Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| And I think the bottom line is we would expect that we continue to deliver strong margins in our business |
| Our outlook for AeroTech is strong as global passenger traffic is expected to grow in the high single digits over the next several years, and airport spending is expected to accelerate with legislation and aging infrastructure |
| I’m pleased to report another quarter of strong results for Oshkosh Corporation with significant year-over-year growth in revenue and earnings |
| For the third quarter, we grew revenue by 21% and more than doubled adjusted operating income and adjusted EPS to $276 million and $3.04, respectively |
| We are continuing to gain momentum as supply chains improve, and we are benefiting from the many actions we’ve taken over the past several quarters to drive revenue and earnings growth |
| In particular, both the Access and Vocational segments posted double-digit adjusted operating margins in the quarter, leading to a consolidated adjusted operating margin of 11% |
| Importantly, we expect further opportunities to grow revenue and earnings as supply chains continue to improve, as we continue to integrate our recent acquisitions, and as we benefit from higher pricing in the vocational backlog over the next year and return to pre-inflationary price cost dynamics |
| Demand for Oshkosh products continues to be healthy, and we’re pleased with the pace of orders, as infrastructure spending, mega projects, and solid municipal budgets continue to bolster demand |
| We expect that 2024 will be largely booked as we exit 2023, including expected strong orders in the fourth quarter for our Access segment |
| We’re very pleased to be entering the final quarter of 2023 with momentum and a very strong outlook |
| This award reflects our exceptional track record over the last century of doing business the right way and supports our purpose of making a difference in people’s lives |
| As I talked about earlier, as we continue to increase capacity, we’re increasing capacity not because we have a big backlog, we’re increasing capacity because we see strong order rates continuing into the long-term future |
| As a result of continued strength in our end markets, strong third quarter performance, and our positive outlook, I’m pleased to announce that we are raising our full year adjusted EPS expectations to be in the range of $9.50, up from our most recent estimate of approximately $8, or $8.35 when you adjust our most recent estimate for the impact of amortization of purchased intangibles |
| Our Access team delivered another quarter of strong performance with year-over-year revenue growth of 27% and an adjusted operating margin of 17.6% |
| Notably, we grew revenue in all major global regions |
| Our positive results stem from excellent operational execution as well as continued investments in products and technologies |
| But we have good visibility to the year |
| And we think this is a really strong driver of growth in margins consistently year-over-year, probably for the next ten years |
| Demand is also benefiting from expanded use cases and aged fleets that need to be refreshed |
| But this product is not just an electric vehicle, it’s a fully integrated vehicle that drives an enormous amount of productivity benefits for our customer, benefits for the driver, making it easier, safer more productive for them at every single stop |
| Orders in the quarter were solid at $932 million, leading to a backlog of nearly $4 billion |
| And we’re really pleased and look to a very, very strong long-term future for this business |
| In terms of the values of the company, how the people on both sides have embraced the acquisition the AeroTech people, the Oshkosh people, that’s a really important part of a successful acquisition, and that is going extremely well |
| With strong market dynamics and ongoing investments in innovation, we expect to better support our customers as well as drive further growth and strong financial performance |
| And this is a fantastic cultural fit for us |
| That is – so the biggest thing that we have learned, which is very positive, is culture and people can make or break any acquisition |
| We have a world-class leadership team at Access and we are pleased to welcome Mahesh Narang, who is a perfect complement to our strong team in leading the segment forward |
| So we are seeing strong orders and it’s really across the board and it’s tied to a lot of the tailwinds that we’ve talked about and why the business has excited us regarding just airport growth in general |
| I am confident that Mahesh will build upon the exceptional work and strong momentum underway at Access and we look forward to benefiting from his deep knowledge and experience |
| But within the Defense business there is a lot of really good programs in our Defense business |
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| Looking to the fourth quarter, we expect consolidated sales will be down versus the third quarter by approximately $50 million due to fewer production days in the quarter as a result of several holidays |
| Defense revenue in the quarter was down compared to the prior year as expected |
| Energy transformation, we have geopolitical concerns causing onshoring to continue |
| We expect adjusted earnings per share to be in the range of $2.10, which is lower than the third quarter as a result of the lower sales, unfavorable manufacturing absorption due to fewer production days, higher investments in NPD and facility ramp-up costs and Access related to the Jefferson City telehandler facility, and in Vocational related to the Murphysboro eRCV facility |
| Access revenue is expected to be down by approximately $150 million due to fewer production days, while Defense is expected to be up as a result of the timing of aftermarket parts deliveries |
| And as John said earlier, we see some more – they’re a little bit later working through the supply chain challenges given the complexity of the product |
| Is that right? And can you comment on what you’re seeing in Europe specifically? I think there are some concerns around utilization slowing there? John Pfeifer I think when you say loosening, I mean, we don’t see loosening as a bad thing |
| I am just given a supply chain normalization tough comps, would have thought maybe that would be a little lower than the average we’ve seen historically |
| But I will also say that supply chain is not back to normal |
| And maybe just to put a finer point on it sounds like the telescopic and is still extremely tight, but there is some loosening on scissors and telehandlers |
| These risks include, among others, matters that we have described in our Form 8-K filed with the SEC this morning and other filings we make with the SEC |
| We’ll start ramping up at the back half of the year, next year, but you can imagine that’s going to be – there will be lower quantities |
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