Oshkosh (OSK) 1 Aug 232023 Q2 Earnings call transcript

Greetings, and welcome to the Oshkosh Corporation Fiscal 2023 Second Quarter Results Conference 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.

You may begin.

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

statements among Form different including the described could expressed be from SEC. answers others, are believe to we Reform Our filed such that X-K or that remarks contain within of we risks those cause be questions, forward-looking the with we filings meaning Act. the and that to in other by morning Private statements have forward-looking that follow, results subject SEC risks make to this statements to your our Litigation actual materially These implied the forward-looking matters with include, statements. These Securities

disclaim these updated to at which earnings quarterly statements, update call, all. conference forward-looking obligation our next be until not may We any if

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

and year. last significant in to revenue, growth Pat, pleased to and results with Corporation EPS report everyone. compared you, good Thank I'm strong operating morning, Oshkosh another quarter for of adjusted income

improving to conditions constrained as entering For by supply our a These quarter the benefit EPS of notably $X.XX. actions our higher production in the quarters second a improve were by result several chain the and adjusted the second resiliency in we and resulting over environment. quarter, grew revenue past chain of expectations XXX%, income our XX% over supply results of operating than

also delivered operating are in the segments access vocational double-digit that and the pleased both We margins quarter.

a consolidated and and mega infrastructure Strong billion. spending, backlog ongoing healthy demand with projects the for of by our metrics is budgets. closed book solid quarter to continue construction products supported $XX and orders innovations We nonresidential robust municipal

we the JBT quarter, announced Corporation. the During plans business to AeroTech from our acquire

footprint We the few as future a carbon mid-July, positive and reduce who our report AeroTech products. to In of that well on we about most you people today, tenth commitment to are the transaction our more team our which talk while and, a moments. annual the impact we'll to published in our pleased we highlights as members a our sustainable as use strive tell emissions our communities lives importantly, making sustainability closed

on products from to and Slide positive from United in both next-generation and get Postal segment, benefits by acquisitions. Please bringing new up we'll online, the capacity the in of our started vehicles margins numerous new factors, vocational cost, strong and of for our be are Over further raising our of I longer-term growth second of expect in estimate higher range quarter result the a previous As our and EPS of horizon, approximately performance XXXX, second into momentum planning realizing States innovations, improving include sales especially expectations half benefits announce supply turn chains, to X, that expectations pleased which significantly a than in $X, adjusted introducing am we delivery our price the to segment ramping we production full-year updates. and driven continued our $X. Services

remains drove of throughput, balance than ground in still of quarters ratio as production past book-to-bill and several seasonally we expect Access with XX level of to contributing production Supplier year-over-year nearly as in construction nearly the XX%. The we customers price backlog result quarter $X.X products combined reach conditions healthy, strong the it from a we our revenue improve over of than of Access approximately our were first in are operating in and chain projects, improving in to $X.X billion. Currently, margin and That XX% realization delivered strong to fleets past representing the many delivery metrics, demand. first some normalized exceeded said, Orders an greater continue several over cover quarter-end use production. operational breakthrough supply of closely have months, increase the benefits with a the XX% discussed we backlog, XXXX Our the cases, to throughput. quarter. approximately have units initiatives the quarters. are quarter spending, for XX% quarter. of team improvement time on-time this performance billion, for a a and aged XX% our with improved X:X for continued the stronger infrastructure have to the expanding representing and to our Demand innovative equipment our of nonresidential XXXX we Mega working a slot all more

beyond demand the facility continue current healthy and begun our expect production. Our also we conversion and XXX,XXX-square-foot the future. for has our visibility well extends Jefferson of to City, access Tennessee equipment dynamics demand backlog, Access to Work strong on to in for foreseeable XXXX expand

weldments XX our XX approximately meaningful into Defense Please and segment. we'll and telehandlers. expand with and expansion X, fabrications our the to Future months, Pennsylvania next our be strong turn to to facility of $XXX telehandler capacity. to facility and capacity investing modern The this sector equipment Defense purpose-built meet market agricultural previously This for modernization us the the demand for ag I'll review activities million Over our in Factory Slide produced provide in support segment. with Shippensburg, entry our additions

were revenues quarterly defense customer expected, with down requirements. line in year, versus prior As

of contract Accountability income half learned Office. a we and by contract aftermarket in In the mix. follow-on the denied We June, year awards second richer expect Government our the was with that JLTV operating improvement anticipated protest

As a and so of to current are we JLTVs the building end the reminder, XXXX continue do through will still under contract.

well multiple onward, well are as specialty MCWS JLTV we solid programs These, continue customers well will contracts Defense FMTV, many Beyond as to and international of record will USPS' program into future. including on segment, $X that course, expect of operating and to as vehicle extend deliver term, we international programs XXXX completion. these is high next-generation XXXX, will quantities. to Long continue mid- for delivery provide FHTV, at as progressing, in the single-digit is trailer base our billion-plus From margin. The build we programs applications. nearing JLTVs Stryker revenue that smaller facility the Spartanburg

a and production We are for the design of second track building for This defense support a in certification to profitable and XXXX. ramp-up are vehicles growth currently will on key return XXXX. program in half testing

of X highlight to our vocational vocational that segment, production to supply growth so adjusted output segment. I'm yet are year-over-year discussion and seeing quarter. revenue typical margin remains constrained. the like Access XX% levels, segment Slide income returned Let's for turn to Much pleased but the not improved operating chain our conditions metrics, for delivered we a have exceeded

higher in As backlog year. XXXX as beyond, we have for and our we reminder, enhance a enter pricing which to margins next be notably in delivered will fire trucks

in We continue as to both innovations to and improvement execute on well. product refuse manufacturing drive vehicles service and continuous

Murphysboro, emissions help vehicle fire to McNeilus integrated collection facility output Customer Wisconsin refuse will supply, to increase believe backlog, to our new Pierce ZSL diligently we're expansions trucks capacity. our outpace elevated us and for our the response We increase X over Volterra Tennessee resulting working fully very in is both next Demand electric continues in and high. Appleton, year.

expect to the and of year production deliver will units start end customer XXXX. X before vehicle We for the evaluation deliveries low-rate in

years. begin from over the there to ramping up several next expect We

already and biggest equipment in comprising opportunities this over new found The world's airport in operate streams welcoming load XX% the is great They market. In with products, approximately X. as we today. on revenue with We our acquisition at news Slide business, short, participation RF the support leading of most to Moving an gate AeroTech service is aftermarket market also world. travelers revenues attractive annual the revenues the team all strong brands vocational XX% AeroTech of total at aviation XX% capitalizing AWPs. We into expand parts vehicles of Oshkosh serve forward AeroTech the air the in airports and They of serve airport services recurring JBT's which look closed a is ground for at provider our to approximately on airports basis. AeroTech's overnight and business some with equipment U.S. a of express approximately of industry. and packages. and the trusted family

engineered an several grow key from technology the benefit expected is intelligent to passenger AeroTech the combination transportation, from while product and technology cycle. investment innovation spending in increased highly products. Together, with electrification, on tailwinds advance stages best next early Our portfolio AeroTech's as as accelerate infrastructure infrastructure. aging poised unites can and in single leverage We scale. active to for autonomy capitalizing ecosystem. and objectives we the believe secular across is traffic well Oshkosh's with of is air priorities of and opportunities expected our believe safety share to and strength over we several to practices, years, which digits We R&D is and connectivity areas: legislation Global shared offerings high numerous similar the

the has of Jobs and been maintenance. and approximately fact, In Act Infrastructure to airport Investment growth government's billion authorized $XX fund

With detail results Mike discuss for and to more over to our going updated that, expectations I'm in our turn it to XXXX.

earnings XX% past $X.X conditions as increase basis sales of improvement billion, Consolidated X. quarter pricing. exceeded a of output, prior-year the of result prior several The Sales the have year. $XXX facing million XX% higher realization of have in Adjusted by at stronger and an at we the turn favorable a was mix. Adjusted and second quarter. we still exceeded over driven strong begun environment, XXXX increase operating notable $X.XX primarily in quarter supply in higher over as well prior a delivering was we well prior expectations year. incentive improved a sales over income Please million price expect sales the dynamics, results Slide sales by a which meaningfully the as compensation noteworthy operating adjusted improved orders implemented as or quarters. Adjusted beyond. increase quarter particularly in was second The $XXX quarter $X.XX substantially a volume to in driven margin. Vocational's sales, we improvement in X.X% versus actions with by in chain of volume $XXX constrained is and higher favorable our margin as significantly operating XXX or John. cost higher-priced particularly delivered million chain offset of the versus higher income million very year yet or part $XXX Thanks, at strong access, operating backlog costs. operational benefit and largely by prior particularly supply to drive our share result in higher result to not per are volume improvement point driven Access expectations a given the Access production sales price the increased the access, income XX.X% the result were The for as

XXXX. Now let's turn Slide X. our to to for Please outlook turn

we strong, were that reiterated conditions. Over demand supply quarters, by the have past is chain financial limited our results few but

prior at throughput improve if our pace, in While improvements guidance XXXX, deliver conditions could shared supply during that quarter. we occurred production second is higher exactly we modest a financial chain what performance. This faster meaningfully assumed the and

adjusted and in we of approximately consolidated than and from for earnings range billion income a momentum expectations. million, strong $X.X a the into year XXXX basis, or yielding to sales respectively. of second respectively, are up $X.XX a prior estimating and $XXX to expect our On and million, outlook expectations beyond, half prior second-quarter $XXX better sales continue our substantially We the XXXX operating and the be billion

EPS and At operating segment adjusted level, estimating in $X EPS operating per of XX%, of of in year range up sales are billion a margin adjusted from excess estimating our prior sales prior and of to up $X, the $X.XX. $X.X will and the XX.X%. $X.X are margin our be and respectively, earnings of billion and estimate range range We we share estimate the prior in from be adjusted of of

expect sales the be X%, operating in we Defense, of for the $X.X range to and to respectively, year. and Turning margin adjusted billion

We vehicle year. to the improved results orders drive in second expect the half of

operating and of prior adjusted $X.X operating in and and billion sales of range vocational sales X%. approximately our billion XXXX expect and X.XX% versus be the $X.X will adjusted margin expectations respectively, margin of We

income, purchase an again, result To sales business because and accounting acquisition. clear, deal operating expectation operating of deal related updated AeroTech is to accounting for margin including reduction approximately and million a amortization purchase X amount immaterial the the This initial be of includes in the of of amortization. $XXX the guidance AeroTech months, and initial

be in and to operating expect income will EPS to accretive XXXX. continue We AeroTech that

vocational for new the the development the in ramp-up year spending of and program Volterra product facility expectations versus also year. of eRCV second higher half Our the reflect half the costs first

CapEx Our in tax expenses, corporate remain expectations. generally and estimates for average count prior rate, line our share with

free combination flow for prior now from $XXX $XXX of year-end, anticipated at as is down and from well expectation cash receivables as start-up by a driven our prior The resulting is million. NGDV-related investments higher of estimate Our compared million, amount of approximately change the timing sales to expectations. higher

we AeroTech consolidated result modestly sales. up sales quarter, versus expect the Looking be second of a to the to primarily third quarter, as

a expense associated is line lower on facility second in per than earnings as interest eRCV John the in with cash credit result facility interest and share turn income revolving the as a of a of mix expect over segment. I'll We well to balances comments. and be acquisition the increased Volterra closing range quarter spending some $X.XX, it as to AeroTech of now lower product for result lower of back Vocational the which as

a better-than-expected chain a We're of supply Vocational delivered strong our in our Access a executing increasing capacity and quarter throughput. and production well segments. result We as second and

than robust, are we and the company's in most strong. acquisition to Our just XX backlogs on demand more be continues significant years. And closed

XXXX Finally, momentum that and we for will into carry XXXX. raised expectations our our strong significantly expect

growth steps and taking is build value. momentum and time this company, drive very for the exciting shareholder our to This right are enhance we confident on a we're to

Pat, get with let's Okay, Q&A. started

[Operator Operator, please of the begin question-and-answer call. Instructions] this period

comes Zakaria with question the first Our JPMorgan. Instructions] of from [Operator line Tami

results. Excellent

So I have X quick questions.

The continues is the backlog, to first on one which climb.

was what So price on growth can volume you on versus give backlog impact of us color that number? the some

Tam, you the quarter? mean new bookings during

Correct. Correct. Correct.

we And of general, the talked on realizing in realize solid full that the and the rest and would look on commensurate strong deliver expect the forward margins is -- vocational have lot what we're the about pricing to We we with to going is, that. in of expect again, that to that there. we say again, benefit So again, I not backlog in at XXXX. pricing that pricing continue still to company, a segment continue expect strong pricing

synergy Got SG&A accrue to, the it. XXXX line? savings on us that question of line you cadence you expect by second $XX AeroTech. margin that how the remind and Can say, And gross the the much should of million versus let's

of We over steady -- really haven't going really to sort be it's of a flow the years. next couple

certainly think some I impact.

I revenue thinking get this basis think a through step-up the million go think I to benefits. think as year, going AeroTech and that to more is of -- inventory. what we impact we're have We'll way improvement we we of going to we initial or year some would would there's is But solid for a about about $X.XX expect year, we'll double-digit when the accretion, expense EBITDA $XXX-plus expect understanding have through get accounting. look to interest income next around beyond EPS embedded business. synergy be about we'll that it's that in $X.XX purchase and to in margins be next

Yes. Tami, I'll color. little a it's add bit just John. more

you're course, an getting sooner than synergies. So that G&A as we've of bit got And $XX to going we of chain from a that that We've That longer. make those synergies, forward. little just channel-related take time get acquisition, said got go will synergies any we're you will synergies with Then supply million about that's come synergies. types in we later. comes

X think you'll or unfold years. over this see So I X

Dobre line comes with of next question Our the Baird. Mircea from

fire very business Congrats specifically. quarter. on Vocational, good question is on on the My a

you demand see progressing? little us for are a XXXX. supply on can commented fire seeing to how And had is you a context challenges. at give this chain know specifically, Maybe look progressing I exceeding where How quite trucks. you that more You as bit you fire supply you that as for of

So that, I'll bit Mircea. talk about little a

the municipal that because that They're critical healthy future. fact is due they new want trucks fire due of fire things continuing So prioritizing trucks their our are It's to the budgets for fire things. we see they're technology. the prioritizing in a trucks for and foreseeable And like to fleets. demand couple primarily also

a of up our got lining we've are things fire electric that municipalities lot like So trucks. for Volterra

thing though, that's the it, driving second So aged is fleet.

We've a a talked for across of is significantly country. fire about this little but while, aged there fleet trucks the

future. be foreseeable So reason expect that's strong to we demand another the for

improve really place. strong gives and lot that with our things in trucks fire to plant, right So to past Wisconsin in it the had we're that doing automation growth. doing should production throughput. see do Industry X.X It a in a to in to haven't brand-new facilities and as us. of drives Tennessee now. to faster, capacity that deliver us state-of-the-art allow it we which trucks doing Murphysboro, really health and where Appleton, continue more that's We've in the put backlog we're some And We're continue going good to us doing a been good confidence for we fire for well,

in Understood. or Then worth existing sort order in that make the of Defense. my the thinking need revenue. curious revenue. that on any range footprint or about you single-digit that to on some to margin be give to follow-up visibility programs as high billion adjustments that comment you to to deliver restructuring cost any I'm your you're able base mid-single-digit $X how to remaining of appreciate I

Yes.

Defense. on the main So I'll context of give kind going you what's of in

are vehicles under some of you we've standpoint. budgetary years about bit. tactical while Defense a for Department known little few and a pressure a So We've back talked wheeled I'll this take that -- a from

for as of be not and some combat we've got future may government. Well, hey, combat into vehicles important last-mile delivery defense move big adjacencies like really like said, last-mile our business. the vehicles we've are programs as delivery. These the So for to

the Stryker go high to said, the over that's MCWS, single Now business, $X billion that FHTV, that's if mid- deliver current the all of and you FMTV, digits to as base we'll business, we business. to going the -- provide on

as we've the XXXX. So operation prepared current JLTVs We'll Access of in equipment. Defense I my to the plant be one through talked producing end already converted in remarks, about

So what exactly growing outcome the We're that it of be remains healthy to operation is. a seen company.

how and comes. know time the capacity, a need we're we to as let you forward We change business more when go for have we'll the going

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

I wanted to obviously on-time is very like -- is the which about more there's still ask I think It mentioned margin, Normal from deliveries Access impressive. something like John, sounds like XX%. you suppliers. XX%

So about way some would what there's think any look that still XX%. in I'm was supply like guessing to there inefficiencies chain normal? if productivity Is that

with start I'll John can. has add you and Steve, to certainly that if and anything

So bottom a line, quarter. very it was good

to all, perspective, and margin think, quarter. I first a that throughput our things, the in of the obviously, mix very, improvement. volume quarter, strong the we benefited quarter couple very X, understand we're certainly a a think saw in from I had of We

while in done a that impact, norms, still in including back and have solid, on-time a we've same more The delivery not carrying big metrics having a is is We activities bit to are not say helping. of the next very little it. historic are really lot X of would mix booms large quarters, did quite I level. at lot while a the inventory,

starting manufacturing come to back. labor So see we're that efficiency

think momentum. that results continued great mix, opportunity great the certainly to I for continue I excited quarter think and the So there's

a go constrained have But how efficiently definitely working enormous you tell up constrained the for So think gotten efficiency to in little some our more a we from, that. that of supply add out. team A now, we chain little from amounts lot of to Steve, been to improvement really time Access A chain I to XX and Access effort benefit a first have determine of say, more supply improvement. this, with I'll operate in into continues We've would that to We've in environment. that bit supply figure of hours to that, the team. base bit can a and had to ones environment quite shout-out because of gone just open lot that the even be they'll work. it as XX, a engineering

Great.

thought. think I in 'XX backlog what That's related And Access I you is the follow-up, of said then Okay. XX% in already.

price cost of on sort already on expectations backlog? in part commentary any that that's Just

balance. back and we're were I'd Yes. cost sort say overall, had year that behind, for We past in of this obviously, price challenges.

So that's balance. in

quarter. this margin strong the see You

So for I margins made, the next margin and the year continue that strong comments Access. really on to John in just we I the future expect and focus

Our with comes Thein the of from question Citi. next Tim line

Just to thought. continue on that

like of go it Just moderates others the -- believe for that low with on most in as Access pricing was the full-year Access? in Did and up year? is revised that revised the Does change teens, we guidance year. the quarter, the I kind for through first as this year-over-year that change guidance expectation tandem revenue

No.

was I some think a volume higher. because price more where quarter where a we to driver our this got bit was extent of is the

So But, pricing we're there with still, volume what from an ultimately, implemented was a there more from yes, I we've more comes were we perspective, largely Access. price. think,

there some the is first quarter. So in even lag still

is of the now we I for right balance the we the that really, So expect is year. think pricing what this -- see

Okay.

we just, a into of as And guess, lot vocational on I talk But more go Mike, the in pricing about and and 'XX up. you have layer maybe moving bit you ramps Okay. a pieces AeroTech of -- the picture as a backlog. then big lot just in

early, less the out of A in You portfolio. just I or full been presumably kind Any about headwind, but year a handholding headwind. the that of a think to guidepost a margins kind these location know mixers have have of you'd it's as inefficiencies factory lot than with give? 'XX. the of

you online. talked we year that the or as you you about strong But not margin to pricing yet profile in going so next Vocational think point. said, business, the will. look expect at legacy the provide at, with not We're I this to We business. coming Yes. the the of base if the guidance, have things sort

certainly, So -- and supply to improves, increase. expect chain we the would volume

we that's solid quarter, you dynamics. last mid-double-digit expect, And So AeroTech type is to very margins. we're to going talked great then some about similar be a on And that business strong excited that's again, bring business EBITDA the be that what about. we we going to see

will a have really that amortization some But of view year. the that's burden we data profile the We into plays in margin how on some segment. next

really what's the this think in I about products. some made exciting investments the we've business, of Vocational

the at electrified. Volterra fire firefighting vehicles look are electric You trucks, the airport rescue which and

You on and strong look we're innovations we're is really collection at drive the IMT's It's new years electric inning recycling there's future. into on just products. for in going products. exciting. really This vehicles, refuse X collection to these -- the new growth And

Our of with question Raso comes Evercore. from David next the line

Vocational modeling the that, from down I quarter. assuming declined to But for just some here. on the after much understand question it X.X% why sequentially. deal. does And of first trying maybe year, to the half amortization figure trying weighing out margins, the But in and the acquisitions I'm [indiscernible] the to EPS just as including Sorry second -- figure quarter as right, they're out the third X.X%

right, quarter, the think first the chain similar EPS then forth. again, base quarter, interest vocational it be sales. there's weighing the would you a And down. is and here and model is on indebted, are the the first margins given the to similar supply better versus you expense all quarter But case, can sales get so we similar implied would assuming on so So what there? quarter in fourth fourth

can there's then their thing margins correctly have is So the looking CapEx when third the lot a decline a is the vocational big companies The year-over-year. I second b, quarter Access. the But am in guess, at of I the And us help interest you a, half? there. fourth expense with C, in the rental and lot

So a of the maybe you There apologize... if there, us fourth little quarter Access. the understand I a lot is cadence access, could maybe help better us help with with bit

love everything, if remember know. I'll -- but something, try I'll I forgot to me let

would in course on the So one, guess, the about carry I an that. our $X.XX of over borrowings interest that expense, to I number from revolver think on we'll range, paydown some $X.XX interest year. the expect

So obviously that's we'd expect. essentially today. what closed And

So really, cash expense. the looking look, But QX to -- I items X I conversely, we've balances. bigger interest that bridging the bridging we -- carrying as are -- QX, X is is items think been that's at think biggest from

there's see also at interest going carry we're as that going So well. same into fourth to level. quarter not That's income the the to

would that's say I So background the sort there. of

Vocational, As today. closed we going look amortization, to up be certainly we and picking just to we think are I

and and on through the to price we going So need that we're to get the valuation the we purchase that have allocation. depreciation But is know things key volume. some amortization

believe that's that of general bit a be going nuance or higher inventory We levels inventory that previous the We accounting particularly are know goods. a also our expectations. are purchase typically is levels basis to finished inventory finished of on have in hand, you going to than step-up in

margin. there's temporary That So just phenomenon. a the sort of that's step-up a in basis plays into

in our electrification we're also efforts. segment as for said We and significant -- some said, John investments making, the really finally,

So as on in production. of both for sequentially back see half spending the new McNeil's product ready the the for higher effort for development the year facility we product, do getting as eRCV that well

those big So the pieces. moving really are

what a this In about. days and with production holidays, signaled as there's the days, we've fewer number in And production drives -- in fourth the items it on to this and in and of down quarter, have quarter. is that we've you fewer then that demand talked well comes production the it that's as other the the previous environment, days terms strong very of calls, volume literally the completely

Access ship the an is that need of was did the saying, we obviously, access And would backlog fourth don't as some want rental argue look, last quarter. so companies to are But don't much year. as and essentially, well quarter by orders to of in we large, way comment? Because we your you fourth take the in much

everybody to trying just I'm that... set for the So cadence level

that we everything between anything facilities shipping produce water with to on exception It's the essentially. of doesn't purely That do that's our transit in the right have now, we're with stuff it.

it's fewer lower demand Access. to customers. simply to to fewer So comments a manufacturing both It and days. absorption. applies -- the Vocational yields of delivery do days, has production with revenue, cadence apply you or less function really our With all have it production days nothing There's to also way, just the Defense. fewer that comment By

that all there's of see that's our and quarter. So we in -- implications the fourth that typical just typically

comes from the question Our next Sachs. of line with Goldman Jerry Revich

you emergency. the if about opportunity in fire just margin could talk wondering I'm &

pre-COVID, price were we way are mid-teens at I'm outstanding backlog, how are Mike? wondering running thinking levels that you path Or that the high pre-COVID. increases you were in have folks teens. XXXX, getting folks And performance at you about back on back the So that margins the of with we in just to

margin, we we throughput. guess I levels our We As as improve, -- fire the have. trucks, continues it, not look And backlog. for with to reason prepandemic need that at the -- we've to pricing and we'll back to get that no to the there's price chain core talked get and we're about don't why get higher products supply

lot and the -- then about impacts. So talked we've AeroTech a

present. solid over D&A. strong double-digit business [indiscernible] That But those that our we've this Analyst have as segment. and very a we're our is targets that, again, said time, so be EBITDA Day and And be a will depreciation amortization on, will that will so in again, margins confident,

prospects. we're the so growth And about excited

Super. analytics your telematics with And some base. installed have great you folks

Can seems than what tell if you year-over-year us look So And Or the us like and Europe? access give numbers you for inventories just could tighter unit? like the I'm the for wondering used equipment on data? It year-over-year? of equipment. a other that's categories. per Are utilization are equipment operating tell seeing us in we point America where flat can terms you're up to what you hours North just context at in

close Well, in very the are to metrics. pay you what tell can We utilization I terms of attention still that healthy metrics very, is it.

constrained environment. industry. JLG, may I talking time, the is under were that at think year, one but certainly Now us, thing whole the were we a this under we notice you industry, I'm last about

really many the better were customers able of products customers not a need hands they ship is into product. job industry customers to of to the the This we products year, getting as So wanted. as doing as our

a thing thing replacement our it little good because you'll can fleets. grow It's of need happening of their grow older fleets because a they means gradual continue really thing. So that's normalization see to that to see you and also would a their bit because good good a customers a but start it's fleets, to

as right now very year hear coming But versus think a ago, I customers are in even And healthy, metrics our the that to fleet with think the and customers about starting utilization you're this from market, some well. talk still you the year remarks more into that. I hear

Instructions] the Our comes Deutsche question Nicole with from next Bank. [Operator of line DeBlase

Or have was obviously the constraints chain with supply the this for like embedded flatlined, guess, half? that a upside volume on chain, in the kind progress Like in what supply just source a have have second Maybe embedded reducing? quarter? you I second you you've of continued quarter from perspective. you seen of guys you What

our guide, we're number what volume. in this done then extent really this comes in it's that the bearing we we days point, that have similar the is expectation to quarters Nicole, our similar largely the how down subsequent previous it exited of At And production to we've to quarter. to that

that Makes price-cost in kind or Got seeing quarter cost, second -- is then talk expect Or price comparable you just the what price this sense. half cost the on in year pinnacle perspective? margin And quarter? of saw a like the the from you're are what of you tailwind you tailwind to you is second the can about seeing of Okay. it.

favorable, say, thing it's first just would year-over-year cost price of all, one a balance I it's caution, is to in but The really again.

trucks So now were towards the balance. still -- businesses that see next the dynamics portion come that to it's that most into there's more the pricing would not the fire a remainder of year year price we so Vocational of the exception, in were similar get neutral, our year to I we say, them back behind similar more should cost extent meaningfully full of with last with

Fargo. comes Weber Our of next the Seth with from question line Wells

single-digit couple you that understand just your guide margin. I implies of I ramps about whether range, guess to A questions. -- ask wanted of back think. full-year kind to And to guidance. changed The half your of guess medium-term second trying I I'm Defense kind margin I then

that high going digits. like include now JLTV away? seems Is that it Now does mid- ramp? of to reflection you're Is that And single just kind from the before? a moderation purely USPS of a

Sure.

remarks, just will will some completion EAC -- back in said adjustments. ] at perspective, in do we expectations generally or produce estimates our do is half CCA [ the all, prepared have expect the help we of orders from positive that that as year, expectation we the an or -- First of

of bit a the that's So improvement.

back stronger year. We a mix have aftermarket the the in of half also

So at there. mix play and there's some orders

in just the core the NGDV. or to it, just just multibillion-dollar NGDV But of post-JLTV. business, would big what tactical isolating high $X think defense consider that's obviously, defense saying not really wheel that vehicle not of billion-plus. I the that that it's excluding we're sort single -- a of a mid- is, terms is program just That's digits, you that's additive. piece

sort So that and billion-plus high how to think digits. single $X mid- I should think about of beyond you at XXXX is

the as on can helpful, Okay. then strong, Europe North Mike. in what's just that color And Access That's any out on? us China? assume, strength, you call you'd or we to give trends any just going is America, but regional

pretty seen globally. actually a healthy we've mean I growth rate Sure.

bit We pay Access what's market. enough. haven't customers But really good surprisingly But in happening of I really has little our for us, strong seen forecasting forward. domestic our we Europe contraction. can't customers really -- the that been across lot of strength everywhere we metrics, area has a we attention strong. closely one think else China been the We've really and going in to really, and markets growth. perhaps. see work seen with are is I maybe stress are a Asia much continued that at

it's positive are Access bills It's and of a IRA know all it at construction metrics, at above we high And the are this is really about the markets mega years. And look look that The nonresidential ABI spanning up year pointing Dodge don't and we have over you indicators. and future. the that level, other passed at if aggregate next Those So X the just healthy. very CHIPS the for Momentum and year, projects. foreseeable look really, in is all still these we Index still. growth and equipment Act all it the at some healthy been these for XX of to continued

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

the and adding industry in fleet? I breadth follow Maybe to in of much about CapEx are the the on Just you messages about what add curious, orders some for customers later the some base based bit reaction some there's guess and cautious more can industry up -- was of the the too that the on were perhaps your maybe of think this of just in rest orders how is to that. larger concern the of talk around of much concern customer going year quarter too fleet. business the rest I to I'm the kind North America? broadly access the their the spread a

that's larger -- companies. What with we're rental very customers is our well and demand, strong the large to as see independent as continuing

solid the But think mix it's I quarter. beyond in orders of just even Steve. across we orders the board a So the have in the quarter,

we'll orders what's half requirements back of have to our the actually continue beyond the even good to We through and -- visibility year. book really those booked,

solid demand next visibility is can say. our what very for I is year So very,

just that. in I I'll you the market. think much add And to see don't Yes. too fleet

it's just I think opposite. the

that fleets, much for see replace really that the I that market fleet. customers it's think and the it's our aged the equipment because can't in, there's you used condition reason so demand who have

need their any fleets not selling old they're they it. because So of off

started So they fleet just barely started just barely, replacement. haven't even maybe,

So I the too don't in much marketplace. there's fleet think that

earlier And Okay. may there's guess your bigger for And this week have your this some reaction that matter pricing, is. you I'm much I'm curious, so surcharges to but we're reaction discounting if the I will and suggestion maybe some close down next customers in what of to margin what's reversing at pricing next some last percentage doesn't at year. point, that it curious about XX%, obviously pricing but starting addressed messaging year? a comments of just come to about from your

Yes.

kind the I'll past. strong our orders So second for got Access half first products. the of XXXX now. never of demand tell good for you right I really really, really We've of visibility this we've mean, in that all, had booking in we're

strong market and very the strong. demand is is So very the

costs are you to with I input with price customers But to that in just want specific at how Now open, always our is make very elevated. very, we are we and sure still point we're a it -- fair aggregate, products. regard our elevated. on costs make pricing, look make input always very are When to

inflation ] we but moderating deflating. PPI and see recently You [ other haven't seen metrics

haven't deflation. We seen

We've we got fair thing our thing some here how very good relief on. product. our are price costs that elevated. may input with pick or you overall, and can be customers here have demand, at you over open we'll on one But seen one always Now but

Barger next line Steve of Our question the from with comes KeyBanc.

a high great next point about sound this your trying grow below for at here. growth XXXX. thinking we path Or out took we you you be from should about far think X thinking on a year's where you're lot year about out guidance talk getting gauge or to how consensus above without this visibility from a level multiyear quarters? as to and just guide? this, flattening Just updated from you ability not can X some you've And of a to is but alluded John, right into And now. numbers,

Yes.

mean look performance I'll would that see see off today. had still with but never Analyst happen, And knew previously in XX maintain always is It's is going forecasted ever it, our mention, we to very XXXX. achieving reported, the not thing this came And we what's I but We this that's that, at So we than in we happening first was Day what's yes, guidance. this always there. we're quarter very, bit what we happen. why as knew we little it. happening we with just just pleased we we Steve, surprised quarter, a are faster

big we've about vocational So benefits in for new we to just not momentum it's we to products. nice The got us. Access is are postal in the margin a starting in in business, acquisitions our just segment, talked of then demand provide next global contract improvements drive with the North comes year. of business. opportunities online up AeroTech, which from business, going XXXX new Hinowa lot got pick still see to see a which But tailwinds lot that We really the to demand. America, really and We've

the we XX. for We all guidance these XXXX business. believe So why our is reasons never off appropriate came are

the when you Understood. how you color. an not Volterra, then will compared ICE traditional any the goes over rate of do on think to production get just mix time, And That's but margin electric for And run to electric for have Volterra, great product where that a RCV? where you option? versus

depending different end the I it's market. to Well, on be think going

relatively that's versus with example So Service for the the BEV of units. units been with because give ICE example, an XX% public, Postal their orders, only I'll you started Postal Service

versus ICE right units, time the they're beginning. at XX% short very from a Now later, units BEV

we've it dramatically delivered before produced accelerated and unit. they've So even

Volterra, think lot that but fire & the are but close to little slower. a XX will emergency, customers bit average -- our some truck markets of a in be market stays extremely trucks interested There's in years. I fire the fire

time. the that will our of interest also run eRCV drive long for There's products. run a will will that, lot growth that So -- a in

and And margins customers, It's a put an electric higher on There's of so will time. run cost electrify. just you good these our we for really predict market, But to fleets I fast every point. that's ownership will the hard time total how long of a unit into it's for there's products. tell price to healthy that going kind

other exciting one Steve, thing.

of purpose-built cases, -- we really Pierce our participating if going almost really -- as the you including to those I chassis, to thinking ramps we're eRCV, where the more like need you be think a our chassis. not fire volume now in think as trucks of the we're custom entire buying lot truck, but start actually about

similar view very that's opportunity in that fire you on that's So historically, see trucks -- we see the -- profile we vein. it much the and margin a and

just for Understood. And to that was EPS follow-up my confirm XXXX to $XX right? to first is range a the question $XX,

Yes, right.

to this for no have would time. comments. at further the over we like floor questions I you closing back now turn to Davidson, Mr.

strong All continuing Thanks, for Thank are a to first metrics pleased right. with joining of and Christine. that us improve. XXXX and very half you today, chain We're operations everybody. supply our

world-class our a and information. Thanks, out reach yet made you seeing have close the attend, in to great our everybody, operations get highlight our Before we on Pennsylvania professionals manufacturing interested plans I'd management to with end please Access like a or plans JLG and to day. Shippensburg, up tour call, and meet are happy not August to factory the in have Investment for and be Victoria myself, who trip segment field to we'll XX.

Ladies conclude and gentlemen, this teleconference. does today's

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