Oshkosh (OSK 1.14%), a manufacturer of specialty vehicles and equipment for industries like access, defense, and refuse, released its results for the second quarter on August 1, 2025. The company reported adjusted earnings per share of $3.41, beating Wall Street estimates by $0.46, and GAAP revenue of $2.73 billion, which was also above expectations. However, GAAP revenue declined from the prior year, and the Access segment saw a sharp drop in backlog to $1,189.0 million as of Q2 2025, down from $3,264.4 million in Q2 2024. Management increased full-year adjusted earnings per share (non-GAAP) guidance to approximately $11.00 for fiscal 2025, citing improved cost visibility and execution in key businesses. Overall, the quarter underscored strength in Vocational while signaling increased risks in Access and from tariffs.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $3.41 | $2.95 | $3.34 | 2.1 % |
| Revenue (GAAP) | $2.73 billion | N/A | $2.85 billion | (-4.2 %) |
| Operating Income (GAAP) | $291.7 million | $260.9 million | 11.8 % | |
| Adjusted Operating Income (Non-GAAP) | $312.9 million | $328.2 million | (4.7 %) | |
| Net Income (GAAP) | $204.8 million | $168.6 million | 21.5% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Oshkosh: What It Does and What Matters
Oshkosh is a U.S.-based manufacturer specializing in access equipment such as aerial work platforms and telehandlers, vocational vehicles including fire trucks, refuse, and recycling vehicles, and defense platforms like tactical vehicles for government and military. Its largest end markets include construction, municipal services, and the U.S. Department of Defense.
The company’s success relies on segment balance, strategic government contracts, and continual innovation. Its ability to adapt to end-market shifts, sustain product launches in electrification and automation, and manage exposure to tariffs and global supply chains are all critical success factors. The business aims to buffer downturns in one area with resilience or growth in others, supported by significant multi-year contracts and new technologies.
Quarterly Performance: What Stood Out
Adjusted earnings per share (non-GAAP) outperformed estimates at $3.41, reflecting disciplined execution and broad-based strength across the portfolio. Revenue (GAAP) of $2.73 billion exceeded consensus but still declined year over year by 4.0%. This marked the second consecutive quarter of either meeting or topping guidance despite difficult Access conditions and economic uncertainty.
Sales rose 15.0% to $969.7 million (GAAP) in the Vocational segment, while operating income jumped 38.3%, reaching $147.3 million. The segment expanded both price realization and manufacturing productivity. The backlog remains robust at $6.3 billion, providing visibility for future bookings. The fire apparatus and airport products lines also posted double-digit sales gains.
Sales fell 10.7% to $1,256.0 million in the Access segment as a key agreement to produce Caterpillar-branded telehandlers expired. Sales volume dropped further in Europe, and higher discounting affected pricing. The most notable risk indicator was backlog in Access, down more than 60% to $1.2 billion amid shipment acceleration and subdued orders -- a signal of potential future demand softening. Management pointed to sustained downward pressure from both demand and competitive pricing.
In Transport, which includes Defense platforms and the Next Generation Delivery Vehicle (NGDV) program for the United States Postal Service, GAAP sales dropped 16.2% to $479.1 million. The wind-down of military programs like the Joint Light Tactical Vehicle was only partially offset by NGDV and international sales, but operating margin improved to 3.7% for the Transport segment. Backlog here grew to $6.7 billion, offering some security for future quarters.
Key product launches during the period included a new micro-sized JLG scissor lift (access equipment for construction and maintenance) and ongoing development in electrification -- notably, the Pierce Volterra electric fire truck and the McNeilus Volterra electric refuse vehicle. These initiatives are part of Oshkosh's strategic focus on innovation and sustainability across its product lines. The company also highlighted productivity investments and ongoing cost-control measures.
The quarterly dividend was declared at $0.51 per share, consistent with the previous quarter.
Looking Ahead: Guidance and Key Trends
Management raised its full-year guidance for adjusted earnings per share (non-GAAP) to approximately $11.00 for fiscal 2025, based on improved cost mitigation and execution. GAAP earnings per share are now expected to reach $10.25 in fiscal 2025, and sales (GAAP) are projected at approximately $10.6 billion in fiscal 2025. The company included revised assumptions on tariffs, anticipating less impact than previously feared, offset by company-wide cost cutting.
First, Access backlog and margins require close attention due to their sharp contraction; future earnings could face pressure if new bookings do not recover. Second, tariff mitigation efforts are still being ramped up. Management stated that initial actions focus on controlling costs in the near term, with supply chain reorganization expected to have a greater effect in 2026 and beyond.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
