Oshkosh Corp (OSK, Financial), a leading producer of access equipment, specialty vehicles, and military trucks, reported its financial results for the second quarter of 2024. The company, which serves diverse end markets and is a market leader in North America, generated $9.6 billion in revenue in 2023. Oshkosh recently lost the JLTV recompete but has a significant contract with the US Postal Service for the electrification of postal vehicles.
Performance Overview
For the second quarter of 2024, Oshkosh Corp (OSK, Financial) reported net income of $168.6 million, or $2.56 per diluted share, falling short of the analyst estimate of $2.88 per share. However, the company exceeded revenue expectations with $2.85 billion, compared to the estimated $2.75 billion. Adjusted earnings per share were $3.34, up from $2.74 in the same quarter last year.
Segment Performance
Oshkosh Corp (OSK, Financial) operates in three segments: Access Equipment, Defense, and Vocational. The Access segment, which accounts for 52% of revenue, saw a 5.9% increase in sales to $1.41 billion, driven by higher sales volume in North America. The Defense segment, contributing 22% of revenue, experienced a 20.2% increase in sales to $598.7 million, primarily due to higher Family of Medium Tactical Vehicle sales and the commencement of NGDV production for the USPS. The Vocational segment, making up 27% of revenue, reported a 43.5% increase in sales to $843.1 million, bolstered by the AeroTech acquisition and improved pricing.
Financial Achievements and Challenges
Oshkosh Corp (OSK, Financial) reported consolidated operating income of $260.9 million, up 11.1% from the previous year. Adjusted operating income increased by 36.1% to $328.2 million. The company faced challenges such as intangible asset impairments in the Defense segment amounting to $51.6 million and higher operating costs to support increased sales levels.
“We are pleased to report another quarter of strong performance highlighted by growth in revenue, adjusted operating income, and adjusted earnings per share,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $2.85 billion | $2.41 billion |
| Gross Income | $546.1 million | $424.5 million |
| Operating Income | $260.9 million | $234.9 million |
| Net Income | $168.6 million | $175.0 million |
| Earnings Per Share (Diluted) | $2.56 | $2.67 |
Balance Sheet and Cash Flow
As of June 30, 2024, Oshkosh Corp (OSK, Financial) reported total assets of $9.72 billion, up from $9.13 billion at the end of 2023. The company’s cash and cash equivalents stood at $141.4 million. Net cash used in operating activities was $566.8 million for the first six months of 2024, compared to $46.6 million in the same period last year.
Dividend and Share Repurchase
Oshkosh Corp (OSK, Financial) declared a quarterly cash dividend of $0.46 per share, payable on August 30, 2024, to shareholders of record as of August 16, 2024. The company repurchased 334,699 shares of common stock for $39.5 million during the second quarter.
Outlook
Given the strong performance in the first half of the year, Oshkosh Corp (OSK, Financial) updated its full-year guidance for earnings per share to be in the range of $10.45 and adjusted earnings per share to be in the range of $11.75. The company continues to expect net sales of approximately $10.7 billion in 2024.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Oshkosh Corp for further details.
