Oshkosh Corp (OSK) February 18, 2026 Conference Transcript

I'm Kyle Mangus, our U.S. machinery analyst here at Citi, joined by the Oshkosh team, Matt Field, CFO, and Pat Davidson, IR. I think it would be good just to get some quick overview, just how your portfolio has evolved over time, more balanced now between access, vocational, and transport. Maybe that's a good place to start, just high-level overview of the portfolio and the evolution.

Yeah, thank you for having us today. So really, Oshkosh, for those who are not aware of Oshkosh Corporation, global industrial technology company, about 2026 guide was about $11 billion in revenue. We go to market in three different segments. Access segment, which is construction equipment. To put the relative size of these segments, I'll use our 2026 guidance to put these in relative perspective. That segment's a little over $4 billion, $4.2 billion. It's a lot of equipment that moves people to heights to do jobs. Then we have our vocational segment, which is, you're flipping those slides, great. It's equipment that services our neighborhoods, largely fire trucks, refuse equipment, front-loading mixers, and airport products. For 2026, that's also a $4.2 billion segment. And then lastly is our transport segment, used to be called our defense segment. It's constituted of defense vehicles, tactical wheeled vehicles, as well as the next generation postal delivery vehicle, which hopefully some of you have seen in your neighborhoods. It's there in the upper left, I guess, as you're looking at the screen. And that segment is our smallest, but still $2.5 billion as we've got it for 2026. So really, three growing legs of the stool. Historically, we've been, if you look at our revenue and operating income mix, we've been very heavily skewed towards access historically and what we've been explaining to a lot of investors and we really talked a lot about our investor day was a the growth in vocational and how that business has really come into its own both with the acquisition of airport products in 2023 but also the growth in vocational products to become a really solid second leg of the stool but then the transformation of the transportation transport division and how some new contracts contracts with the Department of Defense, Department of War, and the delivery contract really will transform that margin from what we guided this year to a 4% margin. Last year was 3.7% to a 10% margin in 2028. So a really strong, stable portfolio of products.

That's a great overview. And Matt, you've, I think, been in the seat of about a year now, Would be great just to hear your high-level thoughts on what stood out so far during your time at Oshkosh and what excites you looking ahead.

Yeah, that's a great question. So when I joined Oshkosh, I knew about the quality products. And when you build commercial products, they're such a fantastic business to be in because your customers rely on you to get their job done and to run their business, to be safe, to be productive, all those things. And that's a relationship built over decades, built over trust and reliability and all those things that make your tool to be effective important. And incredibly strong on those and incredibly long history. And so I was really pleased with that background. What I didn't fully appreciate, and I think you see in the CES booth, certainly last year, this year, is the technology component that moves this business forward. And what people often see is the electrification of whether that's postal vehicle, refuse vehicle, or some of the fire apparatus. But what they don't often think of is how connectivity, how robotics, how autonomy, how AI comes to play in helping people be more productive. And that's really where I think our opportunity to grow, differentiate stands, and why RCS display won a number of awards, but also had things like longer dwell times than other people. Because people see these products in their neighborhoods, they don't necessarily think of Oshkosh, but they know a fire truck, they know a refuse truck. And then when they see technology coming to those, automating those jobs or transforming how the work gets done, they can envision it in their own personal lives. And that's really exciting.

You mentioned the technology. Maybe to the untrained eye, it could seem like a disparate portfolio, but how would you say Oshkosh really leverages technology across the portfolio?

Yeah. So if you think about the technology stack historically, for us, it was a hardware stack. So we often used to talk about the TAC4 suspension. Actually, let's stick with that one for just a second. Great. So we do this as kind of how we fit into a neighborhood. So we used to talk about the TAC4 suspension. It was a heavy-duty, all-wheel-drive, go-over-anything suspension developed for military application. So a little military pool over there. Then they took it and put it on fire trucks because they recognized fire trucks needed to be just as durable, just as robust. And it evolved, and then upgrades were moved back to defense. So we had that sort of hardware transfer across the industries. And that even went into the ascendant aerial ladder where we were able to lightweight using light-weighting steel. But where technology is going is it's really in autonomy, robotics, AI, sensing cameras, perception, all those things. Well, to be able to scale that technology, there's no one business that can do it alone. And so it's great to have a portfolio of applications you can take this through. And I'll give you an example, and now you can go to the next, the future of. We often talk about airport of the future, job set of the future, neighborhood of the future. We have a technology we had at CES that is a robot. And we talk about airport robots. So a lot of times when you go to an airport, when you land, you'll see people out there with the little beacons and stuff. Those people are guiding the plane. And if there's a lot of lightning, they can't be out there. You can't dock your plane. so what we were demonstrating was a robot that could be on tarmac doing many of those jobs and then we had a little theater experience where you saw all that come together with an autonomous jet dock technology for what we call the perfect turn which is much more efficient but that technology in that one robot actually came out of a defense application that's in market today and it was the same technology platform that we used to trial some autonomous refuse technology which we had last year we had a new development and so really looking at how do we develop one autonomy stack one sensing and perception stack and then take it into these different end markets but with a

common architecture whether that's connectivity like clear sky which we had in um in the access segment we're now bringing more connectivity into vocational or whether that's things like autonomous robots and we find applications there great um let's get into the segments a little bit here um maybe starting with with access um certainly over in recent years you've seen competitors building out capacity in north america um in your mind how do you think the jlg and sky track brands are positioned to continue winning across the awp and telehandler space and on top of that one of your competitors has its aerials business up for sale so how do

you think that could also potentially impact the industry so um jlg which is the go-to-market brand and SkyTrack's the other one. JLG is named after James Elgrove, I think. John Elgrove. John Elgrove, sorry. That's before my time. And that equipment's been around. He invented the boom lift. And that brand is known for its quality, its reliability. We're in a finance setting, so it's pricing discipline. But that also has a real-world benefit, which is a strong residual value. And that's important because we sell to rental companies primarily. And so they want to know that that back-end residual is strong. So those principles create a strong foundation for the business as well as a strong relationship with the customer, which allows us to innovate and innovate quickly, whether that's with the microsize scissor you see in the middle there or other technologies we bring to market. But what will set us apart in the future is that that's not enough. We have to bring technology as well. So what you see on the lower left there is ClearSky Smart Fleet, which allows all our equipment to communicate with each other, as well as allow users to understand the state of readiness, order parts easily, and so forth. But that'll evolve to providing end-user services. So the example I was given, and I always repeat because I can envision it myself, is if you have a construction site with hundreds of employees and hundreds of pieces equipment not everybody's trained with the same equipment and so you have to use a scissor lift you have to go check out the key at the main office and then the person in the main office is checking oh pat davidson he's trained on a scissor lift okay and he needs a scissor lift for his job here's the key well that's all known in a system you can have a user just badge in and activate the equipment doesn't exist today but it's something the team's working on That type of technology will keep us at the forefront of being the equipment of choice for our customers. And so that and then innovating, like I said, with things like micro-sizes or other applications, innovations, taking ag equipment, so developing a telehandler for the ag customer and demonstrating how a telehandler is superior to other equipment they have for the barn. That's the way we see that segment continuing to grow and thrive. Oh, sorry, on the competitor. Yes, they've announced that they're for sale. Yeah, it's for sale.

Wait and see. We'll see how it goes. Fair enough. Maybe we can touch on the access guide for 2026 a little bit. It sounds like it's really large projects driving the strength, local markets remaining pretty muted. Just maybe talk about what you're hearing from customers and perhaps bifurcating across the independents versus the national players and just your confidence level also and access maybe being in a better spot as we exit 26 and into 27.

Certainly, I remain optimistic. You know, the non-residential construction sector has been weak. You've reported on it. Others have as well. And really what's been the shock absorber for that sector has been the data centers and megaprojects that get so widely reported. You've seen office equipment, warehouses, even manufacturing coming off peaks. And that's resulted in a fairly weak industry, especially when you look at the independents who tend to do more of the local projects. They were a little more resilient than I certainly expected last year. We saw them continue to play into the fourth quarter. we announced prices i think they were a large driver behind our sales success in the fourth quarter which has its own implications in the 2026 that i'm sure we'll talk about but as i look ahead i think we still see the mega plot projects playing the bulk of the work this year the nationals play disproportionately on the mega projects because they are the big contractors and then the independents basically supply some of the local contractors for those But with more rate cuts, I think that's pretty uniformly expected now this year. With more economic activity, hopefully, the rest of the economy starts to broaden out and grow. And that'll be great to see, hopefully, 2027, maybe 2026, but we're not planning for it.

And how to think about puts and takes of the margin guidance as well, and maybe price costs as we progress throughout the year. and maybe putting a magnifying glass on price a little bit, just how are negotiations going thus far? And you've talked about positive pricing. Yeah, would be helpful to hear an update.

Yeah, so we are pricing in 2026. The impact of tariffs is fully felt in 2026. It was kind of gradual throughout 2025. So we had the announcements in April, But really, you saw it start to hit the income statement a little bit in Q3, much more in Q4. Now we're fully into having all our costs, having tariff payments and so forth in them. So really to offset that, we have two levers. First, and we talked about this on the very first call when tariffs were announced, is it's our responsibility to address as much as we can on both the tariff engineering but then the cost side. And shout out to Mahesh and the Access team, not that they're dialed into this, but even so, I'll call it a shout out. They initiated cost reductions starting in 2024 to try and improve the resiliency of that business. And so that's really a two-year project. So the more we get down the pipe, more costs are coming out of that business. And so we'll have more out at the end of the year than we have now. So that's one element to offset it. And the other element is pricing. And so we have had constructive dialogues with our partners in the rental companies, and everyone agrees kind of the cost drivers, and then we just work through how the pricing will materialize. And what we did say on the call is for the full year, we will offset a favorable price cost, but as you say, it won't be necessarily balanced across the year.

Yeah, makes sense. Maybe we can shift to vocational, which I mean, is already hitting the 2028 margin targets right in the heart of it. You know, I think the main question that I get from investors and would love to pose it to you is just maybe breaking it down a little bit between the F&E, Refuse, Aerotech. Should we be worried at all that we could be at or near the peak in any of these end markets? So I wouldn't say peak.

I think there's long, fundamental drivers over the long term. There will be some ups and downs, but they generally have longer sine waves, if you will, to their cycles. For fire, let's just talk that one first. We're still working through an extended backlog that extends into 2028. So priority number one there is build more fire trucks. It's that simple. We're investing $150 million. 70 of that is already committed or spent to increase capacity. We said we would increase capacity roughly 25%, 30%. And so a lot of those investments are coming in this year. A lot were put in place last year. So really pleased with the growth there to address fire demand. And the earlier we can deliver fire trucks, the better that business is too, the healthier it is. But it's going to take a while. For those of you who have never toured a firetruck factory, it's more art than science. It's not like my background, which is automotive at high volume. And so really, you're doing a lot of small actions within a plant to improve throughput and productivity. So that's going to be a multi-year journey with a lot of growth prospects ahead. Because not only do we have the existing demand, we have a very aged firetruck fleet. And so a lot of demand for years to come, we think, there. um on the airport side aerotech we build jet bridges as you see in the upper right uh we build uh ground support equipment uh we've talked about the robots that we're we're developing as well um you know we just had someone stop pat pat has been around in this industry for a while somebody stopped him actually in our room popped in and said hey my jet bridge was broken at miami can you call up aerotech we're a very strong jet bridge business and i i You look at any trend on air travel, cargo transport, it was a dip with COVID. It's right back on the line we saw for growth. So I think there's tremendous opportunity to continue to grow there as we refresh and grow our airports, but also grow cargo and then potentially expand internationally. So great business, long-term potential. Refuse is the third big business there. That one has had tremendous growth over the past couple of years. What we're seeing right now, and you can see it in the orders we had in the end of the third quarter, in some of our fourth quarter sales, but also orders, you're seeing a bit of a pause. That's really coming from, if you think about the refuse business, we all generate waste. That's the driver of the refuse business. Everyone's generating as much or more waste as they did before. So I guess, thank you. then there's the municipalities which provide the contracts then there's the waste haulers and then there's us so what we're seeing is those municipalities with all the tariffs in place pausing on some of those longer-term contracts they don't want to get locked into long-term contracts at peak pricing because with 232 tariffs 232 heavy truck tariffs there's just uncertainty into what that pricing dynamic will be in the near term so you're seeing some pause in the municipalities instead of doing a new five-year contract they'll do month to month or what have you well when that's the case what you have with your waste haulers is they're not buying new trucks they'll age their fleet until they have that certain long-term contract and they'll refresh their fleet to service it so i think there we're seeing a bit of a tepid period um i want to say it's off peak in that sense. I just think we're in a bit of a pause. That might be 12 months. I don't know. It might be six months. But at some point, that'll turn back on because the one thing I know is where we started this story about refuse, no change there, and nothing changing the age of the fleet, which is already old. So I'm really confident in the long-term trends in all our vocational businesses and where we're headed towards 2028.

Awesome. That's helpful. Maybe we can touch on Aerotech a little bit more. Acquired it in 2023. Could still be a bit overlooked by investors. Yeah, I mean, really strong positioning in North America. The comments on potential international expansion, interesting. And then it would also be helpful to hear about 80-20 work that you're doing right now in Aerotech as well.

Is there an E-20 work?

80-20. 80-20, sorry.

Yeah, so we've historically done 80-20 work in the Pierce business. We did that five, six, seven years ago or so. And that allowed us to streamline our lineup and think really about that business, which started that margin transformation journey in that business. And Mike Pack, my predecessor, loved that when he was in this segment. And now he's the president of the vocational segment. So as we look at the Eurotech acquisition, again, 2023, $800 million sizable acquisition. Same time I joined, we brought in Ranjit, who's running that division. He's really been focused on how to integrate that business more holistically as a business. How do we get more operational efficiencies? Some of that is 80-20, which they're now leading for the company this year, in terms of where are the high margin businesses? what are your high-value customers, and how do you restructure some of the businesses that are less performing that really have been overlooked for years. While JVT was a responsible owner, they certainly weren't over-investing in the business because they were looking to sell it for a period of time. So it's a great series of businesses that is, I would call it, under-loved. We've got the right leader in, spending a lot of time on it. We think there's tremendous growth through both 80-20 initiatives around what products we're offering, how do we go to market with those, but also the autonomy stack, whether that's autonomous jet bridge, whether that's the software stack, improving the turn of the aircraft, or whether that's future robotics on the tarmac.

Great. Before I go to transport, maybe a quick question on the F&E side. You talked about you're doing everything you can. F&E. What should I call it?

Fireside. That used to be a division. Fire and emergency was a division. We combined it with the commercial business to make vocational. All right. Fire apparatus is the preferred term.

Got it. Maybe just a quick on that. I know you're doing everything you can to increase throughput. I think you've mentioned trying to get a 20% to 30% efficiency increase in that business. And it's just what sort of timeline do you think that will occur over? And when do we get the backlog down to a quote-unquote normalized level?

Yeah, what you saw in the second half of last year, where volume was up about 10%, roughly. This year, you see volume growth with our revenue guide of $4.2 billion. So continued volume growth. In our 2028 targets, we talked about getting the backlog, where right now you're talking maybe 36 months, three years. So getting that to 18 months, really, we'd like to get it closer to 12. So you're talking 2028 down to 18 months, and then after that, working it down more towards 12 months. So, again, the reason is because of the nature of the production, it's a very slow, progressive change to throughput and production efficiency. One, I don't want to commit a bunch of capital, just build a whole new factory that we might not need in 10 years' time. But two, it's such an art to build these things that you have to be methodical because you need high-quality units. And some of them are very unique. You might build one of these trucks every 10 years, 20 years, some cases.

And that 10% volume growth that you saw last year, is that in fire or is that just total vocation? It was municipal fire apparatus. That was municipal fire apparatus. There we go. And then shifting gears to transport. I know the NGDV production ramp has taken a little bit longer than initially anticipated, which is weighing on the 2026 guide a bit. Just can you elaborate on progress you've made there and maybe what's caused the ramp to take a little bit longer, what you think you can do to reach full rate production? When do you think you can reach full run rate production?

So first of all, it's worth saying the product is spectacular in the field. really pleased with the performance those post-delivery carriers who are using it rave about it we've got over 10 million miles driven and this year we've said we're steadily increasing production um and we've always said capacity was 16 to 20 000 units a year on the call we said this year would be closer to the 16 so you're the low end of that so if you're steadily uh improving production hitting the low rate of your annual capacity um i'm pretty comfortable we're headed and we're delivering consistent with what postal service needs. We were hoping for a faster ramp, I'll be honest. We were expecting that. I think what we found, well, I know what we found, is that when you have a new plant building 16,000 to 20,000 units a year with as much robotics as we have, not all the robots work when you turn them on at full rate production. So what we've done is rather than push it hard and fast and have a lot of problems we're taking a much more methodical approach through it and what you find when you ramp from x to y is now those robots that were working effectively sometimes will hit each other and so you need to fix that or a bolt's loose or g x y and z and so you focus methodically through body shop paint shop and kind of work those and every station we track all our stations every station has demonstrated its capability to run at rate but the variability across the stations they're not all hitting consistently at rate and so the great news is the problem is within the four walls of the plant and so it's a matter of consistently knocking those down and improving our run rate over time which is why we're taking a very systematic approach as opposed to planning for a much faster ramp which was what we kind of had originally thought of as a more automotive style as opposed to an operational kind of commercial ramp.

And it's fine if you don't want to comment on this, but just thinking about the ramp, starting in Q1 to Q4 where you exit the year, is it going from like a 14,000 unit run rate to 19,000 or 15 to 18?

I'd have to annualize that. Certainly we would be exiting closer to the 20, the high end of the 16 to 20. Beginning of the year, I'd have to think through what our daily, because we talk about it in daily units and so I don't have to translate that to an annual and it's going to break my head.

That's helpful. But you think exiting the year you'll probably be at above towards the higher end.

Yeah, that's right.

And then another question too on transport margins. Just how to think about how do we bridge from margin today to the 2028 target?

Yeah, great question. So one of the big improvements, so when we did Investor Day, we talked about growing revenue and transforming the margin. So we've historically been a roughly 10% operating income margin business. That's roughly what we got into this year. We ended last year at 9.6. For 2028, we're talking about 12% to 14% OI margin. A big driver of that actually is the transport segment so last year it was oh there we go that's the next slide um real-time slides um so in last year we were at 3.7 percent margin in 2024 it was a two and a half percent business this year we got into a four percent business uh there's basically three building blocks uh to go from where we are at four percent to that ten percent uh one is uh fhtv it's our heavy truck contract. So as with all aerospace and defense, and this room seems to be aerospace and defense today, with inflation and fixed price contracts, those contracts got flat to underwater, underperforming fairly quickly. And you saw that in our results in the last couple of years. So building the heavies under the new contract at the end of last year, and you saw margin pick up in the second half versus the first half. The mediums, which is the other big contract we build, we start building under that new contract second half of this year. So first half, we're still building some lower margin units. And then second half, that improves. And so those two already signed contracts, those building blocks are in place. The third piece is NGDV ramp. And that's really in two pieces. One, it's getting to full rate production with quality. But then two, it's building out that additional order backlog towards that full 165,000 unit contract we have so we've got 51,500 as we take on more orders then that margin profile improves too because with those initial production units they're obviously going to have lower margin you're building them at lower rate you're finding issues you're just like fix it build them which is always what happens in launches but because of how contract accounting is that gets pooled and so for that first 51,500 that's going to have a lower margin pool than the full 165. So as you take orders in, it gets more normalized to the margin we expect over time. And so that's the other driver that you'll see over time between now and 2028 is we get more orders. That margin normalizes into the range we would expect. You get the new contracts in defense, and then you get into that 10% margin.

So very comfortable with the past 2028 um but it's not going to happen this year got it and i am curious on ngdv the the margin you don't have to say what what margin is on ngdv today and where it's going in 2028 but is there some sense you get can get on like the basis point spread on just ngdv margin today where it'll be in 2028 you're not really talking about that no okay i tried that's fine And then just in defense specifically, just how should we be thinking about top line growth exiting 2026? Is it pretty safe, just given that you have these long-term contracts, is it pretty safe to assume that defense should be growing top line in 2027 year over year?

2027, difficult to say, but certainly by 2028. So to put it in context, our guidance for this year is $2.5 billion. about half defense, half delivery, 2028, 3.1, half defense, half delivery. So they both equally grow from about one and a quarter to two and a half, I'm sorry, to one and a half. So moderate growth for both of those. One of the other elements people didn't fully understand this year, because it is difficult to understand, is last year we had a lot of exports for defense.

And so our revenue for last year was 1.6 that comes down to roughly that one and a quarter and then it grows back up so we did have a number of exports last year uh happy to have them but they are a bit more lumpy got it and then um my last transport question here you did tease a last mile delivery concept vehicle at ces this year so we'd love to hear more about this um conversations you're having now with potential customers, what the appetite seems to be, and then how long do you think it might take to actually come out with this product?

Yeah, so once we won the NGDV contract and people started to see that, there was a lot of appetite for an integrated delivery vehicle. So there's, for those of you who are not familiar with how delivery vehicles generally are structured, you have two types of delivery vehicles. You have ones that you and I can drive, And then there's ones that require a commercial driver's license, a CDL. If you think of our NGDV and the Amazon Rivian, those are what's called class two. Any of us could drive them. If you think about it as a FedEx truck or UPS truck, those are heavier trucks. You need a commercial driver's license for those. So we've had great dialogues with the delivery companies because what they see with NGDV, what they see with our other products, whether that's military vehicles or refuse vehicles, is the ability to build custom integrated vehicles that have great durability and reliability. Because the NGDV is designed for a 20-year life, which none of us get out of our normal day-to-day drivers. And so we have had a lot of interest. And so what the team got really excited about is what are those future opportunities? And we had a video at CES, which had what looked a lot like that bigger kind of, I'm going to call it a UPS truck, because that's what I grew up seeing in my neighborhood. So it really depends on what our go-to-market is in terms of how that materializes and the timing. If you took the NGDV, did some minor modifications because of that design, because of that front end, you probably have to do some crash. That takes a little while, but it could be a couple of years, a little bit more than a couple of years, maybe, because you're going to have to recrash, recertify, and all that stuff. It's very complicated. If you do a ground-up body-on-frame, which is what those heavier ones are integrated, it might be a little bit longer than that because then you are really ground-up. Our engineering team is very efficient, but I think those would be normal standard timings from my experience in automotive. Nothing super secret sauce there. It's just what anyone would probably quote you on some of that. So it really depends on the range of those options, But we are really excited about, one, our capability to build a unified platform and top patent platform that works together with safety metrics, but also with the demand we see.

Good to hear. Maybe that's a good place to pause and see if there's any questions in the audience.

While this screen's up, unless somebody has a question, I just want to touch on the middle left there, middle right, apologies, left and right have always been a problem. that's a rogue fires so when we talk about the future of defense and we talk about tactical wheeled vehicles one of the important things is autonomy we talked a little bit about in the airport but what i find really fascinating is i think about the future for defense i think the future is largely autonomous and so technology like that allowed you to be payload agnostic and position a vehicle where it needs to be for what it needs to do. And that could be exportable power for technologies that require exportable power. That could be rockets is the case in here. It could be satellite information, antennas. It could be all sorts of things. But you can position things without people in harm's way. And so we're really excited about that line of products and the equivalents. The one above it is a PLSA-2, which is autonomous ready. PLS, palletized load system, really exciting name. So I think autonomy in that space is going to be a really great future. I just have to say that. And by the way, the one on the lower right there, that one can be dropped from a plane. So that's fun. Some cool products. Very cool stuff. That gave you all a chance to think of questions if I haven't. There's one up front here. There's one right here in the front. Okay, we can repeat it.

So GPS jamming, GPS denied environments, you know, big issue, particularly for autonomous vehicles. So how are you tackling those challenges? Is that something that you're getting from another supplier, if it's available now, or are you developing something in-house?

I'm out of my depth on that question. You'd need one of the engineers here to answer that. to the best of my knowledge i'll just say i think generally speaking that technology is from the government we are not the people who do that stuff generally the government agrees who's going to do that and then that's a directed supplier for us that's my understanding i could be wrong on that but well so so for instance in this okay um where we're focused is the systems and the software that make it autonomous. In that case there, the Rogue Fires uses an outside company as the autonomy stack that the Department of Defense, Department of War contracts with and installs that software. We do the drive-by-wire system. We do the software that does the braking. We create the autonomy platform within the truck, and then they decide how they want to activate that with the the layer above that and we think that's our core competency is it's the resilient truck that can do anything it's how things work together and it's the controls of the vehicle within the vehicle the one above it a similar thing it's autonomy ready so it's drive by wire as opposed to a hydraulic or electric steering column but it's you know not fully autonomous you can actually You see the cab and the steering wheel in that picture that one below obviously has neither. So that's how we think about it. Good question. Any other questions?

All right. Again, one more just on capital allocation. We'd just love to hear about your appetite for M&A in particular. You've mentioned doing bolt-ons, acquisitions. Just envision that still being the focus. and then also just how you're thinking about share buybacks, reinvesting in the business, dividend, all that stuff?

So at Investor Day, we did a side that talked about our capital allocation priorities, and they're unchanged. First and foremost is a healthy business with a healthy balance sheet. Remaining credit worthy is critically important to me. Secondly, it's funding our business. There is no better return for our shareholders than investing in our business. You know, Mike might disagree, but nearly every dollar he asks for, he gets to grow capacity. He may not enjoy the process, but we all recognize it's critically important. The return on that asset is very good. Then comes returning cash to shareholders. So we've steadily increased the dividend for 12 years, including 11% increase this year to our dividend. And we think a steady, reliable dividend is important for a cash flow positive company. And then the last two uses of capital are share repurchases and M&A. And in Investor Day, we had share repurchases first. I still think that would be a good use of capital. We bought $278 million of shares back last year. That was up. It's like I think our third largest year maybe of share repurchases in the last 10, 15 years. and given where our multiple was we felt that was a good use of capital with that said we have an always-on M&A pipeline we're always looking to see if there's something for bolt-on or or to support our existing businesses whether that's something as large as Aerotech which was 800 million dollars or a lot of the other ones were smaller I use Hinoa you're talking much smaller kind of bolt-on that's really I think our sweet spot right now is that kind of space of acquisition that augments our business going forward. But right now, where our multiple is, even though I'm pleased with our performance this year, our multiple still is below where we think it would be. So, you know, share repurchases is still on the table. I think that's a good way to end it. Thank you guys for joining us, and we'll wrap it there. Thank you for having us. Thanks all for joining us.