$OSK

Fire departments nationwide face critical shortages of fire trucks, with delays of up to four years for new vehicles. Three companies—REV Group, Oshkosh Corporation, and Rosenbauer—now dominate the market. REV Group reported a $4.5 billion backlog, while Oshkosh highlighted price increases. Cities blame corporate consolidation for the crisis, with lawsuits alleging price fixing. Manufacturers attribute delays to supply chain issues and increased demand.

The Pentagon aims to accelerate defense procurement, focusing on speed and innovation, with a $1.5 trillion budget request. It seeks to support smaller companies and increase drone production to 200,000 by 2027. Key munitions, like those made by RTX and Lockheed, are critical for the Iran war and future conflicts. Congress must approve the budget for these plans to proceed.

Four Arizona cities joined a lawsuit against fire truck manufacturers, alleging price gouging and delivery delays. The suit targets Rev Group, Oshkosh, and Rosenbauer, claiming American Industrial Partners exploited the market. Tempe's fire chief cited rising costs and extended wait times. Oshkosh reported a $14 billion backlog in 2026. The cities seek damages and fee reimbursement.

Oshkosh (OSK) shares rose 10.3% since its last earnings report, outperforming the S&P 500. Q2 2026 adjusted earnings of $2.87 per share beat estimates by 10.39%, though down 15.8% YoY. Revenues increased 6.7% to $2.92B, also beating estimates. Access segment sales grew 9.4% YoY, but margins contracted due to various cost pressures. Backlog reached $14.75B, led by Vocational and Transport orders.

Oshkosh Defense (OSK) invested over $50M to support a proposal for a 'production bridge' option for Joint Light Tactical Vehicles (JLTV) for the Marine Corps. The investment aims to enable delivery of JLTV A1s within 10 months of contract award, with Oshkosh stating it has sufficient engines and long-lead items.

Tacoma sued major U.S. fire-truck makers (REV Group, Oshkosh, Rosenbauer) for alleged antitrust violations, claiming monopolistic practices drove up prices and delivery delays. The city, facing a $40M deficit, joined 60 localities in the lawsuit. Defendants deny wrongdoing, attributing issues to pandemic disruptions. Prices for fire apparatus have doubled or tripled since the mid-2010s, according to the complaint.

A high-ranking U.S. government official is expected to visit Oshkosh Defense's plant on Monday. The facility produces military vehicles, including Heavy Expanded Mobility Tactical trucks. Oshkosh Defense has active contracts with the U.S. military, such as a $1.54 billion contract for the Family of Heavy Tactical Vehicles V program. The company previously held a major contract for Joint Light Tactical Vehicles.

Oshkosh Corporation (OSK) reports strong Access backlog and airport demand, with Q2 2026 orders at $1.5B and backlog up 64.7% YoY. Transport segment grows due to NGDV program and defense orders. Free cash flow improved to $348M in Q2 2026. However, refuse business weakness, compressed margins, and slower fire truck production may constrain earnings. OSK maintains 2026 free cash flow guidance of $550-$650M and continues shareholder returns.

Blue Bird (BLBD) stock fell 4.4% despite a solid quarter. Greenbrier (GBX) reported a 31.6% revenue decline, missing estimates, and its stock also dropped 4.4%. Oshkosh (OSK) beat revenue and EPS estimates, with stock unchanged. Federal Signal (FSS) saw 18.7% revenue growth, exceeding EPS and EBITDA estimates, and its stock rose 12.8%.

The U.S. military used the Digital Manufacturing Exchange (DMX) to transfer Oshkosh Defense's intellectual property to a Japanese manufacturer, enabling Marines to produce parts locally during exercise Valiant Shield 2026. This initiative aims to reduce reliance on lengthy supply chains, especially in contested regions like the Pacific. Oshkosh Defense confirmed its participation but did not disclose cost details. The military is working on IP licensing agreements and compensation models for def