Oshkosh Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 3 lowered. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and diluted EPS rose: Net income was $196.2 million, or $3.04 per diluted share, against $180.3 million, or $2.75, a year earlier. Adjusted diluted EPS was $3.20 against $2.93. Source
• Sales fell 1.9 percent: Sales were $2.69 billion, down $52.8 million. Lower Access volume was partly offset by higher Vocational and Transport volume, and improved pricing helped. Source
• Access sales down 18.6 percent: Access sales were $1.11 billion, down $253.6 million. The company cited reduced North America volume and higher sales discounts. Source
• Access operating income down 43.2 percent: Access operating income was $118.0 million, or 10.6 percent of sales, against $207.9 million, or 15.2 percent a year earlier. Source
• Vocational sales up 18.9 percent: Vocational sales were $968.0 million, up $153.8 million, on higher volume from increased production rates and improved pricing. Source
• Vocational operating margin rose to 14.6 percent: Vocational operating income was $141.7 million, up 42.3 percent, from $99.6 million, or 12.2 percent of sales, a year earlier. Source
• One-time JLTV license added $25.0 million: A one-time license of JLTV-related intellectual property to the U.S. government contributed $25.0 million of income, alongside improved pricing. Source
• Consolidated backlog below year-earlier level: Backlog was $13,690.0 million at September 30, 2025, against $14,318.0 million a year earlier. Access fell to $721.2 million from $2,132.9 million; Vocational rose to $6,400.8 million from $5,911.9 million. Source

“Oshkosh delivered solid third quarter results in a difficult environment, with adjusted earnings per share of $3.20 and an adjusted operating margin of 10.2 percent,”

John Pfeifer, president and chief executive officer of Oshkosh Corporation

Guidance

What changed from last quarter

• Guidance lowered: 2025 EPS guidance revised: diluted range $9.75 to $10.25 and adjusted range $10.50 to $11.00. Low ends cut; the diluted top end stays at $10.25. Source
• Guidance lowered: Net sales expectation reduced from about $10.6 billion to a range of $10.3 billion to $10.4 billion. Source

Quarter results and growth drivers

• Net income and diluted EPS rose: Net income was $196.2 million, or $3.04 per diluted share, against $180.3 million, or $2.75, a year earlier. Adjusted diluted EPS was $3.20 against $2.93. Source
• Tax audit resolution added $0.30: Third-quarter EPS included a $0.30 benefit from resolving a multi-year U.S. federal income tax audit. The income tax line carried a $19.1 million benefit. Source
• Sales fell 1.9 percent: Sales were $2.69 billion, down $52.8 million. Lower Access volume was partly offset by higher Vocational and Transport volume, and improved pricing helped. Source
• Operating income down 2.2 percent: Operating income was $260.4 million, or 9.7 percent of sales, against $266.2 million, also 9.7 percent. Lower volume and higher warranty costs drove the decrease. Source
• Adjusted operating margin 10.2 percent: Adjusted operating income was $274.3 million, or 10.2 percent of sales, against $282.5 million, or 10.3 percent, in the third quarter of 2024. Source

Access segment results

• Access sales down 18.6 percent: Access sales were $1.11 billion, down $253.6 million. The company cited reduced North America volume and higher sales discounts. Source
• Access operating income down 43.2 percent: Access operating income was $118.0 million, or 10.6 percent of sales, against $207.9 million, or 15.2 percent a year earlier. Source
• Adjusted Access margin 11.0 percent: Adjusted Access operating income was $121.8 million, or 11.0 percent of sales, against $211.4 million, or 15.5 percent, a year earlier. Source

“Based on the current demand and production environment, we are revising our 2025 adjusted earnings per share outlook to a range of $10.50 to $11.00.”

John Pfeifer, president and chief executive officer of Oshkosh Corporation

Vocational segment results

• Vocational sales up 18.9 percent: Vocational sales were $968.0 million, up $153.8 million, on higher volume from increased production rates and improved pricing. Source
• Vocational operating margin rose to 14.6 percent: Vocational operating income was $141.7 million, up 42.3 percent, from $99.6 million, or 12.2 percent of sales, a year earlier. Source
• Municipal fire and airport growth: Municipal fire apparatus sales were $405.5 million against $320.3 million; airport products were $251.2 million against $214.5 million. Source
• Adjusted Vocational margin 15.6 percent: Adjusted Vocational operating income was $151.1 million, or 15.6 percent of sales, against $111.6 million, or 13.7 percent a year earlier. Source
• Warranty and mix offset gains: Higher warranty expense and unfavorable sales mix partly offset the gains from higher volume and improved price/cost dynamics in the segment. Source

Transport segment results

• Transport sales up 8.8 percent: Transport sales were $587.9 million, up $47.5 million, as Next Generation Delivery Vehicle ramp-up and international tactical wheeled vehicle volume rose. The JLTV wind-down offset part of the gain. Source
• One-time JLTV license added $25.0 million: A one-time license of JLTV-related intellectual property to the U.S. government contributed $25.0 million of income, alongside improved pricing. Source
• Transport operating income up 226.8 percent: Transport operating income was $36.6 million, or 6.2 percent of sales, against $11.2 million, or 2.1 percent a year earlier. Source
• Delivery vehicles and Defense sales shift: Defense sales were $441.6 million against $508.0 million; delivery vehicle sales were $146.3 million against $32.4 million a year earlier. Source

“We're building momentum toward our goals for 2028, creating long-term value for our customers, team members and shareholders alike”

John Pfeifer, president and chief executive officer of Oshkosh Corporation

Costs, margins and pricing

• Corporate costs down $16.6 million: Corporate and other net operating costs were $35.9 million, reflecting the timing of healthcare charges and lower incentive compensation accruals. Source
• Warranty costs rose; SG&A fell: Selling, general and administrative expense was $196.2 million against $226.4 million, offsetting part of the higher warranty costs and lower sales volume effect. Source
• Effective tax rate fell to 17.5 percent: Tax expense was $41.7 million, or 17.5 percent of pre-tax income, against $56.6 million, or 23.8 percent, a year earlier, including the audit benefit. Source
• Pricing helped sales; discounts weighed: Improved pricing supported sales, while higher Access sales discounts reduced Access revenue and margin. Source

Cash, capital and shareholder returns

• Repurchased $90.6 million of stock: The company bought back 666,359 shares for $90.6 million in the third quarter. Source
• Buybacks added $0.05 to EPS: Repurchases over the prior twelve months added $0.05 to third-quarter EPS compared with the year-earlier quarter. Source
• Nine-month operating cash flow $183.3 million: Operating cash provided was $183.3 million, against $240.7 million used a year earlier; changes in operating assets and liabilities used $583.7 million. Source
• Capital spending eased: Nine-month additions to property, plant and equipment were $105.6 million, against $193.5 million; equipment held for rental additions were $32.3 million, against $6.1 million. Source
• Quarterly dividend held at $0.51: The Board declared a $0.51 quarterly cash dividend, unchanged from the prior quarter. Source

Demand, backlog and strategy

• Consolidated backlog below year-earlier level: Backlog was $13,690.0 million at September 30, 2025, against $14,318.0 million a year earlier. Access fell to $721.2 million from $2,132.9 million; Vocational rose to $6,400.8 million from $5,911.9 million. Source
• Demand cited alongside macro conditions: Management cited end-market demand for its products as a factor, alongside the near-term macroeconomic environment, in describing the quarter. Source
• Confidence in path ahead: Management cited the company's foundation and culture as the basis for confidence in the path ahead. Source
• Goals for 2028 referenced: Management described building momentum toward goals for 2028 and creating long-term value; the release gives no figures for those goals. Source

Coming up, as management said on 29 October 2025

• Dividend payable December 1: The $0.51 quarterly dividend is payable on December 1, 2025, to holders of record as of November 17, 2025. Source

Risks management discussed

• Demand: Management cited near-term challenging market conditions in Access, alongside reduced North America volume and higher discounts. Source
• Demand: Higher sales discounts and lower volume reduced Access operating income and margin in the quarter. Source
• Operational: Higher warranty expense partly offset the volume and price/cost gains in Vocational, and warranty costs also rose across the company. Source

Earlier plans management reported on

• Not stated: Management refers to goals for 2028 without restating their figures in this release. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.