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Citi thinks Oshkosh contract to make USPS new vehicles will stay in place
The Fly

Citi thinks Oshkosh contract to make USPS new vehicles will stay in place

Citi notes Oshkosh (OSK) shares have traded down by about a mid-single digit percentage today on the back of a Reuters report that the Trump transition team is considering cancelling the the USPS contracts for EV vehicles. While the firm thinks the contract will remain in place, there is now potential for the electric vehicle mix to go to zero versus the roughly 70% mix the firm had anticipated once at full production. If the contract goes to zero EVs and all internal combustion, Citi estimates about a 50c-60c per share headwind to its and Street 2026 and 2027 EPS estimates, or a 3%-5% headwind to EPS. Citi has a Buy rating and $125 price target on Oshkosh shares.

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