Q2 23 EPS

$2.69

BEAT +66.05%

Est. $1.62

Q2 23 Revenue

$2.41B

BEAT +7.62%

Est. $2.24B

vs S&P Since Q2 23

-16.4%

TRAILING MARKET

OSK +49.0% vs S&P +65.5%

Market Reaction

Did OSK Beat Earnings? Q2 2023 Results

Oshkosh Corporation delivered a blowout second quarter for fiscal 2023, posting adjusted EPS of $2.69 against a consensus estimate of $1.62, a beat of 66.05%, while revenue of $2.41 billion topped expectations by 7.62% and climbed 16.8% from the year… Read more Oshkosh Corporation delivered a blowout second quarter for fiscal 2023, posting adjusted EPS of $2.69 against a consensus estimate of $1.62, a beat of 66.05%, while revenue of $2.41 billion topped expectations by 7.62% and climbed 16.8% from the year-ago period. The standout driver was the Access segment, where sales surged 35.9% to $1.33 billion and operating income nearly tripled to $211.70 million, pushing the segment's operating margin to 15.9% from just 7.4% a year earlier, as higher volume, improved pricing, and the Hinowa acquisition all contributed. The Defense segment remained a soft spot, with sales slipping 7.6% to $498.10 million on lower JLTV program volume, though thin margins held at 1.3%. Confidence in the recovery was underscored by a recent $201 million U.S. Army order for additional medium tactical vehicles, adding to a consolidated backlog of roughly $14.97 billion. Management responded to the momentum by sharply raising its fiscal 2023 outlook, now guiding for net sales of approximately $9.50 billion and adjusted EPS of $8.00, both well above prior targets.

Key Takeaways

  • Improved pricing in response to higher input costs across Access and Vocational segments
  • Higher sales volume, primarily in the Access segment
  • Favorable sales mix improvements
  • Supply chain improvements through component redesign, resourcing, and dual sourcing
  • Operational improvements enhancing resiliency
  • Lower unfavorable cumulative catch-up adjustments in Defense
  • Lower effective tax rate of 24.3% versus 31.2% in the prior year quarter
24/7 Wall St

OSK YoY Financials

Q2 2023 vs Q2 2022, source: SEC Filings

24/7 Wall St

OSK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 23 Q1 26

“We are pleased with our strong financial performance in the quarter, highlighted by significant growth in sales and operating income. Our performance led to adjusted earnings per share of $2.69, which was ahead of our expectations. In particular, our Access and Vocational segments both delivered double-digit operating margins in an environment where supply chains have improved but have not yet returned to historical norms. Our results demonstrate that our actions over the past several quarters to redesign, resource and dual source components as well as implement numerous operational improvements are enhancing our resiliency in a constrained supply chain environment.”

— John Pfeifer, Q2 2023 Earnings Press Release