Oshkosh (OSK) Stock Forecast & Price Target

Oshkosh has demonstrated strong financial performance, with delivery vehicle revenues increasing by $114 million year-over-year, reflecting a 37% quarter-over-quarter growth to $146 million, and NGDV now comprises 25% of the Transport segment's revenues. The Vocational segment has shown exceptional resilience, boasting a robust backlog of $6.4 billion, an 8% year-over-year increase, and an impressive 18.9% year-over-year increase in sales, contributing to an adjusted operating margin of 15.6%, up 190 basis points compared to the previous year. Furthermore, Transport sales reached $588 million, representing an 8.8% year-over-year increase, with significant improvements in adjusted operating margin driven by favorable pricing and a beneficial contract mix, highlighting the overall strength of Oshkosh's diversified business segments.

Oshkosh's financial outlook appears negative as adjusted operating margins decreased to 10.2%, a decline of 10 basis points year-over-year, with significant drops in both the Access and Defense segments. Access revenues fell 18.6% year-over-year to $1.1 billion, and Access backlog plummeted 66% year-over-year, indicating weakening demand and operational challenges, especially in telehandler sales, which decreased by 41.4% year-over-year. Furthermore, the adjusted EPS forecast for full-year 2025 was lowered to a range of $10.50-$11.00, reflecting reduced expectations for both Access and Transport sales and a miss in adjusted EPS of $0.20 at $2.90.