Latest news with #JohnPfeifer
Yahoo
01-08-2025
- Business
- Yahoo
Oshkosh's (NYSE:OSK) Q2: Beats On Revenue, Guides for Strong Full-Year Sales
Specialty vehicles contractor Oshkosh (NYSE:OSK) announced better-than-expected revenue in Q2 CY2025, but sales fell by 4% year on year to $2.73 billion. The company's full-year revenue guidance of $10.6 billion at the midpoint came in 2.4% above analysts' estimates. Its non-GAAP profit of $3.41 per share was 15.7% above analysts' consensus estimates. Is now the time to buy Oshkosh? Find out in our full research report. Oshkosh (OSK) Q2 CY2025 Highlights: Revenue: $2.73 billion vs analyst estimates of $2.71 billion (4% year-on-year decline, 0.7% beat) Adjusted EPS: $3.41 vs analyst estimates of $2.95 (15.7% beat) Adjusted EBITDA: $379.3 million vs analyst estimates of $326.1 million (13.9% margin, 16.3% beat) Adjusted EPS guidance for the full year is $11 at the midpoint, beating analyst estimates by 6.2% Operating Margin: 10.7%, up from 9.2% in the same quarter last year Free Cash Flow was $48.6 million, up from -$250.5 million in the same quarter last year Backlog: $14.23 billion at quarter end, down 7.4% year on year Market Capitalization: $8.15 billion 'We delivered a strong second quarter, with adjusted earnings per share of $3.41, up 2.1 percent from the prior year, reflecting disciplined execution and broad-based strength across our portfolio,' said John Pfeifer, president and chief executive officer of Oshkosh Corporation. Company Overview Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Oshkosh's sales grew at a mediocre 7.4% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Oshkosh's annualized revenue growth of 7.8% over the last two years aligns with its five-year trend, suggesting its demand was stable. We also think Oshkosh's recent performance stands out as many other Heavy Transportation Equipment businesses have faced declining sales because of cyclical headwinds. We can dig further into the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Oshkosh's backlog reached $14.23 billion in the latest quarter and averaged 1.2% year-on-year growth over the last two years. Because this number is lower than its revenue growth, we can see the company fulfilled orders at a faster rate than it added new orders to the backlog. This implies Oshkosh was operating efficiently but raises questions about the health of its sales pipeline. This quarter, Oshkosh's revenue fell by 4% year on year to $2.73 billion but beat Wall Street's estimates by 0.7%. Looking ahead, sell-side analysts expect revenue to grow 2.6% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and suggests its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Oshkosh was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.6% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, Oshkosh's operating margin rose by 1.6 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Oshkosh generated an operating margin profit margin of 10.7%, up 1.5 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Oshkosh's EPS grew at a remarkable 13.3% compounded annual growth rate over the last five years, higher than its 7.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Oshkosh's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Oshkosh's operating margin expanded by 1.6 percentage points over the last five years. On top of that, its share count shrank by 5.5%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Oshkosh, its two-year annual EPS growth of 25.5% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q2, Oshkosh reported adjusted EPS at $3.41, up from $3.34 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Oshkosh's full-year EPS of $10.84 to grow 3.6%. Key Takeaways from Oshkosh's Q2 Results We were impressed by how significantly Oshkosh blew past analysts' backlog expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 4.9% to $132.82 immediately after reporting. Sure, Oshkosh had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Business Wire
01-08-2025
- Business
- Business Wire
Oshkosh Corporation Reports 2025 Second Quarter Results
OSHKOSH, Wis.--(BUSINESS WIRE)--Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, today reported 2025 second quarter net income of $204.8 million, or $3.16 per diluted share, compared to net income of $168.6 million, or $2.56 per diluted share, for the second quarter of 2024. Adjusted 1 net income was $220.6 million, or $3.41 per diluted share, for the second quarter of 2025 compared to $219.8 million, or $3.34 per diluted share, for the second quarter of 2024. Comparisons in this news release are to the second quarter of 2024, unless otherwise noted. Consolidated sales in the second quarter of 2025 decreased $114.8 million, or 4.0 percent, to $2.73 billion primarily due to lower sales volume in the Access and Transport segments, partially offset by higher Vocational segment sales volume and improved pricing. Consolidated operating income in the second quarter of 2025 increased 11.8 percent to $291.7 million, or 10.7 percent of sales, compared to $260.9 million, or 9.2 percent of sales, in the second quarter of 2024. The increase in operating income was primarily due to lower intangible asset impairments and improved sales mix, offset in part by lower sales volume. Adjusted 1 operating income in the second quarter of 2025 decreased 4.7 percent to $312.9 million, or 11.5 percent of sales, compared to $328.2 million, or 11.5 percent of sales, in the second quarter of 2024. 'We delivered a strong second quarter, with adjusted earnings per share of $3.41, up 2.1 percent from the prior year, reflecting disciplined execution and broad-based strength across our portfolio,' said John Pfeifer, president and chief executive officer of Oshkosh Corporation. 'Our Vocational segment continued to perform well, and our Access segment remained resilient and delivered another impressive quarter, helping to drive solid overall results. 'This quarter featured several strategic highlights, including the launch of our new micro-sized JLG® scissor lift, a three-year contract extension for our Family of Medium Tactical Vehicles program with the U.S. Army and our successful Investor Day in June, where we outlined our 2028 financial targets. 'Given our strong performance in the second quarter and continued visibility in our Vocational and Transport segments, we are raising our full-year expectations for adjusted earnings per share to be approximately $11.00. Despite ongoing uncertainties in the global trade environment, we remain confident in our ability to navigate these challenges while delivering value for customers and shareholders,' added Pfeifer. Factors affecting second quarter results for the Company's business segments included: Access - Access segment sales for the second quarter of 2025 decreased $150.9 million, or 10.7 percent, to $1.26 billion primarily due to the expiration of the agreement to produce Caterpillar-branded telehandlers, reduced sales volume in Europe and higher sales discounts, offset in part by sales volume associated with the AUSA acquisition. Access segment operating income in the second quarter of 2025 decreased 26.3 percent to $181.6 million, or 14.5 percent of sales, compared to $246.5 million, or 17.5 percent of sales, in the second quarter of 2024. The decrease was primarily due to lower sales volume and higher sales discounts, offset in part by improved sales mix. Adjusted 1 operating income in the second quarter of 2025 was $185.7 million, or 14.8 percent of sales, compared to $248.8 million, or 17.7 percent of sales, in the second quarter of 2024. Vocational - Vocational segment sales for the second quarter of 2025 increased $126.6 million, or 15.0 percent, to $969.7 million due to higher sales volume and improved pricing. Vocational segment operating income in the second quarter of 2025 increased 38.3 percent to $147.3 million, or 15.2 percent of sales, compared to $106.5 million, or 12.6 percent of sales, in the second quarter of 2024. The increase was primarily due to improved price/cost dynamics and higher sales volume, partially offset by higher production costs, warranty expense, litigation expense and engineering costs. Adjusted 1 operating income in the second quarter of 2025 was $157.9 million, or 16.3 percent of sales, compared to $118.5 million, or 14.1 percent of sales, in the second quarter of 2024. Transport - Transport segment sales for the second quarter of 2025 decreased $92.8 million, or 16.2 percent, to $479.1 million, as the wind-down of the domestic Joint Light Tactical Vehicle program was partially offset by the ramp-up of Next Generation Delivery Vehicle production for the United States Postal Service and higher international tactical wheeled vehicle sales volume. Transport segment operating income in the second quarter of 2025 increased 49.6 percent to $17.8 million, or 3.7 percent of sales, compared to $11.9 million, or 2.1 percent of sales, in the second quarter of 2024. The increase was primarily the result of improved pricing under the more recent Family of Heavy Tactical Vehicles contracts, lower new product development costs, lower unfavorable cumulative catch-up adjustments and improved sales mix, partially offset by lower sales volume. Corporate and other - Net operating costs for corporate and other in the second quarter of 2025 decreased $49.0 million to $55.0 million primarily due to lower intangible asset impairments. Interest Expense Net of Interest Income - Interest expense net of interest income in the second quarter of 2025 decreased $2.2 million to $28.1 million. Miscellaneous, net - Miscellaneous income, net in the second quarter of 2025 was $7.3 million compared to miscellaneous expense, net of $1.5 million in the second quarter of 2024, primarily due to an unrealized gain on an investment. Provision for Income Taxes - The Company recorded income tax expense in the second quarter of 2025 of $65.2 million, or 24.1 percent of pre-tax income, compared to $53.5 million, or 23.4 percent of pre-tax income, in the second quarter of 2024. Losses of unconsolidated affiliates - Losses of unconsolidated affiliates were $0.9 million in the second quarter of 2025 compared to $7.0 million in the second quarter of 2024 due to lower impairments of investments in unconsolidated affiliates. Repurchases of common stock - The Company repurchased 414,755 shares of common stock in the second quarter of 2025 for $40.0 million. Share repurchases completed during the previous twelve months benefited earnings per share in the second quarter of 2025 by $0.06 compared to the second quarter of 2024. Dividend Announcement The Company's Board of Directors today declared a quarterly cash dividend of $0.51 per share of Common Stock. The dividend will be payable on September 2, 2025 to shareholders of record as of August 19, 2025. Six-month Results The Company reported net sales for the first six months of 2025 of $5.04 billion and net income of $317.0 million, or $4.88 per diluted share. This compares with net sales of $5.39 billion and net income of $348.0 million, or $5.27 per diluted share, for the six months ended June 30, 2024. The decrease in net income for the first six months of 2025 compared to the six months ended June 30, 2024 was primarily due to lower sales volume, higher production costs and higher warranty expense, offset in part by improved pricing, lower intangible asset impairments and improved performance of the Company's investments. Adjusted 1 net income for the first six months of 2025 was $345.4 million, or $5.32 per diluted share, compared to $410.9 million, or $6.23 per diluted share, for the six months ended June 30, 2024. 2025 Expectations The Company expects its 2025 diluted earnings per share to be approximately $10.25 and its adjusted 1 earnings per share to be approximately $11.00. The Company continues to expect net sales of approximately $10.6 billion. The international trade environment remains dynamic and difficult to predict. The Company's revised estimates reflect a more limited impact of tariffs compared to last quarter due to pauses and revisions to tariff rates and the Company's performance in the second quarter. The adjusted earnings per share guidance is consistent with the Company's original January outlook as anticipated tariff impacts are expected to be offset by company-wide cost reduction actions. The Company's estimates include direct impacts of tariffs based on rates as of July 30 and do not reflect potential future indirect impacts, including weaker macroeconomic conditions, which are difficult to predict at this time. Conference Call The Company will host a conference call at 8:30 a.m. EDT this morning to discuss its second quarter results and 2025 expectations. Slides for the call will be available on the Company's website beginning at 7:00 a.m. EDT this morning. The call will be simultaneously webcast. To access the webcast, go to at least 15 minutes prior to the event and follow instructions for listening to the webcast. An audio replay of the call and related question and answer session will be available for 12 months at this website. Forward-Looking Statements This news release contains statements that the Company believes to be 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company's future financial position, business strategy, growth and drivers, capital allocation, resiliency, targets (including financial targets for 2028), projected sales, costs, margins, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as 'may,' 'will,' 'expect,' 'intend,' 'estimate,' 'anticipate,' 'believe,' 'should,' 'project,' 'confident' or 'plan' or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company's access equipment, fire apparatus, refuse and recycling collection and air transportation equipment markets, which are particularly impacted by the strength of U.S. and European economies and construction seasons; the Company's estimates of access equipment demand which, among other factors, is influenced by historical customer buying patterns and rental company fleet replacement strategies; the impact of orders and costs on the U.S. Postal Service contract; risks that a trade war and related tariffs could reduce the demand for or competitiveness of the Company's products or cause inefficiencies in the Company's supply chain; the Company's ability to increase prices to raise margins or to offset higher input costs; the Company's ability to accurately predict future input costs associated with U.S. Department of Defense contracts; the Company's ability to attract and retain production labor in a timely manner; the Company's ability to realize the anticipated benefits associated with the AeroTech acquisition; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and the cost of purchased materials; the impact of severe weather, war, natural disasters or pandemics that may affect the Company, its suppliers or its customers; the Company's ability to predict the level and timing of orders for indefinite delivery/indefinite quantity contracts with the U.S. federal government; budget uncertainty for the U.S. federal government, including risks of future budget cuts, the impact of continuing resolution funding mechanisms and the potential for shutdowns; the impact of any U.S. Department of Defense solicitation for competition for future contracts to produce military vehicles; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company's products; risks associated with international operations and sales, including compliance with the Foreign Corrupt Practices Act; the Company's ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity risks and costs of defending against, mitigating and responding to data security threats and breaches impacting the Company; the Company's ability to successfully identify, complete and integrate other acquisitions and to realize the anticipated benefits associated with the same; and risks related to the Company's ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company's filings with the Securities and Exchange Commission, including the Form 8-K filed today. All forward-looking statements speak only as of the date of this news release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this news release. Investors should be aware that the Company may not update such information until the Company's next quarterly earnings conference call, if at all. In particular: The statements in this news release that relate to the Company's financial targets for 2028 use language that might imply a level of certainty about the likelihood that the Company will attain these targets, it is possible that the Company will not attain them in the timeframe noted or at all. By their nature, the risk and uncertainty associated with these targets are greater than that associated with near-term guidance and should not be construed as guidance. Therefore, investors should construe these statements regarding the Company's financial targets for 2028 only as targets rather than promises of future performance or absolute statements. About Oshkosh Corporation At Oshkosh (NYSE: OSK), we make innovative, purpose-built equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs over 18,000 team members worldwide, all united behind a common purpose: to make a difference in people's lives. Oshkosh products can be found in more than 150 countries under the brands of JLG®, Pierce®, MAXIMETAL, Oshkosh® S-Series™, McNeilus®, IMT®, Jerr-Dan®, Frontline™ Communications, Oshkosh® Airport Products, Oshkosh AeroTech™, Oshkosh® Defense and Pratt Miller. For more information, visit Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 2,732.1 $ 2,846.9 $ 5,044.9 $ 5,390.7 Cost of sales 2,207.6 2,300.8 4,120.5 4,374.6 Gross income 524.5 546.1 924.4 1,016.1 Operating expenses: Selling, general and administrative 213.3 220.0 424.3 416.8 Amortization of purchased intangibles 13.8 13.6 27.3 27.1 Intangible asset impairments 5.7 51.6 5.7 51.6 Total operating expenses 232.8 285.2 457.3 495.5 Operating income 291.7 260.9 467.1 520.6 Other income (expense): Interest expense (30.1 ) (32.0 ) (57.1 ) (54.4 ) Interest income 2.0 1.7 4.0 3.3 Miscellaneous, net 7.3 (1.5 ) 7.8 (3.5 ) Income before income taxes and losses of unconsolidated affiliates 270.9 229.1 421.8 466.0 Provision for income taxes 65.2 53.5 102.0 108.2 Income before losses of unconsolidated affiliates 205.7 175.6 319.8 357.8 Losses of unconsolidated affiliates (0.9 ) (7.0 ) (2.8 ) (9.8 ) Net income $ 204.8 $ 168.6 $ 317.0 $ 348.0 Earnings per share: Basic $ 3.17 $ 2.57 $ 4.90 $ 5.30 Diluted 3.16 2.56 4.88 5.27 Basic weighted-average shares outstanding 64,532,356 65,531,669 64,663,506 65,630,571 Expand OSHKOSH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In millions; unaudited) June 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 191.7 $ 204.9 Receivables, net 1,511.9 1,254.7 Unbilled receivables, net 654.9 636.5 Inventories 2,495.7 2,265.7 Income taxes receivable 49.7 51.2 Other current assets 110.1 114.5 Total current assets 5,014.0 4,527.5 Property, plant and equipment: Property, plant and equipment 2,478.4 2,394.6 Accumulated depreciation (1,242.8 ) (1,178.1 ) Property, plant and equipment, net 1,235.6 1,216.5 Goodwill 1,449.2 1,410.1 Purchased intangible assets, net 757.9 777.6 Deferred income taxes 285.6 259.0 Deferred contract costs 841.0 842.6 Other non-current assets 432.8 389.8 Total assets $ 10,016.1 $ 9,423.1 Liabilities and Shareholders' Equity Current liabilities: Revolving credit facilities $ 398.7 $ 362.3 Accounts payable 975.7 1,143.4 Customer advances 597.9 648.8 Payroll-related obligations 202.6 246.2 Income taxes payable 118.7 140.1 Other current liabilities 433.8 446.5 Total current liabilities 2,727.4 2,987.3 Long-term debt 1,099.6 599.5 Non-current customer advances 1,163.5 1,154.4 Deferred income taxes 26.7 26.9 Other non-current liabilities 544.5 502.9 Commitments and contingencies Shareholders' equity 4,454.4 4,152.1 Total liabilities and shareholders' equity $ 10,016.1 $ 9,423.1 Expand OSHKOSH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions; unaudited) Six Months Ended June 30, 2025 2024 Operating activities: Net income $ 317.0 $ 348.0 Depreciation and amortization 109.5 94.5 Intangible asset impairments 5.7 51.6 Stock-based incentive compensation 19.1 20.4 Deferred income taxes (28.2 ) (3.7 ) Other non-cash adjustments (0.4 ) 13.9 Changes in operating assets and liabilities (728.4 ) (1,091.5 ) Net cash used in operating activities (305.7 ) (566.8 ) Investing activities: Additions to property, plant and equipment (80.9 ) (139.6 ) Acquisition of businesses, net of cash acquired (0.9 ) (7.8 ) Other investing activities (17.3 ) (1.9 ) Net cash used in investing activities (99.1 ) (149.3 ) Financing activities: Proceeds from issuance of debt 2,838.0 2,670.5 Repayments of debt (2,302.2 ) (1,809.0 ) Dividends paid (65.7 ) (60.2 ) Repurchases of Common Stock (68.7 ) (54.6 ) Other financing activities (22.0 ) (13.9 ) Net cash provided by financing activities 379.4 732.8 Effect of exchange rate changes on cash and cash equivalents 12.2 (0.7 ) Increase (decrease) in cash and cash equivalents (13.2 ) 16.0 Cash and cash equivalents at beginning of period 204.9 125.4 Cash and cash equivalents at end of period $ 191.7 $ 141.4 Expand OSHKOSH CORPORATION SEGMENT INFORMATION (In millions; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net Sales Access Aerial work platforms $ 638.0 $ 675.6 $ 1,088.8 $ 1,266.6 Telehandlers 325.1 428.6 569.6 802.0 Other 292.9 302.7 554.7 575.8 Total Access 1,256.0 1,406.9 2,213.1 2,644.4 Vocational Municipal fire apparatus 398.0 331.4 727.8 636.9 Airport products 246.1 215.5 471.4 413.6 Refuse and recycling vehicles 197.0 176.9 402.5 324.2 Other 128.6 119.3 234.8 240.8 Total Vocational 969.7 843.1 1,836.5 1,615.5 Transport Defense (a) 372.0 535.6 784.7 1,044.7 Delivery vehicles 107.1 36.3 157.4 36.3 Total Transport 479.1 571.9 942.1 1,081.0 Corporate and other (a) 27.3 25.0 53.2 49.8 Consolidated $ 2,732.1 $ 2,846.9 $ 5,044.9 $ 5,390.7 Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating Income (Loss) Access $ 181.6 $ 246.5 $ 284.7 $ 454.6 Vocational 147.3 106.5 265.1 186.6 Transport (a) 17.8 11.9 18.4 25.2 Corporate and other (a) (55.0 ) (104.0 ) (101.1 ) (145.8 ) Consolidated $ 291.7 $ 260.9 $ 467.1 $ 520.6 Expand June 30, 2025 2024 Period-end backlog: Access $ 1,189.0 $ 3,264.4 Vocational 6,268.8 5,678.2 Transport (a) 6,709.0 6,384.5 Corporate and other (a) 58.9 42.1 Consolidated $ 14,225.7 $ 15,369.2 Expand (a) In July 2024, the Company moved the reporting responsibility for Pratt Miller from its Transport segment to the Chief Technology and Strategic Sourcing Officer to better utilize Pratt Miller's expertise across the entire Oshkosh Corporation enterprise. Pratt Miller results are now reported within "Corporate and other" and historical information has been recast to reflect the change. Expand Non-GAAP Financial Measures The Company reports its financial results in accordance with generally accepted accounting principles in the United States of America (GAAP). The Company is presenting various operating results both on a GAAP basis and on a basis excluding items that affect comparability of results. When the Company excludes certain items as described below, they are considered non-GAAP financial measures. The Company believes excluding the impact of these items is useful to investors in comparing the Company's performance to prior period results. However, while adjusted operating income, adjusted net income and adjusted earnings per share exclude amortization of purchased intangibles and intangible asset impairments, revenue and earnings of acquired companies are reflected in adjusted operating income, adjusted net income and adjusted earnings per share and intangible assets contribute to the generation of revenue and earnings. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's results prepared in accordance with GAAP. The table below presents a reconciliation of the Company's presented non-GAAP measures to the most directly comparable GAAP measures (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Provision for income taxes (GAAP) $ 65.2 $ 53.5 $ 102.0 $ 108.2 Income tax effects of adjustments 5.4 16.1 9.2 20.0 Adjusted provision for income taxes (non-GAAP) $ 70.6 $ 69.6 $ 111.2 $ 128.2 Net income (GAAP) $ 204.8 $ 168.6 $ 317.0 $ 348.0 Amortization of purchased intangibles 15.5 15.7 31.9 31.3 Intangible asset impairments 5.7 51.6 5.7 51.6 Income tax effects of adjustments (5.4 ) (16.1 ) (9.2 ) (20.0 ) Adjusted net income (non-GAAP) $ 220.6 $ 219.8 $ 345.4 $ 410.9 Earnings per share-diluted (GAAP) $ 3.16 $ 2.56 $ 4.88 $ 5.27 Amortization of purchased intangibles 0.24 0.24 0.49 0.48 Intangible asset impairments 0.09 0.78 0.09 0.78 Income tax effects of adjustments (0.08 ) (0.24 ) (0.14 ) (0.30 ) Adjusted earnings per share-diluted (non-GAAP) $ 3.41 $ 3.34 $ 5.32 $ 6.23 Expand 2025 Expectations Earnings per share-diluted (GAAP) $ 10.25 Amortization of purchased intangibles, net of tax 0.68 Intangible asset impairments, net of tax 0.07 Adjusted earnings per share-diluted (non-GAAP) $ 11.00 Expand
Yahoo
25-06-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Oshkosh's Q1 Earnings Call
Oshkosh's first quarter results fell below Wall Street's expectations, with revenue and non-GAAP profit both missing consensus estimates. Management attributed the underperformance primarily to softer market conditions in the Access equipment segment, where North American sales declined, and to higher operating expenses. CEO John Pfeifer noted that pricing power and improved operations in Vocational vehicles partially offset these challenges, but persistent headwinds in Access weighed on overall results. On the call, executives highlighted 'solid progress' in ramping up Defense segment production, but expressed caution over the impact of recently announced tariffs on key components and supply chain costs. Is now the time to buy OSK? Find out in our full research report (it's free). Revenue: $2.31 billion vs analyst estimates of $2.42 billion (9.1% year-on-year decline, 4.5% miss) Adjusted EPS: $1.92 vs analyst expectations of $2.04 (5.8% miss) Adjusted EBITDA: $245.4 million vs analyst estimates of $249.9 million (10.6% margin, 1.8% miss) Operating Margin: 7.6%, down from 10.2% in the same quarter last year Backlog: $14.55 billion at quarter end, down 11% year on year Market Capitalization: $7.12 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Stephen Volkmann (Jefferies) asked whether Oshkosh could offset new tariff costs through pricing, as it had in past cycles. CEO John Pfeifer explained their approach is to minimize passing costs to customers and focus on supply chain mitigation, noting the current demand environment is less robust than during previous inflationary periods. Mig Dobre (Baird) pressed for clarity on which countries and components are most exposed to tariffs. CFO Matt Field clarified that the Access segment is most affected due to its global supply chain, particularly from China, while Vocational and Defense are more U.S.-centric. Jamie Cook (Truist) questioned how much of the tariff impact and mitigation would fall on the Access segment. Field confirmed that most direct tariff costs would affect Access, with cost-saving efforts spread more broadly across the company. Chad Dillard (Bernstein) inquired about the timing and composition of mitigation actions. Field said most impact and mitigation would occur in the second half of the year, with a mix of cost controls and price adjustments, while Pfeifer stressed ongoing supply chain reorganization as a longer-term solution. Kyle Menges (Citi) asked about weaknesses in telehandler sales and the impact of losing a major contract. Pfeifer acknowledged some impact but emphasized that Oshkosh's market share in telehandlers continues to grow and that Q1 is not indicative of full-year segment health. In the coming quarters, our team will be watching (1) the effectiveness of Oshkosh's tariff mitigation measures and whether cost reductions offset expected earnings headwinds, (2) the pace at which NGDV production ramps to full rate for the U.S. Postal Service, and (3) trends in Access equipment demand, especially as private construction markets remain sluggish. The ability to sustain Vocational segment momentum and manage evolving supply chain risks will also be important markers. Oshkosh currently trades at $110.54, up from $88.34 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
05-06-2025
- Business
- Business Wire
Oshkosh Corporation Poised for Solid Revenue Growth and Margin Expansion
OSHKOSH, Wis.--(BUSINESS WIRE)--Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, shared its strategy for growth and 2028 financial targets at its Investor Day held June 5, 2025. The Company announced the following 2028 consolidated financial targets: _______________________________ 1 This news release refers to GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. Oshkosh Corporation believes that the non-GAAP measures provide investors a useful comparison of the Company's performance to prior period results. These non-GAAP measures may not be comparable to similarly titled measures disclosed by other companies. A reconciliation of the Company's presented non-GAAP measures to the most directly comparable GAAP measures can be found under the caption 'Non-GAAP Financial Measures' in this news release. 2 Net cash provided by operating activities less additions to property, plant and equipment, divided by net income. Expand 'At Oshkosh, we are harnessing the strength of our industry-leading brands and advanced technologies to support everyday heroes across the globe,' said John Pfeifer, president and chief executive officer of Oshkosh Corporation. 'With a strong foundation and a clear vision, we are targeting strong revenue and adjusted EPS growth over the next three years. This reflects our confidence in the business, underpinned by a robust backlog and sustained demand across our end markets. We are executing our Innovate. Serve. Advance. strategy to drive revenue growth and transform our margins. Driven by our purpose of making a difference in people's lives, we are focused on delivering innovation that moves the world forward.' Revenue growth target supported by executing existing contracts and backlog: multi-year backlogs and existing contracts in the Company's Vocational and Transport segments support approximately 50% of targeted revenue growth in 2028. Oshkosh is poised to capitalize on key industry trends and expects solid, long-term demand for its industry-leading products to drive success. A path to transformative margin expansion: actions taken during the past few years are transforming Oshkosh's margin profile. The Company expects updated, sole-source contracts and new product launches in the Transport segment to support improved profitability. Additionally, Oshkosh is implementing cost reduction initiatives and enhancing operational efficiency through autonomous technologies that leverage artificial intelligence to improve throughput companywide. The Company continues to invest in customer-centric product innovations as it plans to reinforce and grow its leading positions on the journey toward achieving its 2028 targets. Increased portfolio resilience: Oshkosh is growing strong resilient segments to support balanced returns. In 2028, Oshkosh expects the Vocational segment's contribution to adjusted operating income to be on par with its Access segment. The delivery vehicle business is also growing, and defense margins are expected to improve with new economic price adjustment provisions. The Company recently renamed its Defense segment to the Transport segment to better reflect its broader scope of business. Cash generation and capital management: after a period of elevated new product and capital spending, the Company expects to generate significant free cash flow and attractive free cash flow conversion. Oshkosh employs disciplined capital allocation while reinvesting organically in its businesses. The Company is committed to returning cash to shareholders through dividends and share repurchases. As of March 31, 2025, the Company had 9.9 million shares available for repurchase under the current authorization. A replay of the live webcast and supporting documents can be found here: oshkosh-2025-investor-day About Oshkosh Corporation At Oshkosh (NYSE: OSK), we make innovative, mission-critical equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs over 18,000 team members worldwide, all united behind a common purpose: to make a difference in people's lives. Oshkosh products can be found in more than 150 countries under the brands of JLG ®, Pierce ®, MAXIMETAL, Oshkosh ® S-Series™, McNeilus ®, IMT ®, Jerr-Dan ®, Frontline™ Communications, Oshkosh ® Airport Products, Oshkosh AeroTech™, Oshkosh ® Defense and Pratt Miller. For more information, visit ®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies. # # # Forward-looking Statements This news release relates to the Company's 2025 Investor Day at which the Company is discussing the Company's strategy, financial targets and capital allocation priorities, its plans for growth in revenues, margin expansion and advancements in technology, and its investment thesis (its '2028 Targets'). The Company intends that all statements in this news release concerning the 2028 Targets, including without limitation the Company's financial targets for 2028; its plans to evolve its product portfolio; growth trends and drivers; its strategic and capital allocation priorities; its plans, objectives and expectations; future financial and other results it seeks to attain; its competitive advantages; the new product introductions it contemplates and anticipated revenues from new products; financial pillars; takeaways and messages; its cost reduction plans; its capacity expansion plans; its expectations concerning free cash flow; its resilience; its investment strategy; its M&A strategy; and its views of market opportunities and benefits and other matters resulting from the 2028 Targets, are statements that the Company believes to be 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Without limitation, when used in this news release, words such as 'may,' 'will,' 'expect,' 'intend,' 'estimate,' 'anticipate,' 'believe,' 'should,' 'project,' 'confident,' 'executing,' 'building,' 'improving,' 'advancing,' 'expanding,' 'trends,' 'positioned,' or 'plan' or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Similarly, references in the strategy circle that appears in this news release to diversified growth, healthy margins and disciplined capital allocation are intended to be forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company's access equipment, fire apparatus, refuse and recycling collection and air transportation equipment markets, which are particularly impacted by the strength of U.S. and European economies and construction seasons; the Company's estimates of access equipment demand which, among other factors, is influenced by historical customer buying patterns and rental company fleet replacement strategies; the impact of orders and costs on the U.S. Postal Service contract; risks that a trade war and related tariffs could reduce the demand for or competitiveness of the Company's products or cause inefficiencies in the Company's supply chain; the Company's ability to increase prices to raise margins or to offset higher input costs; the Company's ability to accurately predict future input costs associated with Defense contracts; the Company's ability to attract and retain production labor in a timely manner; the Company's ability to realize the anticipated benefits associated with the AeroTech acquisition; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and the cost of purchased materials; the impact of severe weather, war, natural disasters or pandemics that may affect the Company, its suppliers or its customers; the Company's ability to predict the level and timing of orders for indefinite delivery/indefinite quantity contracts with the U.S. federal government; budget uncertainty for the U.S. federal government, including risks of future budget cuts, the impact of continuing resolution funding mechanisms and the potential for shutdowns; the impact of any U.S. Department of Defense solicitation for competition for future contracts to produce military vehicles; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company's products; risks associated with international operations and sales, including compliance with the Foreign Corrupt Practices Act; the Company's ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity risks and costs of defending against, mitigating and responding to data security threats and breaches impacting the Company; the Company's ability to successfully identify, complete and integrate other acquisitions and to realize the anticipated benefits associated with the same; and risks related to the Company's ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company's filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this news release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this news release to reflect subsequent events or circumstances. In particular: The statements in this news release relate to the Company's goals, targets and objectives regarding the 2028 Targets and potential results from the 2028 Targets. While many statements use language that might imply a level of certainty about the likelihood that the Company will attain these goals, targets and objectives, it is possible that the Company will not attain them in the timeframe noted or at all. By their nature, the risk and uncertainty associated with these goals, targets and objectives are greater than that associated with near-term guidance and should not be construed as guidance. Therefore, investors should construe these statements regarding the 2028 Targets only as goals, targets and objectives rather than promises of future performance or absolute statements. Non-GAAP Financial Measures The Company reports its financial results in accordance with generally accepted accounting principles in the United States of America (GAAP). The Company is presenting various estimates on a basis excluding items that affect comparability of results. When the Company excludes certain items as described below, they are considered non-GAAP financial measures. The Company believes excluding the impact of these items is useful to investors in comparing the Company's performance to prior period results. However, while adjusted operating income and adjusted earnings per share exclude amortization of purchased intangibles, revenue and earnings of acquired companies are reflected in adjusted operating income and adjusted earnings per share and intangible assets contribute to the generation of revenue and earnings. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's results prepared in accordance with GAAP. The table below presents a reconciliation of the Company's presented non-GAAP measures to the most directly comparable GAAP measures:
Yahoo
05-06-2025
- Business
- Yahoo
Oshkosh Corporation Hosting 2025 Investor Day
OSHKOSH, Wis., June 05, 2025--(BUSINESS WIRE)--Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, is hosting its Investor Day today, June 5, 2025, at the New York Stock Exchange beginning at 9:30 a.m. EDT. Register for the full live event here: Live webcast (register/join). The presentations will provide an in-depth review of Oshkosh's business strategy, growth drivers and financial objectives. During the event, there will be an opportunity for both live and webcast attendees to ask questions during a Q&A session. Event presentations will proceed as follows: Oshkosh Corporation overview John Pfeifer, president & CEO Technology for Everyday Heroes Jay Iyengar, EVP, chief technology & strategic sourcing officer Access segment Mahesh Narang, EVP & president, Access segment Transport segment John Pfeifer, president & CEO Vocational segment Mike Pack, EVP & president, Vocational segment Financial Matthew Field, EVP & CFO Closing remarks and Q&A Oshkosh leadership team A portion of today's presentation will be available starting at 8:00 a.m. EDT here: The full presentation will be available at approximately 11:15 am EDT at the same link. A replay of the webcast will be available under the "Events & Presentations" section of the company's Investor Relations website shortly following the conclusion of the event. About Oshkosh Corporation At Oshkosh (NYSE: OSK), we make innovative, mission-critical equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs over 18,000 team members worldwide, all united behind a common purpose: to make a difference in people's lives. Oshkosh products can be found in more than 150 countries under the brands of JLG®, Pierce®, MAXIMETAL, Oshkosh® S-Series™, McNeilus®, IMT®, Jerr-Dan®, Frontline™ Communications, Oshkosh® Airport Products, Oshkosh AeroTech™, Oshkosh® Defense and Pratt Miller. For more information, visit ®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies. View source version on Contacts Financial:Patrick DavidsonSenior Vice President, Investor Relations920.502.3266 Media:Tim GilmanSenior Manager, Communications and Branding920.509.0617 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
