Oshkosh (OSK) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $10.8 billion, with adjusted EPS of $11.74, a 10.5% adjusted operating margin, and Q4 adjusted EPS of $2.58, up 0.8% year-over-year.

• Q4 revenue grew 6.3% year-over-year to $2.62 billion, driven by strong Vocational segment performance and improved pricing.

• Announced 11th consecutive double-digit dividend increase, raising the quarterly dividend by nearly 11% to $0.51 per share.

• Recognized for sustainability, named to Dow Jones Sustainability World Index for the sixth year, and debuted award-winning tech at CES.

• NGDV production for USPS ramping up, with full-rate production expected by end of 2025 and positive initial feedback.

Financial highlights

• Q4 consolidated sales were $2.62 billion, up 6% year-over-year, with adjusted operating income of $245.4 million (9.4% margin).

• Full-year adjusted EPS grew 17.6% to $11.74; net sales up 11.4% to $10.8 billion.

• Free cash flow for 2024 was $269.1 million, below expectations due to defense delivery timing.

• Repurchased nearly 500,000 shares for ~$50 million in Q4; total 2024 share repurchases were $116 million.

• Quarterly cash dividend increased 10.9% to $0.51 per share, with $120 million in dividends paid in 2024.

Outlook and guidance

• 2025 guidance: consolidated sales of ~$10.6 billion, adjusted operating income ~$1–1.05 billion, adjusted EPS ~$11.00.

• Segment sales outlook: Access ~$4.4 billion, Vocational ~$3.8 billion, Defense ~$2.3 billion; CapEx of $250 million and free cash flow of $300–400 million expected.

• Q1 2025 expected to be the lowest quarter, with adjusted EPS of ~$2.

• Tax rate expected at ~23.5%; share count ~65 million.

• Anticipates growth in Vocational and Defense segments, with Access segment facing short-term softness but improvement expected in the second half.