Oshkosh’s second quarter results were met with a positive market reaction, reflecting management’s ability to drive margin expansion even as sales volumes declined. Despite a 4% year-over-year drop in revenue, management highlighted strong execution across all segments and noted resilient performance in the Vocational and Access divisions. CEO John Pfeifer credited improved pricing, disciplined cost actions, and “continued strong performance in our Vocational segment” as key factors in maintaining profitability. The company also pointed to successful contract execution and new product launches as contributors to the quarter’s performance.
Is now the time to buy OSK? Find out in our full research report (it’s free).
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: $368.8 million vs analyst estimates of $326.1 million (13.5% margin, 13.1% 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
- Backlog: $14.23 billion at quarter end, down 7.4% year on year
- Market Capitalization: $8.88 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.
Our Top 5 Analyst Questions From Oshkosh’s Q2 Earnings Call
- David Michael Raso (Evercore) asked about the sustainability of Access segment margins amid tariff pressures and pricing actions. CEO John Pfeifer explained that cost mitigation and normal seasonality should support margins, especially as newer pricing flows into the backlog in the fourth quarter.
- Mircea Dobre (Baird) pressed for details on tariff headwinds and management’s ability to fully offset them. Pfeifer described the dynamic tariff situation and emphasized ongoing supply chain localization and negotiation to limit impact, adding “most of what we sell in America is made in America.”
- Angel Castillo (Morgan Stanley) inquired about discounting trends and customer demand in Access equipment. CFO Matt Field said discounts are within normal ranges and that demand is supported by large-scale infrastructure and data center projects, with no significant project cancellations.
- Timothy W. Thein (Raymond James) questioned the sustainability of Vocational segment growth and whether fire apparatus strength would persist. Pfeifer confirmed ongoing investment in capacity and described fire trucks as a stable, non-cyclical market with continued demand.
- Robert Stephen Barger (KeyBanc) challenged the achievability of Oshkosh’s 2028 growth targets. Pfeifer responded that the 8% compound annual growth rate is “organically driven” and supported by new product innovation, acquisitions, and market tailwinds in areas like infrastructure and data centers.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be closely monitoring (1) the pace of backlog conversion and capacity expansion in the Vocational segment, (2) the margin impact from both tariff volatility and supply chain mitigation efforts across all divisions, and (3) progress on contract fulfillment and production ramp-up for defense and delivery vehicle programs. Developments in infrastructure and data center demand will also be key markers of future growth.
Oshkosh currently trades at $138.76, up from $126.60 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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