Oshkosh Corporation reported a decline in its equipment backlog to $7.3 billion at the end of Q4 2025, down 12% year-over-year. The Access Equipment segment, which represents nearly 35% of total revenues, saw global order intake drop by 18% as rental customers delayed large-capital purchases. Management trimmed its full-year 2025 revenue guidance to a range of $9.6 billion–$10.0 billion, citing supply chain normalization and uneven end-market demand. Operating margin is now expected to be in the mid-6% range, versus prior forecasts of 7%–8%, reflecting higher fixed costs absorbed over a smaller volume base and increased investment in digital service platforms.

While Oshkosh’s defense segment won new United States Army contracts worth $1.4 billion for Joint Light Tactical Vehicle (JLTV) upgrades, AI-driven autonomy kits and sensor suites have been piloted on over 200 test vehicles. The company expects these AI-enabled systems to contribute 5% of defense segment revenues by 2027. Despite these gains, defense orders in Q4 grew just 3%, as overseas procurement cycles remain elongated. Still, Oshkosh holds a 65% market share in combat-proven JLTV platforms, with a production tally exceeding 24,000 units delivered to the U.S. armed forces and allied nations.

At the International Armoured Vehicles Conference in Farnborough, England (January 20–22, 2026), Oshkosh Defense will spotlight its JLTV’s open architecture and rapid integration capabilities for mission systems, weapons and advanced protection solutions. The event is expected to generate follow-on inquiries from NATO partners; current operators include Belgium, Lithuania, Slovenia and Romania. Company executives estimate that Direct Commercial Sales (DCS) to allied nations could represent up to $500 million in incremental orders by the end of fiscal 2026, bolstering the company’s defense backlog and supporting its long-term margin expansion strategy.