Oshkosh reported a backlog of $11.2 billion at the end of its most recent quarter, down 7% from $12.0 billion a year ago. The company’s Access Solutions segment saw orders drop by 9% year-over-year, driven by softer demand for aerial work platforms in North America and Europe. Management cited project delays in key infrastructure markets and elevated dealer inventories as the primary contributors to the slowdown. This weakness in Access Solutions accounted for a 4-point drag on total equipment orders, raising concerns about near-term revenue visibility.

Oshkosh lowered its full-year 2025 adjusted operating margin guidance to a range of 12.5%–13.5%, down from a prior target of 13.5%–14.5%. The revision reflects higher raw material costs, continued supply-chain constraints for certain steel and chassis components, and planned R&D investments in autonomous drive systems. Revenue guidance was reduced to $8.4 billion–$8.6 billion, versus the prior range of $8.8 billion–$9.0 billion. Management now expects free cash flow conversion to range between 80% and 90% of net income, below the prior 95%–105% target.

Oshkosh Defense secured $1.1 billion in new awards during the quarter, including options for another 2,300 Joint Light Tactical Vehicles (JLTVs) and a $350 million contract for autonomous logistics vehicles under an AI-driven convoy trial. The company has delivered more than 24,000 JLTVs globally and plans to invest $75 million in open-architecture software to accelerate integration of sensors and mission systems. While these defense wins bolster long-term revenue potential, they currently represent less than 15% of consolidated sales, leaving overall growth dependent on broader market conditions.