Oshkosh (OSK) 25 Apr 242024 Q1 Earnings call transcript

Greetings, and welcome to the Oshkosh Corporation First Quarter 2024 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, sir.

You may begin.

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

to Slide X of presentation. now that refer Please

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

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

launch to products quarter the our Innovate, our announce while Thank capacity our innovative is you, year-over-year work strong strategy testament XXXX pleased solid in good continue as Advance for we and another earnings. technologies a I'm and Serve, This revenue to of to businesses. people of start new Pat, everyone. morning, and adding growth several with hard and to

EPS operating by and execution by the of an leading the results $X.XX. acquisitions. to operating quarter, our XX.X% achieved adjusted in segments income, supported we across led outstanding an adjusted first business margin and of increase of These adjusted XX% For were benefit

continue execution. focus to on We

quarter Importantly, our year. contributing outlook improvements the businesses, for the supporting and in in the performance we're positive driving of our to strong remainder

We the business long-term while meaningful are are company we confident growth, also more resilient progress. driving making we're on a focused throughout becoming cycle and

is we key market-leading and visibility; several the will for in the drive fueled significant strong decade of of Our including strategic robust provides Delivery factors, acquisitions including by Vehicles innovative technologies confidence backlogs such several new benefits Next Generation as expect investments next products, and beyond; that that ramp-up the demand AeroTech.

full for with per on $XX.XX products, solid Based we Oshkosh along the in demand are EPS share. healthy execution to raising for first quarter adjusted of our and range results, and our year be outlook demonstrates Day our accelerated Investor share place drive ability and the us $XX and within growth Notably, expectations our target year range current to early our of $XX per a value. continue to shareholder to of

to we'll and X, get our started Please on updates. turn Slide segment

at performing team Our is Access well.

an quarter, the of Access and X.X% margin by XX%. grew adjusted delivered For operating revenue

real-time Autonomy Moments new communications access ClearSky in platform, long-term success our that SmartFleet, We IoT invest products X-way and to believe in to next-generation Of enabling including continue contribute we will technologies, market. and the

relative the Last exceeded begin year entered to of lower first timing to quarter first XXXX million expected in healthy orders case that that quarter, you given year, $XXX the was expectations. booked although year. prior the This leading of of orders remains largely half as half the we second in customer our the we and told normalizing we XXXX the both order to the

order aligns particularly in with which the that the closely continue majority of to We be expect quarter, more of XXXX second timing. half historical orders in the will booked fourth XXXX,

well mega projects as in solid, elevated supported projects for ages. as by fleet telehandlers to continues industrial America Demand and investments, North aerial platforms infrastructure be onshoring work and

Moving to supply chain. operations and

Our of throughput which combination to deliveries quarter, range. supply were team progress manufacturing facilities. the and The chain in continued in on-time make our XX% first contributing initiatives supplier improving increased is the with in our deliveries to continuous improvement

plans We Jefferson repurpose for facility well City, our are the telehandler production. to Tennessee with progressing

throughout We are back as transitioning Defense the Fabrication facility XXXX Oshkosh. to moves Work

the expect We telehandler on production capacity in for ramp meaningful a will our for capitalize demand help in XXXX which facility us equipment.

many and growth are to Access there time. believe drive we continue over performance at Importantly, opportunities strong to

X, I'll Slide review and to Defense turn our segment. Please

transition ramping line segment during significant up This winding came off JLTVs in defense as As are Vehicle production Carolina. first we Services the discussed, year U.S. the Spartanburg, will year. of the Next for we be Delivery production of South domestic NGDV Generation Postal XXXX we have is NGDV. down month, a production the our Simultaneously, or units

team Our tremendous and a amount spent I'm of executing progress. this planning launch, and our pleased program has time with

with to Service XX forward over look long modernize We as fleet Postal U.S. the a the next successful and partnership their years. we

XXXX to and exit production. full expect we and throughout 'XX production vehicle As increase XXXX at rate a reminder,

support We and including defense FMTV many continue to programs. the programs, FHTV

complete plans working the on are the programs of both for We next contract several over to extensions quarters. these extensions with

We autonomy, development Caliber the our mobility System, tactical systems among Robotic broad are the vehicles. are we business has also Combat to demonstrates of connected Defense Weapon diversification And Vehicle of in and program the program capabilities supplier midst others. wheeled vehicle which which contributed in beyond for the a our technical Stryker Medium the

Finally, XX the and be allows on the cargo AX low -- outstanding the airdrop United accomplished We LVAD the a operational I ground achievement completed in North FMTV minutes. Army. our Liberty want at successfully recently truck air plane drop our with the technical of States an to within Fort to or testing parachuted from Essentially, velocity share Carolina. vehicle teams that program vehicle

to expect We for receiving begin XXXX. LVAD units in orders

turn a of Let's segment. to for Slide discussion the X Vocational

XXXX. quarter of delivered quarter AeroTech, revenue million segment benefit which including in year-over-year the sales XX% Our of in growth $XXX first strong the acquired of Vocational the of third at we

electrification invest customers. our productivity well to use in to continue functionality and programs ease autonomous for as of as We enhance

trucks throughput fire future. for for backlog, extended opportunity production demand foreseeable strong to our and a continues be meaningful Given the

electric Customers enthusiastic well and for and the are our Demand are remains zero-emission in field. performing collection vehicles our recycling solid purpose-built Volterra test for McNeilus ZSL vehicles. vehicles refuse

improvement estimated key and features. look X by will realizing carbon to know, up We ramping facility, will weeks this Tennessee. And units the opportunity we our XX% an be important while our ownership. Murfreesboro, production milestone in representing unit you are in to earlier these we total of footprint first of month, we the completed cost reduce WasteExpo their at game-changing their the show forward vehicles factory Customers As where an pilot in program these excited preproduction showcase in

like Moving are integration the AmpCart to with station, acquisition. Strong robust AeroTech. our well. We're so with exciting sustainable date pleased financial and performance, to supports which and operations charging new reasons this performing airports, pleased products progress business demand we all at the mobile the customer highlight is

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

Adjusted for Thanks, income improvement XX.X% versus of primarily $XXX XX.X% in million basis volume to first sales $XXX all X. pricing. the increase billion, well X Consolidated driven in an $X.XX quarter. year a prior of point of were million prior over increase improved quarter the sales John. to $XXX turn quarter AeroTech was segments sales, the XXX benefits Please increased The year or Vocational by or over benefit the Slide segment of as prior as operating million the the and year. of the increased $XXX million

to AeroTech quarter the The improvement at of prior volume results. in and volume favorable $X.XX higher Adjusted in versus driven by dynamics, exceeded first recent favorable and due the Access mix income increased was was Adjusted benefit in year. earnings mix, share operating most our adjusted lower income largely spending. cost Vocational, improved per customer primarily at price $X.XX expectations operating the

$XX quarter, stock a shares we the repurchased During of XXX,XXX approximately of for million. total common

and of review Slide are start our turn our X XXXX. we expectations and billion from million, of full we the $XX.X be billion, On estimating expectations basis, outlook. for With to Please $XXX respectively, a $XX.X to operating strong range which to and in income consolidated XXXX of the revising our up updated adjusted for prior our sales are year, are year billion respectively. a $X.XXX

adjusted share of $XX.XX. in $XX.XX estimating our of earnings will prior be per estimate are versus range the We

level, remaining XX% and product Access quarters the $X.X we At our margin prior due of moderate expectations the adjusted billion production to of quarter, XXXX. be in improved and and to the are segment to range in operating throughput improved sales Compared sales first to mix. $X.X expect for development up from a and increase spending mix we respectively, to estimating billion new XX.X%, customer

to Turning Defense.

to expect operating adjusted billion $X.X continue sales an of margin X.X%. approximately of approximately and We

and our from outlook. are be sales $X.X XX%, in improved chassis billion respectively, respectively. adjusted price of the Vocational up $X.X prior to XX.X%, and expect will billion cost the improved expectations dynamics margin Increased availability We and and range of operating contributing

estimate of higher an Our result versus as approximately prior incentive a compensation is of and expectations. $XXX expectations increase of stock-based previous $XX expenses million corporate million, expense versus

XX%, Our our prior XX.X%. decrease of modest rate now is a versus tax expectation for expectations

count Our XX.X million shares. cash is finally, for expectations expectation our unchanged. CapEx free now for share remain flow And and

of the prior we first quarter, quarter. and expect the in year EPS the up to $X share, Looking which range adjusted second versus is the per

We to year, AeroTech of the be versus benefit prior XX% the inclusive sales. approximately up expect of sales

comments. for over back it now turn I'll that, With closing to John some

as people our grow supporting for achieve to focus on Investor strengthen X our we our raised to targets We Day and our and expected, revenue originally we a our our and empowering believe earlier and expectations EPS, year our team testament continue strategy. We and than is now which business. we can execution, customers XXXX

and value. in to our an are look the in support keep forefront and we industries. that time at execute Oshkosh, We for our our is to customers leaders This our as technologies investing deploying growth to forward shareholder drive exciting continuing strategy products company and new

started Q&A. right, get with let's All Pat, the

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

with first Our Stifel. the from Elliott question Stanley line Instructions] comes [Operator of

I talk, you more next-gen guess, be through a this for moving of into kind like of of of as XXXX. of It Can there's EV more that maybe question early longer-term of little generator. phase you. a sounds mean into more out kind you're meaningful number I will bit preproduction a revenue programs a

dollars? similar that. from from but trying this higher a gross clarify margin we you framework should then profit think how about evolve? could And to Just for get it margins, a Just all? this how to Is gross perspective

Sure. one. I that can Stanley, take

thinking NGDV. the about of Just ramp

year it -- about last about $X.XX so So what a is we NPD, and have drag. we're startup some to about said this going will we quarter -- that be cost, talked between

next of a we As to be going pretty year, get volume. significant ramp into there's

$X to billion you'll get at talked by the we'll from the what about then getting And a our going margins. So follow. to program full revenue we start traditional is that of be margin of the well time from rate be than production, will wheeled XXXX, start perspective, we're margins north we've And with margins. good program. that And solid see vehicle tactical better to on those really to

Postal that But program. Stanley, well. electrification biggest for Mike NGDV we and segments in have Yes commented the Service. other That's as our on programs just the U.S. electrification

upgrade our airport with You more market, rescue drivers We different see segment, long-term see the Vocational in recycling others end The the fire firefighting fire our all vehicles, customers Those growth over look provide stations. well. vehicles upon electric segment, the and better, time, is over electric margins. but trucks, rate municipal -- are and all fleets time. as refuse at the the the vehicles healthy margins these recycling healthy and modern refuse are based we there's to will as adoption electric

in segments. not other of that's long-term It's at us. look some for to it as we overnight going happen something these So a move

have line. of kind to product coming AeroTech too. how That's more of kind do talk you mobile And hear for down for within It lot the other potentially guess, great. sounds allocated things. much portfolio, like I Can the But a then, and of considerable get airports, about refreshed? you some need sorts stimulus about you there's stations a we construction amount charging

and have behind put ramping kind it? maybe Just firepower you to that a see how business little R&D curious now evolving more you that of

airport Yes. the Well, the front, acid. we're in on ground today in of the markets I equipment electrification with infancy. our A service kind think really electrification lot lead of is the that's

the because to move vehicles and have the tarmac a we're the of that on way continue does. the kind that's the And So AmpCart, what to to to an to airport. -- thus electric, going that's lithium-ion, you have repower kind what of of efficiently AmpCart old-fashioned

going cargo we're well phenomenal the I AeroTech in continue as for early space. electrification really, really to other applications, early, think functionality been ground loading and for with have and for autonomous doing there service we're as equipment, innings our to But people electrification in a that. it job accelerate

we're to And Stanley that business, mentioned. orders, you strong and continue we in really the [indiscernible] for order and intake seeing reasons expect that

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

Access I guess at exceptional the margins just equipment quarter just X in were the for questions. One, XX%. first

I X would trying implies below, think guide, I'm for And case it to it based understand be the be we if first better looks the on on top me should year. based I in you on margins why than mean, remaining line -- could your your just the be like would that saw help quarters the with the -- top what line that. should guide, quarter? growth the prior be So

on adding Postal mile more wondering specifically win year. ramp significantly expanding just about customers we talk question with the And whether about benefiting conversations -- Service market you're to mile more delivery? you thinking last for Can your in and year can you opportunities then, I last starting delivery? having Service from next with of this Postal and I'm start John, around the guess share

I'll Jamie. on the with the go and Access let question Thanks, Postal question. Sure. I'll then start Mike

Sure.

On remarks, of a quarter. as in my the That certainly driver I the mix prepared Access a margin. margins, did first mentioned in the we was favorable see

we also $XX expecting higher We -- product about about to see of the did for spending last development the call year. new million see talked on

are A really -- to mix of next to have the also be largely costs Tennessee those going lot costs. Jefferson We of X moderates. million going $XX those occurring in are quarters. City, start-up That roughly

margin really a that's So mix -- that difference. timing and it's the of that's really the driving spending

mile regard Jamie. delivery, with last And Yes. to

Postal So I production, produce for want sure fleet. into NGDV today all, make States first modernizing their the to We Service this I make went the are that started United executing and say focused program to of vehicles, to and just we clear. want to intensely

the everyone knows North of largest think in the vehicles it. fleet world. This in mile probably is I delivery last America,

opportunity there's drive long it So got. And than that us really no a nice growth time. the execute for that bigger one will we've for on already we could

delivery. many I other But step to one sure providers We're time. talking we're make successful. course, And Of think to mile we're in NGDV going at service make in last we this a some have really is are to talk Service the the successful about. this right -- U.S. But we sure making future, modernization. we with very Postal may things other now, focused on the

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

also not but I & in wanted to that given Obviously, reportable business Can that's margins. in for segment only you that high in there, to opportunity teens this ask potential the What's mid-teens Fire business backlog? if the with but normalizing? I'm talk pricing into wondering anymore, can pre-COVID the Emergency. And you comment, go in ran pricing not a cycle the costs about just logistics please? the

in progress segment, with you great the have the our synergies and quarterly we're seeing and we margin the AeroTech We could it to we'll as operating pricing revenue, combined on benefit outlook. with be making billion the that synergies, that results billion backlog. reiterated segments over a from -- AeroTech we're also that about bring we're mentioned, And our talked Sure. of $X the And the excited progress continue together, segment acquisition. still to $XX-plus you We're we Vocational. segment see when with very about

have margin We out enhancing. will and exciting of new coming lot a that products be

to opportunity see our and opportunity beginning lot journey So this we in drive there. to we're just margin of a believe enhanced of continue at the segment,

our in healthy I'd got an good long demand. really Vocational that outstanding We've backlog, segment. got you, We've have I'll just term. really we Jerry, say tell And for strong markets. outlook general,

We application. continue a business think on to is We us. stable technology execute healthy, this long-term with for opportunities really

run the and update can mentioned the John, production on you EV on ask 'XX? at your anticipated what 'XX truck, exit had to ICE between I you as Can mix postal is full remarks on at U.S. And we production the full in exit prepared track us rate.

I said Postal they've increased is -- continuously Yes. It's probably think before, they've towards and which great, continuously electric the mix interesting, the we vehicles, wants. battery as Service

XX,XXX we so about electric first take will When internal for -- they're the going about us that, they're battery and XX% that the first about to XX% go units, so in the So of combustion. do years beyond program. few

increase go more, Beyond battery XXX%. even be that, mostly I maybe don't zero-emission the expect sure, we battery -- vehicles. they'll yet this I even even electric going is expect for to But electric know but to

mile purpose-built Service is anyone this that this that last benefits delivery vehicle. you, the we're reminding the or first productivity a time has with Postal the adding in had adding vehicle, And

So for industry. the forward it's really a big entire step

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

you cadence there's help the through I Defense. Maybe going think lot us a mean in can here. on

the JLTV program You have that's winding down.

that's up. NGDV have ramping You

the thinking of we're revenue help kind Can what with also you How the as about then And this, guidance? So here us should carries of XXXX? about here? year dynamic understand cadence into NGDV what's the revenue? what implied happen And ramps as associated think should in and through up? margins with this we

Yes.

going add lot transition about start. Mig, we John. through -- Defense to a transition. want of going Mike We JLTVs still comments. through A things production talk I'll So may through to a I'll have my a and few Defense it's XXXX. big is big

that's through really into we're it in the XXXX. we by today So to the truck. and when XXXX, NGDV, postal starts XXXX, the in in low production But XXXX, increase and production get with way, rate

the ramping postal you of get but NGDV. for JLTVs the JLTV XXXX, into domestic as we're So production, out goes

in create revenue. Postal production out will terms we NGDV in of have NGDV through with of what exceed we revenue gone the So we expect 'XX on the that

what's of input world. have perspective what bit of that to inflation that has costs. you continue get we -- they to price And of contracts drive vehicles to the sole-sourced a in reset of today. little realities the Giving Defense happening many done to higher to margins will better where the Defense for us allows as

So good we that, a in defense contracts as get margins the months, sole-source the over the that's thing business. for those XX next

programs programs. some DoD. won combat high buying are combat priority the for These smaller other vehicle for also vehicle We've are and

that are GDP. terms we've the So of countries the a improving a international increasing good of are percent year JLTVs where of their in as Department of the of outlook an defense and bit is of good. 'XX improving That's to also a changes their side lots from the Defense margins NGDV. got spending for business. really But it landscape

up this, to Defense? of shouldn't material operating And be in decline follow income clear, or we just maybe another to some in on drop XXXX revenue sort expect in in a yet

we that's expect No, expectation. the JLTV domestic million our year. Again, about we this not $XXX There's revenue expect would revenue. of

greater We NGDV expect next to than be year. that

be, from returning So growth a really, -- there. start we'll meaningful see should and year step-up to next we you'll even XXXX should

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

X significantly the trying lower? then might go about be meet think step that that of are, kind and obviously, trend sort just sort I'm down full do we how to we having Is the I'm but down margin. and year come as your trying think about if to wonder strong of here. I back Access off to guidance. you just quarters? exit to of the rate could flattish year the Starting as cadence. Or remaining a down to for progresses

time. No, at we this see certainly I is business strong that in don't think -- growth slowing demand. There there's

we talked as definitely our as to is in have normalized. our seasonality deliveries last more just about deliveries there call, I think

quarters would third fourth I will as the is and the into the months. start what to be then expect you would and quarters I expect getting second lower quarter, strongest be winter So our

quarter. more And that traditional first you then, again, just And see even returning to cadence. in that the

you spring the more as time. the you month within you're If were to activity see see approaching

standpoint is -- certainly, more from robust. a shipment is March typically So more

some again, And mentioned seasonality. as it's big the And drivers think big this those driver before, return it investments, think factor mix quarter. then a into of of really So I the a well. I -- was just I of timing the

that of briefly you Okay. And you acquisition. gave then back But and say margin maybe switching the revenue just Vocational. to I how there anything impacted the the can about the segment? impact know

it. we're see double-digit and Yes. you'll from We're it the certainly integration benefiting -- drivers. upfront certainly We margins. some But have near costs

I year, us think DT margin have as solidly some costs that on will for double-digit we a good performer but be over that technology certainly integration or view so going to time. and the improve information in early

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

customer you So clear an upside for was mix in were that QX the surprise Access.

that the in your be wondering mean I'm you what view on moment? I variables sold to for there QX well I And I don't have just So good you see are that pretty would guess out seem have you a out. cost. I think the know at Access you'd visibility the on

at -- of customer quarter? factor this QX take within is So be mix other it does variables for might shape point? And kind a how what a that

I timing It's Yes. shipments. just on the say the really would of mix.

So beginning were you the booked. back we to quarter, the of go

production We you have have of always deliveries. plan a timing that can

So seasonality, are to just again, up bit. goods a made this of minute return ago with a our of going I finished comment the sort back

things in the be XX to the of had about, is million pleased that we really million additional throughput were the out with call ready of second be early We going one to fact, at XX are In finished goods that we quarter. Access. it, will saw shipped

So that it's timing it really just matter a wasn't.

the we're to rest have you going guess year, of shake again, as But our -- year, year, the this don't point. course I for really the I and because, at I and products known those again are so some customers out the takes. So it's going over the gives nuance could booked look to to the of

a have Well, mix spot a you is there, in aftermarket right? Aftermarket and too, order spot of business. Steve, buy

so that's margin down the business, margins. or versus a does a in a very little can sometimes it quarter, go And and up bit affect it strong expectations

the extent business then follow-up. just what anything from cancellations coming that seeing any Access like or in timing as or a there in you're are changing To that push-outs or And Okay. customers?

with Steve, was you, was book better really that strong. that than we, in expectations. $XXX really we about going forward. drivers the We tell demand order market I'll see the million The We our Access. booked talked pleased QX continued just we're

we're well booked any customers health when And are now. on. right you XXXX we have I in are the get through the your going marketplace, terms just because you me the So telling I'm can going when cancellation opposite that schedule. I to and the it activity you unusual It's of in give don't focused on slot for when equipment production

Our next the Castillo, question comes from Stanley. of Angel line Morgan

CAT year. I of Brendan just for this on talk be I believe, should telehandler the supply is This end your about ending, want to at That partnership. Angel.

XXXX? you or your relationship for renewal potential of from talk any to And then implications can beyond profitability So expectations just that a price perspective?

Good Yes. from to Angel. you, hear Sure.

the of partner the So a and on will capacity they've more we find partner." that is long-term there's "Hey, telehandlers we been I if great to And the lot to would the with a than a to been work I I say of to industry. in What going I'm not partner say, CAT's first be specifically. ours, in hard better want mean, CAT provider had telehandlers more shipping today. industry. comment JLG a contract premier is

really the by paced are we capacity We that have.

up. is grow today markets them. opening opportunity one new of [ that's That talk why time. the over a real about We will AG that's see and So all continue ] time, We to increasing capacity. we're

And happens, we see you share -- expect, That's growth matter we we for and in the foreseeable that So market. will can no future. about area grow what continue the us. our healthy as it good, I our to what a telehandler tell revenue that a it's marketplace for

the And guide. just then flow Okay. cash free touching on

new higher thought. is guidance are little you a than bit earnings So previously

mentioned I'll CapEx call same. is You the it,

what So as hasn't puts and of are free cash overall up takes well? the I'm curious gone for the why just kind flow

And exiting. in I early think say it's year. I right now, would the

We a quarter. bit the capital have working first more little exiting

free So we're to it that's expect is the that good But continue to we to something throughout strong going monitor certainly we're a going be generator. flow something to year. cash

to it timing capital. is working line with comes down bottom think talked I a so And But about in it. really, of we lot cases

a We cash expect be strong to free generator time. flow over

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

AeroTech, volume quick can X the versus questions. you growth price comment have the in strength excluding you I quarter? saw is on One Vocational, the So in

seeing benefits certainly price the We're improved Yes. dynamics. of cost

see the is You'll what in operating really a it's price cost, year-over-year the Q nice driver the to million into $XX future. income in biggest benefit -- our it we strong the going of continue and which the we driver be about really was -- is quarter, in that expected, that's look as to

color on in versus very initially then helpful. you That's some it. Got orders you I what than expected. But North other America Access could down, on And equipment, provide regions? Europe think orders were or but still better

the regard Access for you and revenues for part the talk the that growth. orders market, our really our we're When course, I digits, really of the increase going Yes, to and healthy. globe is guide, high due is we drivers revenue of revenue the is most that see and in year that outlook, X% Tami. single our the that think are to demand With -- The creation in look positive we're across a about the X%, healthy. terms continue all seeing global to and U.S. healthy running biggest the the to at at been expect clip, you has U.S. we regularly.

that area good so turned only as The has Europe. not

when Europe the this the future. us for you for the Our But year European invest we'll market. is is long-term today business global to down and Europe's continue Europe one outlier look -- at in

is well. Asia doing

is well. doing America global outlook. of Latin America, kind the That's South

the of next with DeBlase Deutsche comes line question Our Bank. Nicole from

just on Maybe Vocational.

a factor margin XX.X% achieved the down what for prior being first You you that's like I a know year. full about in there. big it step to I does guided you the versus price versus talked cost quarter. but guess imply up guidance,

going from there talk rest like of just year? and the we takes can about XQ So to the the puts

would timing of of QX making Murfreesboro, say Nicole, are we're bit in costs. Tennessee, had other similar, integration Sure. QX investments QX. the new spending, occurring QX I the We so the of through some of Access. our in some The -- a or business to very product development some more

about ago, of talked the but there's we rest that more minute of year. a So the

price it's driver when that throughout really we -- a look to at continue on a be expect the we So year-over-year we be -- it to basis. again, year cost

the clear. we Access? about That's talk it. of Got So part -- the the year rest explanation the Can price have moderate through and the also And that year. for expectation that, Okay. is perhaps then. how the that biggest is sticking of to that then the right? price/cost the margin tailwind through part in first topic Do that's with was the I quarter of starts impacting cost margins

price/cost think or I year. is a -- our set the pricing for for I is from perspective, essentially we're -- fixed guess, ultimately, the

the So I just, as bigger again, think through say nuance. customer we some -- dynamics is the that just I the go mix price largely year would are there. and drivers of cost

year R&D half the to rest that in investment the And year. the it's second it's price/cost. Nicole, of really an of not It's its the access QX mix.

Correct.

the line from comes question with Chad Bernstein. of Dillard next Our

of you've my think already the going trying we quarter? that. think more seasonality? questions fourth couple to typical the recognizing through of more orders quarters? see Like should Is Just orders it you 'XX. that order 'XX next the on cadence to out and Are So in booked over how about

XXXX. placing when -- orders units So orders, place customers some at right they're they're for receive going now, to primarily point in in Chad,

we on so big when to our it equipment lead difficult have therefore, very in such the -- and Access And such, backlogs times. customers market longer such makes have it

in talk why and and now, out a is right their into year. XXXX for time and all time we starting order booked the So best about orders in And them we're focused the that's on the our to with then they're as customers XXXX for 'XX future. be and we're this later saying when up placing little through the for finishing 'XX bit to

That's QX. half, and that think in say, expectation. start QX, probably our let's second we So into will build the

that, going Now were said orders to be. we than our they QX, having what thought were in better

to lot we're far of 'XX in are point still So can this we 'XX for at place have from say. the I customers That's though even that year. orders a still willing what so

just to And defense. then shifting Great. over That's helpful.

that I we that combat bit that you for. more expect potentially had programs, the think products? some are what give bidding should Could with select programs you're when vehicle the you mentioned you a down little color

select with production vehicle. one notable most -- technology the early priorities won margins Vehicle. $X lot that example business, contract. it. the good contracts on the cross billion a contract, billion-plus make because our combat That's where we an are, the type there's will it's We capabilities It's so maybe But of airs right with DoD high-tech in world. $X where a in they'll on the autonomous can probably production prime It's award XXXX. Combat a vehicle, XXXX, a prototype of difference So the in they the vehicle of type a Robotic

prepared too, like in so the Fires, you ROGUE mentioned remarks.

is that selling we'll a we're Fires to ROGUE today, sell. program continue and

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

on Steve Christian is Barger. for Zyla actually This

segment XQ's in any of Given operational to see what were thoughts strong on upside half year guidance, from? beat, come back you the that if would the

No. I'd year. and see -- you a and is focus We for well, expectations increase -- continue EPS businesses than performing certainly that had strong we to our say I our revenue that solid will what a are the and the be QX, just guess to

Access. Vocational in now right strength see we certainly, So and

I like Yes. and delivery outperform all and of with good manufacturing Vocational they really to to and and question. I have could programs. good try in to thing Defense, the continue feel opportunities to all good drive about same the we opportunities. business. strive and the I about. say is say backlogs that our And But because continue Access way. got great Christian, good always improvement going businesses, in can The team is about them, feel really big certainly to We always

where -- half the full we half is as opportunities we as world glass got full forward, the look at in look our businesses. we So

already looking your by end backlog to And this year. the and thoughts range, you're end you're on but Not is bottom for comes it going visibility of what 'XX? the about the that the $XX, into Great. what given thinking order 'XX looks for it 'XX end after of And any that, high to guidance, then like really $XX hit of targets already?

that XXXX year thanks guidance question, doing. delighted are Well, just our hitting for I because mean, X long-range we said, as you the what Christian, we are early, which we're is exactly

us, bit We're of world really, had than it XXXX. today guidance knew surprise would get we'll level a we performance, what it of this all really performance. little providing doesn't forecast doing do we just We're That's we faster to good. the at. that for not Now always this to type

of that to Defense that's I'll for We We in XXXX And market. timing the health about look We in provide we strong guidance the positive business. it. access the the look change in XXXX, position see we right. will have say market. start the Vocational when at the -- But at what we'll some is

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

start, little obviously, just to to that us to you're on on obviously for familiar we started and gotten production program? going it give As but exact us more going an obviously, a you going get about give but closer large think BEV to comfortable be to postal sounds little with the I a of the be where thinking get-go. is your you're be it's from volume to know give that And some update from us it's now not you update thoughts Can the clear, more ice obviously, truck an the majority like a BEV. now process. number, profitability kind ramp you've to get-go BEV

So I'm curious. just

Mike? answer to want You it,

would hasn't I say, David, Yes. our changed. view

rate production, ultimately, it's volume full margins. start-up -- not relatively we've margins traditional so by vehicle we'll tactical we'll low. and at I as said expect, along, we in think is some all said would wheeled we stronger our have XXXX, be This year, costs,

ramp, what that. I -- to think we we're time. we're year, in to about going But the pleased strong all and And be progress the next with going see a so what between So point it's that's really outlook. we'll say this at

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

our or our thanks pleased to everybody where we and one We're with trade XXXX. for with speaking And technology at strong start to Christine. to look We of be today. conference shows us Thanks, a forward showcasing joining the will you mobility.

Service's X. Our along through through with Volterra also ZSL reach have out will Generation be follow-up May XX the at on the questions, display May from at the Las It Clean U.S. Please Vehicle. Vegas XX, shown Delivery Transportation be on great us and will Expo have you in Advanced and Next Postal if to X WasteExpo day. any a

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

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