Oshkosh (OSK) Stock Forecast & Price Target

Oshkosh Corporation demonstrates a strong financial performance, highlighted by a significant 37% quarter-over-quarter increase in delivery vehicle revenues, now making up 25% of Transport revenues. The Vocational segment is particularly robust, with an impressive 18.9% year-over-year sales growth and a solid backlog of $6.4 billion, showcasing its competitive positioning and improved price/cost dynamics. Additionally, the Transport segment experienced an increase in adjusted operating margin to 6.2%, driven by strategic improvements and favorable pricing, further solidifying Oshkosh's financial outlook.

Oshkosh's financial performance reflects significant challenges, particularly with a 13% year-over-year decline in defense vehicle revenues, primarily due to reduced volumes associated with the domestic JLTV program. The Access segment demonstrated a stark decline with adjusted operating income plummeting 42% year-over-year, alongside an 18.6% revenue drop, driven by lower sales and increased discounting amid declining backlog levels, which fell 66% year-over-year. Furthermore, the company's lowered full-year 2025 adjusted EPS guidance to $10.50-$11.00, coupled with a $0.20 miss in adjusted EPS, underscores potential profitability pressures stemming from weak sales across key segments.