Oshkosh (OSK) Stock Forecast & Price Target

Oshkosh Corporation's revenue from delivery vehicles saw a significant increase of $114 million year-over-year, driven primarily by the Next Generation Delivery Vehicle (NGDV), which now comprises 25% of Transport revenues. The company reports a robust Vocational backlog of $6.4 billion, reflecting an 8% year-over-year growth, and experienced an 18.9% increase in sales, accompanied by an adjusted operating margin improvement of 190 basis points to 15.6%. Additionally, Transport sales grew by 8.8% year-over-year, with adjusted operating income improving alongside favorable pricing and a strategic software IP license agreement that contributed significantly to margins.

Oshkosh recently reported an adjusted operating margin of 10.2%, reflecting a slight year-over-year decline, while fiscal challenges in the defense segment were highlighted by a 13% drop in vehicle revenues, primarily due to decreased domestic deployments. Additionally, the Access equipment segment experienced a significant setback, with revenue plummeting 18.6% year-over-year to $1.1 billion, accompanied by a drastic 66% decrease in backlog, indicating potential long-term weakness in demand. Furthermore, Oshkosh lowered its full-year 2025 adjusted EPS guidance to between $10.50 and $11.00, a revision that underscores ongoing pressures from declining sales in the Access and Transport divisions.