Oshkosh Q4 Revenues Up 3.5% to $2.69B as Adjusted EPS Hits $2.26
Oshkosh’s 2025 fourth-quarter net income fell to $133.8M ($2.10 EPS) on $2.69B sales, up 3.5% Y/Y with Vocational revenue +4.7% but Access operating income down 30.5%. The company set 2026 adjusted EPS guidance at $11.50 on projected $11.0B sales and approved a $0.57 quarterly dividend.
1. Q4 Earnings Miss Estimates
Oshkosh Corporation reported fourth-quarter 2025 adjusted net income of $144.3 million, or $2.26 per diluted share, falling short of the Zacks Consensus Estimate of $2.33. This compares with adjusted earnings of $169.3 million, or $2.58 per share, in the year-ago period, marking a 12.1% decline in non-GAAP EPS. On a GAAP basis, net income declined 12.6% year-over-year to $133.8 million, or $2.10 per share, reflecting pressure from unfavorable product mix in Vocational and elevated manufacturing overhead costs across segments.
2. Revenue Growth Driven by Key Segments
Consolidated sales rose 3.5% year-over-year to $2.69 billion, propelled by improved pricing in the Vocational segment and higher unit volume in Access. Vocational sales increased 4.7% to $922.4 million, led by stronger municipal fire apparatus orders, while Access sales grew 1.3% to $1.17 billion on greater North American lift-equipment shipments. Transport segment revenue climbed 6.2% to $566.7 million with the ramp-up of Next Generation Delivery Vehicle production and higher tactical vehicle deliveries overseas.
3. Margin Dynamics and Segment Profitability
Operating income contracted to $212.0 million, or 7.9% of sales, down from $223.9 million, or 8.6%, as adverse product mix and higher overhead offset savings from lower incentive compensation. On an adjusted basis, operating margin fell to 8.4% of sales from 9.4% a year ago. Vocational segment operating margin expanded to 15.2% from 12.6%, while Access margin declined to 8.5% from 12.4%, reflecting discounting pressure. Transport profit margin improved to 4.0% from 2.8%, benefiting from contract repricing and catch-up adjustments.
4. 2026 Outlook and Capital Allocation
Management introduced 2026 adjusted EPS guidance of approximately $11.50 on projected full-year revenue near $11.0 billion, expecting continued margin expansion in Vocational and Transport to offset modest weakness in non-residential construction affecting Access. The company also declared a quarterly dividend of $0.57 per share and repurchased 911,873 shares for $118.7 million in Q4, contributing $0.06 to EPS year-over-year. Cash flow from operations totaled $783 million for 2025, underpinning strategic investments in NGDV capacity and fire-truck production.