Oshkosh Corporation

Oshkosh Corporation reported second-quarter 2026 adjusted earnings of $2.87 per share, beating the Zacks Consensus Estimate of $2.60 by 10.39% despite a 15.8% year-over-year decline. Revenues rose 6.7% to $2.92 billion, surpassing the consensus of $2.75 billion, driven by higher sales volume and improved pricing. The company lowered its full-year adjusted earnings guidance to about $11 per share, down roughly 50 cents from prior expectations, citing slower-than-expected improvement in fire truck production. Oshkosh raised its full-year sales outlook by $200 million and continues to project free cash flow of $550 million to $650 million. Second-quarter free cash flow surged to $348 million from $49 million a year ago, and the company repurchased about 667,000 shares for $92 million during the quarter.

Oshkosh Corporation lowered its full-year adjusted earnings per share outlook to approximately $11, down from its prior $11.50 estimate, as manufacturing process changes at its Pierce fire truck unit will result in fewer shipments this year. CEO John Pfeifer said the company now expects to produce and ship fewer fire trucks in 2026 than previously planned, with the slower throughput improvement reducing earnings expectations by about $0.50. The company reported second-quarter consolidated sales of $2.9 billion and adjusted earnings per share of $2.87, while free cash flow was $348 million and it repurchased approximately 667,000 shares for $92 million. Management kept its full-year free cash flow guidance unchanged at $550 million to $650 million and pointed to a fourth-quarter-weighted earnings profile driven by fire truck production, increased NGDV output, revised defense contracts, and an anticipated additional NGDV order. Pfeifer emphasized that the operational transformation at Pierce is intended to strengthen performance in 2027 and 2028, and the company remains confident in achieving its 2028 financial targets.

Ford, PACCAR, Oshkosh, and Asbury Automotive are set to report second-quarter 2026 results tomorrow, with none of the four showing a conclusive earnings beat signal according to Zacks Investment Research. Ford carries an Earnings ESP of negative 5.58 percent and a Zacks Rank of 3, with consensus estimates pegging earnings at 33 cents per share on automotive revenues of 45.72 billion dollars, both below year-ago levels. PACCAR has an Earnings ESP of negative 0.05 percent and a Zacks Rank of 3, with consensus earnings of 1.33 dollars per share and Truck, Parts and Other revenues of 7.10 billion dollars. Oshkosh holds an Earnings ESP of negative 1.54 percent and a Zacks Rank of 4, with consensus earnings of 2.60 dollars per share on revenues of 2.57 billion dollars. Asbury Automotive shows an Earnings ESP of negative 0.46 percent and a Zacks Rank of 3, with consensus earnings of 6.30 dollars per share on revenues of 4.46 billion dollars.

StockStory identifies Parker-Hannifin as a promising industrials stock while flagging Oshkosh and Resideo as risky. Parker-Hannifin, with a market cap of $113.8 billion, boasts an 18.8% operating margin that has risen over five years, annual EPS growth of 18.5% fueled by share repurchases, and strong free cash flow. Oshkosh, valued at $8.35 billion, faces concerns including a 4.7% average backlog decline over two years, a below-peer gross margin of 16.3%, and falling EPS. Resideo, at a $4.72 billion market cap, shows 7.5% annual revenue growth over five years, a free cash flow margin that shrank by 20.7 percentage points, and waning returns on capital.

StockStory highlights Federal Signal as a profitable stock to own for decades, while flagging Oshkosh and AECOM as less compelling. Federal Signal, with a trailing 12-month GAAP operating margin of 16%, posted annual revenue growth of 15.3% over the last two years and saw its free cash flow margin increase by 11.1 percentage points over five years. In contrast, Oshkosh carries an 8.1% operating margin and has experienced a 4.7% average backlog decline over two years, while AECOM's 6.3% operating margin is accompanied by a 2% average backlog drop and a 3 percentage point decline in free cash flow margin over five years. Federal Signal trades at $118.52 per share, or 22.6 times forward P/E, compared to Oshkosh at $139.62 and AECOM at $69.99, both at 11.3 times forward P/E.