Oshkosh (OSK) Stock Forecast & Price Target

Oshkosh Corporation reported a substantial increase in delivery vehicle revenues, which grew by $114 million year-over-year and 37% quarter-over-quarter, indicating strong demand in its Transport segment, particularly with the Next Generation Delivery Vehicle (NGDV) now constituting 25% of Transport revenues. The Vocational segment also demonstrated robust performance, with an 18.9% increase in sales year-over-year and an adjusted operating margin of 15.6%, reflecting effective cost management and market position. Additionally, the company's extended backlog in the Vocational segment, amounting to $6.4 billion and rising 8% year-over-year, coupled with anticipated improvements in defense profits and margins, sets a favorable foundation for growth moving forward into fiscal year 2026.

Oshkosh has shown a decline in adjusted operating margin, dropping to 10.2%, reflecting a challenging operational environment with a decrease in defense vehicle revenues by 13% year-over-year. The Access segment reported a substantial decline in adjusted operating income, down 42% year-over-year, attributed to lower volumes and heightened sales incentives, while Access revenues fell by 18.6% to $1.1 billion. Additionally, the company's projected adjusted EPS for Full Year 2025 has been lowered to a range of $10.50-$11.00, indicating ongoing concerns about sales performance in both Access and Transport segments, compounded by a significant backlog reduction of 66% year-over-year.