Oshkosh (OSK) 31 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the Oshkosh Corporation Second 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. Thank you, sir.

You may begin.

for thanks and morning, joining us. Good we today, published our results. XXXX quarter second 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 our replay and available slide approximately on presentation will XX

to Slide X of presentation. now that refer Please

that Reform statements believe answers of to your forward-looking remarks within to Our follow, statements contain be that including the questions, Private Act. we the meaning Securities Litigation

These that forward-looking from filings actual those to SEC. have Form our we include, forward-looking with that different results implied the or could risks by such described SEC other in statements cause and are filed this subject morning expressed statements. we X-K materially matters to the with others, be make These risks among

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

and Chief President include Mike President Vice Our presenters well Executive Pack, segment. Pfeifer, and and Officer; Chief Officer; vocational our the John recently Executive of as as named Financial today President

X, Please and it to you, turn John. Slide turn to over I'll

and morning, and Pat, year-over-year growth I'm earnings. announce pleased in to strong you, Thank good revenue quarter everyone. another with notable

with provide customers we future. returns. innovate, the investments Our our growth attractive profitable and in technologies serve growth advance will strategy expect support our Furthermore, that into products drive strong shareholder safety continues and well to market-leading benefits and productivity

members. team passion a of is XX,XXX dedication Oshkosh success to the and This testament approximately

leading XX.X% an in XX% adjusted and of and adjusted $X.XX. adjusted revenue operating the For operating a achieved by of grew XX% we EPS margin second increase to income, quarter,

were enabled businesses. by and Our our strong broad-based execution growth across outstanding revenue results

delivering team. is customer began or for United Postal the States significant we NGDVs, quarter, a our and Service. vehicles next-generation our This delivery to second milestone the During both

to state-of-the-art, innovation service contributor decarbonize This provide collaborate for our value remainder a and that the postal will and vehicles the program and that delivery program NGDV our We to of our with and profitable the purpose-built be customers leverage address deliver fleet. meaningful with exemplifies States differentiated capabilities ability to expect will complex United their challenges. modernize decade growth the

on in year and execution, the second share. strong Based our to solid EPS are quarter be $XX.XX we of our for results range raising adjusted outlook full per

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

the are margin production the and and quarter, access These XX.X%. team of results well for new in of growth our revenue Our executed even success. delivering long-term the we to adjusted an impressive second more we believe when technologies exceptionally will operating contribute X% products, made achieving considering during that quarter investments capacity significant

healthy continue see market discussed our Sales where by Orders growth than were America, as the last North primarily we to quarter call. was dynamics. expected, lower and on earnings year in last driven we

and in a return quarters availability fourth the reminder, that backlog the beginning As requirements some quarter carryover quarter requirements the of XXXX, for third with XXXX. XXXX for orders $X.X to customers so booked equipment new billion second we into expect XXXX. we meaningful ordering XXXX will of customer place and in typical into XXXX patterns more first for a entered and improved With to expected orders lower relative largely we the year, covering equipment

that expectations infrastructure the we performance for solid mega anticipate will remain similar ongoing access deliver XXXX, stable remain North and based industrial onshoring our with can on in in outlook XXXX. This equipment America and market investments, discussions segment. in customers the relatively We We projects, that aging to is fleets. confident

is forklifts and a plans manufacturer better high-performing specialty dumpers, synergies. Barcelona. geographies AUSA to of European growth. acquire equipment, products as AUSA well growth will rough leading located and positioned across announced family, channel joins including we wheeled the with to customers When categories quarter, drive targeted we business a be in terrain attractive the near During as AUSA, telehandlers serve

the expect third quarter that the year. transaction close this will of during We

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

earlier, mentioned vehicles. as modernize the I look successful the Postal we proud that a As to deliveries forward are Service Postal commenced partnership next-generation with we fleet. their U.S. States we United and delivery of We Service long

in We South Carolina facility. our in Spartanburg, are production currently

at leading XXXX We expectations expect to through revenue NGDV and to up production, strong XXXX for ramp production full XXXX. exit rate

we revenue XXXX to XXXX in exceed from of revenue reminder, NGDV a expect As JLTV XXXX. to the decline

down wind on production to the programs. continue will FMTV and supply we programs, While including domestic in FHTV early DoD XXXX, JLTV important many

FHTVs, the second on for which During orders are contract. received million the $XXX valued the last orders current at quarter, we

expect and the of MCWS of complete other as FHTV future. the extension such Fire contract Family for program profitability August and number programs, into early as visibility Carriers We these enhanced of in to We first Stryker half XXXX. contract X-year the for FMTV the important well business in key provide programs an as a a extension Rogue the and believe

I will to Defense, Jay technologies. leverage we Miller to their has We announcing Today, to Technology Chief the I enterprise. move outstanding entire are our capabilities proof-of-concept Pratt enable Pratt want regarding our capabilities Before change better rapidly the news this of Iyengar. new business product across us reporting develop of Officer, Pratt leave to development share some believe responsibility Miller. Miller

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

an operating of XX% segment quarter. achieved XX.X%. impressive growth year-over-year growth XX% we second of of revenue Vocational AeroTech in Our Including the revenues organic margin of million, revenue adjusted $XXX strong with delivered

a Pierce opportunity fire growth demand the significant grow. drive Meeting long-term in represents to segment. Vocational this continues trucks to for backlog Our

on which the investments In strong the we production and into achieving are revenue future. well to margin incremental facilities. additional we focused drive in expect our term, expect near In increase term, will capacity, throughput we the to growth make existing longer

refuse McNeilus for and robust our demand recycling as equipment. AeroTech We as also trucks continue well to see

strong recycling generate units to well SL Our early pilot performing new refuse interest continue field trucks electric customer in with testing. and purpose-built zero-emission Volterra

on encouraged the is while trucks future our are of performance important by are operators benefits is including an and part This customer as transformational experiencing strong these fuel over vehicles our migrate operating daily time. savings. We considerable fleet the routes, cost productivity to operational that

medium-sized process we and business, the our truck a comprehensive of in from demonstrated our recycling North sales. a are refuse wider dealer of coverage network including fire dealer non-fleet much and that for and broader recycling America customers Pierce will a provide and haulers. and small- array more We municipalities refuse to transitioning and for across believe sales with service vehicle direct like we've business network factory

complete we lead are coverage cycle America a already dealer several will approach In expect our end stronger believe network we dealerships the particular, by life of North to year. have strong to and across the business. dealer operating, There

Before on I leave to like this AeroTech. comment segment, I'd

strong. near- long-term worldwide to airport company of continued part cargo replacements, growth supported global activity aged is Order both and solid, for as be passenger demand. driven travel by and in by our air opportunities outlook Our continues expansions and equipment

Oshkosh We with and continue in synergies, electrification, progress. integration areas commercial synergies to benefiting supply throughout be pleased autonomy businesses are with synergies we the of products. and the technology family from In intelligent connected other the chain particular,

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

the point of increase Pratt Consolidated results, asset the $X.XX $XXX over intangible improvement Thanks, engineering year volume of billion, operating for results in noncash a The benefit of the Slide second in Defense impairment organic in of impairments The all of XXX by $XXX by improved volume part income costs. exclude quarter sales the offset of operating segment AeroTech anticipated recognize during We driven quarter were over . Consolidated or John. basis adjusted operating million resulted Please an the primarily or Adjusted driven increased AeroTech Miller adjusted XX.X% largely the prior turn downward $XX the a was charges. was X income million these impacts to flows. in of and quarter quarter. the segments, revision dynamics, XX% prior increased investments year by million improved million income benefit million operating and X. cash sales, increased in price/cost pricing. of of higher as the to We and conditions and benefits $XXX at sales Vocational market increase segment $XX.X improvement.

exceeded income Vocational and recent Defense most expectations favorable $X.XX mix at in and versus prior to volume higher operating dynamics, primarily access. our year. Adjusted cost Adjusted due quarter the at $X.XX improved share the customer was price in second per earnings

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

updated Please a for turn review expectations for Slide to of X our XXXX.

solid visibility full change. execution, and robust change earnings Building be our With reported Pratt and the year a backlogs will results reporting adjusted on raising reflects following of our together relationship, the we half XXXX, first guidance outlook. are Miller's this combined with corporate. The favorable with in

to XXXX a On range consolidated sales of $XX.X be estimate billion. we in basis, continue to the

We be estimate versus estimating earnings $XX.XX. adjusted of income billion, share adjusted and be our range our $X.XXX are of prior estimate in the operating prior $X.XX estimating of that a from are in range we per up now to billion, of will $XX.XX

comes be sales in respectively. Access revenue expectations America margin billion is more the of our operating result from favorable At XX.X%, of mix. to improved and are to sales North of XX.X% $X.X compared we Reduced expected segment level, the margin adjusted billion and while range expectation and a a estimating prior expected outside sales $X.X

we $XXX by to are of corporate. improved an Defense, approximately of sales $X.X Pratt throughput, of billion maintaining million the For transfer reflecting from increase our offset Miller guidance

margin operating adjusted for expectations now Our approximately X.XX%. are

$X.X XX.XX%, increasing price and expectations expectations Expected contributing in the XX.X%. the to improved We from operating remain manufacturing outlook of our margins. prior range for for adjusted billion, expect of be are to margin to dynamics Vocational cost and better sales improved we are up efficiencies our

prior corporate other million, for expectations. estimate $XXX approximately with our Our and consistent is

is tax Our expectation rate for still XX%.

share per XX.X we are CapEx. maintaining of at million expectation count for and target our million also shares, unchanged $XXX Our is

result reducing are estimate higher as by at capital million We expected $XX for million $XXX year-end. cash a of working our flow to free

to line of quarter, in share, Looking prior adjusted the third per in the EPS the year. with range we expect $X

higher start-up be new as up to margin, sales approximately product implies prior development higher plant sales expect a costs, investments mix, versus slightly from lower This XX% material anticipated as the year. stems costs. less well expected favorable We which

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

strong another reported quarter raised adjusted with today's EPS announcement. XXXX earnings for expectations our We and

next of on are seeking Of course, many call information this you regarding year.

I'd is XXXX. still early, like to of our thoughts some While share on it

strong that remain in to we the infrastructure that with lead can segment. segment, customers, in range and expect Access drivers us projects key of our XXXX. We like sales discussions performance For confident solid the with mega demand investments, be deliver will along

production. segment, the winding U.S. In our and JLTVs ramping are NGDV Defense to we sales of up DoD are down

revenue decline NGDV we XXXX will excellent from continued XXXX our pricing, a And to revenue more expect the segment than JLTV We XXXX. and supports with large margin and offset backlog Vocational which revenue has growth. of visibility believe strong

reasons, drive shareholder these for positive we forward is to are Oshkosh, we strategy to growth executing to For time XXXX. look our look we and exciting as an This value.

to back it turn for I'll the you, Pat, Q&A.

[Operator the . Instructions] session. John. Q&A begin Operator, Thanks, please

first Thein [Operator James. Instructions] with the Raymond Our Tim . question of line from comes

half. market. mix The second just seems maybe in drives we've benefit respect some the bigger rent first first big commentary question with cautious that half, is color. to on the like somewhat the some than It some anticipated, guess, with some the to which, the of more of customer the hoping access get outlook softening in here players from I'm gen in a public heard I

interplay and and from the maybe second half half extent what geography first if that the a the impact possible. and half, versus first just mix and and benefit obviously, that a maybe maybe there lot think that second there's mix as assumes that kind to quantify talk other of we about half product But things of standpoint in customer in the -- So that.

the the little certainly, I in second certainly, a anything can I less Yes. mix end. start half. can and wouldn't add the is John favorable -- at read

of customer, it's products. of some but it's Some

not the into as a it that a read somewhat we it read be -- So situation. both produced delivered, very and based on to what product from It's up customer. perspective -- I favorable timing that I view there's was mix wouldn't demand and it nothing much ended

our -- for year. know backlog So you obviously what of bit is. little of rest a see the the we

really mix really aligned is -- revenue the assumption mix. that So with our

half. that's an So bit of second a the in impact

always the production is the think I seasonably is you other to remember have a lower days. quarter piece quarter because fewer fourth

So then absorption some you have headwind.

also versus second bit half and implied So related look higher year. start-up to half of I of think the say if a City margins. I Jefferson little would part And first that's that in we you the second have costs at plant NPD it, half the do

don't really a So driver, timing. view again, on purely demand a really It's just that I commentary demand. as

Good to hear from you.

add a it's But little Let we I customer which me clear in and just question. said, the that's talk take kind a conservative addition to view mix, -- this Mike to of to is, your bit sure to on want that related make of about it. is as revenue

see guide, to. So revenue you that's what little down want bit, in Access and took to our clear just I we a related be

little a North you environment also for we and because has be the some European bit. believe that we that near see us the U.S. So some nothing heard and market And general impact take that those with may in do to term, us see. tariffs there But down market. have pending forecast there's conditions the tariffs, we of that caused America outside to the could to revenue

So just making sure that's clear.

it. Got sector. question. of a let then, accuse setup Mike, a yes, to sandbagging guess But I over just it. I you them And don't running transition Vocational Got similar as you for

that actually well as strength Pierce strength assume grew the price cost you. you remains for the backlog in I called mentioned and out You dynamics, tailwind as a sequentially, in would

the mindful kind back first anything half you've in margin given the should as year, think the of of be of about far So thus half. in just delivered that we we what the trajectory

strong future a that commentary team great backlog. Vocational excited we're I place. in say Yes. similar It's would Access the with of very about to very

You we've talked price the about backlog. -- in strong

because start-up very I We'll be little would again, when first to with plant. little deliver the margins. a and margin trajectory higher to continue we NPD, versus and the through a to and have expect typically think impact But you I our to the production versus grow which a comes bit half that, quarter half time. and that prospects have first fewer again, fourth capacity second say the we days I certainly play higher the more absorption the solid So price/cost When -- we [indiscernible] into year. every like of over again of have expect some in like business bit half overall, continues tailwind. second in half, business

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

guide impressive. in has like questions. margins -- is I two terms quarter. for And in of guess I quarter. the on Congratulations a The record margins Access been the very the think is

to or, So to hear and/or the about starting worrying Like equipment you're markets. I'm the a risk John, in flattish other let's an XXXX. environment structural deterioration on where the longer margin we say, talking side, in degree Access is potentially a need term? stable back price about that's to improvement what market revenues Oshkosh for if in giving price you're start over wondering do

still down. and you And said how understanding then JLTV are with what margins ramping about cadence forward? XXXX on much revenue in going XXXX. and NGDV thinking about Defense going question, think Like the my more margins more while defense, margin in a for very about you normalized are year How thinking you're of so improving transition XXXX, second just terms we is margin and

concerned on NGDV. of ramp the ramp on Just like inefficiencies of the

take Defense program comment Yes. Thanks Jamie. Access NGDV and and the I'll the the business. for your will on on first Mike question, one

very work. resiliency been I very, purposeful And a sustainability been we've our and Access doing great into business. because Access about talk of we've me let So about lot driving think

now Our well the executing team board. across is right

to to driving value course. success. resiliency always focus of that and we You lead in customers of is lot And today's going see this this we're performance. the for believe long-term a purpose And also focused around and that margin our on company,

the no conditions to want be what we are. So resilient matter market

of to many matter business sure into going we resiliency So ability if conditions That's place. there, no XXXX conditions. we're Shippensburg market as some flat, have adjust market how And saw perform you that to are, is lot what very our the the A some recently. of expect to -- not facility into been innovative you, to exceptionally well. were you investments one I'm manufacturing driving Jamie, visited you examples if our

forecast So Analyst an do to this as call. business expect I We'll to margins to do evolves. Mike, continue that NGDV? but in deliver margins this want we can't the do market on talk long-term you year-over-year upcoming, at strong Day about

and Defense NGDV.

expectation So throughout as grows what be year, our we'll We low talked start-up costs that and production some year next this rate have ramp we is at revenue relatively going just is for revenue [indiscernible] exit production. to XXXX NGDV. ultimately about

to so growing margin a of going all, be revenue from perspective, So significantly. first is

offset will to as margin the we ramp The JLTV. continue of expect too that up. decline grow We domestic will

And the that's that delivering of get over expect time what the we've XXXX, the and by XXXX. we margins will talked next we to And growing so at about has, that program course by year. be attractive we'll be the

future talked near pricing reflects I terms FM That prepared pieces mentioned one there's in about think extension are thing that other with John That's in FHTV think margins economic of help will in that general, I the expect the of the the Defense, and we've be price or in time. margins we going that adjustments. the updated remarks, here. -- Defense over his completed to another just just

to start in delivering contract the one mind, Keep So years. in those of the margins coming continue that's improve XXXX. new in under that units the early another levers Defense's will We'll

Another comment on that, Jamie.

were period. contracts prior a phenomena that we a inflationary result to as defense price entered fixed lower into margins of Our the

that's And programs that going the us that we to much one growth sole-source others and in going as have announced margins core forward. just We profitable we back So to the we'll better for come get coming. drive contracts. defense we fixed there's expect FHTV help

XX be . over the a that evolution next -- a will big months. that's So

from with of comes the question next Kyle line Citi. Our Menges

I deeper telehandlers flattish can impact hope an with are is a the production and year. little next customers of equation? for giving to sales into flat I good. what guess, dive year-over-year the of sale in outlook remain much ramp-up bit conversations how The that pretty is confidence Access you year-over-year, that

Yes.

experiencing it's So that at lower timing, clear right thanks had order in an to question, a order change we change And in It's demand. make that not they not about when and want a your in sure talking I change we're look that as that's for -- now. about we're orders had, we expected. Kyle. a the talking we we're timing were QX you change, demand. When

all So talk customers to equipment. and for best outlook continue their That's even probably data for with our we look a at. the the have time. that we point our they business healthy and

If happening you what rental look fleet is itself, positive market see at see the utilization. you you strong in pricing,

might supply come down well, you there little but bit, at utilization was fleet of when chain a historic has Now a was lot constraints. say, highs it

it you used if we So it's look And is healthy very see where a equipment. good rate. very, today, on prices

The was there of used was the X used because or also equipment. X no equipment years very last constrained supply

there's Now supply. more

a So down think you they but the customers, used rate. it ask would if same what is, you you healthy tell is look at bit, at come when I has equipment And a thing. still it our

the today. things see But the are types we're those we right So of unique now. that market times now really in right of in

fleets We have still. aged

pressure rates, that general we're some offset some the all Act, interest time, the spending of We they're the in big these I these and able CHIPS construction of course, and buildings of And demand. IRA, to weakness drivers to in at point commercial continue some lots meaningful this trends, with government big unprecedented projects seeing. megaprojects construction, due that mostly with of under have think be all IIJA, to

more little a I'll you bit give detail.

fairly Dodge look force. XXXX. driving XX.X% XX% June, data in it you Momentum as spending Index, ahead near an centers in historic at construction signals of was cited that If the highs. They up ongoing It's XXXX, strong

cuts, ABI, look X.X years, of XX rates below it's the almost Architectural that's on Billings due Index, other a and been year, interest hand, to On the the for you than more and at of find impacts a more those lot a so, out remain which even firms to later But activity. today, continuing we'll will optimistic construction come, that are eventually improve bit little will rate general conditions.

order we and this of gives all of all back look change -- we about with timing want we're talk a the add point you in we're these review in change terms do when to at I XXXX. about up order our the our go -- us that outlook earlier, talking that change we customers, made a to about that But rates, it talking demand. [indiscernible] So today I when in

was ramp and telehandlers some of then just curious, about impact how like And helpful. any from puts and the . That's you're I there? takes thinking the XXXX,

that's of really, half see a the telehandler year . don't into one to back this items next that impact out We for year. we perspective, is investments, you margin From ramp called Access. impact see the as the and carrying

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

Angel. This is for Brendan on

vocational noted strong So in the segment, you backlog Pierce. your in

Are you that Just some curious, of side past accelerate attributable . doing is improve throughput quarters. what we've manufacturing to couple for sequentially in demand? changes Or the at things? you're there material of seen more seeing to the of revenue

record highest still levels -- Yes. for I'd strong. couple see well still of We above last the on year. market fire really of the overall were say years trucks. remains this The couple at years above very normal demand

be very to continues we robust. demand And called out. that's So why

capacity the to environment because given more strong more And short but in trucks, in backlog. in produce course, highly right continue dynamics, fire think ability of longer the make we're see incremental we term, I term, market all as our is focused we'll expect I gains this pricing that to making the in would now and some in well. growth the a opportunity investments

out any And if of times the and here. you solid cost you provide of wondering price year. of quantify was results I that the could mentioned a this goes it. throughout as then couple then some Got driving on color remainder that expectations

it, about good sort remember a $X.XX. hadn't was, weren't still to is was piece a we year-over-year. cost some were price One of the Again, or driver It of that in call of price some year. the increases price is lapped that last the access lapping quarter thing -- was Sure. fully

so and the the of benefits. price Access then Vocational, is quarters cost were a -- behind it And few they piece and bigger

So the piece forward, Price/cost costs we sort lapping will of quite Access and is may we're of to that . an meaningful did again, level in going -- that. still we to be impact now it's QX. as be bit to that be material note of going the a not to same look QX, going driver, be a little with

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

But and do the will orders It's Joe just X directionally I about and talk December segment? QX Grabowski Mig When this expect see strong wanted order for compare historical versus on quarters, equipment to means that QX the morning. also think compared Access Access how demand very to QX. for progression. I significant you of QX to equipment you prior a which I I to assume about orders increase, each were guess orders, ask

Well, short year-over-year. answer the think Remember, a so what $X.X seen favorably the billion to past the to backlog. That's expectation. question in is you've compare we've I got they'll your

saw -- have is order unseasonal was it than industry constrained when patterns. We less the we

So are to seasonal customers comfortable more that's order why back going patterns.

still. It's Equipment. have ago, quarter unusually That's So in down backlog Access unusually where a a it high. today we was high, come but from $X.X billion it's

that QX, year, normal really time we X-month And Orders normal in X- of plan normal customers when into for XXXX. those Some are to for following backlog a patterns order receiving the that's and lot you get of as already typically when we're look for we a backlog have seasonality. the essentially at is XXXX. that

orders are we why in XXXX. in significant for QX expecting see customers that's expect we'll what So

Joe, forecast I'd I kind -- be mean that not they'll this over is on I'd clearly, going to but right? $X of say this billion, we're say thing. Pat. orders QX call,

As to said, QX, years, call. too in that already. backlog precise, seen John last do orders on lower expect would the we because You've couple We in a get but lot something that's not right? do of is this

to So that's I lower year-over-year. Pat, QX, year-over-year lower not QX. make want that in year-over-year, right, versus lower sure lower but just

right, what do year million. here? last million, QX $XXX was got $XXX we We've have

think than I we're to that going be confidently. lower

wouldn't I too don't I QX. I what point pay to are read much orders too data much. read it's into the in think a attention wouldn't significant to.

to the in follow-up. Fair delivery in color. a kind any the of that the as Curious revenue it quarter, you're then vehicle, of learnings quarter? And for of was to see you're appreciate second enough. kind I a the partial $XX that early ramped now intrigued recognizing And quick I million the how if was vehicles? quarter. ship kind starting

We're Yes. continue the at rate. ramp at production. lower rate That's where really through up -- to exit over full XXXX we going to of end

million overtime $XX the -- revenue, we're you think remember, of I at recognition.

you're costs exact number So you and I wouldn't more have get incurred have an of units units, to to early because going too wrapped up trying to that correlate upfront.

higher year. the have we you're be over production, as up bit produced. the units better course get a But think to ramping I we'll continue little to to going correlation into of

. we So on see to would quarter-to-quarter growth a some to basis. expect revenue continue

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

earlier through impact everybody but I'm views your of tariff outside across wondering step on I'm us the that's the do on if that how landscape feels wondering and think you [X you opportunities just Europe how expand competitive and maybe your about French] the just . business? the impacts hitting board comments for manufacturer, you in could like if your it's John, competitive going implementation to landscape

Yes.

Union, the the everybody clarify there the are And board. hitting are, what into is coming to that. on just essentially, tariffs product is it So across tariffs China European that's manufactured

within So China, in product are the category Europe. production of on with Mexico. from supply as supply got supply in markets as We supply terms for of depends is Europe. U.S. It European from from we far and the We the even we from plants we where supply Europe concerned, We've really from us. coming

that's So is, And in impact in of guidance, contemplated the in about, little way, operations you to talked from do as I to we guidance. reasons XXXX our bring change some one Jerry, export be do revenue there's that by the China we impact. -- it's updated of the Europe. because a our that bit And going the saw

JLG to subject goods some not will yet. So Chinese-made be perfectly tariff. It's finalized

We be to expect finalized. it

Europe, synergies evaluating Recently, considered So Italy, we one made several strategies of we've the soon. acquisitions, When believe one in with that in will of to that's in you've Spain, we close us have terms are and mitigate we acquisitions product. one those that going the localization impact. a in things we couple of we seen made for example, that that of help

And us now because to feel making Europe everybody, be as very, amongst can so play. acquisitions make to tariffs some this is sure still perspective you, put bit just a total we revenue. optionality of we we that even can in in gives Jerry, are we better little it good, believe how about XX% that those in access for and of And business our for that competitive very about coming European for

as what it. So just in that tell can . well. That's I you about putting perspective

a portion well. shipments as of that Sure. China And are

versus momentum. think current that that expectations sounds drawdown? So what thought was than just what Postal roughly the 'XX put on JLTV million USPS Can be maybe clear. And a $XXX a we point revenue 'XX to the like the a revenue contract, Can would in can put comments, relative that's I U.S. mentioned about finer offset quarter? that. number you for set It final to a I are there's based good comments? drag on more your USPS than million you ask $XXX on higher we JLTV point and 'XX was

$XXX JLTV the probably Sure. than going It's million. think bit a about Actually, that. to be more I is

expect NGDV do next will exceed that So year. we that

Any . comments?

What was that?

relative you you when million Would willing order magnitude the . sorry. provide $XXX I'm be of to to say

Yes, it definitely could there's gap say, be, I there. a would

so You could -- $XXX you're thinking plus. probably million

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

question on for you a So Access.

just about in So thread on demand the following 'XX. flat

about the that if earnings you sort underwrite like access, margins that $XX curious that mix how potentially still implied? target -- . in the and think can like out put Just of demand past? you is then like in what And you flat

we in at normally mix be When our it look mix with line is. comment. Well, somewhere business, to I'll typically in give you we a what plan general for

when short-term talked what point but mix second about assume look talk think to does the like do the same will what's We in thing beyond. second we XXXX we from half So guide. it we had historically. normally and 'XX We've half, -- benefits our year, about about we we when the this

resilience the so XXXX in perform answer the in expect regard line your be With the simple to to And yes. will that business, -- of question of is or XXXX the the and we the well. is to yes, sales range to a business answer

a mentioned a That's that talk market bit helpful. Great. you shift you to in your [indiscernible] maybe line and prepared distribution more finding finish the your kind about then much little Can of impact? how little revenue getting bit will there. how And remarks dealers of expand a channel in the they process about and

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growth. to So with those able be help partner dealers to drive great excited to really

In terms to provide of exact see over the point time, but we're to quantification, more going growth we're on color where a it as to we opportunity. that a do continue can -- we not yet

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

Jacob Steve on is Moore This for today.

strong, like like on a and to I orders up backlog a to gave demand potential I the few net can get of put just you effect help say you separating questions an the for know what of I'm up get from one equation? in the organic you you streams today. for AeroTech contribution, and production heard the trying John. AeroTech. sense us organic from vocational following First looked are but future quarter, orders understanding And me, that

Yes. down of We say general, just would in level AeroTech that in break don't I really year-over-year. our orders But granularity. were strong orders

orders, we timing on that see based dynamics larger and comments just business. still recycling use on likewise fleet but some strong dissecting So the I I on generally, earlier. very, from business. I've a strong quarter-to-quarter demand of would rough made demand in bit very fire dynamics say there. little And would

a more have years, clearly, to we've the past size X well very that's the levels We elevated not We're market still seen decade, X.X among last several conditions. years that the out going over backlog at large market that decades. quite

continuing So our across to in of see businesses there. X general, we're all strong demand big

Yes.

and question. the believe will because Let me indicates the We growth in synergies year that, be to comment ownership the of our acquired Thanks is that strong and future. that. for we in AeroTech be learned first foreseeable because on the business secular we've true. for of And with market everything that

So we going year-over-year demand expect forward. healthy

ability rates. work with functionality, with deliver with family Our order it as and technology where And as autonomous applying meaningful. enhance matters to progress can we is strong and continues capacity continue now our AeroTech that then to really our collaboratively electrification our as of to to go part ability market so

for and That's it. a a really very And positive good business, dynamic very we're is about healthy this us.

then just compares much And and into Can has nicely of looks how my you sales historical us I'm how like? coverage what a to get today forward trying visibility leads that Refuse. sense follow-up. that of Pierce both And to tell versus that Understood. business historically? backlog AeroTech's

that of of emblematic I visibility just that would we're the growth, but market growth, talking plus was John that business traditional the have versus airport we about. in all with it's of say, year a in travel a conditions just dynamics general, lot in passenger that's elevated the levels,

typically to look goes right the a backlog have X year we As that visibility, out . and McNelis higher business or we McNeil, years. few a around range months of trending our peers, refuse now and end to to that's of recycling

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

quick far. X have on clarification topics I so questions discussed

ramp up the next question of headwind the in year. the the net is net half JLTV should we in first year? the So first a expect next versus the half? should JLTV just we year offsetting ramp relatively tailwind NGDV NGDV back expect down, throughout and a Or then

ramp going Tami. up, It's a be to

breaking early profile can expect -- increase. to margin not you start out, increases, it's that as but volume I'm too So generally going to is the

it this So I about think makes the in and it's point. that between half, terms of first thinking with breaking way at early sense it you're exactly ramp-up. second too But

the Got cash is question it. That's free then And fair. other flow.

lowered I just a capital think higher working the on elaborate bit? little Can said you that the guide is and you you reason.

It's Yes. we're we in Right really have the believe year, working as the we it's unwinds on product end going have a it fairly We Tami. that start-ups. to just a as bit new much more looks sheet. capital -- phenomenon. like very of number going of that -- facilities quickly XXXX. map X look, we now and larger to It's now, different programs the development just temporary out we a balance on right have And are

cash well into very and it the future. to short-term I expect a we be a a generator So as view phenomenon, much flow strong free

America. of comes Michael Feniger question with line final Our from Bank the of

you if forgive a of maker, there, how fleet in this, sense that on of the that or acquisition Spanish if backlog the have back do you much the half, kind Just adds? closes me equipment touched

business about million significant because it's revenue. be -- It's not the that going of in has XXXX, acquisition to a for had $XXX

do Access think kind you around similar can So you of of to math if some type backlogs that. that

backlog the year. to not of very margins, about a be it's course, excited going But we're exit we driver great and strong of business, a as it's -- material So clearly it. it's

know you in second John, kind you does as half. with range kind And 'XX look of When some I a just for picture, been kind of Just we seasonality. 'XX, think of thoughts a the does think from on 'XX? it's kind more line half or different picture big half that of question easing very flat to the it's said, see second directions. flat bit 'XX time fairly indicators these the versus Fed for even cycle Perfect. become it's with of around big of weighted there, with I it that maybe unique weird [indiscernible], first different Or a do to guess seasonality? little is, depending of the as that. get cycle, in timing with you

of to to, to expect. going the quarter-over-quarter early when said, interest later about kind too get impact what all timing going second find for to half, we're half today out rates I the It's the we're itself. could and into something that We're first going to me -- of Fed find as talks it

I too expect speculative. too be don't to evolve be can't XXXX. in or why, now. out speculative. two, quarter-over-quarter half second would So That's that half, want we or first We'll it quarter to how but in It I to would get another say and go go point there right

closing to floor over would I Davidson, like now to the comments. back Mr. you for turn

with the XXXX Great. enter I upcoming it's of We're to we a day. questions. pleased out Thanks, momentum. and follow-up and will busy showcasing at with forward speaking have be today. thanks, you conferences everybody, our to back look know you great for Have day. half trade shows joining reach us or if . technology please We a where

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

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