Oshkosh Corporation (Holding Company) · NYSE:OSK
Oshkosh Corporation (Holding Company) — Investor Presentation (February 2024)
31 slides from Oshkosh Corporation (Holding Company)'s investor presentation, February 2024
Slide 1: Oshkosh Corporation Investor Presentation
Oshkosh Corporation Investor Presentation February 2024
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements
Slide 3: Our strong foundation for accelerated growth
Our strong foundation for accelerated growth Powerful purpose and Favorable market Technology leader People First culture dynamics New and adjacent Programmatic M&A Strong financial markets strategy performance 3 3
Slide 4: Our portfolio of leading brands
Our portfolio of leading brands February 2024 4
Slide 5: Oshkosh AeroTech: A Market Leading Growth Platform
Oshkosh AeroTech: A Market Leading Growth Platform Market and Technology Leader in Attractive Air Transportation Support Sector Leading global provider of aviation ground support products, gate equipment and airport services to commercial airlines, airports, air-freight carriers and military custo
Slide 6: Access – recent highlights
Access – recent highlights JLG 460SJ Exceptional full year 2023 performance Revenue growth of over 25% Adjusted operating margin* of 15% Demand drivers have remained strong: infrastructure, mega projects, onshoring and aged fleets Strong Q4 orders of $1.7B; 2024 largely booked as expected
Slide 7: Strong outlook supported by robust market dynamics
Strong non-residential Strong outlook supported by construction outlook bolstered robust market dynamics by government spending plans** Infrastructure Investment and Jobs Act CHIPS and Science Act North American AWP fleet age* well above preferred range Inflation Reduction Act 65 60 US Construction
Slide 8: Defense – recent highlights
Defense – recent highlights Medium Equipment Trailer (MET) towed by E-HET Strong Q4 results with 10.6% adj. operating margin* driven by JLTV orders Domestic JLTV production concluding in early 2025; expect to continue supplying foreign allies into future Awarded 5-year contract valued up to $3
Slide 9: Oshkosh Defense is disrupting the delivery vehicle market
Oshkosh Defense is disrupting the delivery vehicle market Purpose-built Next Generation Delivery Vehicle Rapidly growing market opportunity • USPS contract for up to 165,000 vehicles Expanding position in purpose-built • December 2022 - USPS indicated delivery vehicle market plans to increase initia
Slide 10: Vocational – recent highlights
Vocational – recent highlights Ranger™ Cargo Loader Full year 2023 adj. operating margin* of 9.7% Improving supply chains and strong pricing in backlog support solid 2024 Focused on increasing throughput in 2024, particularly at Pierce AeroTech integration progressing well; strong market out
Slide 11: Market dynamics support fire truck growth
Vocational Segment Backlog Market dynamics support fire truck $6 growth Billions $5 $4 Elevated fleet age ~50% $3 $2 of fire apparatus are 15 years or older* $1 $- Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Yr/yr change in local property taxes** Four-quarter moving average IATA air passenger forecast shows growt
Slide 12: Programmatic Approach to Optimizing the Portfolio
Programmatic Approach to Optimizing the Portfolio Focused M&A and investment themes for Technology Category expansion Lifecycle management Enhance critical technological capability Expand into new categories to scale Capture more revenue from strategic growth technological capability downstream serv
Slide 13: Q4 highlights
Q4 highlights Q4 Performance Strong performance with revenue growth of 12% $2.5 $2.2 Adj. EPS* of $2.56 $2.56 +11.9% Adj. operating margin* of 9.7% +57.1% Well positioned for long-term growth $1.63 Investments in market-leading technology Solid market dynamics Strong visibility with re
Slide 14: Full year 2023 results and 2024 expectations
Full year 2023 results and 2024 expectations OSK Full Year Performance $9.7 $9.98 Outstanding performance leading to $8.3 adj. EPS* of $9.98 +16.6% +178.0% Key new product launches led by McNeilus all-electric Volterra ZSL New capacity investments position company for long term growth $3.59
Slide 15: OSK 2024 Outlook
OSK 2024 Outlook Expectations in the range of: Segment information • Revenues of ~$10.4 billion • Adj. operating income* of ~$990 million Measure Access Defense Vocational • Adjusted EPS* of ~$10.25 Additional expectations Corporate expenses of ~$180 million Sales ~$5.2 ~$2.1 ~$3.1 Tax rate of ~
Slide 16: Disciplined capital allocation strategy
Disciplined capital allocation strategy Targeted long-term capital structure Reinvest in core business Grow dividend Invest in external growth (M&A) Repurchase shares 16 16
Slide 17: Contacts
Contacts: Pierce® Arrow XT™ Aerial Fire Apparatus Patrick N. Davidson Senior Vice President, Investor Relations [email protected] 920-502-3266 Victoria Connelly Senior Manager, Investor Relations [email protected] 920-502-3108 February 2024 17
Slide 18: Appendix: Recent segment results, GAAP to non-GAAP reconciliations and acronyms
Appendix: Recent segment results, GAAP to non-GAAP reconciliations and commonly used acronyms February 2024 18
Slide 19: Consolidated Q4 results
Consolidated Q4 results Dollars in millions, except per share amounts Three months ended December 31 2023 2022 Q4 comments Net Sales $ 2,466.8 $ 2,203.6 Sales impacted by: % Change 11.9% 23.0% + Inclusion of sales related to acquisitions of $192M Adjusted operating income* $ 239.9 $ 155.6 + Improv
Slide 20: Appendix: Access
Appendix: Access Q4 comments Dollars in millions Sales impacted by: Three months ended December 31 2023 2022 + Higher volume Net Sales $ 1,150.3 $ 1,074.0 + Improved pricing % Change 7.1% 28.9% + Inclusion of Hinowa sales Adjusted operating income* $ 165.6 $ 116.1 Adjusted operating income* % Ch
Slide 21: Appendix: Defense
Appendix: Defense Q4 comments Dollars in millions Sales impacted by: Three months ended December 31 2023 2022 + Favorable CCA Net Sales $ 586.9 $ 547.7 % Change 7.2% 3.0% Adjusted operating income* impacted by: Adjusted operating Income* $ 62.1 $ 27.0 + Favorable CCA % Change 130.0% 53.4% + Lowe
Slide 22: Appendix: Vocational
Q4 comments Appendix: Vocational Sales impacted by: Dollars in millions + AeroTech acquisition Three months ended December 31 2023 2022 + Higher prices Net Sales $ 735.3 $ 582.9 - Lower volume % Change 26.1% 35.8% - Sale of RDM business Adjusted operating income* $ 64.2 $ 42.9 Adjusted operating
Slide 23: Consolidated 2023 results
Consolidated 2023 results Dollars in millions, except per share amounts Twelve months ended December 31 2023 2022 2023 comments Net Sales $ 9,657.9 $ 8,282.0 Sales impacted by: % Change 16.6% 4.1% + Higher volume + Improved pricing Adjusted operating income* $ 909.0 $ 396.2 + Inclusion of sales re
Slide 24: Appendix: Access
Appendix: Access 2023 comments Dollars in millions Sales impacted by: Twelve months ended December 31 2023 2022 + Higher volume Net Sales $ 4,990.0 $ 3,972.1 + Improved pricing % Change 25.6% 18.9% + Inclusion of Hinowa sales Adjusted operating income* $ 747.4 $ 318.2 Adjusted operating income*
Slide 25: Appendix: Defense
Appendix: Defense 2023 comments Dollars in millions Sales impacted by: Twelve months ended December 31 2023 2022 - Lower JLTV volume Net Sales $ 2,098.2 $ 2,141.3 + CCA adjustments % Change (2.0%) (14.6%) Adjusted operating income* Adjusted operating Income* $ 89.8 $ 57.9 impacted by: % Change 5
Slide 26: Appendix: Vocational
2023 comments Appendix: Vocational Sales impacted by: Dollars in millions + AeroTech acquisition Twelve months ended December 31 2023 2022 + Higher prices Net Sales $ 2,578.1 $ 2,175.7 - Sale of RDM business % Change 18.5% 2.4% Adjusted operating income* Adjusted operating income* $ 249.5 $ 161.
Slide 27: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The tables below present a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (unaudited; in millions, except margins): Twelve months ended December 31, 2023 Net cash provided by operating activities $ 5
Slide 28: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The tables below present a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (unaudited): Three months ended Twelve months ended December 31, December 31, 2023 2022 2023 2022 Earnings per share-diluted
Slide 29: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The tables below present a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (unaudited): 2024 Expectations Three months ended March 31, Earnings per share-diluted (GAAP) $ 2.05 Amortization of purchase
Slide 30: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The tables below present a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (unaudited, in millions, except margins): 2024 Expectations 2024 Expectations Access segment operating income margin (GAAP) 1
Slide 31: Appendix: Commonly used acronyms
Appendix: Commonly used acronyms ARFF Aircraft Rescue and Firefighting IRC Independent Rental Company AWP Aerial Work Platform JLTV Joint Light Tactical Vehicle AMPS Aftermarket Parts & Service JPO Joint Program Office APAC Asia Pacific LRIP Low Rate Initial Production ASC Accounting Standards Codif