Oshkosh Corporation Reports Q3 2025 Financial Results with Revenue Decline

Oshkosh Corporation reported its financial results for the third quarter and the first nine months of fiscal 2025, revealing a decrease in both revenue and net income compared to the same periods in 2024. For the three months ended September 30, 2025, the company generated net sales of $2.69 billion, a decline of 2% from $2.74 billion in the prior year. Net income for the quarter was $196.2 million, up from $180.3 million, resulting in earnings per share of $3.04, compared to $2.75 in the same quarter last year. The increase in earnings per share was attributed to a one-time tax benefit of $19.1 million related to the resolution of a multi-year federal income tax audit.

In the first nine months of 2025, Oshkosh's net sales totaled $7.73 billion, down 4.9% from $8.13 billion in the same period of 2024. The decrease was primarily driven by lower sales volumes in the Access and Transport segments, which saw declines of $698 million and $117 million, respectively. The Vocational segment, however, experienced a sales increase of $235 million, bolstered by the acquisition of AUSACORP S.L. in September 2024, which contributed $91 million to sales. Gross income for the nine months was $1.39 billion, down from $1.52 billion, reflecting higher labor and overhead costs and warranty expenses.

Strategically, Oshkosh has continued to focus on share repurchases, buying back 666,359 shares for approximately $91 million in the third quarter, bringing the total for the first nine months to nearly $160 million. The company also noted a significant acquisition last year, acquiring AUSACORP, which has been integrated into its Access segment and contributed positively to sales. However, the company is facing challenges in the Access segment, where sales dropped by 19% year-over-year, attributed to softer market conditions and the expiration of a production agreement with Caterpillar.

Operationally, Oshkosh's backlog decreased by 4.4% to $13.7 billion as of September 30, 2025, compared to $14.3 billion a year earlier. The Access segment backlog saw a significant decline of 66.2%, while the Vocational and Transport segments reported increases of 8.3% and 4.2%, respectively. The company anticipates that approximately 84% of its backlog will not be filled in 2025, indicating potential challenges in meeting future sales targets.

Looking ahead, Oshkosh has revised its earnings per share guidance for 2025 to a range of $9.75 to $10.25, down from previous estimates, reflecting lower projected sales volumes. The company expects Access segment sales to be approximately $4.3 billion, with an operating income margin of 11.0%. The Vocational segment is projected to achieve sales of about $3.8 billion, while the Transport segment is expected to generate around $2.1 billion in sales. The company remains focused on maintaining its investment-grade credit rating and managing its liquidity effectively amid a dynamic economic environment.