Oshkosh Corporation Reports Q2 2025 Financial Results with Decrease in Net Sales but Increase in Operating Income

Oshkosh Corporation reported its financial results for the second quarter of 2025, revealing a decrease in consolidated net sales to $2.73 billion, down 4.0% from $2.85 billion in the same period last year. The decline was primarily attributed to lower sales volumes in the Access and Transport segments, which were partially offset by increased sales in the Vocational segment. The company’s operating income, however, increased by 11.8% to $291.7 million, representing 10.7% of sales, compared to $260.9 million, or 9.2% of sales, in the prior year. This increase in operating income was largely due to reduced intangible asset impairments and a favorable sales mix.

In terms of profitability, Oshkosh's net income for the quarter rose to $204.8 million, or $3.16 per diluted share, compared to $168.6 million, or $2.56 per diluted share, in the second quarter of 2024. The company declared cash dividends of $0.51 per share, up from $0.46 in the previous year. The financial performance reflects a strategic focus on improving operational efficiency and managing costs, despite the challenges posed by market conditions.

Significant operational changes included the acquisition of AUSACORP S.L. (AUSA), a Spanish manufacturer of wheeled dumpers and forklifts, which contributed $37.9 million to sales in the second quarter. Additionally, the company restructured its reporting segments, renaming the Defense segment to Transport to better reflect its operations. The company also reported a decrease in backlog to $14.23 billion, down 7.4% from the previous year, with notable declines in the Access segment's backlog attributed to a normalization of orders and slowing demand.

Oshkosh's cash flow from operating activities showed improvement, with a net cash outflow of $305.7 million in the first half of 2025, a significant reduction from $566.8 million in the same period last year. The company anticipates cash from operating activities to range between $650 million and $750 million for the full year, bolstered by lower projected tax payments following the enactment of the One Big Beautiful Bill Act (OBBBA). The company’s total debt increased to $1.50 billion, with a debt-to-capitalization ratio of 25.2%, remaining within its targeted range.

Looking ahead, Oshkosh expects diluted earnings per share for 2025 to be approximately $10.25, including after-tax charges related to amortization and impairments. The company anticipates continued challenges in the Access segment but expects growth in the Vocational segment driven by strong demand for municipal fire apparatus. The outlook reflects a cautious optimism as the company navigates a dynamic market environment while focusing on strategic investments and operational efficiencies.