Oshkosh (OSK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $2.73 billion, down 4% year-over-year, mainly due to lower Access and Transport volumes, partially offset by Vocational growth and improved pricing.

• Adjusted operating margin held steady at 11.5% on $2.73 billion revenue, with adjusted EPS of $3.41, up 2.1% year-over-year.

• Operating income rose 11.8% to $291.7 million, driven by lower intangible asset impairments and favorable sales mix.

• Strategic focus remains on margin expansion, top-line growth, disciplined capital allocation, and execution of Innovate Serve Advance strategy.

• Secured a three-year FMTV contract with the DoD/U.S. Army, featuring favorable pricing and economic adjustments.

Financial highlights

• Q2 2025 adjusted operating income was $312.9 million (11.5% margin), down 4.7% year-over-year; adjusted EPS was $3.41, up 2.1% year-over-year.

• Free cash flow for Q2 2025 was $49 million, a significant improvement from a net use of $251 million in Q2 2024.

• Net income for Q2 2025 was $204.8 million, up from $168.6 million in Q2 2024.

• Share repurchases totaled nearly $70 million year-to-date, with $40 million in Q2.

• Gross margin held steady at 19.2% in Q2 2025.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to ~$11.00 on $10.6 billion revenue; diluted EPS expected at ~$10.25.

• Free cash flow guidance increased to $400–$500 million, with CapEx at $250 million.

• 2028 targets reaffirmed: 7%-10% CAGR in revenue, 200-400 bps margin expansion, and adjusted EPS of $18-$22.

• Tax rate expected at 24.5%; OBBBA tax act to reduce 2025 tax payments by ~$100 million.

• Tariff impacts expected to be offset by cost actions and business outperformance.