Oshkosh Corporation ((OSK)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Oshkosh Corporation’s recent earnings call exuded a generally positive sentiment, highlighting the company’s robust performance in Fiscal 2024. Despite facing challenges in the Access and Defense segments, alongside increased interest expenses, Oshkosh showcased significant revenue and earnings growth, dividend hikes, and exciting product innovations. The Vocational segment’s growth and strategic advancements remain strong pillars for the company.
Record Full-Year Revenue and EPS
Oshkosh Corporation achieved remarkable full-year financial results, reporting a revenue of $10.8 billion and an adjusted earnings per share (EPS) of $11.74. These figures underscore the company’s strong financial footing and successful operational strategies over the past year.
Vocational Segment Growth
The Vocational segment emerged as a standout performer, with nearly 20% year-over-year revenue growth in Q4 and a robust adjusted operating income margin of 14%. This segment’s impressive performance is a testament to Oshkosh’s strategic focus and market demand.
Dividend Increase
Reflecting confidence in its future prospects, Oshkosh Corporation announced its 11th consecutive double-digit percent increase in the dividend. The quarterly dividend was raised by $0.05 to $0.51 per share, marking nearly an 11% increase, further rewarding shareholders.
Innovative Product Launches
Oshkosh continues to lead in innovation with the launch of the Volterra ZFL eRCV, the industry’s first purpose-built, fully integrated electric front-end loader refuse and recycling collection vehicle. This product underscores the company’s commitment to sustainable and cutting-edge solutions.
Dow Jones Sustainability World Index
For the sixth consecutive year, Oshkosh was named to the Dow Jones Sustainability World Index, highlighting its enduring commitment to sustainable business practices and corporate responsibility.
Access Segment Softness
The Access segment faces softer near-term market conditions, with expectations of lower sales in 2025, particularly in the first half of the year. This segment’s performance will be closely watched as it navigates these challenges.
Defense Segment Challenges
Oshkosh’s Defense segment continues to grapple with legacy fixed-price contracts. However, improved pricing terms and production ramp-ups are anticipated in 2025, which should help mitigate these challenges.
Interest Expenses Impact
Higher interest expenses on the revolving credit facility weighed on Oshkosh’s adjusted earnings per share. Despite this, higher operating income helped cushion the impact, reflecting the company’s financial resilience.
Forward-Looking Guidance
Oshkosh Corporation provided a robust guidance for 2025, anticipating adjusted EPS of around $11. The company expects consolidated sales of approximately $10.6 billion, with growth in the Vocational and Defense segments. While Access sales are projected to decline, strategic initiatives are in place to achieve full production rates of the Next Generation Delivery Vehicle by the end of 2025, paving the way for strong revenue growth into 2026.
In conclusion, Oshkosh Corporation’s earnings call painted a picture of a company that is navigating challenges while capitalizing on growth opportunities. The overall sentiment was positive, driven by strong financial results and strategic initiatives, despite some areas of concern in specific segments. Investors and stakeholders can look forward to continued innovation and growth in the coming years.
