JLG, Hinowa and Ausa, that together make up the Oshkosh 'Access Segment', have posted a steep fall in profits and a more modest decline in revenues for the first quarter.
Total Revenues
Total revenues for the three months to the end of March slipped 1.4 percent to $943.4 million, due to lower sales, which were partly offset by currency gains.
The revenues were made up as follows: Aerial work platforms - $431 million -4.3% Telehandlers - $208.2 million -14.8% Other revenues - $304.2 million +16.2% Total - $943.4 million -1.4%
was in the region of $1.5 billion, pushing the Order book/backlog at the end of March to $1.84 billion, up 44 percent on the start of the year, but only very slightly higher than at the end of the first quarter of 2025.
Operating profit plunged 66.3 percent to $34.7 million, following a similar drop this time last year. This was due, the company says, to a combination of lower sales volumes,” adverse sales mix and adverse price/cost dynamics”.
Oshkosh
Oshkosh revenues were flat, but up half a percentage point on last year, while pre-tax profit slumped 62 percent to $54.7 million following a similar decline this time last year. Due to lower margins in the access division, which makes up more than 40 percent of total revenues.
Chief executive John Pfeifer said“We delivered first quarter adjusted earnings per share of $0.85 reflecting lower results in our Access and Vocational segments compared with last year, While fire truck production improved year over year, deliveries were below our expectations, driven in part by weather- and travel related disruptions.”
"In Access, lower results reflected adverse sales mix and unfavourable price-cost dynamics. We saw strong order activity and solid demand in the segment, supported by mega projects, including data centre related construction. Our Transport segment performed in line with our expectations as we continue to ramp NGDV production and execute on our defence portfolio.”
“Importantly, demand across our segments remains solid and we have good visibility for the remainder of the year. We are maintaining our full-year expectations of adjusted earnings per share in the range of $11.50”
Vertikal Comment
This is not a great performance from JLG, although, ‘reading between the lines’, the European operations, including Hinowa and Ausa, may have done quite well? This is the second year in a row where operating profit has taken a dive, while revenues stagnate.
The order intake/backlog looks good, but is similar to a typical first quarter. One positive is that it reflects an average lead time of more than five months, which is nice to have, but can play into the hands of competitors. Another truly positive factor is the jump in ‘Other’ revenues, which includes replacement parts, services and sales of used equipment, etc... and usually carry higher margins. During the quarter, JLG launched a new parts sales platform – All Fleet Parts, to provide parts for competitors' machines as well as its own. However, it is unlikely to have had much of an impact on these numbers.
It will be interesting to see how the year pans out.
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