Oshkosh Corporation Reports Solid Q3 2025 Results, Adjusts Full-Year Outlook Amid Evolving Market Conditions
Oshkosh Corporation (NYSE: OSK), a global leader in purpose-built vehicles and essential equipment, announced its financial results for the third quarter of 2025, demonstrating strong operational execution and strategic progress despite a challenging macroeconomic environment.
The company reported net income of $196.2 million, or $3.04 per diluted share, for the quarter ended September 30, 2025, compared to $180.3 million, or $2.75 per diluted share, in the same period of 2024. On an adjusted basis, net income rose to $206.6 million, or $3.20 per diluted share, compared to $192.5 million, or $2.93 per diluted share, in the prior-year quarter.
Earnings per share for the third quarter of 2025 included a $0.30 benefit resulting from the resolution of a multi-year U.S. federal income tax audit. Unless otherwise noted, all comparisons are to the third quarter of 2024.
Financial Performance Overview
Oshkosh’s consolidated sales totaled $2.69 billion, a 1.9% decline year-over-year, largely driven by reduced sales volumes in its Access segment. However, this was partially offset by higher volumes in the Vocational and Transport segments, along with improved pricing that helped mitigate the impact of lower production in certain product categories.
Operating income for the quarter was $260.4 million, or 9.7% of sales, slightly lower than $266.2 million, or 9.7% of sales, in the previous year’s third quarter. The modest decrease was attributed primarily to lower sales volumes and increased warranty expenses, offset in part by disciplined cost management and reduced selling, general, and administrative (SG&A) expenses.
On an adjusted basis, operating income fell 2.9% to $274.3 million, representing 10.2% of sales, compared to $282.5 million, or 10.3% of sales, in Q3 2024.
CEO Commentary: Operational Discipline Amid Complexity
“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%,” said John Pfeifer, President and Chief Executive Officer of Oshkosh Corporation.
He added, “Our performance reflects the strength of our diversified business model, our disciplined approach to cost control, and our ongoing focus on improving cash flow across the company. We continue to advance key strategic initiatives while capitalizing on sustained end-market demand for our products despite near-term headwinds.”
Pfeifer highlighted particularly strong execution in the Vocational segment, where increased throughput for municipal fire apparatus and expanding demand for airport products fueled a nearly 19% increase in revenue.
“In Access, we delivered a double-digit operating margin even as we navigated softer market conditions. Meanwhile, in Transport, we are ramping up production of the Next Generation Delivery Vehicle (NGDV) for the United States Postal Service and supporting defense customers with critical technologies on tactical wheeled vehicles,” he noted.
He further emphasized the company’s solid consolidated backlog, which provides visibility and stability for the coming quarters.
“Given the evolving demand and production environment, we are revising our 2025 adjusted earnings per share outlook to a range of $10.50 to $11.00,” Pfeifer stated. “Our strong foundation and purpose-driven culture continue to guide our long-term strategy toward achieving our 2028 goals and driving sustained value creation for customers, employees, and shareholders.”
Segment Performance
Access Segment
The Access segment, which designs and manufactures aerial work platforms and telehandlers under the JLG brand, recorded third-quarter sales of $1.11 billion, a decline of 18.6% or $253.6 million compared to the prior year. The decline was mainly driven by lower sales volumes in Oshkosh North America and increased sales discounts as the company managed softer demand conditions in certain end markets.
Operating income in the Access segment fell sharply by 43.2%, from $207.9 million in Q3 2024 to $118.0 million in Q3 2025, representing 10.6% of sales, down from 15.2%. The decrease reflected both lower volumes and increased discounting pressures, offset partially by reduced SG&A expenses.
On an adjusted basis, operating income was $121.8 million, or 11.0% of sales, versus $211.4 million, or 15.5% of sales, in the prior-year quarter.
Despite near-term headwinds, Oshkosh remains focused on cost optimization, channel management, and positioning the Access segment for growth when global construction and equipment demand normalizes.
Vocational Segment
The Vocational segment, which includes fire and emergency vehicles, refuse collection trucks, and other specialized equipment, delivered robust results. Oshkosh Sales surged 18.9% to $968.0 million, an increase of $153.8 million year-over-year. Growth was primarily attributed to higher production rates, strong municipal and airport product demand, and improved pricing across the portfolio.
Operating income in this segment climbed 42.3% to $141.7 million, or 14.6% of sales, compared to $99.6 million, or 12.2%, in Q3 2024. Improved pricing dynamics and increased manufacturing throughput were the key drivers, partially offset by higher warranty costs and a less favorable sales mix.
Adjusted operating income rose to $151.1 million, or 15.6% of sales, from $111.6 million, or 13.7% of sales, in the prior-year period.
The strong Vocational performance underscores Oshkosh’s execution capability and reflects resilient demand from public safety, infrastructure, and airport sectors, which remain central to the company’s long-term growth strategy.
Transport Segment
The Transport segment, encompassing defense and commercial vehicle products, reported sales of $587.9 million, up 8.8% from the prior year’s $540.4 million. The increase was driven by the ramp-up of NGDV production for the USPS, higher international tactical wheeled vehicle shipments, and a one-time $25 million license of Joint Light Tactical Vehicle (JLTV) intellectual property to the U.S. government. These gains were partially offset by the wind-down of the domestic JLTV program.
Operating income in the Transport segment rose significantly — up 226.8% to $36.6 million, or 6.2% of sales, compared to $11.2 million, or 2.1% of sales, in Q3 2024. The sharp improvement reflected the IP licensing income and favorable pricing actions, partially offset by higher warranty expenses.
The segment continues to benefit from its diversified defense and commercial vehicle programs, ensuring stable revenue streams even as certain long-term contracts transition or conclude.
Corporate and Other
Net operating costs for corporate and other decreased by $16.6 million to $35.9 million, primarily due to lower healthcare-related charges and reduced incentive compensation accruals.
Interest expense, net of interest income, decreased by $3.6 million to $28.1 million, reflecting improved balance sheet efficiency and prudent financial management.
Miscellaneous income, net, totaled $6.1 million, up from $3.6 million in Q3 2024, primarily due to gains on investments, further enhancing overall profitability.
Income Taxes
The company recorded income tax expense of $41.7 million, representing 17.5% of pre-tax income, compared to $56.6 million, or 23.8%, in the third quarter of 2024. The lower effective tax rate in 2025 was largely driven by a $19.1 million benefit from the aforementioned resolution of a U.S. federal income tax audit.
Share Repurchases and Capital Allocation
During the third quarter, Oshkosh repurchased 666,359 shares of its common stock for $90.6 million. These repurchases contributed an estimated $0.05 per share to third-quarter 2025 earnings compared to the same period in 2024.
The company continues to balance shareholder returns with reinvestment in innovation, manufacturing capability, and technology development.
Dividend Declaration
Oshkosh’s Board of Directors declared a quarterly cash dividend of $0.51 per share of common stock. The dividend will be payable on December 1, 2025, to shareholders of record as of November 17, 2025.
This marks a continuation of Oshkosh’s consistent dividend policy, underscoring its commitment to returning value to shareholders while maintaining financial flexibility.
Nine-Month Financial Highlights
For the first nine months of 2025, Oshkosh reported net sales of $7.73 billion and net income of $513.2 million, or $7.92 per diluted share. This compares with net sales of $8.13 billion and net income of $528.3 million, or $8.02 per diluted share, for the same period in 2024.
The modest year-to-date decline in net income was primarily driven by lower sales volumes and higher warranty expenses, partially offset by lower intangible asset impairments, favorable tax settlements, improved investment performance, and reduced SG&A costs.
On an adjusted basis, net income for the first nine months of 2025 was $552.0 million, or $8.52 per diluted share, compared to $603.4 million, or $9.16 per diluted share, in the prior year.
Updated 2025 Outlook
Reflecting evolving market dynamics, Oshkosh now expects full-year 2025 diluted earnings per share in the range of $9.75 to $10.25, and adjusted earnings per share between $10.50 and $11.00. This guidance represents a downward adjustment of $0.50 on the low end of the previously issued outlook.
Full-year net sales are now projected to range between $10.3 billion and $10.4 billion, compared to the prior estimate of $10.6 billion. The revision primarily reflects lower expected sales volumes in the Access and Transport segments due to market softness and timing of key program transitions.
Despite these adjustments, the company remains optimistic about its long-term growth trajectory. Its diversified portfolio, operational flexibility, and investments in electrification, automation, and digital technologies continue to position Oshkosh as a market leader across its core industries.
Building for the Future
CEO John Pfeifer concluded, “Our disciplined execution, robust backlog, and purpose-driven strategy provide us with confidence in the future. We’re making progress toward our 2028 financial and strategic targets — focusing on innovation, sustainability, and operational excellence. We remain committed to delivering long-term value for our customers, team members, and shareholders.”
As Oshkosh navigates short-term economic pressures, its combination of diversified segment strength, technological innovation, and strong capital discipline reinforces its reputation as a resilient leader in specialty vehicle manufacturing and advanced equipment solutions.
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