735.1 million from $638 million, while telehandler revenues declined to $263.3 million from $325.1 million.

Adjusted operating income fell to $155.8 million from $185.7 million. Adjusted operating margin contracted to 11.3% from 14.8% due to adverse product and customer mix, unfavorable price-cost dynamics, higher litigation reserves, increased selling and administrative costs, and greater product-development spending. Higher sales volume partly offset these pressures.

Orders reached $1.5 billion and backlog was $1.96 billion at the end of the quarter, supported by infrastructure projects, data centers and other large construction developments.

Oshkosh's Vocational Margin Faces Pressure

Vocational segment sales were nearly flat at $966.8 million. Higher municipal fire apparatus and airport product revenues were offset by lower refuse and recycling vehicle sales.

Adjusted operating income declined to $130.5 million from $157.9 million, with margin contracting to 13.5% from 16.3%. Adverse sales mix, higher manufacturing overhead and lower volume outweighed improved price-cost dynamics and lower incentive compensation accruals.

Fire truck shipments were roughly level with the prior-year quarter. Oshkosh expects production to increase about 10% in 2026 as it shifts from bay-based assembly to higher-flow production lines, though material-flow changes are taking longer than initially planned.

OSK's Transport Revenues Gain on NGDV Ramp

Transport segment sales rose 11.9% to $536.1 million. Delivery vehicle revenues increased to $261.6 million from $107.1 million as production of the Next Generation Delivery Vehicle accelerated. Defense revenues fell to $274.5 million from $372 million.

Operating income decreased to $15.8 million from $17.8 million. Adverse mix and higher warranty and manufacturing overhead costs offset a $16.6 million one-time benefit tied to the NGDV program. Management expects margins to improve in the second half as NGDV production rises and revised defense contracts contribute.

Oshkosh Generates Strong Free Cash Flow

Second-quarter free cash flow reached $348 million, up sharply from $49 million a year ago. The company repurchased about 667,000 shares for $92 million during the quarter. OSK declared a quarterly dividend of 57 cents per share, to be paid out on Aug. 27, 2026, to shareholders of record as of Aug. 13.

OSK Cuts Earnings Outlook on Fire Truck Ramp

Oshkosh now expects 2026 adjusted earnings of about $11 per share, down roughly 50 cents from its prior guidance. The revision reflects slower-than-expected improvement in fire truck production, more than offsetting the stronger outlook for the Access segment.

The company raised its full-year sales expectation by $200 million and continues to project free cash flow of $550-$650 million. Management expects fourth-quarter results to exceed third-quarter performance as fire truck production improves, NGDV output rises and defense work shifts to revised-price contracts.

Key Releases From Auto Space

General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. 

Ford F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. 

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