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 sales, AeroTech and AUSA acquisitions, and improved pricing.

• Adjusted EPS was $2.93, down from $3.04 last year, with full-year 2024 adjusted EPS guidance lowered to $11.35 due to softer North American access equipment markets.

• Strong Vocational segment performance with 17.6% revenue growth and 13.7% adjusted operating margin; Defense segment sales up 13.9% driven by NGDV production.

• Notable progress in sustainability with SBTi approval for greenhouse gas emission reduction targets.

• Quarterly cash dividend of $0.46 per share declared.

Financial highlights

• Q3 consolidated sales rose 9.2% year-over-year to $2.74 billion, with adjusted operating income up 2.2% to $282.5 million (10.3% margin).

• Adjusted EPS was $2.93, impacted by higher interest and operating expenses.

• Year-to-date net sales reached $8.13 billion, up 13.1% from 2023.

• Period-end backlog was $14.3 billion, down 9% year-over-year, with Access backlog down 46% and Vocational backlog up 18%.

• Debt to total capitalization increased to 27.3% due to acquisition funding and working capital needs.

Outlook and guidance

• 2024 net sales expected at $10.6 billion, with adjusted operating income of ~$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 expected at 24%; share count at 65.8 million.

• Operating cash flow for 2024 projected at $625 million.