Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How is Oshkosh Corp planning to handle the impact of tariffs, and do you expect to pass these costs onto customers? A: John Pfeifer, President and CEO, stated that Oshkosh aims to minimize the impact on customers by leveraging their pricing power only as a last resort. The company is focused on mitigating tariffs through targeted initiatives, such as relocating production to avoid tariffs, as demonstrated by their quick response to European tariffs on Chinese imports.
Q: Can you provide more details on the tariff impact across different segments and the expected mitigation efforts? A: Matthew Field, CFO, explained that the Access segment is most affected due to its global supply chain, particularly with exposure to China and Europe. The company is implementing cost actions and sourcing strategies to mitigate these impacts, with an estimated $1 per share impact from tariffs, potentially offset by $0.50 through mitigation efforts.
Q: What is the outlook for the Defense segment, particularly regarding the NGDV program? A: Matthew Field noted that Oshkosh is on track to ramp up NGDV production to full rate by year-end, which should drive strong revenue growth in the latter half of 2025 and into 2026. The first quarter results did not alter their confidence in the segment's performance for the year.
Q: How are customers reacting to the tariffs, and what is the sentiment in the Access segment? A: John Pfeifer mentioned that customer sentiment remains balanced, with a strong backlog of $1.8 billion in the Access segment. Customers are maintaining healthy fleet productivity and utilization rates, with no significant defleeting observed, aligning with Oshkosh's expectations.
Q: What are Oshkosh's capital deployment priorities, and is there potential for M&A activity? A: John Pfeifer highlighted that while mitigating tariffs is a priority, Oshkosh maintains an active corporate development group for M&A opportunities. The focus is on growth in healthy segments and targets with recurring revenue streams, while also prioritizing returning money to shareholders given the current market conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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