Oshkosh (OSK) 29 Jul 212021 Q3 Earnings call transcript

Greetings and welcome to the Oshkosh Corporation Fiscal Year 2021 Third Quarter Earnings Call. [Operator Instructions] 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, Mr. Davidson.

begin. may You

call thanks reconciliation presentation our on to and financial the us. today, presentation measures oshkoshcorp.com. Earlier is The accompanied and this Good a website by also quarter is and our for XX non-GAAP XXXX published slide refer Today's at that website third on website. includes of during being months. available presentation. results. we GAAP now X webcast available available replay audio will is a for approximately morning, which our joining slide is to of A release and call our of we will be on Please use copy that Slide

year update SEC. our disclaim other filings this to earnings year unless conference the filed all. to references morning any questions, be Private otherwise. at this statements fiscal All believe and are to contain statements or forward-looking described be that a Form stated statements. make our a different which on could with remarks that These These Reform risks matters call obligation Our that by that our from forward-looking with XK we may such those of have actual the within cause include, statements next your to others, quarterly the the SEC these quarter Securities meaning among quarter Litigation to subject or to risks forward-looking Act. results not follow, including until forward-looking We updated are to implied call, materially fiscal in statements we or we be if expressed answers

Vice Mike Chief over to include Chief President and President turn X Officer. you, and Executive today Please it Officer; Pack, and presenters John. turn slide to Pfeifer, and I'll John Financial Our Executive

all has sales And of morning, quarter and robust I'm performance, Oshkosh delivered orders, across strong Thank backlogs proud growth, to that you, Pat. experiencing everyone. another our strong segments. share good of

share an Our billion strong of $X.XX, year than of more include quarter of EPS. earnings third our prior - results sales increase adjusted $X.X over third per and adjusted XX%

and the most pleased our to in in one strong proud I'm of face results deliver are with global perseverance of and recent growth We supply chain solid the this team's challenging memory. environments performance of

pleased Our performing well. third we the be heels city on second early electric of of first several or part NGDV our Madison, next-generation the and in vehicle, a the an highlighted were won notified Volterra. an was Madison is of business. quarter System, the that Caliber Defense forward the which by electric its milestone Stryker exciting North fleet the U.S. the fire This with announcements operating delivery in another we're for Pierce announce of in revolutionary and June, we as held the products. EVs new Wisconsin report electrifying program, to quarter. win a news joint America USPS to to truck, MCWS our In Less a Weapons truck week two-decade-plus or fire city than Medium is history extremely that our Army's new truck later, adjacency is for has step represents important been conference our we big

past Spartanburg, manufacturing The year, significant And in South factory June, newest discussing our facility. Carolina in business of been we've home all our the announced USPS segments. projects our NGDV the will As Spartanburg be over we late have production. is of electrification we

X,XXX South manufacturing jobs over this proud new are in to Carolina be program. exciting for We creating

stress market Equipment increase on Access sales supply has these we past causing the At we seeing within And intensified only the significant chain recoveries in quarter. are witnessing demand of the chains. $XXX effect at million our by impacting the As disruptions business, quarter. approximately supply the are during Oshkosh, over look landscape, current own global industries that rapid including with many a primarily

believe we these will on eventually and chain capitalize issues market Importantly, well subside, supply the recovery. we positioned to are

these XXXX I address to end updating adjusted into his are we now Reducing disruptions, range the expect fourth details will bit $X.XX supply expectations and for our section. Mike share issues ongoing chain EPS the in a reflects range our quarter. we $X.XX As the of more heading top tightening that the mentioned.

with recovery turn call continued we let's and on momentum on get Access Equipment demand to Now strengthened. updates The discussed in for started our our Slide last industry-leading Access X segment Equipment. our

magnitude back in half While the The some impacts expected. previously chain expected has significant than year. of the we the supply of we disruptions more been

access did which allowed an Our XX% us year. growth the impact minimizing quarter, the versus nearly volume deliver the during team to prior outstanding revenue job

are led America. are rental healthy market strong utilization by We seeing demand. fleet strong Elevated combined with North demand a and ages equipment this fueling

to look of We overall at high opportunity a age entering robust expect were demand which fleets, lower as levels XXXX. replacement multi-year their rental historically the companies' for

We when rebounds. non-residential expect further opportunities construction

result the third for As a XXXX to leading already for requirements. are quarter a their of capital customers to and an quarter. all-time Orders record of access $X.XX versus for backlog market year than our up beginning were plan more last billion, fundamentals, these the XXX% strong during

for believe use move and in review our equipment for pleased early lifts. customers multi-year stages its The The line in as our and and in of customer towards benefits, X that cost Slide cycle that I'll electric is is and is bottom segment. benefits, ownership recover interest traction economies be for footprint orders to safety turn reduction. productivity looking to what still we Please applications. enhancing continue booms a performance are We customers total with improved and electric our we're still more of growth Defense carbon and scissor with segment in the gaining the is beginning

adjacent success that our team third sales vehicles. with and results markets new market-leading Our continues supplement growth operating entering solid delivered and position Defense quarter double-digit with tactical wheeled income its

we look remarks, delivery opening my next-generation build members an we in build the forward postal bringing in and the with to location to these to late on is PS's decision and in roots Spartanburg U.S. mentioned manufacturing announced automotive zero June. outstanding vehicles last-mile carriers. South game-changing Carolina Spartanburg, nation's emissions I our team new for As low-emission board help vehicles delivery deep

Our of already NGDV BEVs XXX,XXX between team a has and XX-year for begun of and XXXX. for is this the facility in fuel-efficient zero a calls preparing production ICE planned with XX,XXX emission launch vehicles mix both the Recall vehicles. contract that the

class engaged positive carriers with into a we continuously to our a are sharing received technology solution system integration successfully the postal professionals, USPS including is brought great and representatives product best example great adjacent in this logistics look technology together we progress future. notified vehicles term ability we building used to in to are compete June, full technical are for NGDV. competition, manufacturing, that support, flexibility procurement system We is U.S. our September team integrated to of We army's spectrum on highly provide very the our in and in Army Analyst upgrade and cross-section broad in the MCWS contractor the support. the are that capable our Stryker SBCTs. which by Day the by feedback achieve contract support contract brigade of in the offering part forward a while of current markets capabilities includes win during our team's win result requirements six-year Stryker on The design, for The to MCWS a meets programs that To the of priorities. up worth In the $XXX program won Wisconsin. combat encouraged six-year are MCWS and we teams, this Stryker team will early that were This million. integrating and

of ability this to Miller our in was Our instrumental win important Pratt January program. acquisition

leave optionally selected bid the to news I to mention some Defense, one as I of design proposals program. five that was late-breaking participate phase manned in Before of concept or fighting wanted OMFB, the for the our vehicle,

We several and years. vehicles. planned some tech another is our is and significant The with Oshkosh. replace also partners, to next several It's milestones involves the over adjacencies win wheeled compete for four fighting of in to vehicle Bradley a of the OMFV example ability program are outside the working this outstanding

for quarter despite the XX.X%, Fire The excellent segment Emergency Let's delivered in chain & Fire Emergency margin segment. X supply with a the solid the sales turn of discussion income of Slide challenging and performance & to environment. operating an

over truck demand. past pressure budgets As to we've municipal concerns we shared pandemic the downward fire lead that year, had the with we some on from emerged could as

a increase have its performance. first is June successfully by $XXX construction from rates. industry safety part to not industry. increasing to have and Our in and of values. been to The X.X% strong a all was increase with our were by the expectations milestone $X.X quarter Volterra We provides expertise the XXXX emergency Orders fleet benefits as our and the of customers North responded fire F&E with last expect the solid vehicles of order changing Volterra America's solid the at Oshkosh Pierce operational, of our leadership residential it expect last finished now highlights backlog leader electric with as that Madison year. both fire as punctuated another communities buoyed an and front-line of while has our year, more electric in pandemic, through XX% of truck, are functional, property hundreds for evidenced better-than-expected impressive be and the sacrificing is quarter billion, The new an Pumper and over trucks, of of announcement piloting over year. city calls. come municipal million, Pierce resilient our

unit and also community Our gallons diesel up departments the customer the are see inviting of is with to per close fire other Pumper, saving throughout and the week over fuel summer. XXX the they

airports Electric We United we'll to turn and will the Volterra X, visiting about be Commercial ARFF States. talk launched Slide segment. the around which vehicle, Please also our

a Our growth this to returned increase segment quarter XX%. over of with revenue Commercial

operating and quarter, operating to last as in adjusted efforts XX.X% through Our in evidenced simplification working margin this segment by year's our the drive performance innovation XX.X% improvement surpassing margin. margin are

results the Our chain particularly were given supply environment. third quarter impressive challenging

reliant are has prevalent Commercial during segments. has you working availability segment is been address more of chassis reduced that our the industry the third-party been on chassis across most diligently Commercial other recovery. aware, As than our to

production despite lines Our in and has remain adjusting face the team hurdles. to operational allowing by effective thus our of these our production headwinds schedules, these maximized

$XXX orders Our pandemic. We're discharge RCBs Canada complete. that very the solid concrete orders our These factory visibility mixer rear the outlook well is by backlog is move quarter million, in high transition all-time an Canada pleased of London, report production is focus to to the under U.S. proceeding Ontario, in as strong into led the providing and and both XXXX. for in beyond supported and mixers just

in production facility in RCV Dodge optimizing We are on also our quarters. Center, focused the coming Minnesota

We they our to working also and five for emission first RCVs of the of Boise, electric working our OEM for partners. establish customers look strategies partners unit as with delivered Idaho, one with closely implement reduction and long-term. electrification and the forward We

in I'm participating California Finally, showcase it you out plan Transportation it mixer if Expo to expo. the remainder third in expectations and we Mike Kobalt late Clean concept. turn going the to fully to Beach, to over all plan XXXX. check August. you in of discuss quarter our results electric concrete We are attend of truck to I for the Long Advanced our urge to

benefit in peaked in COVID-XX XX% to Commercial. disruptions higher shelter John, quarter. we which demand. quarter globe year delivered the were our offset sales representing lower a which than increase was as $XXX quarter were prior place negatively to by the driven much the for Pratt strong quarter million restrictions RCV impacted volume this results a Access turn Equipment, JLTV third third exit Access We demand X. concrete and impacted than by at of increased The sales disruptions the demand sales, million from sales Access the Please higher due increase due up morning, result were everyone. good Consolidated we increased largely these ability of chain quarter significant the Equipment to Emergency due billion despite around increased increase. Thanks, driven third in of $X.X part deliver we acquired to market our year, our as sales units. the approximately year. demand the sales a at replacement XX% and at strong sales. & sales in Commercial as Miller quarter Defense an a batch and pandemic in and of flat pandemic, Defense, second emerged improved expectations the XX% revenues the as approximately Consolidated was Slide supply increase complete prior or Equipment. segment Last Fire by XX% were to at $XXX of increase lack in and

in or the X.X% to As a $XXX.X of adjusted year. concrete prior business quarter batch operating plant X.X quarter third the Consolidated the prior $XXX.X of the million year for the sales-- income reminder of in was or of divested million sales sales compared quarter. was X.X% fourth

approximately cost As actions a of from pandemic temporary a during benefited quarter. result million $XX last third year's we reminder, as of reduction the

Fire As volume prior unfavorable and our as dynamics. volume income higher material decreased Emergency of favorable increased in part majority And year. the headwind development to cost the current operating the due sales of incentive product operating volume and reductions segment due by mix, higher run customer adjusted product quarter offset largely expense, a compensation lower we of year compensation and return quarter. to part increased offset price as result part to new & temporary a was these offset Defense other Access compensation cost result subject million sales of calls, incentive in sales higher and as increased result product incremental the Equipment spending favorable a to Corporate higher by mix. higher income operating offset in mix. part year-over-year by shared costs, to in margins material expense, income by higher costs. on the return in a higher expense in rate and unfavorable expenses of in product the of $XX.X spending, prior operating incentive costs Commercial higher income increased

XXX,XXX of cost prior of approximately for During the the for EPS was adjusted compared $XX $X.XX quarter million. Adjusted a repurchased total stock in we year. shares the common $X.XX quarter to EPS of

to of Please the turn a higher updated includes for of rates. with loss a This Our net statutory is XXXX. federal GAAP $X.XX from tax previous EPS U.S. EPS. per operating excluded quarter related discussion carry-back slide for of a share expectations benefit adjusted $X for to to benefit our X tax years

we disruptions. major that last chain assumed our our During call, earnings expectations supply no shared

chain Despite solid delivered discussed industries teams all challenges we impacting components As we are challenges, today, and our like our broad many supply across are facing the across much which parts of of significant globe. these range a have businesses, results.

are challenges, our as our Aside into order rates in segments from is for strong solid supply backlogs all which next of chain year. healthy and and visibility business provide the quarter

chain meaningfully Our supply updated challenges belief expectations nor our neither remainder will reflect the improve for XXXX. that deteriorate of

fall of the expectations prior our updated Our expectations these despite range within headwinds.

to $X.XX $X.X $XXX income consolidated compared million of revenues operating an An expect and to $X.XX consolidated of EPS to range adjusted We approximately approximately range of XXX our adjusted prior billion. approximately income $X.X we of adjusted $X.XX of XXXX margin increase At approximately level sales a range of to the and Access $X.XX. operating to XX.X%. XX% compared segment are Equipment billion, estimating

constraints, supply inefficiencies, environment. cost current chain and increased production reflect expectations due to revised freight the Our manufacturing

and our Defense We expectation reaffirming full-year & Fire are Emergency. for

an expect operating and and X% approximately sales billion $X.X at & income XX% billion and operating of and respectively and X.X at of margin We sales respectively margin Defense Fire an Emergency. income

of units the upon begin determined planned the which Within USPS contract in the will award recognizing analyzed share we to segment production for Defense treatment have begin that we and revenue have NGDV is XXXX. accounting

see limited the to next to very months. expect we XX such, XX As revenue over USPS

for will expect share $XXX of estimate segment we corporate be XXXX of estimate estimate tax million. versus and adjusted operating $XXX XX.X% expenses X%. up We approximately million will income prior be to our are count million sales and be We our rate an approximately estimating approximately shares. commercial modestly average XX.X margins expectations approximately will we We

of free For of the our approximately increase full approximately estimating prior year $XXX cash versus expectations. XXX flow we are million, million an

capital approximately We million. be will also estimate expenditures $XXX

year over driving with at approximately expect the Looking XX% largely the consolidated prior increase. we the quarter, sales up to be Access Equipment fourth

cost a to some as over year temporary consolidated headwind million in comments. closing We be $XX now we the freight will John for it of a expect the year-over-year result quarter material expect a $XX reductions in turn quarter I'll increases cost and headwind prior million back that and margins to

another expectations year of announced positive. remainder We quarter our the to outlook through adjustments as for we We've chain the our supply be and solid to continues made work challenges.

and drive Importantly, we recently will subside serve, profitable we believe innovate, won some company. advance the supply challenges the time. taking actions chain as over to programs We we're and big growth

performance ourselves competition. Investor September. distance Our will is our hope you Day as to long-term industry-leading outlook the leverage technology innovation strong attend from we and further I and in generate

a will our team, speak of overview excellent an to a have chance provide and with We company, experience industry-leading, our firsthand. agenda innovative full that leadership products our

will experience. the in see streamed, to questions Pat if reach you you portions be will meeting you We it to While out get live turn to I'll to back to get started. person be have here any Pat of to full need the Q&A over there. the Please hope

Thanks, John. follow-up. the ask Operator, to we questions please your plus question-and-answer back I'd need be to queue please you'd After ask to that like if to period we questions. a to additional get limit begin like remind follow-up, one any follow-up you disciplined - of question. And the this in call. on everybody

you. Thank Instructions] [Operator

question Volkmann comes Jefferies. from first Our Please proceed with Stephen with your question.

sort The gets of fourth and kind I'd you're just around increases describe of question. $XX when Whatever the could have with commentary is kind happening and even price of you could and but really any in XXXX? what's normalizes versus and through, that, and the of that if better taking in appreciate? headwind you putting price about maybe assume freight think of if price talked for I for million that's net material on I cost, question Thanks you quarter.

Steve, We what to call, XX can Sure that in quarter, references million the in price quarter were action time Certainly, we Mike, wrapped did to Yes we'll so, take is is line some the just last about next continue perspective, from pricing our the the up. second we last really million moderating. quarter, commodity $XX have said or cost taken we're our $XX XX seeing price in this we see about get that. that I but expectations third what next for the quarter. quarter see continued a have when start with in by that we quarter escalation, first some we've will year, headwinds cases further to cost the during that we January do of since past expect quarter to

saw in should we're it going moderation get to start And benefit there. that. we get manage disciplined you the - So, on an steel to to the manner, equilibrium continue second to when escalation, by but, back end we time quarter, did a see again, the we the go again, back a to we to XXXX back of if seeing

we something in So, reason similar see have go-around. wouldn't this to we don't believe

question Our Nicole from question. Bank. with Please Deutsche proceed your next comes with DeBlase

about on certain talk is the going little production there? the during a about did supply points bit to quarter? down when guys Can a anticipation, think in with as we the you I actually all what's at you quarter shut at then access, chain, And and down shutting production are quarter and third the we anticipating result fourth guess, have

supply was Yes thanks, chain quarter. this the definitely us headline The Nicole. for

a supply sharply, talking really it and challenge. chip has rebounded had And industries. just, tough time chain are we're Shipping say, challenge. challenges Suppliers about really the the has about a hiring facing itself have beyond As major talk when disruption, we across catching chain the up. supply employees been markets

two that's lot sometimes supply a problems. weeks that's in of lead chains, added We freight of caused have so Europe up there's four to Asia time just from freight global weeks, imbalance or

manufacturing at a in for time, of we've that of impact than business. a where we've stop entire segments. temporary manufacturing. we So other high-volume challenge lot the our of has it slowdown have had the a times and of, couple lines periods segment had I'll disruptions, a lot call Access where across to it's had bigger Equipment But A

recovery expect another We a of it going subside. that this believe quarters, for see last with. into long much have don't caught been think this will keep time. that we will get to for all up suppliers We we're to more couple we've We in we is believe period up this struggling XXXX, normalization the and we as start as to of with quick

free working maybe Understood thanks. end all down top a increase, for curious bit? guidance And the the is since have my cash driven come on earnings follow-up, just capital at that just flow

is and advances, indeed it flow, free some modestly lower cash levels. Yes, customer inventory

question. Please Our Bernstein. from comes with next question with proceed Chad your Dillard

they with can initial you bit earlier? XXXX, your talk So about just how as At on color give thinking on you about pertains little Any thoughts conversations pricing. happening a can it you're rental least companies? are to

give question Yes, maybe so of you your try an overview of it's I'll John. and demand to I'll answer kind environment customer also about environment XXXX. the access

fleets that you this rental our see several And aged backlog. is So, you talked we'll got our - they're needless the they're business that's losing strong. we've to and believe demand. the when now, more are confident that's demand current - is now, by good, they're are when got continue what to to upgrade about we orders our We've in quarters willing at supply strong, fleets. look chain, market, to - those that continue about Right all largely driven in Nicole's to how talking spend not customers I replacement orders fulfill. the And for we'll more capital is really, doing. been environment recovery, backlog $X.XX our billion we're hey, We've lots question is in backlog business. say, And of, that the really that to the

utilization But all replacement such non-residential our metrics, have with the again, new is, not great rates that because been to we course, a to continue non-residential happening. really strong. recovery to construction multi-year That's we as apply going in of also, also opportunities finding improve period. we're just trying is been the fleets the Even they're - demand that's equipment. that Now, believe. this as there's means leads to strong They're which fleet very why to really in And that's fueling good. believe demand rates. future, it's growth starts grow demand these help there that's This

always look one if thing - the are their XXXX, is say we purchases XXXX. cost at hey, we've and that in regarding And we our business rates, their inflation So that, it recover freight got material the we've already I'll our with some about you sure we customers and having said cost to and and with plans make of some intend for speaking know that. we

Sometimes fully we've will to little But effect of ahead time. it a got backlogs. of a over lag stay we there's because expect bit

So you that's it. I about what can tell

a new then on electric longer products helpful. that's And bit of question combustion? your maybe versus term Okay, internal some

Yes.

about about think philosophy just Can you there you margin is the you talk just, any talk and intensity R&D you difference, level know, difference your margin is the on be what can appropriate? of potentially, would

Yes.

And manufacturing with footprint, legacy know, lastly is going lines just or integrated be are the products. thinking to about, it dedicated you having you

of point, last The both. will it be some

get or Some you we're innovate benefit on the customers. of how product. about some you or the only and that segment, important it's whether not be that look lines, all it our data one really business, electrification, at you and company, data electrification, it to independent on I'll zero electrification. the but the autonomy most with product general - the in we emission provides When I of provides I integrated, depends to will tell that's better electrification all good, we the insights be performance we it is can thing use depends that fact that's a and understand an electrification hey with think innovation is tell electrification out What will time better

get of is benefits benefits because or there are product, total electricity The off lot off performance that gasoline, it's - a provide big efficient Number than for combustion is don't there's matter. you that electrification with internal ownership for diesel or of we our cost big two, more the other productivity are of benefits that engine. that an to necessarily for with it run of customers,

answer our are able the problems to improve ability question So we're to And because solve leads there. absolutely, customer margins to your to better. the that our is economics

go not So entire things lot electrify of overnight. a We're product - great markets years take to for going our to customer several years, going will by And of you it's the on It's the to know. see that's end one base. going lines. adoption our this compelling electrifying about be for

will But different many trend faster on others. this positive adopt is a Some than levels.

comes with from your Our next Cook question Please Jamie Suisse. Credit proceed with question.

I guess questions, just John. two

know, start last adjacent grow how XXXX optional of whether and think sort we sort when in Oshkosh Thanks. good job about out? from do can obviously, see can for as but markets, challenging markets you the XXXX of outline the - should way - guess delivery. I vehicle market or and or you of any because you for it's think is start markets year the further XXXX XXXX's a you've your could that if like, growth manned term additive outlook supply that's You to anything, mile a there us you were about growth talk XXXX know, knows the which you it do we about longer think that we think have expect in know, opportunity, sort those you if done we chain talking a get sort question of in couldn't adjacent Oshkosh if I to does as of Can benefits sales

about you because, we budgets usually know, fire demand. previously have and recession budgets on a if XXXX. downward the call I'll non-Defense really had We segments, secretaries healthy the for know, of you think in municipal been Yes, a and all and after past squeezed quarters talked let's municipal municipal Commercial look had most can and I that very - you give so, concerned an truck spending in we that you example. We part, at pressure about sometimes our expect that get them, markets

We are not that. seeing

Where We better are ago. that our for thought see the than anticipated. be to it better seeing trucks spending than market we is maybe fire quarters several we municipal be we would

second adjacencies six ability These programs program of win for big us. dollar much were half are adjacent or is vehicle vehicle a infantry program is a months, growth funding that The you factors So call vehicle so are budgets positive. access know, fact be you will for We pressure wheeled great to XXXX in there segment be that in for in the big, the We a on OMFV, will manned a of has us billion XXXX optionally little the because with also will that's fuzz mentioned of there fighting that Defense the validated downselected question MCWS bit last lot Bradley priorities. is and just more and but the that's see that's are multi-year us. the include our China and what going segment, in USPS some the line there so the global in Defense your story been - pressure so a fighting market. so growth for near in to under - forth. replace gigantic

to that's downselected participate get to deal. big So a on

on color some you the give I'll timing. So

second postal, go XXXX. of So in revenue we'll from to be on XXXX. bit X-ish production MCWS will about material in And come but get years on a MCWS half and program revenue from actually that we of run. the into for postal in will there - the that will little XXXX And last

in a see full So revenue XXXX some we'll material up big revenue and rate program. in in long-term XXXX we'll to that's see and program a and revenue XXXX,

provide So that's bit you. can little of color a I

with Dobre Our next question comes question. Please your Mig Baird. proceed with from

moving remember to pieces for out question understand do through Mike, the trying sort XXXX headwind as of reversal. you I'm us raw you. in the reversal, that maybe temporary the outlook on material your you the cost I the side. spelling for dollar here in of cost as had updated terms cost headwind well this fiscal a

terms full-year again, how as dragging were outlook, in about So dollars, then we much, thinking get supply your updated are your in you and can update figures, chain an issues to how XXXX of these all outlook. fiscal these

of so third fairly XX really in year. expected to XX-ish of in past about the the first million talked we million back We price the the fourth the million all, had think $XX I So to the similar cost what Mig, Rises quarter. quarter. we half about quarter in this about is

those other about came headwind $XX million obvious a quarter million $XX past lot quarter. and those the third and was temporary was the fourth reversing about it of quarter year-over-year was costs The this in back in

of those the sort foundational So are numbers.

obviously, revenue we standpoint, in would another deliver John access. about you at also a from a revenue $XXX and we opportunity geared been, have that remarks up $XXX And the obviously quarter. my and that probably it, products those revenue we I And million and to from staffing that look were prepared EPS about really or you it of had were about margin that in build said think perspective or $X.XX for largely geared realize in missed million up really revenue. If that's in the

volume know more about. bit that a what talking cost in is factor been you we've different any the price when and think don't on, I really I than so dynamic So

than quarter. what materials assumption less fourth thought, a bit the say I would in assumption modestly we we last maybe higher freight's or but versus small my probably shared know, You last

offset headwinds talking access to And you where of quarter And the for here visibility actually 'XX. people multiple in about your the pricing market normalize do that. but is to is asked on starting you And then, pricing we're to you I'm again, what recall tight the enough about about order in second power things of the here? curious already to sort need 'XX, talked as in

going When dynamic to Yes, responsible commodities believe second non-Defense in it about - we've price be watching have first moderates in the going increases quarter watching increases. we we some next implemented talked implemented discussions we're we again the to cases as we're heading headwinds additional watching closely price necessary. our customers. our those we're cost We're we to very in get the adjust businesses, we're with the the and in we the as to and into that and are back pricing to second closely Obviously, going Mig, quarter, year. quarter, and we're continue

John. to is that. This I'll Mig. Yes, add just

a I good now. unusual. - couple chain, the our doing that chain believe really say when means we chain everyone about quarter, going calendar never quickly. company have right challenges really our overly unusual. a people, more that from. it norm, to challenges, ramp coming now, backlogs perfect vast that's insight, had believe information's normalize not We tough to chain. management supply all-time are backlog up X about in which you it's but When it like a first But we we're team in in good into we don't situation as X the supply up year mature all-time mean, have the Tier from freight we supply to Tier will the well. tries that's we're right able don't think coming And our I XXXX, feel when chain that And lot got little headed. with That's becomes who we to We've our really, a where have bit supply of just this company, that had really visibility, strong. complex what quarter feel of second good very supply us manage record really this and fairly we've where We

the In terms We're of number demand our good. to provide is in lot value of mean, customers. one segments. We I a our demand,

will say. I We That's absolutely price responsibly. can all

Please next question. with Our ISI. with proceed Raso David your comes from question Evercore

went trying supply appreciate just for or call and won't deteriorate cost about comments right, the the earlier time. but temp materials improve reduction, costs of 'XX, I'm the that costs, and made another drops to sequentially upon million, incrementals, quarter's up still square most million, about The saw right? rev. sequentially EBIT quarter, fourth up with $XX this up million. Access, EBITDA $X and on revenues still implying great now revenues EBIT that recent you go quarter for you chain $XXX I in about Not but then comment for freight the the rest $XX matter Thank year-over-year the up the million, the you fourth but

trying up that that I after if the it square So to And suggests don't mind. a get I'm does year, no deterioration you then the challenging quick follow-up comment, have because more sequentially. from just really

David, is this Yes, it. take I'll Mike,

the remarks my was and that deliver to prepared the in I availability the the and challenge comments quarter new really responding ability we the my of of produce parts in to then products. think was had sort

So it's really commenting on the availability of parts.

we of our And fourth at what we quarter, still third similar the a challenge in be so we're it challenge, that than saw doesn't, quarter, the assuming was quarter. believe to to second the back-half going just it's more in

as You're about call, $XX the from supply But our dynamic from assumption in that earnings escalation. cost about why, third even we in with cost, and more the last challenged chain it material quarter. million from million we correct, quarter. be a perspective, and the was really headwind saw always And on that's was price a talked price we last quarter, in to a going to that what that's quarter the next $XX alignment a grows fourth saw about

the deteriorate. doesn't so components of Okay, availability

correct. Correct, Yes.

to that that are But into from the increased looking your of a mature I about how your the give a you in your visibility confidence might to next loosen maybe when we calendar into suggesting size your And tier suppliers, up supply that all access, get for impacting mean, second have, visibility supply costs your year? with that management I'm little I'm you're it comes costs you increased of price. businesses, stronger aligning is in I'm chain about, that managing strategy XQ, backlog, demand? when specifically bit things that little locking be it feedback your negotiations across asking up think increased how visibility that will just with operationally, curious given but trying that for you

pandemic, a just manage. managed always we the as David, robust we have we through playbook have a we as Yes, -

So it's to course the suppliers, have so even quarter. over we underlying we're in talking last gaining we're the visibility have Obviously, really there's a over that escalate commodities cases certainly our some combination, locks, continued of time. to

work and costs. But it And that. watch in to so, our do backlogs, with supply larger does in to us our material some an we'll provide opportunity chain cases lock for to when continue have continue partners, we

Okay.

top the say increased that locked to more as have fair than visibility in normal? side and the line, cost the equation visibility in some of So your taken well, you of of

fair. that's Yes,

That's fair.

Yes.

Our comes Goldman Jerry with Sachs. Please next with proceed from your question question. Revich

longer talk about your you around thoughts if term. and could XXXX into pricing wondering I'm just mechanism heading

this so and we're up Over as any that lot are about mechanisms, cycle? index couple that potentially escalations coming you the years, chain we've of we're types looking setting head here views cost we these year. supply a past on had headwinds into price at not of volatility, this steel How about inflation talking with pricing volatility, thinking

can too. guess Thanks. Yes, couple is maybe John this I Mike. - start, will comments a I have

the to have go when that you is light the there And is, backlog I you but always going see we think we and reprice very core through the reads there's significant that. XXXX. disciplined and difficult and chain. material we're is, see line around, saw supply the back inflation typically prices, continue our always bottom to a back adjust And in when raw when debate material what to increase be

the really details. it's the So, in doubles

see as the and it out So price adjust we a saw get the as watch what steel as an things exactly happen bit we have XXXX environment and you normalize, moderate quarter back closely, And over we XXXX, we've environment, when done elevated a is, inflationary to benefit. a coming the saw into that came really first changes, XXXX. you headwind we time, of you we in tend in then in of - we of

- with how that effective. we and over don't work reason works time that's we been that's that's think and again believe we to - have our that's customers different, So it

And their our what indexing, are customers the like because I for don't going have to costs absolutely, anything don't forecast - they to the say most be. to have - ever you don't you they part,

And us costs are what the forecast so to as going to they're doing on index-type be trying opposed rely pricing. to to

of hitting starting suppliers you're access, broader the margins or less strong then, separately, headwinds a that left & performance margins Fire in areas those lining Commercial silver is those chain just really of same a respect And Okay. quarter see was function or pieces? folks the you for in supply that more healthy Emergency unchanged to the now moving is wondering I'm this supply-based your in all and full and issues year

- So, a that in commercial of of front, because first price are from they all, we cost on headwinds higher steel. have segment users do a more recall

you there's quarter, million Equipment. Access that over QX of to shift we a of headwind at chassis fire of the a Fire as & there's just commodities $XX the normalize look really bit from to just Emergency aerials, about With will versus a have I a be say bit quarter QX, with year-over-year have time. timing would QX perspective. as incrementals will So a that of in talked fourth a mix about Again, third-party or a Commercial that normalize and apparatus mix we to QX for higher fourth Commercial from delivering the to happened factor little - a we implied mix and shift

of proceed Bank your next Our Ross question question. with with from comes Gilardi Please America.

electrified they what's equipment booms. of fleet demand then compact larger the a what's are And product? in lag with to you to and likelihood how are your rental - companies to know, years the of primarily its So And their end at customers I'm even seeing useful five you replacement happening the much second for maybe more from more just this ICE the therefore life? cycle smaller curious of for, versus fleet electrified it now, by is taking on carry prior that three the rental replace to propelled companies

we Ross, as sign. plans. had date, is are - the Which, course, or a great expected Stronger strong we electric put of seeing, to products So, business into our we're we've - our seeing we're of than demand. introduced

company. step-by-step to not access every hundreds hundreds that In extremely certain electrification, but in Voltara fire of regions And, I all increase, mean, in ever see of demand and the electric world than going that increase of the regions. we and others, it over our course, going access think live gone demand to speak of performing continued we're a products. it in in in lot just has it's you electric well. we're going in increase truck all Pierce have. single a is the in see what think faster actually And and on working we for at but I first rates been this forward segment it's will as runs on on demand segment, like we

and electrified So but than very well. to for U.S., demand we example, increasing tends in tends faster, in Europe, the we're it increasing are be it in products as a U.S. happy doing to is for the seeing be little with faster it the what

the can what tell So these real. demand products is you for I is

West that this And contributing got a then of the order over pretty heightened But would just got if driver on your out fire would to all drought business. Fire this material & Emergency, I forest you've when be risk severe why country, is not? not, seeing, you've growth think the you're

is do aerials, we firefighting of recall and you that, recall know, vehicles, product. most Well apparatus, type pumpers, that municipal wildland product our of fire that but

line & I does would product suggest it address for there driving the a factor most our But we And some market is demand product. up us. maybe not small in the benefits, that, are of for So impacted fires. are that that have Emergency that improvement pumpers some Fire because the for wildlife regions fires wildland the most ancillary part, by not demand. aerials for to traditional there's is are and pushing that's certain close that driver part, But

new on what's is pushing wanting their - demand of Our technology fleet municipalities, that the demand trucks, aged thing up. kind driver is

Boeschen Felix your with James. with proceed comes question. Raymond question Please next Our from

I organic whether opportunity or that commentary given or about most question, driver virtually a you know a maybe longer-term as a mentioned you balance period. I sheet? little aftermarket your was see which being and a hoping but over bit expansion that the multi-year inorganically-driven, for called maybe key I debt-free should bit, a on John, could segments as going expand growth more forward you've think of have you, we not

businesses. enterprise, our in you I'll across it's Yes, of one, focus all that the entire tell number a

I commercial-oriented particularly think access our our you'll vehicle see the specialty biggest areas segment. segment, of segments, focus in commercial our more

organically both and that product, in the plans, have today. serve market an grow inorganic but looking of we drive at our to don't aftermarket participation We market to also parts for opportunities increased in we we're participate the have the

the of customers, both to to it's of And So we user the percentage that's less for is of investments are to really make it. to the what that's it, can continue that on it's this it owners, support come want cyclical really, We to believe about positives and streams It's the area tell end it's I sales product. company. because you aftermarket-driven ultimately fleet And revenue to important an important fronts. increase but where fundamentally them that a lot our healthy want we and from better. going our

Volterra the after curious said little expand far, or if And bit then maybe so could just truck, quick or the maybe on the you you've feedback on have fire a follow-up rollout gotten what other a customers the announcement.

well, the has mentioned I comments. been my Yes, feedback's truck phenomenal. as opening The incredibly in performed

of truck. You gallons diesel savings one fuel know, hundreds of on

and huge of continue a they really the safe as this how there's needs fire spent perfecting it a imagine, cost or The on of they meets pumper, decades site. the aerial the could performance a firefighter, can can departments where where truck site really environmental we've the to fire on well. really, functions, roll be out, be an productive benefit a much as we is, and benefit itself You for there

attention which F&E fantastic We environmental functionality the propulsion, the sustainability did, improves and a forward themselves. for improves are of the ownership brilliant they did because of great designed our we to when Pierce of the vehicle, wanted people this we firefighter the on the the the cost total early We business. of improves change performance to liked the but the with returns what Really the to step product the that's change So And want were functionality was, product. of the product, what paying didn't product. we this at vehicle, vehicle. our of

comes Ann proceed next Our with from question. JPMorgan. question with Duignan Please your

earlier but I take just the and a back step hour. in appreciate Fire me you answered, sneaking been of on at to my ask differently. have the one the of & Most Emergency wanted questions of questions I slightly top

And we fire know, trucks demand we bigger trucks locations, driver in cycle these and of look and support expanding of the us, the context, we're a the now of peak peak it that wonder fire from more just just have rural communities could for and country? remind population expansion about you the sales You all growing to around a next reach as at every larger transition isn't what are a possibility country at seeing this higher of were is locations could the the around of cycle? last populations. I day, the to read there urban that given as smaller we some And if the

what off in this sizing was it segment Ann, we from so total about segment. a - two is know, just peak revenue in about billion] not you segments perspective, [X.X a were the we're vastly our of

of that just aged - sort as hovered and forward, size the fire mid goes this apparatus market going of is other is, going to total that to before prior need so going continue in drive our was around right to you a there, the those, peak is so in the XX X,XXXs which I be of that tailwind. And, lower as the never years big well. one that's Now recovered to one, properties, property from that space, fleet more was not it to have think drivers, year. unit per expansion really back Recession, we look continue X,XXX tax up age now, it going really of if to really range you communities, upgrade other the to is drive average a at level. look continue We their piece units It's XX, of course, It's demand Great market as fleets. the customers number up to into getting fleets is that's replace need for

have it's resilient some are tailwinds municipalities more there ultimately, great been through the that obviously, pandemic. So

demand that continues So watch we'll to as evolve. to continue

so some pension headwinds do municipalities on. front on course, and Of have the

are that that, outlook but overall like gives with and there we takes for So market. the

But migration and/or I comment Ann, to this initial suburban say, will know, you just John, about areas. is rural your

the I certainly that the to to think if be market. that that Fire beneficial & Emergency F&E, continues will trend

the rate I too now healthy backlogs. all has to orders of a little tell really current right at it's whether think impact on early that any and

you're - if probably think not it continues, does I But I it yet. it think absolutely right.

we probably of need very year it's happening or that. what's positive. with think I really to wait another to kind see But so

over time. Thank questions. back closing further at there you would no no I are like to Pfeifer There comments. this the for any further to are John turn questions floor

for everyone, us. Thanks, joining

view We trajectory this more We'll bit some us term and our little are delighted bit Day. our the We're to give you today. when join September products, with in the see you up-close some We clarity you a what business talked give about longer we have of on which more performance and of welcome we've to detail our little new exciting business. business. a we Analyst an of going

September. you Thanks, everyone. see to in hope so, And

This concludes conference. today's

your lines at for day. Thank may and a participation You you great your time. disconnect this have