OSHKOSH CORP (OSK)
SIC breadcrumb: Manufacturing > Transportation Equipment > SIC 3711 Motor Vehicles & Passenger Car Bodies
SEC company page: https://www.sec.gov/edgar/browse/?CIK=775158. Latest filing source: 0001193125-26-054061.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 10,422,300,000 USD verified
- Net income
- 647,000,000 USD verified
- Assets
- 10,072,400,000 USD verified
- Free cash flow
- 618,000,000 USD computed
- Net margin
- 6.21% computed
- Operating margin
- 9.01% computed
- Revenue YoY
- -2.87% computed
- ROE
- 14.28% computed
Peer & cluster context
Peer percentile fingerprint
Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3711 Motor Vehicles & Passenger Car Bodies, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 10,422,300,000 | USD | 2025 | 2026-02-17 |
| Net income | 647,000,000 | USD | 2025 | 2026-02-17 |
| Assets | 10,072,400,000 | USD | 2025 | 2026-02-17 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000775158.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,829,600,000 | 7,705,500,000 | 8,382,000,000 | 6,856,800,000 | 7,737,300,000 | 8,282,000,000 | 9,657,900,000 | 10,730,200,000 | 10,422,300,000 | |
| Net income | 216,400,000 | 285,600,000 | 471,900,000 | 579,400,000 | 321,500,000 | 508,900,000 | 173,900,000 | 598,000,000 | 681,400,000 | 647,000,000 |
| Operating income | 364,000,000 | 470,300,000 | 656,000,000 | 797,000,000 | 484,800,000 | 592,100,000 | 372,300,000 | 837,600,000 | 1,010,700,000 | 939,500,000 |
| Gross profit | 1,055,800,000 | 1,180,800,000 | 1,358,600,000 | 1,517,400,000 | 1,116,400,000 | 1,268,200,000 | 1,054,400,000 | 1,680,800,000 | 1,969,400,000 | 1,819,000,000 |
| Operating cash flow | 583,900,000 | 246,500,000 | 436,300,000 | 568,300,000 | 327,300,000 | 1,221,600,000 | 601,300,000 | 599,600,000 | 550,100,000 | 783,400,000 |
| Capital expenditures | 92,500,000 | 85,800,000 | 95,300,000 | 147,600,000 | 112,300,000 | 104,400,000 | 269,500,000 | 325,300,000 | 281,000,000 | 165,400,000 |
| Dividends paid | 55,900,000 | 62,800,000 | 71,200,000 | 75,500,000 | 81,800,000 | 90,400,000 | 97,300,000 | 107,200,000 | 120,000,000 | 130,400,000 |
| Share buybacks | 106,300,000 | 4,800,000 | 257,000,000 | 357,400,000 | 40,800,000 | 107,800,000 | 155,000,000 | 22,500,000 | 116,000,000 | 278,000,000 |
| Assets | 4,513,800,000 | 5,098,900,000 | 5,294,200,000 | 5,566,300,000 | 5,815,900,000 | 6,849,700,000 | 7,729,000,000 | 9,129,200,000 | 9,423,100,000 | 10,072,400,000 |
| Stockholders' equity | 1,976,500,000 | 2,307,400,000 | 2,513,500,000 | 2,599,800,000 | 2,850,700,000 | 3,204,300,000 | 3,185,700,000 | 3,705,300,000 | 4,152,100,000 | 4,530,500,000 |
| Cash and cash equivalents | 321,900,000 | 447,000,000 | 454,600,000 | 448,400,000 | 582,900,000 | 995,700,000 | 805,900,000 | 125,400,000 | 204,900,000 | 479,800,000 |
| Free cash flow | 491,400,000 | 160,700,000 | 341,000,000 | 420,700,000 | 215,000,000 | 1,117,200,000 | 331,800,000 | 274,300,000 | 269,100,000 | 618,000,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 4.18% | 6.12% | 6.91% | 4.69% | 6.58% | 2.10% | 6.19% | 6.35% | 6.21% | |
| Operating margin | 6.89% | 8.51% | 9.51% | 7.07% | 7.65% | 4.50% | 8.67% | 9.42% | 9.01% | |
| Return on equity | 10.95% | 12.38% | 18.77% | 22.29% | 11.28% | 15.88% | 5.46% | 16.14% | 16.41% | 14.28% |
| Return on assets | 4.79% | 5.60% | 8.91% | 10.41% | 5.53% | 7.43% | 2.25% | 6.55% | 7.23% | 6.42% |
| Liabilities / equity | 1.28 | 1.21 | 1.11 | 1.14 | 1.04 | 1.14 | 1.43 | 1.46 | 1.27 | 1.22 |
| Current ratio | 1.77 | 1.81 | 1.93 | 1.96 | 2.23 | 2.00 | 1.87 | 1.45 | 1.52 | 1.94 |
Industry Peer Context
Net margin peer context
Operating margin peer context
ROE peer context
ROA peer context
Financial Bridges
Income statement bridge from reported figures
Figure provenance: SEC companyfacts FY 2025. Revenue: accession 0001193125-26-054061; concept RevenueFromContractWithCustomerExcludingAssessedTax; source concepts us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | Gross profit: accession 0001193125-26-054061; concept GrossProfit; source concepts us-gaap:GrossProfit | Operating income: accession 0001193125-26-054061; concept OperatingIncomeLoss; source concepts us-gaap:OperatingIncomeLoss | Net income: accession 0001193125-26-054061; concept ProfitLoss; source concepts us-gaap:ProfitLoss
Free cash flow = operating cash flow - capital expenditures
Figure provenance: SEC companyfacts FY 2025. Operating cash flow: accession 0001193125-26-054061; concept NetCashProvidedByUsedInOperatingActivities; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities | Capital expenditures: accession 0001193125-26-054061; concept PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | Free cash flow: accession 0001193125-26-054061; concept NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: ProfitLoss. Source concepts: us-gaap:ProfitLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: OperatingIncomeLoss. Source concepts: us-gaap:OperatingIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: GrossProfit. Source concepts: us-gaap:GrossProfit.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: PaymentsOfDividends. Source concepts: us-gaap:PaymentsOfDividends.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: PaymentsForRepurchaseOfCommonStock. Source concepts: us-gaap:PaymentsForRepurchaseOfCommonStock.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: CashAndCashEquivalentsAtCarryingValue. Source concepts: us-gaap:CashAndCashEquivalentsAtCarryingValue.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001193125-26-054061; filed 2026-02-17. Concept: NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
As-reported value updates
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000775158.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2011-Q1 | 2010-12-31 | 1.09 | reported discrete quarter | ||
| 2011-Q2 | 2011-03-31 | 0.74 | reported discrete quarter | ||
| 2011-Q3 | 2011-06-30 | 0.75 | reported discrete quarter | ||
| 2012-Q1 | 2011-12-31 | 0.42 | reported discrete quarter | ||
| 2012-Q2 | 2012-03-31 | 0.41 | reported discrete quarter | ||
| 2012-Q3 | 2012-06-30 | 0.82 | reported discrete quarter | ||
| 2013-Q1 | 2012-12-31 | 0.51 | reported discrete quarter | ||
| 2013-Q2 | 2013-03-31 | 0.97 | reported discrete quarter | ||
| 2013-Q3 | 2013-06-30 | 1.67 | reported discrete quarter | ||
| 2014-Q1 | 2013-12-31 | 0.63 | reported discrete quarter | ||
| 2014-Q2 | 2014-03-31 | 0.83 | reported discrete quarter | ||
| 2014-Q3 | 2014-06-30 | 1.22 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 2,413,100,000 | 175,000,000 | reported discrete quarter | |
| 2023-Q3 | 2023-09-30 | 2,509,900,000 | 183,700,000 | reported discrete quarter | |
| 2023-Q4 | 2023-12-31 | 2,466,800,000 | 150,800,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 2,543,800,000 | 179,400,000 | reported discrete quarter | |
| 2024-Q2 | 2024-06-30 | 2,846,900,000 | 168,600,000 | reported discrete quarter | |
| 2024-Q3 | 2024-09-30 | 2,741,400,000 | 180,300,000 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 2,598,100,000 | 153,100,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 2,312,800,000 | 112,200,000 | reported discrete quarter | |
| 2025-Q2 | 2025-06-30 | 2,732,100,000 | 204,800,000 | reported discrete quarter | |
| 2025-Q3 | 2025-09-30 | 2,688,600,000 | 196,200,000 | reported discrete quarter | |
| 2025-Q4 | 2025-12-31 | 2,688,800,000 | 133,800,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 2,317,800,000 | 43,100,000 | reported discrete quarter |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-03-31; accession 0001193125-26-214298; filed 2026-05-08. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-03-31; accession 0001193125-26-214298; filed 2026-05-08. Concept: ProfitLoss. Source concepts: us-gaap:ProfitLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2014 ended 2014-06-30; accession 0000775158-14-000096; filed 2014-07-29. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read OSK's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read OSK's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0001193125-26-320490.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Statement About Forward-Looking Statements
This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Quarterly Report on Form 10-Q contain 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 included in this Quarterly Report on Form 10-Q, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, including those under the caption “Overview,” are forward-looking statements. When used in this Quarterly Report on Form 10-Q, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” 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 outlooks; 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 Company's ability to predict the level and timing of orders and costs on the U.S. Postal Service contract; the Company's ability to increase production rates in its municipal fire apparatus and delivery businesses; risks that trade wars and related tariffs could further reduce 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 achieve its projected material and manufacturing efficiency savings; 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 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; budget uncertainty for the U.S. federal government, including risks of future budget cuts, the impact of continuing resolution funding mechanisms or a prolonged federal government shutdown; 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 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 that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including, but not limited to, those described in the Company’s most recent Annual Report on Form 10-K and Item 1A. of Part II of this Quarterly Report on Form 10-Q.
All forward-looking statements, including those under the caption “Overview,” speak only as of the date the Company files this Quarterly Report on Form 10-Q with the SEC. The Company assumes no obligation, and disclaims any obligation, to update information contained in this Quarterly Report on Form 10-Q. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.
All references herein to earnings per share refer to earnings per share assuming dilution.
29
Table of Contents
General
Major products manufactured and marketed by each of the Company’s segments are as follows:
Access — aerial work platforms and telehandlers used in a wide variety of construction, industrial, agricultural, vegetation management and maintenance applications to position workers and materials at elevated heights. Access customers include equipment rental companies, construction contractors and home improvement centers. The Access segment also manufactures carriers and wreckers sold to towing companies.
Vocational — custom and commercial firefighting vehicles and equipment sold to municipal fire departments; aviation ground support products, gate equipment and airport services sold to commercial airlines, airports, air-freight carriers, ground handling customers and the military; aircraft rescue and firefighting (ARFF) vehicles sold to airports and the U.S. military; refuse and recycling collection vehicles sold to commercial and municipal waste haulers; field service vehicles and truck-mounted cranes sold to mining, construction and equipment rental companies; simulators, mobile command vehicles and other emergency vehicles sold to fire departments and other governmental units; and front-discharge concrete mixers sold to ready-mix companies.
Transport — tactical vehicles, trailers and parts sold to the U.S. military and to other militaries around the world and the Next Generation Delivery Vehicle (NGDV) for the United States Postal Service (USPS).
Overview
Consolidated sales in the second quarter of 2026 of $2.92 billion increased $183 million, or 6.7%, compared to the second quarter of 2025. The increase was primarily the result of higher sales volume, largely in the Access segment, and improved pricing. Consolidated operating income in the second quarter of 2026 was $243 million, or 8.3% of sales, compared to $292 million, or 10.7% of sales, in the second quarter of 2025. The decrease in consolidated operating income was primarily the result of unfavorable sales mix and higher manufacturing overhead costs, offset in part by the impact of higher gross margin associated with higher sales volume.
The Company's effective tax rate in the second quarter of 2026 included net discrete tax benefits of $16 million, primarily related to the expiration of the statute of limitations for a foreign anti-hybrid tax matter.
The Company continued to repurchase shares of its Common Stock, repurchasing 667,158 shares during the second quarter of 2026 for $92 million, bringing share repurchases for the first six months of 2026 to $139 million. Share repurchases during the previous twelve months benefited earnings per share during the second quarter of 2026 by $0.09 compared to the second quarter of 2025.
The Access segment delivered double-digit operating income margin during the second quarter of 2026 with strong sales in a dynamic environment. Access segment orders during the quarter were strong at $1.5 billion, resulting in a book-to-bill ratio of 1.1. Access segment backlog of $2.0 billion at June 30, 2026 provides great visibility for the remainder of 2026.
In the Vocational segment, we are continuing actions to modernize our municipal fire apparatus manufacturing and expand production to better serve customer demand. In the second quarter, the Company implemented new production changes to improve throughput that identified new material flow requirements, shifting from reliance on individuals with experience to standardized process flow. These new requirements are expected to result in a more gradual increase in throughput than previously expected.
The Company now expects its 2026 diluted earnings per share to be in the range of $10.50 on net sales of approximately $11.2 billion, compared to the Company's most recent estimates of diluted earnings per share of $10.90 on sales of $11.0 billion. The updated guidance primarily reflects a more gradual increase in the rate of municipal fire apparatus production. The earnings per share estimate includes after-tax charges of $0.72 per share related to amortization of purchased intangible assets and a $0.22 per share benefit relating to the expiration of a foreign anti-hybrid tax matter. Excluding these items, the Company now expects 2026 adjusted earnings per share to be in the range of $11.00.
30
Table of Contents
As the Company continues to manage the business in an evolving landscape, it is not providing 2026 expectations by segment. The Company believes fourth quarter results will be stronger than the third quarter as municipal fire apparatus capacity plans progress, it receives an expected order for additional NGDVs, it increases NGDV production and it builds more vehicles under revised defense contracts. The Company expects that the fourth quarter momentum will carry forward into 2027.
RESULTS OF OPERATIONS
CONSOLIDATED RESULTS
The following table presents consolidated results (in millions):
| Second Quarter | First Six Months | |||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | Change | % Change | 2026 | 2025 | Change | % Change | |||||||||||||||||||||||||
| Net sales | $ | 2,915.1 | $ | 2,732.1 | $ | 183.0 | 6.7 | % | $ | 5,232.9 | $ | 5,044.9 | $ | 188.0 | 3.7 | % | ||||||||||||||||
| Cost of sales | 2,434.8 | 2,207.6 | 227.2 | 10.3 | % | 4,440.7 | 4,120.5 | 320.2 | 7.8 | % | ||||||||||||||||||||||
| Gross income | $ | 480.3 | $ | 524.5 | $ | (44.2 | ) | -8.4 | % | $ | 792.2 | $ | 924.4 | $ | (132.2 | ) | -14.3 | % | ||||||||||||||
| % of sales | 16.5 | % | 19.2 | % | -270 bps | 15.1 | % | 18.3 | % | -320 bps | ||||||||||||||||||||||
| Selling, general and administrative | $ | 222.7 | $ | 213.3 | $ | 9.4 | 4.4 | % | $ | 438.3 | $ | 424.3 | $ | 14.0 | 3.3 | % | ||||||||||||||||
| Amortization of purchased intangibles | 14.4 | 13.8 | 0.6 | 4.3 | % | 28.7 | 27.3 | 1.4 | 5.1 | % | ||||||||||||||||||||||
| Intangible asset impairment | — | 5.7 | (5.7 | ) | -100.0 | % | — | 5.7 | (5.7 | ) | -100.0 | % | ||||||||||||||||||||
| Operating income | $ | 243.2 | $ | 291.7 | $ | (48.5 | ) | -16.6 | % | $ | 325.2 | $ | 467.1 | $ | (141.9 | ) | -30.4 | % | ||||||||||||||
| % of sales | 8.3 | % | 10.7 | % | -240 bps | 6.2 | % | 9.3 | % | -310 bps |
Second Quarter 2026 Compared to 2025
Consolidated net sales increased primarily due to higher sales volume ($87 million) and improved pricing ($68 million).
The decrease in consolidated gross margin was primarily due to unfavorable sales mix (200 basis points), higher material costs (170 basis points), primarily re
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A (excerpt)
Latest 10-K Item 7 source: 0001193125-26-054061. The complete FY 2025 MD&A is published at /company/OSK/mda/fy2025/.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
Oshkosh Corporation is a global industrial technology company that designs and deploys advanced technologies to empower everyday heroes who build, serve and protect communities around the world. Across construction, firefighting, aviation, refuse collection, defense and delivery industries, we create purpose-built vehicles, equipment and integrated ecosystems that are safe, intuitive and highly productive. As an innovator and integrator, we work directly with our customers to solve real-world challenges – developing and applying breakthrough technologies in autonomy, artificial intelligence, connectivity and electrification. Through these advancements, we make some of the world’s toughest jobs safe, efficient, sustainable and connected — delivering measurable impact for the people who depend on us every day.
Major products manufactured and marketed by each of the Company’s business segments are as follows:
Access — aerial work platforms and telehandlers used in a wide variety of construction, industrial, agricultural, vegetation management and maintenance applications to position workers and materials at elevated heights. Access customers include equipment rental companies, construction contractors and home improvement centers. The Access segment also manufactures carriers and wreckers sold to towing companies.
Vocational — custom and commercial firefighting vehicles and equipment sold to municipal fire departments; aviation ground support products, gate equipment and airport services sold to commercial airlines, airports, air-freight carriers, ground handling customers and the military; aircraft rescue and firefighting (ARFF) vehicles sold to airports and the U.S. military; refuse and recycling collection vehicles sold to commercial and municipal waste haulers; field service vehicles and truck-mounted cranes sold to mining, construction and equipment rental companies; simulators, mobile command vehicles and other emergency vehicles sold to fire departments and other governmental units; and front-discharge concrete mixers sold to ready-mix companies.
Transport — tactical vehicles, trailers and parts sold to the U.S. military and to other militaries around the world and delivery vehicles for the United States Postal Service (USPS).
All estimates referred to in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” refer to the Company’s estimates as of February 17, 2026.
OVERVIEW
The Company experienced a dynamic and unpredictable international trade environment throughout 2025. The continuously-changing environment contributed to economic uncertainty and the Company saw some customers being judicious with spending on new equipment. Tariffs enacted in the U.S. during the year cost the Company $35 million, or $0.42 per share. Despite all of this, the Company reported solid 2025 earnings per share of $10.02.
Driven by the dedication and hard work of its more than 18,000 team members, the Company made tremendous progress on its initiatives during the year. As a result of increased production rates, sales of delivery vehicles were up $365 million, or 352%, in 2025 compared to 2024. The Access segment reported an operating income margin of 11.2% in an environment where sales were down 13.0%. Continued production throughput in the Vocational segment contributed, in large part, to the 12.6% increase in Vocational segment sales over the prior year, while increasing margins to 14.7%, an increase of 270 basis points over 2024. Higher Vocational segment sales and higher sales in the delivery vehicle business as well as improved pricing nearly offset the decline in revenue in the access equipment and defense businesses.
Improved communications with customers led to strong customer advances, resulting in cash flows from operations in 2025 of $783 million, an increase of $233 million from 2024. In addition, the One Big Beautiful Bill Act (OBBBA), enacted in the U.S. in July 2025, lowered tax payments in 2025 by approximately $90 million as a result of the acceleration of deductions.
29
In March 2025, the Company entered into an unsecured term loan with various lenders to borrow $500 million. The Company used the proceeds from the term loan to reduce the borrowings outstanding under its Revolving Credit Facility (as defined in “Liquidity”). The term loan, which is fully prepayable, carries a slightly lower interest rate than the Revolving Credit Facility and matures in March 2027.
The Company continued to repurchase shares of its Common Stock throughout the year, repurchasing nearly 2.3 million shares for $278 million. Share repurchases during the previous twelve months benefited earnings per share by $0.19 compared to 2024.
The Company announced an increase in its quarterly dividend rate of 11.8%, to $0.57 per share, beginning in the first quarter of 2026. This was the Company's twelfth straight year of a double-digit percentage increase in its dividend rate.
2026 OUTLOOK
The Company estimates consolidated sales will be approximately $11.0 billion in 2026, compared to $10.4 billion in 2025. The Company expects consolidated operating income in 2026 will be approximately $1.06 billion, resulting in diluted earnings per share of approximately $10.90. Included in the Company's expectations is amortization of intangible assets of approximately $55 million, or $0.60 per share. Excluding amortization of intangible assets, the Company expects adjusted diluted earnings per share in 2026 to be approximately $11.50. The Company's estimates assume that present levels of tariff rates continue. The Company estimates tariffs will total approximately $200 million in 2026, which is an increase of approximately $165 million from 2025.
The Company expects Access segment sales will be approximately $4.2 billion in 2026, a decrease of approximately 7.0% compared to 2025 sales as non-residential construction activity is expected to be relatively consistent with 2025. The Company expects that Access segment sales in the first quarter of 2026 will be lower than the first quarter of 2025 due to its strong sales in the fourth quarter of 2025, which the Company believes were a result of strong customer purchases in advance of announced 2026 pricing actions. The Company expects operating income margin in the Access segment in 2026 will be approximately 9.7%, down from 11.2% in 2025 due to the impact of fixed costs relative to lower expected sales levels.
The Company expects Vocational segment sales of approximately $4.2 billion in 2026, an increase of approximately 13.0% compared to 2025 sales reflecting expected increases in production volume from improved throughput and improvements in pricing in municipal fire apparatus as the Vocational segment delivers its backlog. The Company expects Vocational segment operating income margin in 2026 will be approximately 16.1%, compared to 14.7% in 2025. The segment's operating income margin is expected to increase in 2026 as a result of expected continued favorable price/cost dynamics and improved production throughput.
The Company expects Transport segment sales will be approximately $2.5 billion in 2026, an increase of approximately 19% compared to 2025 sales. The Company's estimate reflects improved pricing under recent contracts and a progressive increase in production under the Company's Next Generation Delivery Vehicle (NGDV) contract. The Company expects Transport segment operating margin will be approximately 4.0% in 2026, compared to 3.7% in 2025, reflecting the elimination of adverse cumulative catch-up adjustments experienced in 2025 and the expected receipt of a follow-on delivery order from the USPS are expected to be offset in part by higher engineering spending and the non-recurrence in 2026 of the impact of a sale of a license of Joint Light Tactical Vehicles (JLTV)-related intellectual property to the U.S. government for $25 million. The Company's expectations contemplate a receipt of a follow-on NGDV delivery order from the USPS, which the Company expects would result in a favorable cumulative catch-up adjustment at the time the order is received.
The Company estimates corporate and other costs in 2026 will be approximately $185 million. The Company estimates net interest expense will be approximately $105 million in 2026, compared to $109 million in 2025. The Company estimates the tax rate for 2026 will be approximately 24.5% and average share count will be approximately 63 million shares.
The Company expects earnings per share in the first quarter of 2026 will be approximately $0.85, reflecting the impact of tariffs, expected continued softer market conditions and seasonality in access equipment markets and the Company's expectation that its strong Access segment sales in the fourth quarter of 2025 ahead of 2026 pricing actions will result in lower first quarter 2026 sales volume.
30
RESULTS OF OPERATIONS- 2025 COMPARED WITH 2024
CONSOLIDATED RESULTS
The following table presents consolidated results (in millions):
| Year Ended December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | |||||||||||||
| Net sales | $ | 10,422.3 | $ | 10,730.2 | $ | (307.9 | ) | -2.9 | % | |||||||
| Cost of sales | 8,603.3 | 8,760.8 | (157.5 | ) | -1.8 | % | ||||||||||
| Gross income | $ | 1,819.0 | $ | 1,969.4 | $ | (150.4 | ) | -7.6 | % | |||||||
| % of sales | 17.5 | % | 18.4 | % | -90 bps | |||||||||||
| Selling, general and administrative | $ | 818.7 | $ | 852.4 | $ | (33.7 | ) | -4.0 | % | |||||||
| Amortization of purchased intangibles | 55.1 | 54.7 | 0.4 | 0.7 | % | |||||||||||
| Intangible asset impairments | 5.7 | 51.6 | (45.9 | ) | -89.0 | % | ||||||||||
| Operating income | $ | 939.5 | $ | 1,010.7 | $ | (71.2 | ) | -7.0 | % | |||||||
| % of sales | 9.0 | % | 9.4 | % | -40 bps |
Consolidated net sales decreased primarily due to lower organic sales volume in the Access ($659 million) and Transport ($107 million) segments, offset in part by higher sales volume in the Vocational segment ($261 million), incremental sales related to the September 2024 acquisition of AUSACORP S.L. (AUSA) ($91 million) and improved pricing ($69 million).
The decrease in consolidated gross margin was primarily due to higher labor and overhead costs (100 basis points).
Consolidated selling, general and administrative expenses decreased primarily due to lower incentive compensation accruals ($30 million).
During 2024, the Company recorded impairment charges related to Pratt Miller goodwill and intangibles ($52 million) as a result of unfavorable performance compared to forecast and adverse market conditions related to mobility and motorsports. During 2025, the Company impaired the remaining Pratt Miller goodwill ($6 million) as a reduction in royalties expected on defense contracts led to a further decline in the Company's expectations of future performance of the reporting unit.
The decrease in consolidated operating income was primarily due to the impact of lower gross margin associated with lower sales volume ($107 million), higher labor and overhead costs ($90 million) and higher warranty expense ($37 million), offset in part by improved pricing ($69 million), lower intangible asset impairments ($46 million), lower selling, general and administrative expenses ($34 million) and lower adverse changes in cumulative catch-up adjustments on contracts ($12 million).
The following table presents consolidated non-operating changes (in millions):
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MD&A history
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