Oshkosh (OSK) Stock Forecast & Price Target

Oshkosh currently exhibits strong financial performance, with delivery vehicle revenues increasing by $114 million year-over-year (a 37% quarter-over-quarter rise) and New Generation Delivery Vehicles (NGDV) contributing 25% to Transport revenues. The Vocational segment demonstrates robust health, showcasing a year-over-year sales increase of 18.9%, a significant backlog of $6.4 billion, and an impressive adjusted operating margin enhancement to 15.6%, reflecting improved price/cost dynamics. In the Transport segment, sales reached $588 million, up 8.8% year-over-year, bolstered by a software IP license agreement and favorable pricing on new contracts, positioning Oshkosh favorably within its diverse markets.

Oshkosh's financial performance indicated concerning trends, with adjusted operating margins decreasing to 10.2% and a significant decline in defense vehicle revenues by 13% year-over-year, totaling $442 million. The Access segment reported a substantial 42% drop in adjusted operating income, coupled with an 18.6% revenue decline, resulting in a reduced full-year adjusted EPS guidance to $10.50-$11.00, which is lower than previous expectations. Additionally, the 66% year-over-year reduction in Access backlog and the notable weakness in AWP and Telehandler sales point to declining demand that could hinder future growth prospects.