Oshkosh Corporation’s total backlog fell by approximately 12% year-over-year, reflecting weaker demand in its Access Equipment segment. Revenues in Access Equipment declined 10% sequentially in the most recent quarter, driven by delayed customer orders and inventory destocking at rental partners. This slowdown in core non-defense markets offsets gains elsewhere in the business and underscores near-term challenges in returning to double-digit top-line growth.

Oshkosh Defense continues to benefit from sustained military spending, having produced more than 24,000 Joint Light Tactical Vehicles (JLTVs) for the U.S. Armed Forces and coalition partners. Direct Commercial Sales (DCS) to 12 allied nations – including The Netherlands, Israel, Brazil and Romania – reinforce the division’s resilience. Defense segment revenue grew 8% year-over-year, accounting for nearly 40% of consolidated sales, as the company leverages its open-architecture vehicle platform to secure recurring modernization contracts.

Management reduced the 2025 revenue growth forecast from mid-high single digits to a mid-single-digit range, citing lingering weakness in Access Equipment orders and increased supply chain costs for advanced vehicle technologies. Adjusted operating margin is now projected at 11.5%–12.5%, down from a prior 12%–13% target. While Oshkosh’s AI-enabled autonomous supply vehicle pilot programs demonstrate technological leadership, commercial contributions are not expected until late 2026, limiting near-term earnings leverage.

Oshkosh has invested over $150 million in AI, autonomy and electrification programs since 2023, developing advanced driver-assistance systems for logistic vehicles and battlefield support platforms. A U.S. Army pilot program launched last July validated Oshkosh’s autonomous convoy technology, paving the way for a potential $500 million contract award in fiscal 2027. Investors will watch for follow-on contract decisions and the company’s ability to scale these technologies profitably.