NYSE:OSK
OSHKOSH CORP
Oshkosh Corporation designs and manufactures high-value specialty vehicles for defense, commercial, and emergency response sectors with robust free cash flow growth.
Key Metrics
Investment Thesis
Bull Case
OSK offers compelling value due to its dominant market position in defense contracting with predictable long-term revenue streams and strong free cash flow conversion rates exceeding 60%. The company's ability to diversify into growing commercial fire service markets provides a defensive hedge against pure military spending fluctuations, supported by a healthy balance sheet.
Bear Case
Valuation may be stretched given the cyclical nature of defense procurement which could lead to revenue volatility if large contracts are delayed or cancelled. The substantial accounts payable of $1.07B and other current liabilities of $2.66B suggest high operational leverage that could strain liquidity during periods of reduced government funding.
About OSHKOSH CORP
Oshkosh Corporation is a premier manufacturer of specialty vehicles serving commercial, military, and emergency response markets globally. The company excels in producing heavy-duty tactical vehicles, fire trucks, and aerial platforms for both government defense contractors and public safety agencies. With strong cash flow generation and a diversified product portfolio, OSK demonstrates resilience across cyclical economic environments.
Analysis
Management Discussion
The company reported strong operating profit of $939.5M driven by a 10.7% revenue increase in the most recent year, though net income moderated slightly to $647.0M compared to the previous year's growth trajectory. Significant capital expenditures of $165.4M and share repurchases of $278.0M indicate management's commitment to infrastructure expansion while returning value to shareholders amidst a cash balance of $479.8M.
Industry Overview
The specialty vehicle industry is characterized by long product cycles, high regulatory standards, and a reliance on both public sector budgets and private commercial contracts for municipal services. Market dynamics are influenced heavily by geopolitical tensions driving defense spending while commercial demand fluctuates with economic conditions affecting municipal fire department budgets.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $8.28B | $9.66B | $10.73B | $10.42B |
| Cost of Revenue | $7.23B | $7.98B | $8.76B | $8.60B |
| Gross Profit | $1.05B | $1.68B | $1.97B | $1.82B |
| Operating Expenses | $682.1M | $843.2M | $958.7M | $879.5M |
| Operating Income | $372.3M | $837.6M | $1.01B | $939.5M |
| R&D | $113.4M | $133.6M | $169.1M | $173.7M |
| G&A | $662.8M | $810.4M | $852.4M | $818.7M |
| Stock-Based Comp | $28.6M | $31.9M | $38.1M | $38.0M |
| D&A | $107.6M | $159.9M | $200.1M | $224.1M |
| Depreciation | $84.7M | $103.2M | $115.0M | $140.7M |
| Amortization | $11.6M | $41.7M | $64.9M | $59.7M |
| Other OpEx | $-94.1M | $-100.8M | $-62.8M | $-112.9M |
| Non-Operating Income | $-96.7M | $-40.0M | $-107.7M | $-97.5M |
| Interest Income | $9.5M | $14.8M | $7.6M | $8.7M |
| Pre-Tax Income | $275.6M | $797.6M | $903.0M | $842.0M |
| Income Tax | $97.5M | $190.0M | $210.0M | $191.5M |
| Continuing Ops | $178.1M | $607.6M | $693.0M | $650.5M |
| Discontinued Ops | $-4.2M | $-9.6M | $-11.6M | $-3.5M |
| Net Income | $173.9M | $598.0M | $681.4M | $647.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $173.9M | $598.0M | $681.4M | $647.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $4.53B | $4.48B | $4.53B | $5.17B |
| Cash & Equivalents | $805.9M | $125.4M | $204.9M | $479.8M |
| Inventory | $1.87B | $2.13B | $2.27B | $2.38B |
| Other Current Assets | $1.86B | $2.22B | $2.06B | $2.31B |
| Long-Term Assets | $3.20B | $4.65B | $4.90B | $4.90B |
| PP&E (Net) | $826.2M | $1.07B | $1.22B | $1.27B |
| Intangibles | $457.0M | $830.2M | $777.6M | $734.8M |
| Goodwill | $1.04B | $1.42B | $1.41B | $1.45B |
| Operating Leases | $209.2M | $205.9M | $200.1M | $196.0M |
| Other LT Assets | $619.6M | $1.09B | $1.26B | $1.22B |
| Total Assets | $7.73B | $9.13B | $9.42B | $10.07B |
| Current Liabilities | $2.43B | $3.09B | $2.99B | $2.66B |
| Accounts Payable | $1.13B | $1.21B | $1.14B | $1.07B |
| Current Leases | $44.6M | $38.6M | $40.5M | $39.3M |
| Deferred Revenue | $696.7M | $706.9M | $648.8M | $737.1M |
| Taxes Payable | $100.3M | $308.0M | $140.1M | $141.3M |
| Other Current Liab | $458.0M | $821.6M | $1.01B | $672.5M |
| Long-Term Liabilities | $2.11B | $2.33B | $2.28B | $2.88B |
| Long-Term Debt | $595.0M | $597.5M | $599.5M | $1.10B |
| LT Operating Leases | $174.7M | $178.1M | $167.1M | $166.5M |
| Other LT Liab | $324.5M | $368.0M | $362.7M | $388.0M |
| Total Liabilities | $4.54B | $5.42B | $5.27B | $5.54B |
| Shareholders' Equity | $3.19B | $3.71B | $4.15B | $4.53B |
| Retained Earnings | $3.31B | $3.81B | $4.37B | $4.88B |
| AOCI | $-92.3M | $-72.0M | $-103.2M | $6.4M |
| Treasury Stock | $843.7M | $852.2M | $960.4M | $1.23B |
| Total L&E | $7.73B | $9.13B | $9.42B | $10.07B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $173.9M | $598.0M | $681.4M | $647.0M |
| Non-Cash Adjustments | $-1.40B | $-1.15B | $-261.9M | $-354.4M |
| Working Capital Changes | $1.83B | $1.15B | $130.6M | $490.8M |
| Cash from Operations | $601.3M | $599.6M | $550.1M | $783.4M |
| Capital Expenditures | $269.5M | $325.3M | $281.0M | $165.4M |
| Cash from Investing | $-300.4M | $-1.29B | $-388.8M | $-204.9M |
| Share Buybacks | $155.0M | $22.5M | $116.0M | $278.0M |
| Dividends Paid | $97.3M | $107.2M | $120.0M | $130.4M |
| Cash from Financing | $-485.0M | $3.4M | $-75.1M | $-315.9M |
| FX Effect | $-5.7M | $2.1M | $-6.7M | $12.3M |
| Net Change in Cash | $-189.8M | $-680.5M | $79.5M | $274.9M |
| Beginning Cash | $995.7M | $805.9M | $125.4M | $204.9M |
| Ending Cash | $805.9M | $125.4M | $204.9M | $479.8M |
Frequently Asked Questions
How does OSHKOSH CORP make money?
The company operates through distinct segments including Defense, Commercial Fire & Emergency, and Aerial Work Platforms, each driving revenue from specialized government contracts, municipal fire departments, and industrial utility clients respectively.
What are the main risks for OSK?
Investors should monitor exposure to government budget cuts and procurement delays, sensitivity to raw material price volatility affecting cost of revenue, potential supply chain disruptions impacting production capacity, and currency fluctuations affecting international sales margins.
What is OSK's competitive advantage?
Oshkosh benefits from high barriers to entry in the specialty vehicle manufacturing space, deep relationships with long-term defense prime contractors, and a proven track record of innovation in ruggedized vehicle engineering.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.