Oshkosh Cuts 2026 Outlook as Fire Truck Production Problems Persist

Oshkosh cut its full-year earnings forecast on Thursday, blaming fire truck production problems that it said are taking longer to fix than expected, even as third-quarter sales rose 5.7% on strength in its Access segment.

The maker of specialty vehicles now expects 2026 adjusted earnings per share of $8.50 to $9.50, down $1.50 to $2.50 from its most recent guidance, according to the earnings release it filed with an 8-K on Thursday. It expects GAAP diluted EPS of $8.00 to $9.00 and net sales of about $11.0 billion, down $0.2 billion from its prior outlook.

Fire truck slowdown weighs on profit

Third-quarter net income fell to $138.4 million, or $2.22 a diluted share, from $196.2 million, or $3.04, a year earlier. Adjusted EPS dropped to $2.41 from $3.20.

Sales rose to $2.84 billion, but operating income fell 24.3% to $197.1 million, and operating margin shrank to 6.9% from 9.7%. The company cited unfavorable sales mix and higher selling, general and administrative expenses.

"Our results reflected challenges arising from our transformation of fire truck production," President and CEO John Pfeifer said in the release. "Improvements in throughput are taking longer than we previously expected." He said the company is taking steps to improve material flow and production scheduling and believes "this is a near-term issue."

Vocational segment sales fell 7.0% to $899.9 million as fire apparatus production declined from both a year earlier and the second quarter, which the company tied to initiatives to modernize fire apparatus manufacturing. Segment operating income dropped 38.2% to $87.6 million, and its margin narrowed to 9.7% from 14.6%.

Pfeifer said the fire truck backlog "remains elevated" and that the company's move to high-flow production lines should lift output over time.

Access segment shines

The Access segment was the bright spot. Sales jumped 20.7% to $1.34 billion on higher North American volume and better pricing, and operating income rose 23.5% to $145.7 million, or 10.9% of sales.

Transport segment sales slipped 4.4% to $562.0 million, and operating income fell 77.6% to $8.2 million. The year-ago quarter included a $25.0 million license of JLTV-related intellectual property to the U.S. government.

Outlook risks and shareholder returns

The revised outlook reflects lower fire apparatus and NGDV production, partly offset by higher Access volume. Oshkosh said the bottom of its EPS range also reflects the possibility it does not receive an NGDV order in 2026, which could reduce earnings by up to 50 cents a share.

Oshkosh repurchased 556,138 shares for $82.4 million during the quarter, and its board declared a quarterly dividend of 57 cents a share, payable Nov. 30 to shareholders of record on Nov. 16.

For the first nine months, net sales rose to $8.07 billion from $7.73 billion, while net income fell to $364.7 million, or $5.81 a diluted share, from $513.2 million, or $7.92.

Sources

1. Oshkosh Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001193125-26-437039)

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