Oshkosh Corp.

In the Access Equipment segment, we continue to anticipate softer demand from rental customers in the first half of 2021. However, we anticipate potential end market recovery in the second half of the year, supported by strong replacement demand. The average age for North American aerial work platform rental fleet is 55 months, nearing the typical product lifecycle of seven to nine years. While Oshkosh's equipment rental customers have flexibility to age their fleets in a downturn, we believe this only lasts so long. This bodes well for the Access Equipment segment which should be able to capitalize on this trend once utilization rates normalize. We believe the Fire&Emergency segment will remain stable; however, we acknowledge this segment

...Despite sequential improvement, S&P Global Ratings believes Oshkosh Corp. will continue to experience pressure in key end markets. The company ended fiscal 2020 (Sept. 30, 2020) with a total sales decline of 18.2%, primarily driven by significantly lower demand in its Access Equipment segment. Access Equipment was down over 60% in the third quarter of 2020 vs. prior year, as a result of the economic fallout from the global pandemic. While demand remains under pressure in Access Equipment, all of Oshkosh's segments improved sequentially in its fiscal fourth quarter as local governments began to ease shelter-in-place orders and delayed construction projects resumed. We expect continued improvement in 2021; however, all segments will likely see softer demand in the first half of the fiscal year as case rates remain elevated across the United States. With recent developments in the COVID-19 vaccine, an economic rebound should enable growth for Oshkosh during the second half of 2021, partially...

Full Report