Oshkosh (OSK) Stock Forecast & Price Target

Oshkosh Corporation has demonstrated strong financial performance, highlighted by a 37% quarter-over-quarter increase in delivery vehicle revenues, which reached $146 million, with the Next Generation Delivery Vehicle (NGDV) now accounting for 25% of Transport revenues. The Vocational segment, showing impressive resilience, reported sales growth of 18.9% year-over-year, supported by a robust backlog of $6.4 billion and an adjusted operating margin that improved by 190 basis points to 15.6%. Additionally, Transport sales rose 8.8% year-over-year, with notable improvement in adjusted operating income and margin, driven by enhanced pricing strategies and favorable contract dynamics.

Oshkosh's financial performance has shown signs of deterioration, with a notable decrease in adjusted operating income for the Access segment by 42% year-over-year despite maintaining an adjusted operating margin of 11.0%. Revenues from defense vehicles declined 13% year-over-year, attributed to reduced volumes linked to the domestic JLTV program's wind down and an overall 18.6% drop in Access revenues further highlights ongoing challenges within the company. Additionally, Oshkosh has lowered its full-year 2025 adjusted EPS guidance, now projected between $10.50 and $11.00, amidst a 66% year-over-year decline in Access backlog, which raises concerns regarding future revenue generation.