Why Oshkosh (OSK) Is Up 5.7% After Earnings Beat and New Defense Contract Announcement

• Oshkosh Corporation recently reported second quarter 2025 earnings, highlighting a rise in net income to US$204.8 million despite a 4% year-on-year decline in sales to US$2.73 billion, and announced a new three-year contract with the Department of Defense.
• The company also raised its full-year 2025 earnings guidance, increased its share repurchase activity, and expanded its free cash flow outlook, signaling management confidence in ongoing business strength even amid a variable global trade landscape.
• We'll explore how Oshkosh's improved earnings outlook, following new contract wins and guidance, reshapes its investment narrative and future prospects.

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Oshkosh Investment Narrative Recap

To be a shareholder in Oshkosh today, you need to believe in its ability to deliver steady earnings even amid softer sales and ongoing tariff pressures. The recent Q2 results, with higher net income and a raised full-year outlook, support the case for continued resilience, though global supply chain volatility and fluctuating tariffs remain significant short-term risks for margins and earnings. The latest earnings update does not materially change these core risks, but it does mitigate some uncertainty around short-term results.

One announcement especially relevant now is Oshkosh’s three-year sole-source contract for medium tactical vehicles with the Department of Defense, which adds visibility to Defense segment revenues. This contract provides a potential catalyst by supporting short-term revenue and margin stability as Oshkosh manages cost headwinds and works towards full-scale NGDV production.

However, contrasting this positive momentum, investors should also be aware of the potential for shifts in international tariffs, as these could quickly …

Read the full narrative on Oshkosh (it's free!)

Oshkosh's outlook anticipates $11.5 billion in revenue and $889.8 million in earnings by 2028. This is based on a 3.2% annual revenue growth rate and a $275.6 million increase in earnings from the current $614.2 million.

Uncover how Oshkosh's forecasts yield a $139.52 fair value, in line with its current price.

Exploring Other Perspectives

The Simply Wall St Community’s seven estimates for Oshkosh’s fair value span a broad range, from as low as US$10 to as high as US$192.36, showing markedly different views on the stock’s potential. While some anticipate strong growth from new contract wins, you should recognize that global supply chain risks and tariff fluctuations could impact future earnings, so consider reviewing several opinions before making up your mind.

Explore 7 other fair value estimates on Oshkosh - why the stock might be worth less than half the current price!

Build Your Own Oshkosh Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Oshkosh research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Oshkosh research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Oshkosh's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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