Oshkosh Corp
Q4 2022 Earnings
Did OSK Beat Earnings? Q4 2022 Results
Oshkosh Corporation wrapped up fiscal 2022 on a mixed note, delivering Q4 revenue of $2.20 billion, up 23.0% year over year and nudging past the $2.18 billion consensus by 0.95%, while adjusted EPS of $1.60 fell short of the $1.73 analyst estimate by 7.51%, weighed down by a $33.60 million frozen pension plan settlement charge that pressured reported results. The Access Equipment segment was the clearest bright spot, with sales climbing 28.9% to $1.07 billion and operating income expanding sharply to a 10.8% margin, as pricing actions and stronger volume more than offset $20.00 million in foreign currency headwinds. Looking ahead, management initiated fiscal 2023 guidance calling for net sales of approximately $8.40 billion and EPS of roughly $5.50, underpinned by a record backlog exceeding $14.00 billion, with the newly formed Vocational segment targeted to grow revenues to $3.00 billion at over 12% operating margins. A recent $84.9 million JLTV order for the U.S. Army offered additional confidence in the Defense pipeline heading into the new fiscal year.
- Improved pricing actions across all segments to offset higher input costs
- Higher sales volume across all segments
- Access Equipment segment operating margin expanded to 10.8% from 4.6%
- Fire & Emergency manufacturing bottlenecks eased during Q4
- Strong refuse collection vehicle demand in Commercial segment
- Record backlog exceeding $14 billion
“Oshkosh Corporation team members delivered a strong close to fiscal 2022 with robust sequential and year over year revenue and operating income growth during the fourth quarter. Strong market fundamentals and elevated demand for our products drove high order rates in the quarter and a record backlog of more than $14 billion. We expect that robust demand will continue to support strong revenue and earnings growth in fiscal 2023 and beyond. While we continued to experience unfavorable supply chain dynamics and inflation impacts, our teams took appropriate actions to minimize and mitigate these challenges.”
Oshkosh CEO, on the earnings call
Forward Guidance & Outlook
Oshkosh initiated fiscal 2023 guidance with diluted EPS in the range of $5.50 on projected net sales in the range of $8.4 billion, reflecting operating income in the range of $530 million. This guidance includes approximately $0.80 per share impact from incentive compensation costs returning to typical levels and approximately $0.30 per share from increased new product development investment. The company expects ongoing supply chain constraints with modest improvements during fiscal 2023. Robust demand is supported by a record backlog exceeding $14 billion. The new Vocational segment is expected to grow revenues at a high single-digit CAGR to $3 billion with over 12% operating margins over the next few years.
OSK YoY Financials
OSK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.