Mike Shlisky

Mike Shlisky inquired about the significant decline in Access segment telehandler sales, asking for deeper insight into its drivers compared to core aerials. He also asked about any observed impact of the federal government shutdown on Pierce's fire truck business, particularly regarding firefighter assistance grants.

Answer

CEO John Pfeifer attributed the telehandler sales decline primarily to the conclusion of a long-term agreement with CAT, noting that JLG telehandlers are performing well. He emphasized the Access segment's resilience with healthy double-digit margins despite a nearly 19% revenue drop. CFO Matt Field stated no material impact from the federal government shutdown on Pierce in the near term, but noted potential effects if it extends significantly.

Mike Shlisky asked about the significant decline in telehandler sales within the Access segment and the impact of a potential federal government shutdown on the Pierce fire truck business.

Answer

John Pfeifer, President and CEO, attributed the telehandler sales decline to the conclusion of a long-term agreement with CAT, not a loss of JLG telehandler share, and emphasized resilient double-digit margins despite overall Access revenue decline. Matt Field, EVP and CFO, stated no material near-term impact from a federal shutdown on Pierce, but noted potential effects on direct government contracts if prolonged.

Inquired about the impact of tariff concerns on customer order timing and the basis for the optimistic second-half outlook for the parcel vehicle business.

Answer

The company stated they have not seen customer orders being pulled forward due to tariff concerns. The positive outlook for the second half is based on an observed increase in quoting activity from parcel customers, and these quotes include delivery timing.

Inquired about the comparative growth outlook for Aebi Schmidt, the sustainability of the high FVS margins achieved in Q4, and the company's strategy for managing potential aluminum tariffs.

Answer

Executives believe the Aebi Schmidt merger will accelerate infrastructure-related growth but declined to give specific comparative forecasts. They affirmed that the low double-digit FVS margins are sustainable due to operational efficiencies. Regarding tariffs, the company has a mitigation strategy involving supply chain diversification and potential price increases.

Inquired about the Specialty Vehicles (SV) segment's order softness despite high chassis production, the long-term (2026) EBITDA outlook for Blue Arc, and the recent performance and mix of non-Blue Arc EV upfits in the FVS segment.

Answer

The company is seeing a slight, temporary softening in SV service body demand, with slightly elevated dealer inventories, but remains confident for 2025. The 2026 Blue Arc outlook is dependent on customers building out their charging infrastructure, which is currently gating adoption. The mix of non-Blue Arc EV upfits is currently flat, holding market share and trending toward similar volumes as last year (around 3,000 units).

Inquired about potential one-time costs related to the ITU acquisition, whether ITU opens doors to new chassis providers, and the expected timing for a recovery in the motorhome business.

Answer

No material one-time integration costs are expected for the ITU acquisition. The deal provides capabilities for larger vehicles and customization but not necessarily up to Class 8. The motorhome business is expected to remain soft through 2024, with a potential recovery in 2025.