OSHKOSH CORP

Previous wording

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Quarterly Report on Form 10-Q contain 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 included in this Quarterly Report on Form 10-Q, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, including those under the caption “Overview,” are forward-looking statements. When used in this Quarterly Report on Form 10-Q, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company’s access equipment, fire apparatus, refuse and recycling collection and air transportation equipment markets, which are particularly impacted by the strength of U.S. and European economies and construction outlooks; the Company’s estimates of access equipment demand which, among other factors, is influenced by historical customer buying patterns and rental company fleet replacement strategies; the Company's ability to predict the level and timing of orders and costs on the U.S. Postal Service contract; the Company's ability to increase production rates in its municipal fire apparatus and delivery businesses; risks that trade wars and related tariffs could further reduce demand for or competitiveness of the Company’s products or cause inefficiencies in the Company's supply chain; the Company’s ability to increase prices to raise margins or to offset higher input costs; the Company's ability to achieve its projected material and manufacturing efficiency savings; the Company's ability to accurately predict future input costs associated with U.S. Department of Defense contracts; the Company’s ability to attract and retain production labor in a timely manner; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and the cost of purchased materials; the impact of severe weather, war, natural disasters or pandemics that may affect the Company, its suppliers or its customers; budget uncertainty for the U.S. federal government, including risks of future budget cuts, the impact of continuing resolution funding mechanism…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Quarterly Report on Form 10-Q contain 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 included in this Quarterly Report on Form 10-Q, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, including those under the caption “Overview,” are forward‑looking statements. When used in this Quarterly Report on Form 10-Q, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors includethe cyclical nature of the Company’s access equipment, fire apparatus, refuse and recycling collection vehicle and air transportation equipment markets, which are particularly impacted by the strength of U.S. and European economies and construction outlooks; the Company’s estimates of access equipment demand which, among other factors, is influenced by historical customer buying patterns and rental company fleet replacement strategies; the Company's ability to predict the level and timing of orders and costs on the U.S. Postal Service contract; the Company's ability to increase production rates in its municipal fire apparatus and delivery vehicle businesses; risks that trade wars and related tariffs could further reduce demand for or competitiveness of the Company’s products or cause inefficiencies in the Company's supply chain; the Company’s ability to increase prices to raise margins or to offset higher input costs; the Company's ability to achieve its projected material and manufacturing efficiency savings; the Company's ability to accurately predict future input costs associated with U.S. Department of Defense contracts; the Company’s ability to attract and retain production labor in a timely manner; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and the cost of purchased materials; the impact of severe weather, war, natural disasters or pandemics that may affect the Company, its suppliers or its customers; budget uncertainty for the U.S. federal government, including risks of future budget cuts, the impact of continuing resolution fu…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Vocational — custom and commercial firefighting vehicles and equipment sold to municipal fire departments; aviation ground support products, gate equipment and airport services sold to commercial airlines, airports, air-freight carriers, ground handling customers and the military; aircraft rescue and firefighting (ARFF) vehicles sold to airports and the U.S. military; refuse and recycling collection vehicles sold to commercial and municipal waste haulers; field service vehicles and truck-mounted cranes sold to mining, construction and equipment rental companies; simulators, mobile command vehicles and other emergency vehicles sold to fire departments and other governmental units; and front-discharge concrete mixers sold to ready-mix companies.

Current wording

Vocational — custom and commercial fire apparatus and equipment sold to municipal fire departments; aviation ground support products, gate equipment and airport services sold to commercial airlines, airports, air-freight carriers, ground handling customers and the military; aircraft rescue and firefighting (ARFF) vehicles sold to airports and the U.S. military; refuse and recycling collection vehicles sold to commercial and municipal waste haulers; field service vehicles and truck‑mounted cranes sold to mining, construction and equipment rental companies; simulators, mobile command vehicles and other emergency vehicles sold to fire departments and other governmental units; and front-discharge concrete mixers sold to ready-mix companies.

Previous wording

Consolidated sales in the second quarter of 2026 of $2.92 billion increased $183 million, or 6.7%, compared to the second quarter of 2025. The increase was primarily the result of higher sales volume, largely in the Access segment, and improved pricing. Consolidated operating income in the second quarter of 2026 was $243 million, or 8.3% of sales, compared to $292 million, or 10.7% of sales, in the second quarter of 2025. The decrease in consolidated operating income was primarily the result of unfavorable sales mix and higher manufacturing overhead costs, offset in part by the impact of higher gross margin associated with higher sales volume.

Current wording

Consolidated operating income in the third quarter of 2026 was $197 million, or 6.9% of sales, compared to $260 million, or 9.7% of sales, in the third quarter of 2025. The decrease in consolidated operating income was primarily the result of unfavorable sales mix and higher selling, general and administrative expenses, offset in part by the impact of higher gross margin associated with higher sales volume and improved price/cost dynamics.

Previous wording

The Company continued to repurchase shares of its Common Stock, repurchasing 667,158 shares during the second quarter of 2026 for $92 million, bringing share repurchases for the first six months of 2026 to $139 million. Share repurchases during the previous twelve months benefited earnings per share during the second quarter of 2026 by $0.09 compared to the second quarter of 2025.

Current wording

The Company continued to repurchase shares of its Common Stock, repurchasing 556,138 shares during the third quarter of 2026 for $82 million, bringing share repurchases for the first nine months of 2026 to $221 million. Share repurchases during the previous twelve months benefited earnings per share during the third quarter of 2026 by $0.08 compared to the third quarter of 2025.

Previous wording

The Company now expects its 2026 diluted earnings per share to be in the range of $10.50 on net sales of approximately $11.2 billion, compared to the Company's most recent estimates of diluted earnings per share of $10.90 on sales of $11.0 billion. The updated guidance primarily reflects a more gradual increase in the rate of municipal fire apparatus production. The earnings per share estimate includes after-tax charges of $0.72 per share related to amortization of purchased intangible assets and a $0.22 per share benefit relating to the expiration of a foreign anti-hybrid tax matter. Excluding these items, the Company now expects 2026 adjusted earnings per share to be in the range of $11.00.

Current wording

The earnings per share estimate includes after-tax charges of $0.70 per share related to amortization of purchased intangible assets and $0.07 per share related to a reserve on a note receivable associated with a prior divestiture, partially offset by a $0.27 per share benefit resulting from the expiration of a foreign anti-hybrid tax matter. Excluding these items, the Company now expects 2026 adjusted earnings per share to be between $8.50 and $9.50.

Previous wording

The decrease in consolidated gross margin was primarily due to unfavorable sales mix (200 basis points), higher material costs (170 basis points), primarily related to higher tariff costs, and higher manufacturing overhead costs (80 basis points), offset in part by improved pricing (170 basis points).

Current wording

The decrease in consolidated gross margin was primarily due to adverse sales mix (240 basis points) and higher material costs (210 basis points), including higher tariff and freight costs, offset in part by improved pricing (190 basis points) and lower warranty costs (40 basis points).

Previous wording

The decrease in consolidated gross margin was primarily due to adverse sales mix (200 basis points), increased material costs (160 basis points), primarily related to higher tariff costs, and higher manufacturing overhead (100 basis points), offset in part by improved pricing (150 basis points).

Current wording

The decrease in consolidated gross margin was primarily due to adverse sales mix (200 basis points), increased material costs (140 basis points), including higher tariff and freight costs, and higher manufacturing overhead costs (80 basis points), offset in part by improved pricing (160 basis points).

Previous wording

The increase in consolidated selling, general and administrative expenses was primarily the result of higher employee compensation ($7 million) and increased legal and professional fees ($4 million).

Current wording

The increase in consolidated selling, general and administrative expenses was primarily the result of higher employee compensation ($29 million), increased bad debt expense ($10 million), which primarily related to the reserve on the note receivable associated with a prior divestiture, and increased legal and professional fees ($7 million).

Previous wording

The decrease in consolidated operating income was primarily due to adverse sales mix ($99 million), increased material costs ($93 million) and higher manufacturing overhead ($50 million), offset in part by improved pricing ($105 million).

Current wording

The decrease in consolidated operating income was primarily due to adverse sales mix ($164 million), increased material costs ($146 million), higher manufacturing overhead costs ($62 million) and higher selling, general and administrative expenses ($47 million), offset in part by improved pricing ($174 million) and the impact of higher gross income associated with higher sales volume ($36 million).

Previous wording

Miscellaneous, net primarily relates to gains and losses on investments, foreign currency transaction gains and losses and non-service costs of the Company’s pension plans. Results for the second quarter of 2026 included foreign currency transaction gains of $1 million. Results for the second quarter of 2025 included a $6 million gain on an investment, partially offset by foreign currency transaction losses of $2 million.

Current wording

Miscellaneous, net primarily relates to gains and losses on investments, foreign currency transaction gains and losses and non-service costs of the Company’s pension plans. Results for the third quarter of 2026 included an indemnification recovery of $5 million arising from the original purchase of a federal income tax credit upon the recapture of the credit in the quarter and income related to the non-service portion of the Company's pension plans of $2 million. Results for the third quarter of 2025 included unrealized gains related to investments of $3 million and income related to the non-service portion of the Company's pension plans of $2 million.

Previous wording

The Company's effective tax rate in the second quarter of 2026 included net discrete tax benefits of $16 million, primarily related to the expiration of the statute of limitations for a foreign anti-hybrid tax matter.

Current wording

The effective tax rate in the third quarter of 2026 included a net discrete tax charge of $1 million, including a $5 million charge related to the recapture in the quarter of the purchased federal income tax credit, offset in part by a $4 million benefit related to the expiration of the statute of limitations for a foreign anti-hybrid tax matter. The effective tax rate in the third quarter of 2025 included net discrete tax benefits of $22 million, including $19 million related to the release of uncertain tax positions on the resolution of a multi-year federal income tax audit.

Previous wording

Miscellaneous, net primarily relates to gains and losses on investments, foreign currency transaction gains and losses and non-service costs of the Company’s pension plans. Results for the first six months of 2026 included foreign currency transaction gains of $1 million and a $4 million loss on investments. Results for the first six months of 2025 included a $4 million gain on an investment and foreign currency transaction losses of $1 million.

Current wording

Miscellaneous, net primarily relates to gains and losses on investments, foreign currency transaction gains and losses and non‑service costs of the Company’s pension plans. Results for the first nine months of 2026 included income related to the non-service portion of the Company's pension plans of $6 million and the federal income tax credit indemnification recovery of $5 million, partially offset by a $5 million unrealized loss on investments. Results for the first nine months of 2025 included unrealized gains related to investments of $7 million and income related to the non-service portion of the Company's pension plans of $5 million.

Previous wording

Access segment net sales increased primarily as a result of higher sales volume ($58 million), favorable currency impacts ($24 million) and improved pricing ($22 million).

Current wording

Access segment net sales increased primarily as a result of higher sales volume in North America ($253 million), improved pricing ($54 million) and favorable currency impacts ($23 million).

Previous wording

The decrease in gross margin in the Access segment was primarily due to higher material costs (230 basis points), primarily related to higher tariff costs, and adverse sales mix (210 basis points), offset in part by improved pricing (110 basis points).

Current wording

The decrease in gross margin in the Access segment was primarily due to higher material costs (230 basis points), including higher tariff and freight costs, and adverse customer and product sales mix (200 basis points), offset in part by improved pricing (110 basis points).

Previous wording

The decrease in operating income in the Vocational segment was primarily due to adverse sales mix ($22 million), higher manufacturing overhead costs ($21 million), higher material costs ($19 million) and the impact of lower gross margin associated with lower sales volume ($15 million), offset in part by improved pricing ($42 million) and lower incentive compensation accruals ($11 million).

Current wording

The decrease in operating income in the Vocational segment was primarily due to the impact of lower gross income associated with lower sales volume ($30 million), higher material costs ($24 million), higher selling, general and administrative expenses ($15 million) and overhead costs related to the Company's municipal fire apparatus production initiatives ($11 million), offset in part by improved pricing ($30 million).

Previous wording

The decrease in operating income in the Vocational segment was primarily a result of higher manufacturing overhead ($44 million), the impact of lower gross margin associated with lower sales volume ($37 million), higher material costs ($33 million) and adverse sales mix ($26 million), offset in part by improved pricing ($75 million) and lower incentive compensation accruals ($14 million).

Current wording

The decrease in operating income in the Vocational segment was primarily a result of the impact of lower gross income associated with lower sales volume ($64 million), higher material costs ($55 million), overhead costs related to the Company's municipal fire apparatus production initiatives ($32 million), adverse sales mix ($30 million), higher selling, general and administrative expenses ($22 million) and higher manufacturing overhead costs ($16 million), offset in part by improved pricing ($98 million).

Previous wording

Transport segment net sales increased due to higher NGDV sales volume ($133 million) offset in part by lower Defense sales volume ($99 million).

Current wording

Transport segment net sales increased due to higher NGDV sales volume ($431 million) and improved pricing as the Company transitions to newer contracts with more favorable pricing ($22 million), offset in part by lower defense sales volume ($379 million).

Previous wording

The decrease in gross margin in the Transport segment was primarily due to adverse sales mix (250 basis points), higher warranty expense associated with a defense vehicle program (60 basis points) and higher manufacturing overhead (50 basis points), partially offset by lower unfavorable cumulative catch-up adjustments on contracts (180 basis points) and the impact of the NGDV aftermarket rights performance obligation (130 basis points).

Current wording

The decrease in gross margin in the Transport segment was primarily due to adverse product sales mix (150 basis points), reflecting a lower mix of defense vehicles, and higher manufacturing overhead (130 basis points), driven by increased training and workforce transition costs as well as lower absorption of fixed costs as a result of lower production and the absence of the JLTV license (130 basis points), partially offset by lower unfavorable cumulative catch-up adjustments on contracts (110 basis points) and improved pricing (110 basis points).

Previous wording

The increase in operating income in the Transport segment was primarily a result of lower unfavorable cumulative catch-up adjustments on contracts (17 million), the impact of the NGDV aftermarket rights performance obligation ($17 million) and the impact of higher gross margin associated with higher sales volume ($11 million), offset in part by adverse sales mix ($27 million), increased warranty expenses ($7 million) and higher manufacturing overhead ($6 million).

Current wording

The decrease in operating income in the Transport segment was primarily due to adverse product sales mix ($25 million), the absence of the JLTV license ($25 million) and higher manufacturing overhead costs ($22 million), offset in part by improved pricing ($22 million), lower unfavorable cumulative catch-up adjustments on contracts ($18 million) and the impact of higher gross income associated with higher sales volume ($13 million).

Previous wording

Net operating costs for corporate and other decreased primarily due to the non-recurrence of the intangible asset impairment ($6 million) and improved operating results at Pratt Miller ($6 million).

Current wording

Net operating costs for corporate and other decreased primarily due to improved operating results at Pratt Miller ($7 million) and the non-recurrence of an intangible asset impairment ($6 million), partially offset by the timing of healthcare charges between Corporate and the segments ($11 million).

Previous wording

The Company generates significant capital resources from operating activities, which is the expected primary source of funding for the Company. In addition to cash generated from operations, the Company had other sources of liquidity available at June 30, 2026, including $403.6 million of cash and cash equivalents and $1.58 billion of unused available capacity under the Revolving Credit Facility (as defined in "Liquidity"). Borrowings under the Revolving Credit Facility could, as discussed below, be limited by the financial covenants contained in the Credit Agreement (as defined in “Liquidity”). The Company was in compliance as of June 30, 2026 and expects to remain in compliance with the financial covenants contained in the Credit Agreement.

Current wording

The Company generates significant capital resources from operating activities, which is the expected primary source of funding for the Company. In addition to cash generated from operations, the Company had other sources of liquidity available at September 30, 2026, including $558.0 million of cash and cash equivalents and $1.58 billion of unused available capacity under the Revolving Credit Facility (as defined in "Liquidity"). Borrowings under the Revolving Credit Facility could, as discussed below, be limited by the financial covenants contained in the Credit Agreement (as defined in “Liquidity”). The Company was in compliance as of September 30, 2026 and expects to remain in compliance with the financial covenants contained in the Credit Agreement.

Previous wording

The Company’s ratio of debt to total capitalization of 19.6% at June 30, 2026 remained within its targeted range.

Current wording

The Company’s ratio of debt to total capitalization of 19.5% at September 30, 2026 remained within its targeted range.

Previous wording

Consolidated days sales outstanding (defined as “Trade Receivables” at quarter end divided by “Net Sales” for the most recent quarter multiplied by 90 days) increased from 43 days at December 31, 2025 to 48 days at June 30, 2026. Days sales outstanding for segments other than the Transport segment increased from 51 days at December 31, 2025 to 53 days at June 30, 2026 primarily due to the timing of sales in the Vocational segment. Consolidated inventory turns (defined as “Cost of Sales” on an annualized basis, divided by the average “Inventory” at the past five quarter end periods) increased from 3.6 times at December 31, 2025 to 3.7 times at June 30, 2026. Consolidated days payable outstanding (defined as “Accounts Payable” at quarter end divided by material costs of sales for the most recent quarter multiplied by 90 days) decreased from 65 days at December 31, 2025 to 53 days at June 30, 2026 primarily due to more timely invoice processing.

Current wording

Consolidated days sales outstanding (defined as “Trade Receivables” at quarter end divided by “Net Sales” for the most recent quarter multiplied by 90 days) increased from 43 days at December 31, 2025 to 48 days at September 30, 2026. Days sales outstanding for segments other than the Transport segment increased from 51 days at December 31, 2025 to 56 days at September 30, 2026 primarily due to the mix of segment sales. Consolidated inventory turns (defined as “Cost of Sales” on an annualized basis, divided by the average “Inventory” at the past five quarter end periods) increased from 3.6 times at December 31, 2025 to 3.8 times at September 30, 2026 due to better inventory management in the Access segment. Consolidated days payable outstanding (defined as “Accounts Payable” at quarter end divided by material costs of sales for the most recent quarter multiplied by 90 days) decreased from 65 days at December 31, 2025 to 58 days at September 30, 2026 primarily due to more timely invoice processing outside of the year-end holidays.

Previous wording

Operating activities provided cash of $213.3 million in the first six months of 2026 compared to using $305.7 million during the first six months of 2025. The improvement in operating cash flow reflected more disciplined working capital management related to lower inventory levels and higher customer advances. The Company continues to expect cash flow from operations to be between $750 million and $850 million in 2026.

Current wording

Operating activities provided cash of $533.2 million in the first nine months of 2026 compared to $183.3 million during the first nine months of 2025. The improvement in operating cash flow reflected more disciplined working capital management related to lower inventory levels and higher customer advances. The Company now expects cash flow from operations to be between $780 million and $880 million in 2026.

Previous wording

Investing activities used cash of $42.1 million in the first six months of 2026 compared to using $99.1 million during the first six months of 2025. Through the first six months of 2026, the Company used $54.8 million for capital expenditures, a decrease of $26.1 million compared to the first six months of 2025. The Company continues to expect that it will invest $200 million on capital expenditures in 2026.

Current wording

Investing activities used cash of $80.0 million in the first nine months of 2026 compared to $136.3 million during the first nine months of 2025. Investing cash flows included higher proceeds from the sale of equipment held for rental, which increased by $40.4 million compared to the first nine months of 2025. Through the first nine months of 2026, the Company used $100.0 million for capital expenditures, a decrease of $5.6 million compared to the first nine months of 2025. The Company expects that it will invest $180 million on capital expenditures in 2026.

Previous wording

Financing activities used cash of $245.6 million in the first six months of 2026 compared to providing cash of $379.4 million during the first six months of 2025 primarily due to lower net borrowings and higher repurchases of common stock. In March 2025, to provide additional liquidity, the Company entered into a credit agreement with various lenders to borrow funds under a $500 million unsecured term loan. In the first six months of 2026, the Company repurchased 970,750 shares of its Common Stock at an aggregate cost of $138.9 million. As of June 30, 2026, the Company had approximately 7.0 million shares of Common Stock remaining under its repurchase authorization. In the first six months of 2025, the Company repurchased 702,307 shares of its Common Stock at an aggregate cost of $68.7 million.

Current wording

Financing activities used cash of $371.9 million in the first nine months of 2026 compared to $51.6 million during the first nine months of 2025. In March 2025, to provide additional liquidity, the Company entered into a credit agreement with various lenders to borrow funds under a $500 million unsecured term loan. In the first nine months of 2026, the Company repurchased 1,526,888 shares of its Common Stock at an aggregate cost of $221.3 million. As of September 30, 2026, the Company had approximately 6.4 million shares of Common Stock remaining under its repurchase authorization. In the first nine months of 2025, the Company repurchased 1,368,666 shares of its Common Stock at an aggregate cost of $159.3 million.

Previous wording

On March 16, 2026, the Company entered into a Fourth Amended and Restated Credit Agreement with various lenders (the “Credit Agreement”). The Credit Agreement provides for an unsecured revolving credit facility (the “Revolving Credit Facility”) with a maximum aggregate availability of $1.60 billion that matures in March 2031. At June 30, 2026, there were no borrowings under the Revolving Credit Facility and specified outstanding letters of credit of $15.9 million reduced available capacity under the Revolving Credit Facility to $1.58 billion.

Current wording

with a maximum aggregate availability of $1.60 billion that matures in March 2031. At September 30, 2026, there were no borrowings under the Revolving Credit Facility and specified outstanding letters of credit of $17.3 million reduced available capacity under the Revolving Credit Facility to $1.58 billion.

Previous wording

Sales to the U.S. government comprised approximately 21% of the Company’s net sales in the first six months of 2026. No other single customer accounted for more than 10% of the Company’s net sales for this period. A substantial majority of the Company’s net sales are derived from the fulfillment of customer orders that are received prior to commencing production.

Current wording

Sales to the U.S. government comprised approximately 13% of the Company’s net sales in the first nine months of 2026. No other single customer accounted for more than 10% of the Company’s net sales for this period. A substantial majority of the Company’s net sales are derived from the fulfillment of customer orders that are received prior to commencing production.

Previous wording

The Company’s backlog at June 30, 2026 increased 3.7% to $14.75 billion compared to $14.23 billion at June 30, 2025. Access segment backlog increased 64.7% to $1.96 billion at June 30, 2026 compared to $1.19 billion at June 30, 2025 as the Company believes it is seeing a stronger construction equipment market driven by growth in data centers and megaprojects. Vocational segment backlog increased 5.6% to $6.62 billion at June 30, 2026 compared to $6.27 billion at June 30, 2025 due to continued growth in the municipal fire apparatus backlog and robust demand for airport products. Unit backlog for municipal fire apparatus as of June 30, 2026 was up 2.8% compared to June 30, 2025. Unit backlog for refuse and recycling collection vehicles as of June 30, 2026 was down 29.5% compared to June 30, 2025, which the Company believes is due to its customers being cautious in an uncertain macroeconomic environment. Transport segment backlog decreased 9.8% to $6.05 billion at June 30, 2026 compared to $6.71 billion at June 30, 2025, primarily reflecting NGDV production.

Current wording

The Company’s backlog at September 30, 2026 increased 10.6% to $15.1 billion compared to $13.7 billion at September 30, 2025. Access segment backlog increased 268.2% to $2.7 billion at September 30, 2026 compared to $721 million at September 30, 2025 due in part to the receipt of 2027 orders from select national rental companies, which the Company believes is coming from strong demand for construction equipment to support data centers and megaprojects. Vocational segment backlog increased 5.3% to $6.7 billion at September 30, 2026 compared to $6.4 billion at September 30, 2025 due to improved demand for airport products. Unit backlog for municipal fire apparatus as of September 30, 2026 was down 0.7% compared to September 30, 2025. Unit backlog for refuse and recycling collection vehicles as of September 30, 2026 was down 10.3% compared to September 30, 2025. Transport segment backlog decreased 12.8% to $5.6 billion at September 30, 2026 compared to $6.5 billion at September 30, 2025, primarily reflecting NGDV production.

Previous wording

Backlog represents the dollar amount of revenues that the Company anticipates from customer contracts that have been awarded and/or are in progress. Reported backlog includes the original contract amount and any contract modifications that have been agreed upon. Reported backlog excludes purchase options, orders for which definitive contracts have not been executed and any potential future contract modifications. Backlog is comprised of fixed and variable priced contracts that may be canceled, modified or otherwise changed in the future. As a result, backlog may not be indicative of future operating results. Backlog information and comparisons thereof as of different dates may not be accurate indicators of future sales. Approximately 67% of the Company’s June 30, 2026 backlog is not expected to be filled in 2026.

Current wording

Backlog represents the dollar amount of revenues that the Company anticipates from customer contracts that have been awarded. Reported backlog includes the original contract amount and any contract modifications that have been agreed upon. Reported backlog excludes purchase options, orders for which definitive contracts have not been executed and any potential future contract modifications. Backlog is comprised of fixed and variable priced contracts that may be canceled, modified or otherwise changed in the future. As a result, backlog may not be indicative of future operating results. Backlog information and comparisons thereof as of different dates may not be accurate indicators of future sales. Approximately 84% of the Company’s September 30, 2026 backlog is not expected to be filled in 2026.