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Oshkosh Corp
In the bustling world of specialized industrial manufacturing, Oshkosh Corporation has carved out a robust niche, evolving from its humble beginnings in Oshkosh, Wisconsin, to becoming a powerhouse in the production of heavy-duty vehicles and equipment. Founded in 1917, the company made its mark with innovations in four-wheel-drive technology, setting a precedent for durable and reliable performance. Over the decades, Oshkosh has strategically expanded its reach across defense, access equipment, fire and emergency, and commercial segments, ensuring a steady stream of diversified income. This diversification acts as a stabilizing force, insulating the company from sector-specific downturns while allowing it to capitalize on expansive markets such as defense contracts and construction equipment.
Oshkosh's revenue engine is powered by its strong commitment to producing high-quality, mission-critical vehicles and equipment, which serve a variety of industries. In defense, Oshkosh Defense is renowned for designing and manufacturing military vehicles, including the Joint Light Tactical Vehicle (JLTV), which meets rigorous demands for security and adaptability. Likewise, its access equipment segment, led by the JLG brand, supplies leading edge aerial work platforms and telehandlers that are indispensable to construction firms worldwide. The company’s expertise in customization and engineering prowess ensures that Oshkosh remains highly valuable to its clients, enabling the corporation to maintain significant market share across its diverse business lines. Through a blend of innovation and strategic acquisitions, Oshkosh continues to hone its competitive edge, securing its position as an indispensable player in the field of specialty vehicles and equipment.
In the bustling world of specialized industrial manufacturing, Oshkosh Corporation has carved out a robust niche, evolving from its humble beginnings in Oshkosh, Wisconsin, to becoming a powerhouse in the production of heavy-duty vehicles and equipment. Founded in 1917, the company made its mark with innovations in four-wheel-drive technology, setting a precedent for durable and reliable performance. Over the decades, Oshkosh has strategically expanded its reach across defense, access equipment, fire and emergency, and commercial segments, ensuring a steady stream of diversified income. This diversification acts as a stabilizing force, insulating the company from sector-specific downturns while allowing it to capitalize on expansive markets such as defense contracts and construction equipment.
Oshkosh's revenue engine is powered by its strong commitment to producing high-quality, mission-critical vehicles and equipment, which serve a variety of industries. In defense, Oshkosh Defense is renowned for designing and manufacturing military vehicles, including the Joint Light Tactical Vehicle (JLTV), which meets rigorous demands for security and adaptability. Likewise, its access equipment segment, led by the JLG brand, supplies leading edge aerial work platforms and telehandlers that are indispensable to construction firms worldwide. The company’s expertise in customization and engineering prowess ensures that Oshkosh remains highly valuable to its clients, enabling the corporation to maintain significant market share across its diverse business lines. Through a blend of innovation and strategic acquisitions, Oshkosh continues to hone its competitive edge, securing its position as an indispensable player in the field of specialty vehicles and equipment.
EPS Guidance Lowered: Oshkosh revised its 2025 adjusted EPS guidance down to $10.50–$11, citing softer demand in Access and Transport segments.
Revenue Down Slightly: Third quarter revenue was $2.7 billion, down 2% year-on-year due to weaker Access sales, partially offset by growth in Vocational and Transport.
Margins Remain Solid: Adjusted operating margin held steady at 10.2% despite lower sales, supported by strong Vocational and double-digit Access margins.
Tariff Headwinds: Tariffs impacted Q3 results and are expected to cost $30–$40 million in 2025, with mitigation strategies and price increases planned for 2026.
Strong Free Cash Flow: Free cash flow reached $464 million in Q3, up from $272 million last year, driven by working capital improvements.
NGDV Ramp Challenges: Production ramp for new postal vehicles (NGDV) was slower than expected, but full-rate production is still targeted by year-end.
Share Buybacks: Company repurchased $91 million in shares this quarter, bringing year-to-date buybacks to $159 million.
Long-Term Growth Target: Management reiterated its goal to nearly double EPS to $18–$22 by 2028.