OSHKOSH CORP recently released its 10-Q report. Oshkosh Corporation makes purpose-built vehicles and equipment and sells them through direct sales representatives, dealers and distributors. Its operations are organized into three segments: Access, Vocational and Transport. The company, formerly known as Oshkosh Truck Corporation, was founded in 1915 and is headquartered in Oshkosh, Wisconsin.
In Item 2, management said second-quarter 2026 consolidated sales rose 6.7% to $2.915 billion from $2.732 billion a year earlier, driven by $87 million of higher volume and $68 million of improved pricing. Operating income fell 16.6% to $243.2 million, or 8.3% of sales, from $291.7 million, or 10.7% of sales, as gross margin dropped to 16.5% from 19.2%.
Gross profit declined $44.2 million to $480.3 million. Management tied the margin decline to unfavorable sales mix, which cut 200 basis points, higher material costs, which cut 170 basis points and were “primarily related to higher tariff costs,” and higher manufacturing overhead, which cut 80 basis points; improved pricing added 170 basis points. Selling, general and administrative expense increased to $222.7 million from $213.3 million, mainly because of $7 million of higher employee compensation and $4 million of higher legal and professional fees.
For the first six months, sales increased 3.7% to $5.233 billion from $5.045 billion, while operating income dropped 30.4% to $325.2 million from $467.1 million. Gross income fell to $792.2 million from $924.4 million, and gross margin slid to 15.1% from 18.3%. Management said the six-month margin decline reflected adverse sales mix, higher material costs tied mainly to tariffs, and higher manufacturing overhead, partly offset by improved pricing.
Net interest expense was $27.2 million in the quarter, versus $28.1 million a year earlier, and $52.5 million for the first half, versus $53.1 million. The effective tax rate fell to 16.9% from 24.1% in the quarter and to 17.4% from 24.2% in the first half, helped by net discrete tax benefits of $16 million in the quarter and $19 million in the first half, both tied mainly to the expiration of the statute of limitations for a foreign anti-hybrid tax matter.
The Access segment posted second-quarter sales of $1.374 billion, up 9.4% from $1.256 billion a year earlier. Management said Access orders were $1.5 billion, producing a book-to-bill ratio of 1.1, and backlog was $2.0 billion at June 30, 2026. The company said Access delivered a double-digit operating margin in the quarter.
In Vocational, management said it is changing production processes for municipal fire apparatus and that new material flow requirements are leading to a more gradual ramp than previously expected. In Transport, the company said it expects stronger fourth-quarter results as it receives an expected order for additional NGDVs, increases NGDV production and builds more vehicles under revised defense contracts.
Oshkosh cut its 2026 diluted EPS outlook to about $10.50 from $10.90, while lifting expected net sales to about $11.2 billion from $11.0 billion. It said the EPS estimate includes $0.72 per share of after-tax amortization of purchased intangible assets and a $0.22 per share benefit from the foreign anti-hybrid tax matter; excluding those items, adjusted EPS is now expected to be about $11.00. As a result of these announcements, the company's shares have moved -3.14% on the market, and are now trading at a price of $150.085. For the full picture, make sure to review OSHKOSH CORP's 10-Q report.
