Oshkosh (NYSE:OSK) executives highlighted full-year revenue of $10.4 billion and adjusted earnings per share of $10.79 for 2025, while offering an outlook for 2026 that assumes a broadly steady macro environment but softer near-term conditions in parts of the company’s industrial end markets.
2025 results and fourth-quarter performance
CEO John Pfeifer said the company delivered “strong results in a dynamic external environment,” pointing to cost and supply-chain management in response to an evolving tariff landscape and continued strategic investments tied to its 2028 goals.
CFO Matt Field said the fourth-quarter operating margin decline versus last year reflected unfavorable product mix and higher manufacturing overhead costs, partially offset by lower incentive compensation and higher sales volume. He also noted that tariffs weighed on results, with an estimated impact across all segments of about $25 million in the quarter, including roughly $20 million in the Access segment.
Oshkosh increased share repurchases in the quarter to approximately 912,000 shares for $119 million, bringing total 2025 repurchases to $278 million. Field said repurchases over the prior 12 months benefited adjusted EPS in the quarter by $0.06 compared to the fourth quarter of 2024.
Free cash flow was $540 million in the quarter and $618 million for the year, which Field said represented 96% of net income and exceeded the high end of guidance due to improved customer advances and lower capital expenditures.
Segment review: Access, Vocational, and Transport
Access revenue in the fourth quarter was $1.2 billion, up 1% year over year, with an adjusted operating income margin of 8.8%. Management attributed margin pressure to unfavorable price-cost dynamics—driven in part by tariffs—and adverse mix, partially offset by higher volume.
Pfeifer said fourth-quarter Access revenue benefited from strong demand ahead of 2026 price increases, and Field added that the tariff-related price increases likely contributed to stronger fourth-quarter sales performance. Pfeifer said orders were more than $1.7 billion, producing a book-to-bill ratio of 1.5, and backlog ended at $1.3 billion, which he characterized as “reasonable in this environment.”
Vocational posted fourth-quarter sales of $922 million and an adjusted operating margin of 16.2%. For the full year, the segment delivered revenue of more than $3.7 billion, up nearly 13%, with a 15.8% adjusted operating margin. Pfeifer said the fire apparatus business led the way, with sales up about 17% for the year and fire truck deliveries up nearly 10% in the second half compared to a year ago.
Oshkosh is investing to improve fire truck production throughput and reduce lead times. Pfeifer said the company expects capital investments of about $150 million across three key locations, with about $70 million spent to date. The airport products business grew as well, with 2025 sales up about 13%.
Within refuse and recycling vehicles, Pfeifer said near-term demand has moderated, but he emphasized long-term growth opportunities and highlighted contamination detection and service verification technology using AI and onboard edge computing, which the company plans to launch in the first quarter.
Transport fourth-quarter sales rose to $567 million. Delivery vehicle revenue increased by $130 million to $165 million and represented about 30% of Transport revenue in the quarter; Field said delivery revenue grew 13% sequentially. Defense vehicle revenue fell year over year due to the wind-down of the domestic JLTV program. Transport segment operating margin improved to 4% from 2.8% last year, though it was down sequentially because the third quarter included a one-time sale of a JLTV-related IP license to the U.S. government.
Pfeifer said Oshkosh surpassed the production milestone of its 5,000th Next Generation Delivery Vehicle (NGDV) and reported the fleet has exceeded 10 million miles driven, with vehicles now operating in nearly all 50 states, including Alaska. He added that deliveries are in line with or ahead of USPS expectations.
2026 outlook: $11B sales and EPS of about $11.50
For 2026, Oshkosh guided to approximately $11 billion in sales and adjusted operating income a little over $1 billion, with adjusted EPS expected to improve to approximately $11.50. Management said the outlook assumes roughly flat non-residential construction activity and reflects expectations for weaker market conditions in the Access segment, partially offset by stronger performance in Vocational and a continued ramp-up in NGDV production in Transport.
Field said the company expects the first quarter to be the lowest quarter of the year due to seasonality and a pull-forward impact from fourth-quarter Access buying ahead of price increases, and he warned that first-quarter adjusted EPS could be about half of last year.
Segment guidance provided on the call included:
- Access: approximately $4.2 billion in 2026 sales and about 10% adjusted operating margin, reflecting softer North American conditions; management expects to fully offset tariffs by year-end.
- Vocational: approximately $4.2 billion in sales and about 17% adjusted operating margin, supported by favorable price-cost dynamics and higher volume from improved production throughput.
- Transport: approximately $2.5 billion in sales and about 4% operating margin as the segment transitions away from past fixed-price contracts and continues the NGDV ramp.
Field said corporate and other costs are expected to be $180 million, with a tax rate of about 24.5%. Capex is planned at about $200 million, and free cash flow is projected at $550 million to $650 million, or about 80% of net income.
Tariffs and pricing actions remain central to planning
Management said its 2026 guidance assumes current tariff rates remain in place for the year. Field estimated the “rough magnitude” of tariffs at about $200 million in 2026, or about $160 million higher than 2025, with roughly three-quarters of the impact in Access.
Executives said they have pursued tariff mitigation through engineering, sourcing changes, and localization efforts, while also implementing price increases where needed. Field added that Access cost-reduction initiatives started in 2024 are expected to build through 2026, with more benefit in the back half of the year; he said Access price-cost is anticipated to turn positive in the second half.
Capital return and longer-term targets
Oshkosh announced a quarterly dividend of $0.57 per share, which Field said reflects confidence in long-term cash flow generation and the company’s ability to sustain profitable growth while funding innovation and U.S. manufacturing expansion. Management also said it plans to continue share repurchases throughout the year.
Pfeifer reiterated confidence in the company’s 2028 plan, including an adjusted EPS range of $18 to $22 per share by 2028, and said the 2026 guidance supports those longer-term objectives.
About Oshkosh (NYSE:OSK)
Oshkosh Corporation (NYSE: OSK) is a leading designer, manufacturer and marketer of specialty trucks, military vehicles and access equipment. The company’s offerings span critical end markets, including defense, fire and emergency services, commercial construction and industrial sectors. By combining engineering expertise with advanced technologies, Oshkosh delivers solutions that enhance mobility, safety and productivity for its customers.
Founded in 1917 and headquartered in Oshkosh, Wisconsin, the company has evolved from producing heavy-duty dump trucks to a diversified portfolio of products and services.
