Oshkosh (OSK) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 revenue of $10.8B and adjusted EPS of $11.74, with Q4 adjusted EPS at $2.58, reflecting robust growth and margin expansion, especially in the vocational segment.

• Q4 revenue grew 6.3% year-over-year to $2.62B, 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.

• Introduced innovative products at CES, including next-gen delivery vehicles, autonomous refuse collection robots, and all-electric boom lifts.

• Named to the Dow Jones Sustainability World Index for the sixth consecutive year.

Financial highlights

• FY2024 revenue grew 11.4% to $10.8B; adjusted operating income rose 24.5% to $1.13B; full-year adjusted EPS up 17.6% to $11.74.

• Q4 consolidated sales were $2.62B, up 6% year-over-year; adjusted operating income was $245.4M (9.4% margin); Q4 adjusted EPS $2.58.

• Full-year free cash flow was $270M; quarterly dividend raised to $0.51 per share.

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

• Q4 net cash from operating activities was $550.1M; year-end cash and equivalents stood at $204.9M.

Outlook and guidance

• FY2025 guidance: consolidated sales of ~$10.6B, adjusted operating income of ~$1B–$1.05B, and adjusted EPS of ~$11.

• Segment sales outlook: Access ~$4.4B, Vocational ~$3.8B, Defense ~$2.3B; CapEx planned at $250M; free cash flow expected between $300M–$400M.

• Adjusted operating margins: Access ~13%, Vocational ~15%, Defense ~4%.

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

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