Oshkosh (OSK) Stock Forecast & Price Target

Oshkosh demonstrates a strong financial trajectory, notably with a significant increase in delivery vehicle revenues, which rose by $114 million year-over-year, marking a 37% quarter-over-quarter growth in the Transport segment. The Vocational segment stands out with a robust backlog of $6.4 billion, an 8% year-over-year increase, alongside sales growth of 18.9% year-over-year and an adjusted operating margin improvement of 190 basis points to 15.6%. Additionally, the company's adjusted operating income for Transport reached $37 million, reflecting a substantial increase in operating margin, largely driven by improved pricing dynamics and a favorable contract mix.

Oshkosh has reported a decline in adjusted operating margin to 10.2%, which reflects a minor deterioration compared to the previous year, alongside a significant 13% year-over-year decrease in defense vehicle revenues due to the winding down of domestic JLTV production. In the Access equipment segment, adjusted operating income experienced a substantial drop of 42% year-over-year, with revenues also declining by 18.6% to $1.1 billion, indicating increased sales incentives and lower volumes that affected profitability. Furthermore, the company has lowered its Full Year 2025 adjusted EPS guidance to a range of $10.50 to $11.00, coupled with a troubling 66% year-over-year decrease in Access backlog, which suggests ongoing challenges in order intake and market demand.