In This Article:
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Revenue: $2.3 billion for the first quarter.
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Adjusted Operating Income Margin: 8.3%.
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Adjusted Earnings Per Share (EPS): $1.92.
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Access Segment Adjusted Operating Margin: 11.3%.
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Vocational Segment Revenue Growth: 12% year-over-year.
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Vocational Segment Adjusted Operating Income Margin: Nearly 15%.
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Backlog: $1.8 billion for Access segment; $6.3 billion for Vocational segment.
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Free Cash Flow: Net use of cash of $435 million due to seasonal working capital needs.
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Share Repurchases: Nearly 290,000 shares for $29 million.
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Term Loan: New $500 million 24-month term loan.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Oshkosh Corp (NYSE:OSK) reported strong performance in its vocational segment with a 12% year-over-year revenue growth and a robust adjusted operating income margin of nearly 15%.
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The company maintained a healthy backlog of $1.8 billion in its Access segment, indicating strong future demand.
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Oshkosh Corp (NYSE:OSK) successfully mitigated European tariffs by relocating production from China to Italy, showcasing its agility in managing supply chain challenges.
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The Defense segment is on track to ramp up NGDV production to full rate by year-end, promising strong revenue growth in the latter half of 2025.
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The company continues to innovate with new product launches, such as the micro-sized ES1930M Scissor Lift and advanced technologies like the ClearSky Smart Fleet.
Negative Points
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Oshkosh Corp (NYSE:OSK) faces a potential $1 per share impact from tariffs, which could affect its full-year earnings guidance.
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The Access segment experienced a decrease in sales due to softer market conditions in North America.
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The company reported a decrease in consolidated sales by 9% from the same quarter last year, primarily due to lower sales volume in the Access segment.
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Higher operating expenses and increased new product development spending negatively impacted adjusted operating income.
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The Defense segment experienced lower volume and higher cumulative catch-up adjustments, affecting its performance in the first quarter.
Q & A Highlights
Q: How is Oshkosh Corp planning to handle the impact of tariffs, and do you expect to pass these costs onto customers? A: John Pfeifer, President and CEO, stated that Oshkosh aims to minimize the impact on customers by leveraging their pricing power only as a last resort. The company is focused on mitigating tariffs through targeted initiatives, such as relocating production to avoid tariffs, as demonstrated by their quick response to European tariffs on Chinese imports.