• Full-Year 2024 Revenue: $10.8 billion, an increase of 11.4%.
• Full-Year 2024 Adjusted EPS: $11.74.
• Full-Year 2024 Adjusted Operating Income Margin: 10.5%, a 110-basis-point increase over 2023.
• Fourth Quarter 2024 Revenue: $2.62 billion, up 6.3% from Q4 2023.
• Fourth Quarter 2024 Adjusted EPS: $2.58.
• Fourth Quarter 2024 Adjusted Operating Income Margin: 9.4%.
• Vocational Segment Q4 Revenue Growth: Nearly 20% year-over-year.
• Vocational Segment Q4 Adjusted Operating Income Margin: 14%.
• Access Segment Backlog: $1.8 billion.
• Full-Year Free Cash Flow 2024: Approximately $270 million.
• 2025 Revenue Expectation: Approximately $10.6 billion.
• 2025 Adjusted EPS Expectation: Approximately $11.
• 2025 CapEx Expectation: About $250 million.
• 2025 Free Cash Flow Expectation: $300 million to $400 million.
• Dividend Increase: Quarterly dividend raised by $0.05 to $0.51 per share, nearly 11% increase.

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Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Oshkosh Corp (NYSE:OSK) reported strong full-year 2024 results with revenue of $10.8 billion and adjusted earnings per share of $11.74.
• The company achieved an adjusted operating income margin of 10.5%, a 110-basis-point increase over 2023.
• The Vocational segment showed robust growth with a nearly 20% increase in revenue in the fourth quarter and a strong adjusted operating income margin of 14%.
• Oshkosh Corp (NYSE:OSK) was named to the Dow Jones Sustainability World Index for the sixth consecutive year, reflecting its commitment to sustainable business practices.
• The company announced its 11th consecutive double-digit percent increase in its dividend, raising the quarterly dividend by $0.05 to $0.51 per share.

Negative Points

• The Access segment is experiencing softer near-term market conditions, with expectations of lower sales in 2025, particularly in the first half of the year.
• Defense results continue to be impacted by legacy fixed-price contracts, affecting margins.
• Full-year free cash flow was lower than expected at about $270 million, due in part to timing delays on unit deliveries in Defense.
• The company anticipates a decline in Access sales by approximately 15% for 2025, influenced by market conditions and changes in agreements.
• Higher interest expenses impacted adjusted earnings per share, which remained roughly flat compared to the prior year despite higher operating income.

Q & A Highlights

Q: Can you elaborate on the growth outlook for the Vocational segment, particularly the Pierce business? A: John Pfeifer, CEO, explained that the Vocational segment is resilient and growing, with strong order intake and backlogs, especially in the municipal fire truck business. The company is investing in increasing production capacity to meet demand and expects continued margin growth.

Q: What are the expected margins for the Defense segment as you ramp up production for the USPS contract? A: Matthew Field, CFO, stated that while specific guidance on USPS margins isn't provided, the ramp-up is expected to be accretive to the overall Defense business. More details will be shared at the Investor Day and closer to 2026.

Q: How do you see the Access segment performing in the first half versus the second half of 2025? A: John Pfeifer, CEO, noted that the Access segment is expected to experience more typical seasonality, with lower sales in the first half and improving conditions in the second half. This is based on customer insights and market metrics.

Q: Can you discuss the impact of tariffs on your pricing strategy for Access equipment? A: John Pfeifer, CEO, mentioned that Oshkosh has a playbook for potential tariff scenarios and aims to mitigate impacts through its global footprint. The company plans to minimize or eliminate the need for price increases due to tariffs.

Q: What is the outlook for the NGDV production ramp-up and its impact on the Defense segment? A: John Pfeifer, CEO, stated that NGDV production will progressively increase throughout 2025, reaching full rate by year-end. This ramp-up, along with revised pricing on other Defense contracts, supports a strong outlook for 2026 and beyond.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.