Oshkosh (OSK) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $2.31 billion, down 9.1% year-over-year, mainly due to lower Access segment volume, partially offset by strong Vocational segment growth and improved pricing.

• Adjusted EPS was $1.92, down 33.6% year-over-year, in line with expectations; net income was $112.2 million ($1.72 per share).

• Adjusted operating income was $191.8 million (8.3% margin), with operating income at $175.4 million (7.6% margin).

• The company entered a $500 million term loan in March 2025 to enhance liquidity and reduce revolving credit borrowings.

• Backlog at quarter-end was $14.6 billion, with Access backlog down 57.3% and Vocational backlog up 11.8%.

Financial highlights

• Net sales: $2.31 billion, down 9.1% year-over-year; gross margin declined to 17.3%.

• Adjusted operating income: $191.8 million (8.3% margin); adjusted EPS: $1.92.

• Free cash flow was negative $435.2 million, mainly due to seasonal working capital needs.

• Cash and cash equivalents at quarter-end were $210.3 million; total debt increased to $1.48 billion.

• Dividend declared per share was $0.51, up from $0.46 year-over-year.

Outlook and guidance

• Full-year adjusted EPS guidance is ~$11.00, excluding tariff impacts; tariffs are expected to reduce EPS by ~$1.00, with mitigation efforts offsetting up to $0.50.

• No material impact from tariffs is anticipated in Q2 due to existing inventories; most effects are expected in the second half of the year.

• The company remains confident in operational performance and expects to stay within financial covenants.

• Defense segment is expected to ramp NGDV production to full-rate by year-end, supporting revenue growth into 2026.