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Oshkosh Corporation builds specialty and military-style vehicles and other technology. If you own a four-wheel-drive vehicle, give a nod to Oshkosh; the company patented the four-wheel drive system in 1917.

This year's Fortune 500 marks the 66th running of the list.

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The manufacturer of specialty vehicles and vehicle bodies supplies heavy-duty equipment to customers including the U.S. military, fire departments, and municipal waste haulers.

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This year's Fortune 500 marks the 65th running of the list.

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This year's Fortune 500 marks the 64th running of the list.

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Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Oshkosh Corporation designs and manufactures specialty vehicles and vehicle bodies for defense, fire and emergency, construction, and commercial applications. Its products include tactical wheeled vehicles, aerial work platforms, and refuse collection trucks. The company serves customers in both public and private sectors, including military organizations and municipalities. Oshkosh also offers support services and fleet management solutions.

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Q4 2024

Oshkosh (OSK): Company Profile, Stock Price, News, Rankings

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Oshkosh

oshkosh

Greetings, and welcome to the Oshkosh Corporation Fiscal 20 24 4th Quarter and Full Year 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Pat Davidson, Senior Vice President, Investor Relations for Oshkosh Corporation.

Good morning, and thanks for joining us. Earlier today, we published our Q4 and full year 2024 results. A copy of that release is available on our website atoshkoshcorp.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 it's 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 2 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 that could cause actual results to be materially different from those expressed or implied by such forward looking statements. These risks include, among others, matters that we have described in our Form 8 ks filed with the SEC this morning and other filings we make with the SEC. 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 include John Pfeiffer, President and Chief Executive Officer and Matt Field, Executive Vice President and Chief Financial Officer. Please turn to Slide 3, and I'll turn it over to you, John.

Thank you, Pat, and good morning, everyone. I'm pleased to announce strong results for Oshkosh Corporation with 2024 revenue and adjusted earnings per share for the full year of $10,800,000,000 $11.74 respectively. We achieved an adjusted operating income margin of 10.5%, a 110 basis point increase over 2023. This is an exciting time for our company as we work to capitalize on solid growth opportunities, particularly in our Vocational segment. I'm also happy to welcome our new CFO, Matt Field to the company.

Matt brings exceptional leadership to our team as well as extensive financial and international experience. I look forward to working with him as we continue to execute our innovate, serve, advance growth strategy. Let's get started with a recap of the Q4. We delivered another solid quarter of growth with revenue up 6.3% compared to the Q4 of 2023. Our adjusted operating income margin was 9.4%.

Our adjusted EPS of $2.58 reflected strong sales growth and margin expansion in our Vocational segment. And while our Access segment is experiencing softer near term market conditions, we expect to deliver robust resilient margins and the long term prospects for this business remain favorable with mega projects, infrastructure build out and data centers driving demand for our equipment. Earlier this month, we participated at CES in Las Vegas, where we showcased Oshkosh's innovative products and technologies aimed at making the work of everyday heroes safe, intuitive and more productive. We demonstrated our strong capabilities, including AI, autonomy and connectivity, as well as our practical and thoughtful approach to applying these technologies to deliver meaningful benefits for our customers. Our display featured the job site of the future, the airport of the future and the neighborhood of the future incorporating these innovations.

We also featured our next generation delivery vehicle, which we started building for the United States Postal Service in 2024. This is one of the most significant new products in the history of our company. We're pleased with the early positive feedback on the NGDV from postal carriers and look forward to ramping production throughout 2025. Our HARI concept designed for an on demand autonomous refuse collection robot was recognized with a CES Picks award as one of the best new products at the show. With Harry, residents of neighborhoods will be able to request refuse and recycling pickup with a smartphone app or a virtual home assistant.

The robot will autonomously navigate to homes, collect refuse or recycling and return to a central collection base to unload and recharge. We believe this technology has significant potential, especially for large planned residential communities. Lastly, I'm pleased to share that we were named to the Dow Jones Sustainability World Index for the 6th consecutive year. Companies must be rated in the top 10 percent of their peer group for sustainable business practices to be considered for the index. This recognition reflects our commitment to driving profitable, sustainable growth that benefits our people, communities and environment as well as shareholders.

Please turn to Slide 4 for a recap of 2024 and our 2025 expectations. I'm proud of our performance in 2024. Our 18,000 plus team members continue to deliver strong results, positioning us to be a growing, more resilient company for the future. For full year 2024, we grew revenue by 11.4 percent to $10,760,000,000 and grew adjusted operating income by 24.5 percent to $1,130,000,000 leading to adjusted earnings per share of $11.74 We are pleased with our progress. We are also announcing our 11th consecutive double digit percent increase in our dividend, raising the quarterly dividend by $0.05 to $0.51 per share, a nearly 11% increase.

This reflects our expectation of strong long term cash flow generation and our Board's confidence in our ability to sustain profitable growth. Turning to our outlook for 2025, we expect to deliver adjusted EPS in the range of $11 This reflects a balanced assessment of near term outlook in access equipment, opportunities in vocational and the expected ramp up of the NGDV program in defense and investments in new products and technologies. Please turn to Slide 5 and we'll get started on our segment updates. The Access team delivered solid 4th quarter sales as the industry continues to normalize. We're seeing demand moderate in response to softer non residential construction activity and elevated interest rates.

As we've previously mentioned, we anticipate lower sales in 2025, particularly in the first half of the year. Our team is focused on execution in this environment and we are confident that we can deliver resilient margins for the year. We expect improving conditions in the second half of twenty twenty five, which are expected to provide momentum going into 2026. We ended the year with a healthy backlog at $1,800,000,000 after booking orders of $856,000,000 in the quarter. We continue to engage with customers on 2025 requirements and expect to book additional annual purchase orders in the Q1.

Furthermore, we remain confident in the market's long term health. Our access team continues to advance its products with state of the art technology and job site connectivity. Clear Sky Smart Fleet was also featured at our job site of the future CES exhibit driving job site productivity. We now have over 100,000 connected assets as part of this technology platform. This is one of the world's largest fleets of connected equipment on the job site.

Customer adoption is strong and enthusiasm continues to build for ClearSky's ability to enhance productivity, boost efficiency and maximize machine uptime. CES attendees also experienced our Galileo all electric boom lift and rotating telehandler concept as well as its companion, our autonomous mobile recharging robot. These advanced concepts demonstrate potential opportunities to enhance safety and productivity for the job site of the future. Please turn to Slide 6, and I'll review our Vocational segment. Our Vocational segment achieved strong year over year revenue growth of nearly 20% in the 4th quarter and a robust adjusted operating income margin of 14%.

Increased volume and strong price realization drove double digit revenue growth in key product lines in the segment. The backlog is also robust, providing excellent visibility into demand. We remain focused on increasing production levels across the segment to support strong demand and a healthy backlog, which we expect will deliver meaningful revenue and income growth over the coming years. Another important announcement from CES was the launch of our all new Volterra ZFL ERCV, the industry's 1st purpose built fully integrated electric front end loader refuse and recycling collection vehicle. This joins our Volterra ZSL side loader refuse and recycling vehicle to provide the most capable electric refuse vehicles on the market.

We also highlighted future technologies, including our advanced AI capabilities to identify waste and recycling stream contamination as well as our all electric side loader refuse collection arm, which eliminates hydraulics and features autonomous operation. We believe these innovations will continue to revolutionize safety and productivity in the industry, which we expect will drive future growth. Global air passenger metrics continue to strengthen with the International Air Transport Association's November figures showing growth of 8.1% year over year. We believe strong market conditions combined with technology and innovations in our IOPS connected solutions, electrified product offerings and autonomy are fueling growth for our market leading products at AeroTech, where we saw revenue grow more than 9% compared with the Q4 of 2023. Let's turn to Slide 7 for a discussion of the Defense segment.

Defense results continue to be impacted by legacy fixed price contracts. In the future, we expect better results with improved pricing terms on TWV programs and the launch of the next generation delivery vehicle. We look forward to finalizing our FMTV 3 year contract extension in the first half of twenty twenty five. This sole source contract is expected to include improved pricing and economic price adjustment provisions similar to our recently announced FHTV contract extension, which will improve the resiliency of margins over time. We expect to complete domestic JLTV production in early 2025.

International interest in tactical wheeled vehicles, including JLTVs, remains solid and we see the potential for additional international orders during the year. We are pleased with the progress on the production ramp up for the NGDV program, which will be an important component of Oshkosh's growth over the next decade. NGDVs are the delivery industry's most state of the art vehicles and are modernizing and decarbonizing USPS's fleet while dramatically enhancing driver safety and productivity. These purpose built vehicles are equipped with the latest safety features that will support the success of USPS for the next 2 decades. We expect to increase our NGDV production rates throughout the year and achieve full rate production by the end of 2025, which should provide strong revenue growth during the year and into 2026.

When we combine the NGDV ramp with revised pricing on the FMTV and FHTV programs, it's clear why we have a strong outlook for profitable growth in 2026 and beyond. With that, I'll turn it over to Matt to discuss our results in more detail, including our expectations for 2025.

Thanks, John. I'm grateful to join the team at Oshkosh and excited by the growth opportunities for the company, including those highlighted at CES. I also want to thank Mike Pack and the Finance and Accounting team for their support and patience during my transition. Please turn to Slide 8. Consolidated sales for the Q4 were $2,620,000,000 an increase of $157,000,000 or 6% over the same quarter last year.

Our top line growth primarily reflected increased volume and improved pricing in our vocational segment. In fact, solid performance at vocational is the primary driver for our strong Q4 results. Adjusted operating income was $245,000,000 or 9.4 percent of sales, an increase of $5,500,000 over the same quarter last year. The improvement in adjusted operating income was largely driven by higher sales volume and improved price cost dynamics, offset in part by CCAs and Defense. Adjusted earnings per share was $2.58 in the 4th quarter, essentially in line with 2.56 in the prior year.

The roughly flat adjusted earnings per share on higher operating income reflected the impact of higher interest expense on our revolving credit facility. We repurchased nearly 500,000 shares of our stock during the quarter at a cost of approximately $50,000,000 Full year free cash flow was about $270,000,000 for the year, including capital expenditures of approximately $280,000,000 This was lower than our expectation due in part to timing delays on unit deliveries and defense that we expect to reverse in 2025. Turning to our expectations for 2025 on Slide 9. We expect consolidated sales to be approximately $10,600,000,000 We are estimating adjusted operating income to be approximately $1,000,000,000 and we estimate that adjusted earnings per share will be approximately $11 While we expect lower sales and access, we expect to grow both sales and adjusted operating income for the vocational and defense segments. These estimates assume that present levels of tariff rates, raw material prices and supply chain performance continue into 2025 without significant disruption.

At a segment level, we are estimating access sales to be approximately $4,400,000,000 with an adjusted operating margin of about 13%, reflecting market conditions in North America and Europe. We expect the decline in revenue will be most pronounced in the 1st and 4th quarters, reflecting market softness as well as traditional seasonality. In vocational, we see sales of approximately $3,800,000,000 with expectations for adjusted operating margin to be approximately 15%. We expect a continuation of favorable price cost dynamics and volume growth to drive our improved margin outlook. For defense, we expect sales to be approximately $2,300,000,000 with expectations for adjusted operating margin of approximately 4%, reflecting less adverse CCAs and the ramp up of NGDV production.

We expect to invest about $250,000,000 in CapEx and our estimate for free cash flow is in the range of $300,000,000 to $400,000,000 This cash reflects the projected adverse impact of timing differences from vocational deposits on units produced as we work down the backlog. These can vary from year over year and normalize over time. We expect Q1 results to be the lowest of the year with adjusted EPS to be approximately $2 This reflects our expectations around the access industry dynamics as well as the impact from the progressive ramp up in NGDV production in defense. With that, I'll turn it back over to John for some closing comments.

We reported another solid quarter to finish off an impressive year at Oshkosh, and we expect to continue to deliver healthy results moving forward. We have excellent visibility to grow revenue in our vocational segment, and our planned NGDV ramp up supports growth in our last mile delivery business. Additionally, we remain confident across the company in the long term growth opportunities driven by our people, innovative products and strong businesses, which we expect will continue to deliver shareholder value. We just announced our guidance for 2025, which we believe is balanced and realistic given current business conditions. Furthermore, we plan to share more details about our longer term outlook at our Investor Day later this year.

This will be an outstanding opportunity to learn about our company and industry leading technologies from our business leaders. We look forward to speaking with you at the event. I'll turn it back to you, Pat, for the Q and A.

Thanks, John. I'd like to remind everyone to please limit your questions to 1 plus a follow-up and please stay disciplined on the follow-up question. After your follow-up, we ask that you

Our first question comes from the line of Jerry Revich with Goldman Sachs. Please proceed with your question.

Jerry. Hi. What obviously stands out in the quarter is the outstanding performance in vacation in the 4th quarter and the outlook for $425,000,000 I'm wondering if you could just talk a little bit more about what's the growth outlook in the core Pierce business versus the other parts of the portfolio, how broad based is the top line and margin strength that you're looking for in that business with a bit more context, please, if you don't mind?

Yes, sure, Jerry. Thanks for the question. Yes, vocational is just continuing to do what we expect it to do, which is be a really resilient growing business, continuing to grow margins. We expect to continue to grow margins going forward. Our municipal fire truck business is a really, really important part of that business.

We have big backlogs across all of our businesses and vocational, but I think that the municipal fire truck business kind of is the leader in terms of the strong order intake that we've had and we've built up this big backlog. So what we're doing in our fire business is we're really driving investment and effort in getting throughput through our core manufacturing plants. We're even adding some capacity at our new Murfreesboro plant, which is primarily building environmental vehicles, but we're also doing some cabs down there to continue to increase throughput. But we've got we'll continue to drive growth in both units as we continue to get better throughput and we'll get continued pricing realization, which is in the backlog that's also going to help us continue to perform really, really well in this business. So So the municipal the market in general for municipal fire trucks is strong.

Municipalities want new technology and we're giving them new technology and they're upgrading their fleets and this is a really foundational part of that vocational story.

Really well done. And in terms of shifting gears to defense, as you hit the full production rate for the U. S. Postal contract exiting the year, what level of margins are you seeing in the

Hi, Jerry, it's Matt. So we're really pleased with the ramp up we're seeing. And as you mentioned, we'll progressively grow the pace of production across the year. While we don't provide specific guidance on USPS, we do see it as accretive to our overall defense business. And so we will talk more about that at our Investor Day, but also obviously once we get closer to 2026.

Our next question comes from the line of Steven Fisher with UBS. Please proceed with your question.

Thanks. Good morning. Congratulations. Just wanted to ask you a little bit about the visibility and access on the first half versus the second half and how that compares to usual at this time of the year and maybe some of the key drivers in your mind of the improving conditions you mentioned in the second half of the year in access?

Yes. Thanks, Steve. I'll take your question. So I'll kind of give you a quick rundown of the market. We look at the market from a lot of different angles, but the primary angle that we have on the market is our relationship and communication with our customers.

And we're always our customers have really good forecasting capability. They've got good visibility. Of course, we look at all the metrics. We look at from the Dodge Momentum Index to non residential construction metrics, but customers give us a lot of insight into the market. So it's a combination of that, that really goes into what we're expecting to see in the market in 2025.

And fleet metrics in terms of fleet utilization is healthy. It's not unhealthy. Our fleet metrics are healthy, but combined with that, you've got non residential construction, primarily private non residential construction that's under a bit of pressure. And that's why we're seeing more a lot more fleet replacement happening because fleets are still aged, but not so much fleet growth happening. And when we look at the market, we pay attention to what our customers are expecting and that gives us the insight to say, hey, more typical seasonality, a little bit lower in the first half, but building momentum in the second half.

Okay. That's helpful. And then just to follow-up on the vocational side of things, maybe looking at the AeroTech business in particular, just curious how you see the evolution of that integration and the synergies looking like in 2025 as you embark on this 3rd year of ownership. We had a sense at CES that maybe still some of the best things are still to come here. How do you see the sort of incremental contributions from AeroTech here relative to other parts of vocational?

Yes. Thanks for that question. AeroTech is a really strong business for us. It's doing what we had expected it would do. These markets are in secular growth.

We're the leader across North America. I think CES is really a great way to view what we see the future of AeroTech being and why we acquired AeroTech. I mean, AeroTech, we showed cutting edge technology like autonomous jet bridges and our IOPS connected solutions. Those are available today, by the way, to future concepts like autonomous vehicles on the tarmac, like carrying luggage autonomously, that will happen in the near term future. But that's really the biggest synergy that we saw when we decided that AeroTech was a great fit to our portfolio is the technologies that we know and that AeroTech knows and needs are common and we can accelerate them by working together.

We're really excited about AeroTech. We see a continued healthy future for this business.

Our next question comes from the line of Angel Castillo with Morgan Stanley. Please proceed with your question.

Hi, good morning and thanks for taking my question and congrats on the strong quarter. Maybe just wanted to dive a little bit deeper into the access sales decline. I was hoping you could give us some color or specifics as to maybe how much price decline versus volume decline is kind of embedded in the guidance? And if you could split that also in kind of first half versus second half, that would be helpful.

Hi, Angel, it's Matt. So overall, we do see this more pronounced in the first half. I think that's embedded in our guidance for Q1 with our EPS. In terms of price cost, we're not going to provide specific guidance, but we do obviously take a disciplined approach to pricing. And then volume is really where we see most of the decline in the access as we think the first half is going to be weaker.

We've had good dialogues with our customers and so we have good visibility into how we think the year is going to shape up, but that's kind of how we see access for the year.

Got it. And then maybe just on the point or the commentary around what you're hearing from your customers, could you maybe parse that out or kind of split it up between what you're hearing from nationals versus the independents and how the kind of different channels might be suggesting the activity or the demand level is kind of shaping up across your key customers?

Yes, sure, Angel. So when we talk to nationals versus the independents, it can the nationals tend to get the lion's share of the mega projects that we all talk and hear about every day and that's real and it's continuing and it's actually continuing to accelerate. So with the independents, it really is dependent upon the market that they're serving. And some are serving markets that are very healthy or they might be getting part of the big mega projects and others might be exposed to a lot of private construction where they're under a little bit of pressure. So it's a bit inconsistent between some of the rental companies depending on the end market that they're serving.

I think the most important thing though is that equipment utilization is healthy. It's come down from all time highs, but it is at a healthy level. Our customers are comfortable with what their utilization rates are. And we think that 2025 is again mostly just pressured by private non residential construction being off due to persistent interest rates where they are.

So just to clarify, is it fair to assume then that the independents in maybe some of those kind of smaller markets that don't have as much mega projects, that's where you're seeing that's what's driving the volume move more than anything or any difference in replacement demand there?

Yes. In 2025, I think that you'll see we had mix that kind of went towards the independent rental companies in 2024. I think in 2025, it's going to come back to more national, a little bit more national mix than independents. That's what I can tell you. But it's very different from 1 independent rental customer to the next.

Our next question comes from the line of Tami Zakaria with JPMorgan. Please proceed with your question.

Hi, good morning. Thank you so much and very nice results.

So my first question is on NGTVs. I think I heard you say you're going to hit run rate by the end of the year. So I'm curious what's embedded in terms of the mix of ICE versus BEV in that assumption?

Yes. It's business as usual, Tammy. This is a contract for 165,000 units and they've given us the first order for 50,000 that we've talked about for a little while. That makes us consistent with what it's been. It's business as usual.

We're on schedule with production. We talk to the Postal Service all the time about our current pace of continuing to increase production. The Postal Service is delighted with the vehicles that they have that are delivering mail and delivering e commerce today in terms of the productivity benefits that they get out of this vehicle, which is really the first time the industry has ever seen a vehicle like this. So there's nothing really to report on the mix. It's consistent with what we've always talked about.

Got it. That is very helpful to know. And then my second question is, I know the situation around tariffs remain fluid. But could you just remind us what your exposure is in terms of imports from Mexico and Canada? And how you're thinking about it?

Should there be any tariffs on imports from any of those countries?

Yes, I will. I think it's a great thing to bring up. So thank you. First, I want to make emphasize that we are an American manufacturer. The vast majority of products that we sell in the United States are made in the United States.

So I just want to make sure that that part of it is clear. Most of what we sell in the U. S. Is made in the U. S.

Sure, we're a global company, so we have some movement of certain categories in and out of the U. S. And a global supply chain. We tend to be a pretty resilient company in terms of we use our global footprint to adapt based upon how we can get the best cost that we need to get. So I'll give you an example.

If we have to move something from one manufacturing plant to another, we typically can do that relatively quickly. Europe instituted tariffs recently from access equipment coming from China to Europe. We were supplying product from China to Europe. Essentially, we understood what the Europeans were telling us. We want you to make product for Europe in Europe.

We've already shifted our production of product from our China operations to our European existing operations, no new bricks and mortar to serve the European market because the Europeans want us to serve Europe from Europe. If there's tariffs that affect us in terms of our supply chain or products that we might be bringing in from an operation outside the U. S, we will make similar adjustments to mitigate the impact of the tariff and do what the U. S. Is telling us to do, manufacture more in the U.

S. But the vast majority of what we do in the U. S. Is made in the U. S.

Our next question comes from the line of Steve Volkmann with Jefferies. Please proceed with your question.

Thank you, guys. There is if there's any commentary around how we should think about the defense margin sort of trajectory through the year here. It sounds like the timing FMTV contract maybe is a catalyst, but just anything we should think about sort of as the quarters progress relative to your 4% guidance?

Hi, Steve. It's Matt. So as we said, we guided to 4% as this is a transition year, ramping up NGDV. So accordingly, I would expect that margin to ramp up across the year. So 4% is obviously the average and starting lower and ending a little bit higher.

Okay. All right. Thanks. And then back to Access specifically, specifically, any commentary around what you're seeing in telehandlers? I think you had a bit of a potential hole to fill in that business.

Just how should we think about that in 2025?

Yes. Thanks. I'll take that, Steve. First of all, we're encouraged with our telehandler business in total, really encouraged with it. We've been encouraged by share gains that we've been getting recently, which we expected to get.

We've got a new line of agricultural telehandlers that we organically developed and then we made an acquisition of AUSA in Spain that also complements and gives us other agricultural telehandler product. So that's another area that gives us a lot of optimism as we continue to be the number one provider of telehandlers in the marketplace. So we kind of finished 2020 4 on a high note and we think that that's good momentum going into 2025, especially with a new market that we're entering in the ag space. Now the other comment here is, of course, we've had a change in agreement with CAT. I'll just bring that up.

That's a bit of it's a speed bump. This is not unexpected. We've known about this for a few years. So we've got great relationship with CAT. We still do.

We've got a really good relationship with our dealers. We supply their dealers with a full line of product. We will continue to supply their dealers with product as we go forward and we'll continue to execute on our telehandler priorities and we feel very good about it.

Our next question comes from the line of Jamie Cook with Truist.

Congrats on a nice access margin guide this year given the sales decline. But so John, question for you. Obviously, the access margins are healthy here, but just trying to understand again under possibility of tariffs, what your pricing strategy will be? I mean with access equipment relative to what happened last time, like how do you think about firm pricing versus using escalators? So questionnaire.

And then I guess my second question, on the Postal Service award, obviously, it doesn't sound like you see any risk to that contract, but just under Doge and things that are coming out under the new administration. Do you see any risk to that contract in terms of change in ICE versus EV or push out just given risk of dose? So anything you could provide from that context? Thank you.

So going to your first question, which is on access. Tariffs and pricing. Tariffs, I'm sorry. I had to go back to your first question on tariffs and pricing.

So our access our JLGs are really is becoming more resilient every year that goes by. And that's why they're continuing to deliver healthy margins in the face of a downturn that you can see in our guidance because of the resiliency that they have. So we'll be we believe that in different we've got a whole playbook on potential different scenarios that might unfold with regard to tariffs and Access has a very good mitigation plan depending on what may or may not occur with tariffs. So we think that we can mitigate a lot of it. Now within the supply chain where you've got global supply chains, sometimes there's things that you have more difficulty mitigating and we'll try to minimize or even potentially eliminate any need for price increases as a result of tariff.

But that's essentially kind of the general MO that we have with regard to tariffs. That's what we did in Europe, right? We were able to mitigate most of those tariffs by using our footprint to manufacture differently to avoid the tariffs. On the U. S.

Postal Service, what I can tell you is that we're happy with whatever mix the United States Postal Service orders from us. This is a great contract. It's a lot of vehicles. The Postal Service needs these vehicles. They're using high cost, unproductive vehicles today that were designed 40 plus years ago.

And so every time they take a new vehicle with us, from us, their productivity goes up. So this is a really important program for the United States Postal Service. We are in contact with them every day. We will again, we'll deliver the mix that they want us to deliver to them. And we're pretty pleased with progress on this program.

And I think the United States Postal Service is pleased with the vehicles that they're getting, they're absolutely delighted with. So that's what I'll tell you.

Our next question comes from the line of Tim Theine with Raymond James. Please proceed with your question.

Thank you. Good morning. John, back to the access commentary with respect to how you think the year plays out and presumably are largely influenced and educated by what you're hearing from your customers. Do you not that you want to be in business of forecasting orders, but I guess I'll ask it anyways, just how you expect the seasonality of orders has gotten kind of thrown around in post COVID, but I guess just quite bluntly, would you expect you see maybe a year over year pickup as we get into the Q2? And then maybe a little stronger accordingly in the back half of the year?

Or just any kind of thoughts with respect to the timing and how you think that looks as we go through the year from an order standpoint?

Oshkosh (OSK) Q4 2024 Earnings Call Transcript

Company Participants