Oshkosh Corporation Reports 9.1% Decline in Net Sales for Q1 2025

Oshkosh Corporation reported a decline in financial performance for the first quarter of 2025, with net sales totaling $2.31 billion, a decrease of 9.1% from $2.54 billion in the same period last year. The company's gross income also fell to $399.9 million, down from $470.0 million, reflecting a gross margin of 17.3%, compared to 18.5% in the prior year. Operating income decreased by 32.5% to $175.4 million, representing 7.6% of sales, primarily due to lower sales volume in the Access segment and increased production costs.

The Access segment experienced a significant drop in sales, down 22.7% to $957.1 million, attributed to reduced demand in North America and the conclusion of a contract to produce Caterpillar-branded telehandlers. In contrast, the Vocational segment saw a 12.2% increase in sales to $866.8 million, driven by improved pricing and higher sales volume of refuse and recycling collection vehicles. The Defense segment's sales decreased by 9.1% to $463.0 million, primarily due to lower sales volume of tactical wheeled vehicles for the U.S. Department of Defense.

Oshkosh Corporation made strategic moves during the quarter, including the acquisition of AUSACORP S.L., a Spanish manufacturer of wheeled dumpers and forklifts, for approximately $114.5 million. This acquisition is expected to enhance the company's Access segment. The company also entered into a $500 million unsecured term loan to improve liquidity, which was used to reduce outstanding borrowings under its Revolving Credit Facility. As of March 31, 2025, the company had $210.3 million in cash and cash equivalents and a total debt of $1.48 billion.

The company reported a decrease in backlog, which fell 10.6% to $14.62 billion compared to the previous year, with the Access segment backlog decreasing significantly. The Vocational segment backlog, however, increased by 11.8%, indicating strong demand for municipal fire apparatus. Oshkosh Corporation anticipates that the ongoing efforts to mitigate the impact of tariffs and improve operational performance will support its goal of achieving approximately $10.30 in diluted earnings per share for the full year 2025. The company remains focused on maintaining its investment-grade credit rating and managing its capital resources effectively.