Oshkosh Corporation (OSK): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that builds the heavy-duty, mission-critical gear the world relies on, from fire trucks to the next-gen mail delivery vehicle. Honestly, the Oshkosh Corporation Business Model Canvas reveals a fascinating duality: they are currently executing on massive, long-term government wins-like the NGDV program-while simultaneously pouring capital into R&D for electrification and autonomy. With net sales projected between $10.3 billion and $10.4 billion for fiscal 2025 and a backlog near $14.6 billion in Q1 2025, this model hinges on their strong brands and deep defense ties, but you need to watch how they manage those rising COGS and tariff impacts. Dive in below to see the nine blocks that define how Oshkosh Corporation makes its money and manages its risks.

Oshkosh Corporation (OSK) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Oshkosh Corporation relies on to execute its strategy across defense, commercial, and postal segments as of late 2025. These aren't just vendor agreements; they are foundational to multi-billion dollar revenue streams and future technology adoption.

United States Postal Service (USPS) for the $6 Billion Next Generation Delivery Vehicle (NGDV) Contract

The partnership with the USPS centers on the Next Generation Delivery Vehicle (NGDV) contract, which is valued at a total of $6 billion. The initial contract award in February 2021 was an Indefinite Delivery, Indefinite Quantity (IDIQ) agreement allowing for the delivery of between 50,000 and 165,000 vehicles over 10 years. The initial commitment to initiate engineering and factory build-out activities was $482 million. The first order placed in March 2022 was for 50,000 NGDVs, valued at $2.98 Billion, requiring a minimum of 10,019 Battery Electric Vehicles (BEVs). As of November 2025, Oshkosh Corporation had delivered only 2,500 NGDVs.

The BEV variant of the NGDV utilizes a 94 kW-hr Li-ion battery.

Global Dealer and Distributor Network for JLG, Pierce, and Other Commercial Brands

Oshkosh Corporation's commercial reach is supported by a vast global footprint. Products under brands like JLG® and Pierce® are present in over 150 countries. The strength of this network is seen in regional dealer expansions; for instance, Pierce dealer Spartan Fire in South Carolina now operates three full-service locations. This network is key for aftermarket support and sales of aerial work platforms and fire apparatus.

The scope of the commercial distribution network includes:

• Products found in more than 150 countries.
• Dealer support for Pierce Manufacturing across Wisconsin and Iowa.
• Spartan Fire in South Carolina operates three service locations.

Key Suppliers for Specialized Components, Including Electric Vehicle (EV) Powertrains and Batteries

Electrification efforts are underpinned by strategic supplier relationships. Oshkosh Corporation made a planned $25 million private investment in public equity (PIPE) in Microvast, a battery technology provider, in February 2021, alongside a joint development agreement. Ford has been announced as the drivetrain subsystem supplier for the NGDV, providing engines, traction motors, and transmissions.

U.S. Department of Defense for Tactical Wheeled Vehicles (FMTV, FHTV)

The defense segment relies on long-standing partnerships with the U.S. Army for the Family of Heavy Tactical Vehicles (FHTV) and Family of Medium Tactical Vehicles (FMTV). The FHTV contract has a five-year ordering period with a potential total value of $1.5 billion. Recent contract awards demonstrate ongoing momentum:

Oshkosh Defense also secured a significant contract in August 2023 valued at $1.54 billion to modernize the FHTV fleet, extending until August 19, 2029.

Technology Partners for Advancements in Autonomy and Active Safety Systems

Oshkosh Corporation is actively developing autonomous and safety solutions through collaboration. Oshkosh Defense is partnering with Robotic Research and DCS Corporation to test solutions like Leader-Follower technology. The company showcased its commitment to this area by introducing the Family of Multi-Mission Autonomous Vehicles (FMAV) at the Association of the United States Army (AUSA) Annual Meeting & Exposition in October 2025.

Key technology pillars highlighted by Oshkosh Corporation include:

• AI-powered perception systems leveraging LIDAR, RADAR, cameras, and GPS.
• AI-enabled Collision Avoidance Mitigation System (CAMS) for fire and emergency vehicles.
• Debut of a purpose-built, fully electric, autonomous cargo handler for airports.

Finance: review Q3 2025 backlog figures against these contract values by end of next week.

Oshkosh Corporation (OSK) - Canvas Business Model: Key Activities

You're looking at the core engine of Oshkosh Corporation, the things they must do well to hit those ambitious 2028 targets of $13 billion-$14 billion in revenue. It's all about building and supporting specialized machines.

Design and manufacturing of purpose-built vehicles and equipment.

Oshkosh Corporation's manufacturing activity is segmented across three main areas: Access, Vocational, and Transport (formerly Defense). The company is actively transforming its product lines, with more than 80% of its portfolio noted as electrifiable. You saw the latest snapshot in the third quarter of 2025, where consolidated net sales were $2.69 billion, down slightly year-over-year, but the underlying strength in certain segments is clear.

Here's how the manufacturing output broke down in Q3 2025:

The Vocational segment, for instance, saw its operating income margin jump to 14.6% in Q3 2025, driven by higher production rates and better pricing. That's the kind of operational execution Oshkosh needs to maintain.

Research and development (R&D) in electrification, autonomy, and AI.

This is where the future investment is happening. Oshkosh Corporation has over 1,600 product developers spread across its R&D facilities, focusing heavily on next-generation technology. They're not just dabbling; they've built up over 250 electrification-related patents and applications, which represents an 8x increase in those applications over the last five years. That's a serious commitment to shifting the powertrain.

Key R&D focus areas include:

• Developing flexible, standardized electric vehicle architecture for the Vocational segment, like the Volterra platform.
• Integrating AI-enabled systems, such as the Collision Avoidance Mitigation System (CAMS) for fire and emergency vehicles.
• Advancing autonomous capabilities, including prototypes for driverless cargo handlers at airports.
• Leveraging robotic perception technologies using lidar, radar, and cameras with machine learning algorithms for independent operation.

Lifecycle support and aftermarket parts sales for a global fleet.

The company emphasizes unmatched lifecycle support as a core strategy element. This activity is increasingly digitized. For the Access segment, the ClearSky Smart Fleet software platform is now standard across its lineup. This uses cloud-based and AI-powered technology for fleet management, offering remote capabilities and insights like fuel level status. Over at AeroTech, the iOPS technology is streamlining airport gate operations. A recent pilot with a major airline showed iOPS can help reduce aircraft turnaround times by nearly two minutes per aircraft. That's direct, measurable value from their support systems.

Execution of large, multi-year government contracts like the NGDV.

Government work, now primarily housed in the Transport segment, provides a predictable revenue base. The ramp-up of the U.S. Postal Service's Next Generation Delivery Vehicle (NGDV) production is a major activity supporting this segment's growth; Transport segment sales saw an 8.8% rise in Q3 2025, partly due to this ramp-up. To be fair, government contract execution isn't always smooth, but the Transport segment also benefited in Q3 2025 from a one-time intellectual property (IP) license to the U.S. government, which helped its operating income surge 226.8% year-over-year to $36.6 million.

Operational efficiency and cost reduction initiatives to mitigate tariff impacts.

Oshkosh Corporation is actively implementing cost reduction initiatives and enhancing operational efficiency, specifically mentioning the use of autonomous technologies that leverage artificial intelligence to improve throughput companywide. This focus is necessary to manage costs, especially given potential headwinds like tariffs. On the environmental side, which ties directly to efficiency, the company set a target of a 7.5% reduction in GHG intensity normalized by revenue by 2025 from a 2021 baseline. They also had a goal to divert 90% of waste from the landfill by year end 2024. Finance needs to track progress against that 2025 GHG intensity target by year-end.

Oshkosh Corporation (OSK) - Canvas Business Model: Key Resources

You're looking at the core assets Oshkosh Corporation (OSK) relies on to execute its strategy as of late 2025. These aren't just line items; they are the physical, human, and intellectual foundations of their business.

Specialized Manufacturing Facilities represent a significant capital commitment. The company has 29 manufacturing facilities across eight U.S. states and internationally in Australia, Canada, China, France, and Romania, plus joint ventures. A key recent development is the Next Generation Delivery Vehicle (NGDV) plant in Spartanburg, South Carolina, where Oshkosh Defense is refitting a large warehouse. Oshkosh expects to spend $155 million to retool this facility, which is set to employ over 1,000 local workers to fulfill the U.S. Postal Service contract. Furthermore, the company has expanded its footprint, such as with a planned 500,000-square-foot facility in Jefferson City, Tennessee, intended to house welding and fabrication operations.

The strength of Oshkosh Corporation is heavily vested in its Portfolio of Strong, Market-Leading Brands. These brands serve diverse, mission-critical end markets globally. The company reports its products are found in more than 150 countries.

Here's a look at the brand presence:

Intellectual Property in Vehicle Electrification and Intelligent Products is a rapidly growing asset class. Oshkosh Corporation made its debut at CES 2025 showcasing advancements in these areas. Key IP assets include:

• NGDV powertrain flexibility: 70% of the 165,000 NGDVs for USPS are zero-emission electric vehicles.
• AI Safety Systems: A Collision Avoidance Mitigation System (CAMS) provides first responders with 2-3 second warnings of potential collisions.
• Autonomous Hardware: Debuted a purpose-built, fully electric, autonomous driverless cargo handler for airports, utilizing LiDAR, radars, and cameras.
• Product Electrification: The JLG® Galileo is an all-electric machine combining boom lift and rotating telehandler functions.
• Charging Infrastructure Concepts: The Autonomous Mobile Charging Robot (AMCR) concept supports the ClearSky Smart Fleet™ technology for wireless charging.

The Large, Multi-Year Contract Backlogs provide revenue visibility. As of March 31, 2025, the multi-year backlogs and existing contracts in the Vocational and Transport segments support approximately 50% of the targeted 2028 revenue growth. The total backlog figure reported around that time was $14.6 billion. Breaking down the Q1 2025 end-of-quarter backlog shows:

• Vocational Segment Backlog: $6.3 billion.
• Access Segment Backlog: $1.8 billion.

Finally, the human capital is substantial, with over 18,000 global team members possessing deep engineering expertise. This workforce supports operations across the 150 countries where Oshkosh products are sold.

Oshkosh Corporation (OSK) - Canvas Business Model: Value Propositions

You're looking at Oshkosh Corporation (OSK) as of late 2025, and the value they promise is deeply tied to their history of building things that simply must work when failure isn't an option. That's the core of it.

Mission-Critical Reliability

Oshkosh Corporation delivers vehicles that excel in the most demanding conditions, a value proposition built on a history stretching back to 1917. This reliability is what fleet managers in critical sectors expect, whether it's for defense, emergency response, or heavy-duty infrastructure work. You see this commitment in their product lines, which include the famous Heavy Expanded Mobility Tactical Truck (HEMTT), Pierce fire apparatus, and specialized airport rescue vehicles.

The strength of this reliability translates directly into customer commitment, evidenced by the substantial order books across their segments as of the first quarter of 2025:

• The Defense segment, recently renamed the Transport segment, held a backlog of $6.4 billion.
• The Vocational segment maintained a backlog of $6.3 billion.
• The Access segment had a backlog of $1.8 billion.

Oshkosh Corporation's total consolidated backlog stood at $14.6 billion at the end of Q1 2025, showing deep customer commitment to their durable platforms.

Technological Innovation

Honestly, a company this old isn't resting on its laurels; they are actively pushing electrification and autonomy. They are showcasing these advancements, including autonomy, artificial intelligence, connectivity, and electrification, at CES 2026. This isn't just talk; they have purpose-built electric products already in the field or ready for deployment.

You can see this innovation in specific product lines:

• The Pierce® Volterra™ fire truck and the Oshkosh Striker® Volterra™ ARFF (Aircraft Rescue and Fire Fighting) vehicle.
• The JLG® DaVinci™ scissor lift, which is fully electric.
• Under the Aerotech brand, they offer fully electric airport tow tractors alongside their combustion versions.

The company's accelerating innovation in electric, hybrid, and autonomous vehicle technologies positions them to win incremental business and command higher margins as customers shift toward sustainability.

Lifecycle Support

A durable vehicle is only as good as the support behind it, so Oshkosh Corporation emphasizes its extensive global supply and service network. This network is designed to maximize customer uptime, which is a huge value driver for fleet operators. The company's commitment to long-term value is also reflected in its shareholder returns, having declared a quarterly cash dividend of $0.51 per share in Q3 2025, marking an 11 percent increase from the prior year's dividend.

NGDV Program

The Next Generation Delivery Vehicle (NGDV) program for the USPS is a major value driver, leveraging their defense-tested design for a civilian fleet upgrade. The contract, awarded in February 2021, is valued at $6 billion and allows for up to 165,000 vehicles over ten years. As of September 30, 2025, orders for 51,500 vehicles were on the books.

The financial reality of this program involves both opportunity and execution risk, which management quantifies:

The Transport segment's Q3 2025 sales growth of 8.8% was attributed, in part, to the production ramp-up of the NGDV. Still, the production ramp has taken longer and cost more than anticipated.

Diversified Portfolio

Oshkosh Corporation's structure across Access, Vocational, and Transport (formerly Defense) segments provides resilience against cyclical downturns in any single market. The company is actively managing this mix, targeting a future state where the Vocational segment's contribution to adjusted operating income is on par with the Access segment by 2028. This diversification helped cushion overall performance, even as consolidated sales for Q3 2025 were $2.69 billion, a slight 1.9% decrease year-over-year, driven by softness in Access.

Here's how the segments performed in Q3 2025 revenue growth:

The company expects full-year 2025 net sales to be approximately $10.6 billion, with adjusted earnings per share targeted around $11.00. That's a solid number to anchor your near-term view. Finance: draft 13-week cash view by Friday.

Oshkosh Corporation (OSK) - Canvas Business Model: Customer Relationships

You're looking at how Oshkosh Corporation manages its relationships with the entities that buy its purpose-built vehicles and equipment. It's a mix of deep government partnerships and supporting a broad independent dealer base.

Dedicated Contract Management: High-touch, long-term relationships with government agencies (USPS, DoD).

The relationship with the U.S. government is clearly a cornerstone, evidenced by significant, multi-year contract activity. For instance, Oshkosh Defense secured a three-year contract extension in Q2 2025 for its Family of Medium Tactical Vehicles (FMTV) program with the U.S. Army. This high-touch engagement is also seen in the Next Generation Delivery Vehicle (NGDV) program for the United States Postal Service (USPS), which saw a ramp-up in production in Q3 2025. The Defense segment continues to win large, specific orders; in early 2025, Oshkosh Defense was awarded a firm-fixed-price contract for $133,017,600 for M1093 Low Velocity Air Drop vehicles and M1081 vehicles. The Family of Heavy Tactical Vehicles (FHTV) contract, which supports the U.S. Army, has a five-year ordering period with a potential value of $1.5 billion. Oshkosh Corporation expects total net sales for 2025 to be between $10.3 billion and $10.4 billion, a significant portion of which is tied to these long-term government commitments.

Here's a snapshot of recent Defense contract activity:

The relationship is also supported by direct financial transactions related to these programs, such as the $25.0 million income recognized in Q3 2025 from a one-time license of JLTV-related intellectual property to the U.S. government.

Dealer Support Programs: Training, financing, and technical support for independent dealers.

Oshkosh Corporation supports its reach through an extensive network of sales and service centers. While specific dealer program financial metrics aren't public, the company's overall structure relies on this network to serve markets outside of direct government sales. The company employs approximately 18,500 team members worldwide to support its operations and customer base.

Key elements of the dealer/customer support focus include:

• Strong brand recognition across markets.
• Nationwide network of sales and service centers.
• Focus on product support throughout the lifecycle.

Aftermarket Service: Direct and dealer-supported maintenance and parts sales.

The commitment to serving and supporting customers throughout the product lifecycle is a stated strategy. This implies a significant aftermarket and parts business, which is critical for the long-term serviceability of specialized equipment like fire apparatus and vocational trucks. The company's 2023 consolidated backlog stood at a record $16.8 billion, indicating a large installed base requiring ongoing service and parts.

Customer-Centric Innovation: Collaborative R&D to meet specific end-user needs (e.g., fire apparatus customization).

Oshkosh Corporation innovates by combining leading technology and operational strength to empower and protect the everyday hero. This is exemplified by the focus on purpose-built vehicles, where customization is inherent, such as in the Fire & Emergency segment (which includes Pierce brand apparatus). The company's strategy involves continuous investment in research and development. The Vocational segment's success in 2024 was partly driven by acquisitions that enhanced critical technological capabilities.

Digital Engagement: Use of advanced analytics and connectivity for fleet management solutions.

The company is advancing electrification, autonomy, and AI. Early feedback on the NGDV for the USPS noted carriers using the new vehicles for daily deliveries, suggesting integrated digital fleet management is part of the offering. The company is focused on delivering technologies that support a clean, connected world. The 2028 financial targets include achieving a 12%-14% adjusted operating income margin, which suggests a focus on profitable, technology-enabled solutions.

The expected 2025 adjusted earnings per share is approximately $11.00.

Finance: draft 13-week cash view by Friday.

Oshkosh Corporation (OSK) - Canvas Business Model: Channels

Oshkosh Corporation deploys a multi-faceted channel strategy tailored to the distinct requirements of its operating segments: Defense, Access, and Vocational, plus the aftermarket business.

Direct sales to government and military customers (Oshkosh Defense, Transport segment).

Oshkosh Defense primarily utilizes direct channels for securing large, long-term contracts with the U.S. military (Army, Navy, Air Force, Marines) and international defense customers. This segment's sales performance is tied to direct government procurement cycles. For instance, in the first quarter of 2024, Oshkosh Defense sales rose by $23.8 million, or 4.6%, driven by sales of the Family of Medium Tactical Vehicles and aftermarket parts. However, in the first quarter of 2025, Defense segment sales decreased by 9.1%, largely due to lower sales of military vehicles to the U.S. Defense Department, though this was partly offset by 'next-generation vehicle' production for the Post Office. The Transport segment, which includes the Next Generation Delivery Vehicle (NGDV) program for the U.S. Postal Service, also relies heavily on direct, large-volume government fleet sales.

Independent, authorized dealer networks for JLG (Access) and Pierce (Vocational).

The Access segment, largely comprising JLG, and the Vocational segment, including Pierce, rely significantly on independent, authorized dealer networks for distribution, sales, and local support. For the Access segment, the dealer channel is critical for reaching rental companies and end-users globally. The company forecasts Access segment revenues of $4.4 billion for the full year 2025, representing a fall of 14.5% on 2024 levels. The Vocational segment, which saw sales increase by $153.8 million, or 18.9%, in the third quarter of 2025, also uses a dealer network for distributing products like fire trucks and refuse collection vehicles.

Direct sales force for large commercial fleet customers (e.g., refuse, concrete mixers).

Oshkosh Corporation maintains a direct sales force to manage relationships with very large commercial fleet customers, particularly within the Vocational segment for high-volume purchases of refuse and concrete mixer trucks. This direct approach ensures tailored solutions and contract management for major municipal or corporate accounts. The Vocational segment's sales performance in the third quarter of 2025 showed strength, with sales increasing by 18.9%.

Aftermarket parts and service distribution centers globally.

A global network of aftermarket parts and service distribution centers supports the installed base across all segments. This channel is vital for recurring revenue and customer retention. For example, higher aftermarket parts sales contributed to the revenue increase in the Oshkosh Defense segment in the first quarter of 2024. The company's acquisition of AUSA, which operates in 90 countries and has subsidiaries in locations including France, the United Kingdom, Germany, China, and the US, bolsters this global service and parts distribution footprint.

Online and digital platforms for parts ordering and technical information.

Oshkosh Corporation supports its channel partners and end-users through online and digital platforms. These systems facilitate the ordering of aftermarket parts and provide necessary technical documentation and support information. While specific revenue figures for digital parts sales are not publicly itemized, this digital infrastructure is a necessary component for efficient service and parts fulfillment across the global dealer and service network.

The following table summarizes key segment revenue context relevant to channel activity as of the latest available data:

The company's overall expected net sales for the full 2025 fiscal year are approximately $10.6 billion, with an expected adjusted earnings per share guidance of approximately $11.00.

Oshkosh Corporation (OSK) - Canvas Business Model: Customer Segments

Oshkosh Corporation serves distinct customer groups across its specialized vehicle and equipment manufacturing portfolio. You're looking at the core markets that drive the company's revenue streams as of late 2025.

Government/Defense Agencies

This group includes the U.S. military and international defense forces, primarily served through what was historically the Defense segment, which was rebranded as the Transport segment in June 2025. Sales to the U.S. government represented approximately 17% of Oshkosh Corporation's net sales in the first half of 2025. For the first quarter of 2025, Defense segment sales were $463.0 million, marking a decrease of 9.1%. Operating income for that segment in Q1 2025 plummeted 95.5% to just $0.6 million. This Q1 decline was largely due to the wind-down of the Joint Light Tactical Vehicle program. The segment's backlog, however, is supported by international Tactical Wheeled Vehicle sales.

• U.S. military and international defense forces.
• Q1 2025 Defense Sales: $463.0 million.
• Q1 2025 Defense Operating Income: $0.6 million.

United States Postal Service (USPS)

The USPS is a critical customer for the Transport segment via the Next Generation Delivery Vehicle (NGDV) program. The original Indefinite Delivery, Indefinite Quantity (IDIQ) contract allows for up to 165,000 vehicles over 10 years, initially valued at $482 million for engineering and tooling. The first order, placed in March 2022, was for 50,000 NGDVs valued at $2.98 Billion. The average per-unit cost for these NGDVs is about $59,600. By November 2025, only 2,500 vehicles had been delivered, reflecting repeated delays in the ramp-up. The NGDV production ramp-up partially offset the decline in other defense vehicle sales in Q1 2025.

• NGDV Contract Range: 50,000 to 165,000 vehicles.
• Initial Order Value: $2.98 Billion for 50,000 units.
• Deliveries by November 2025: 2,500 vehicles.

Equipment Rental Companies

These companies are the primary buyers in the Access segment, which encompasses JLG aerial work platforms and telehandlers. The Access segment faced headwinds, with Q2 2025 revenue declining 10.7% to $1.26 billion. For the first half of 2025 (six months ending June), Access segment revenues dropped around 16% to $2.21 billion. The order book, or backlog, for the Access segment was $1.2 billion at the end of Q2 2025, representing a 64% decrease year-over-year. JLG's Q3 2025 sales specifically were $1.11 billion, down 18.6%, due to lower North American sales volume and higher discounts.

Municipalities and Fire Departments

Purchasers of Pierce fire and emergency vehicles fall into the Vocational segment. This segment showed strength, with Q2 2025 revenue increasing 15.0% to $969.7 million. The segment's backlog remains robust at $6.3 billion, which is up 10% compared to the prior year. In Q1 2025, the Vocational segment saw improved pricing, which helped offset lower overall consolidated sales.

• Vocational Segment Q2 2025 Revenue: $969.7 million.
• Vocational Segment Backlog: $6.3 billion.

Commercial Fleets

Operators in refuse collection, concrete, and airport ground support are also key customers within the Vocational segment. In the first quarter of 2025, operating income for the Vocational segment increased by 47.1%, primarily driven by better sales of garbage and recycling trucks. The segment's Q2 2025 adjusted operating income margin reached 16.3%, up from 14.1% in the prior year. Overall, Oshkosh Corporation's total expected net sales for the full 2025 year were projected to be between $10.3 billion and $10.4 billion.

• Q1 2025 Vocational Operating Income Growth: 47.1%.
• Q2 2025 Vocational Margin: 16.3%.

Finance: draft 13-week cash view by Friday.

Oshkosh Corporation (OSK) - Canvas Business Model: Cost Structure

You're looking at the major drains on Oshkosh Corporation's cash flow for 2025, which is key to understanding their profitability, especially with ongoing production ramps and market headwinds.

The Cost of Goods Sold (COGS) remains inherently high because Oshkosh Corporation builds complex, purpose-built vehicles. This means significant outlay for raw materials, specialized components, and skilled labor across the Vocational, Access, and Transport segments. Honestly, managing that input cost pressure is a constant battle.

Here's a look at some key financial figures that frame the cost environment Oshkosh Corporation is operating in through the third quarter of 2025:

Capital Expenditures (CapEx) are disciplined but necessary for future capacity. For fiscal 2025, Oshkosh Corporation expected CapEx to be around $200 million. Management cited this reduction as a factor in raising the free cash flow outlook to $450 million-$550 million for the year, showing a clear focus on spending control.

Research and Development (R&D) spending is directed heavily toward future-proofing the product line. You see this investment clearly in the push for new technologies:

• Showcasing autonomous solutions for the 'Airport of the Future' at the International Airport Ground Service Equipment Expo.
• Introducing the Family of Multi-Mission Autonomous Vehicles at the AUSA Defense Conference.
• Developing zero-emission electric refuse collection vehicles, like the McNeilus Volterra ZSL, winning industry awards.

Costs associated with ramping up Next Generation Delivery Vehicle (NGDV) production are a major factor in the Transport segment. The facility in Spartanburg, South Carolina, required an estimated $155 million to retool for this production. By the third quarter of 2025, NGDV delivery revenue hit $146 million, which was about one quarter of the entire Transport segment's sales, showing the scale of the ongoing ramp. Management indicated they were ramping production throughout 2025, aiming for full production.

Tariffs and trade-related costs are definitely biting into the bottom line. Oshkosh Corporation anticipated the total cost impact from tariffs to be between $30 million and $40 million for the full year 2025. If you use the Q3 average share count of approximately 64.5 million shares, that translates to an estimated negative impact on EPS in the range of $0.47 to $0.62 per share, rather than the $\$1.00$ figure you mentioned, but it's a real, quantifiable cost headwind they are managing.

Finance: draft 13-week cash view by Friday.

Oshkosh Corporation (OSK) - Canvas Business Model: Revenue Streams

Revenue streams for Oshkosh Corporation are primarily driven by vehicle and equipment sales across its three main operating segments: Access, Vocational, and Transport. These sales represent the bulk of the top line.

The full-year 2025 net sales projection has been revised to fall between $10.3 billion and $10.4 billion. This contrasts with an earlier projection of approximately $10.6 billion. The trailing twelve months revenue, as of the quarter ending September 30, 2025, was $10.33B.

The company relies on substantial, long-term government contracts, a key component of the Transport segment's revenue stability. The Next Generation Delivery Vehicle (NGDV) contract with the U.S. Postal Service (USPS) is valued at $6 billion over 10 years, allowing for up to 165,000 units. As of September 30, 2025, orders for 51,500 vehicles were secured under this program, with the initial order being for 50,000 NGDVs valued at $2.98 Billion. Government exposure generally represented approximately 20% of 2024 net sales.

The company also generates revenue from high-margin, recurring sources, specifically aftermarket parts, service, and maintenance for its extensive installed base of equipment.

The 2025 forecast by segment, based on mid-year guidance, provides a clearer picture of the expected sales mix:

The Access segment, which includes aerial work platforms, experienced headwinds, with Q3 2025 revenue dropping 19% to $1.11 billion. Conversely, the Vocational segment showed strength, with Q3 2025 revenue rising 19% to $968 million. The Transport segment grew 9% to $588 million in Q3 2025, aided by the NGDV ramp-up.

The financial structure of the government business carries specific sensitivities, for instance, deferred contract costs exceeded future profits on existing USPS orders by approximately $165 million as of September 30, 2025. Furthermore, management estimated tariffs would have a direct adverse impact of $30-$40 million in 2025.

The streams are diversified across these product categories:

• Vehicle sales across Access, Vocational, and Transport segments.
• Revenue from the NGDV program, with 51,500 units ordered as of late Q3 2025.
• Sales of military vehicles and sustainment contracts.
• Recurring revenue from parts, service, and maintenance.