Oshkosh (OSK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 9.2% year-over-year to $2.74 billion, driven by higher organic volume, AeroTech acquisition, and improved pricing.

• Adjusted EPS for Q3 was $2.93, down from $3.04 last year, with consolidated adjusted operating margin at 10.3%.

• Full-year 2024 adjusted EPS guidance was lowered to $11.35 from $11.75, reflecting softer Access segment demand in North America.

• Significant progress in sustainability initiatives, including SBTi approval for greenhouse gas emission reduction targets.

• USPS began using Next-Generation Delivery Vehicles (NGDV), with production ramp-up progressing well.

Financial highlights

• Q3 consolidated sales were $2.74 billion, up 9.2% year-over-year, with growth driven by organic volume, AeroTech acquisition, and improved pricing.

• Adjusted operating income was $282.5 million (10.3% margin), up 2.2% year-over-year.

• Adjusted EPS was $2.93, down from $3.04 last year, due to higher interest expense.

• Full-year 2024 sales now expected at $10.6 billion, adjusted operating income at $1.1 billion, and adjusted EPS at $11.35.

• Backlog at September 30, 2024 was $14.3 billion, down 9% year-over-year, with Access backlog down 46% and Vocational backlog up 18%.

Outlook and guidance

• 2024 revenue expected at $10.6 billion, adjusted operating income at $1.1 billion, and adjusted EPS at $11.35.

• Access segment 2024 sales forecast at $5.1 billion with 15.75%-16% margin; Vocational at $3.25 billion and 11.75%-13.25% margin; Defense at $2.15 billion and 2.1%-2.25% margin.

• CapEx target for 2024 is $275 million; free cash flow guidance at $350 million.

• Tax rate anticipated at 24.0%; share count ~65.8 million.