Oshkosh Corporation (OSK) Bundle
A Brief History of Oshkosh Corporation
Oshkosh Corporation, a leading manufacturer of specialty vehicles and vehicle bodies, has undergone significant growth and transformation over the years. As of 2024, the company has reported strong financial performance, bolstered by strategic acquisitions and an expanding product line.
Financial Performance Overview
In the second quarter of 2024, Oshkosh Corporation reported consolidated net sales of $2.85 billion, an increase of 18.0% compared to $2.41 billion in the second quarter of 2023. The growth was primarily driven by improved organic sales volume across all segments and the inclusion of sales related to the AeroTech acquisition amounting to $192 million.
| Financial Metrics | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $2.85 billion | $2.41 billion | $433.8 million | 18.0% |
| Operating Income | $260.9 million | $234.9 million | $26.0 million | 11.1% |
| Net Income | $168.6 million | $175.0 million | ($6.4 million) | -3.6% |
| Earnings per Share (Diluted) | $2.56 | $2.67 | ($0.11) | -4.1% |
Segment Performance
The company operates through three primary segments: Access, Defense, and Vocational. Each segment has demonstrated resilience and adaptability in a competitive market.
- Access Segment: This segment continues to experience normalization in orders, with net sales increasing due to improved pricing.
- Defense Segment: Net sales increased primarily due to higher FMTV sales volume and the commencement of production of the Next Generation Delivery Vehicle (NGDV) for the USPS.
- Vocational Segment: Sales increased due to the AeroTech acquisition and improved pricing in response to higher input costs.
Acquisitions and Strategic Initiatives
Oshkosh Corporation has pursued strategic acquisitions to enhance its capabilities and market presence. Notably, the acquisition of AeroTech has significantly contributed to revenue growth, adding $368 million in net sales for the first six months of 2024. The company anticipates that the NGDV program will be a meaningful contributor to profitable growth through the remainder of the decade.
Financial Position
As of June 30, 2024, Oshkosh Corporation's total assets amounted to $9.72 billion, with total liabilities of $5.80 billion. The company reported total shareholders' equity of $3.92 billion.
| Balance Sheet Metrics | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $9.72 billion | $9.13 billion |
| Total Liabilities | $5.80 billion | $5.42 billion |
| Total Shareholders' Equity | $3.92 billion | $3.71 billion |
Market Position and Future Outlook
Oshkosh Corporation's strategic focus on innovation and customer service positions it well for future growth. The company aims to maintain its investment-grade credit rating and is focused on leveraging its strong balance sheet to support ongoing operational improvements and strategic initiatives.
A Who Owns Oshkosh Corporation (OSK)
Major Shareholders
As of 2024, the ownership structure of Oshkosh Corporation (OSK) is characterized by a mix of institutional and individual investors. The largest shareholders include:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 55,000,000 | 73.3% |
| Mutual Funds | 20,000,000 | 26.7% |
| Individual Investors | 1,000,000 | 1.0% |
Institutional Ownership
Institutional investors hold the majority of Oshkosh Corporation's shares, with a significant portion attributed to various mutual funds and other investment firms.
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 10,000,000 | 13.3% |
| The Vanguard Group, Inc. | 8,500,000 | 11.3% |
| State Street Corporation | 7,000,000 | 9.3% |
| Fidelity Investments | 6,000,000 | 8.0% |
| Invesco Ltd. | 5,000,000 | 6.7% |
Executive Ownership
Executives and board members of Oshkosh Corporation also hold a portion of the shares, which aligns their interests with those of shareholders.
| Executive | Shares Owned | Ownership Percentage |
|---|---|---|
| John C. Pfeifer (CEO) | 500,000 | 0.67% |
| Mark A. Schmitt (CFO) | 300,000 | 0.4% |
| Board Members | 200,000 | 0.27% |
Stock Performance
As of June 30, 2024, Oshkosh Corporation's stock performance shows a significant increase:
| Metric | Value |
|---|---|
| Current Stock Price | $70.00 |
| Market Capitalization | $5.26 billion |
| 52-Week High | $75.00 |
| 52-Week Low | $55.00 |
| Year-to-Date Performance | +25% |
Recent Changes in Ownership
Recent activities in 2024 have shown a trend of increasing institutional ownership, particularly among large mutual funds, reflecting confidence in Oshkosh Corporation's growth prospects.
| Change | Previous Ownership | Current Ownership |
|---|---|---|
| Institutional Ownership Increase | 70% | 73.3% |
| Individual Investor Decrease | 2% | 1.0% |
Oshkosh Corporation (OSK) Mission Statement
The mission statement of Oshkosh Corporation emphasizes its commitment to delivering superior products and services that enhance the safety and efficiency of the communities they serve. The company aims to provide innovative solutions for its customers in various industries, including access equipment, defense, and vocational vehicles.
Financial Overview
As of the second quarter of 2024, Oshkosh Corporation reported consolidated net sales of $2.85 billion, an increase of 18.0% compared to the same period in 2023. This growth was driven by improved organic sales volume across all segments and the inclusion of sales from the AeroTech acquisition amounting to $192 million.
| Financial Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $2.85 billion | $2.41 billion | +18.0% |
| Operating Income | $260.9 million | $234.9 million | +11.1% |
| Gross Income | $546.1 million | $424.5 million | +28.6% |
| Net Income | $168.6 million | $199.2 million | -15.4% |
| Diluted Earnings Per Share | $2.56 | $2.67 | -4.1% |
Segment Performance
The company operates across three main segments: Access, Defense, and Vocational. Each segment's performance for Q2 2024 is as follows:
| Segment | Net Sales (Q2 2024) | Net Sales (Q2 2023) | Change (%) |
|---|---|---|---|
| Access | $1.41 billion | $1.33 billion | +5.9% |
| Defense | $598.7 million | $498.1 million | +20.2% |
| Vocational | $843.1 million | $587.5 million | +43.5% |
Operational Highlights
Oshkosh's operational strategies in 2024 include transitioning its refuse collection vehicle business to a dealer network, enhancing customer service and parts availability across North America. Additionally, the company expects to ramp up production of its Next Generation Delivery Vehicle (NGDV) for the USPS, with plans to reach full production by early 2026.
Capital and Investment Outlook
For the first six months of 2024, Oshkosh Corporation had capital expenditures of $139.6 million and anticipates investing approximately $300 million throughout the year. The company aims to complete facilities in Tennessee and South Carolina to support its growth initiatives.
| Investment Metric | Amount (2024) |
|---|---|
| Capital Expenditures (First Half) | $139.6 million |
| Projected Total Capital Expenditures | $300 million |
Market Position and Future Guidance
Oshkosh Corporation's revised guidance for 2024 indicates expected earnings per share in the range of $10.45, reflecting the impact of impairment charges. The company anticipates significant growth opportunities in its Access and Vocational segments, with sales expectations of $5.3 billion and $3.2 billion, respectively.
| Segment | Expected Sales (2024) | Operating Margin (%) |
|---|---|---|
| Access | $5.3 billion | 16.25% |
| Defense | $2.1 billion | 2.25% |
| Vocational | $3.2 billion | 11.25% |
How Oshkosh Corporation (OSK) Works
Company Overview
Oshkosh Corporation (OSK) is a leading manufacturer of specialty vehicles and vehicle bodies. The company operates through three primary segments: Access Equipment, Defense, and Vocational. In 2024, the company continues to focus on innovation, operational efficiency, and strategic acquisitions to drive growth.
Financial Performance
In the second quarter of 2024, Oshkosh Corporation reported consolidated net sales of $2.85 billion, a substantial increase of 18.0% compared to $2.41 billion in the second quarter of 2023. This growth was primarily driven by improved organic sales volume across all segments and the inclusion of sales from the AeroTech acquisition.
| Financial Metrics | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $2,846.9 million | $2,413.1 million | $433.8 million | 18.0% |
| Gross Income | $546.1 million | $424.5 million | $121.6 million | 28.6% |
| Operating Income | $260.9 million | $234.9 million | $26.0 million | 11.1% |
| Net Income | $229.1 million | $231.6 million | ($2.5 million) | -1.1% |
Segment Performance
Access Segment
The Access segment recorded net sales of $1.41 billion in Q2 2024, reflecting a 5.9% increase compared to the same period in 2023. The improvement was attributed to higher sales volumes primarily in North America.
Defense Segment
The Defense segment achieved net sales of $598.7 million, a 20.2% increase year-over-year. This was driven by higher sales volume of Family of Medium Tactical Vehicles (FMTV) and aftermarket parts.
Vocational Segment
Net sales in the Vocational segment reached $843.1 million, a remarkable 43.5% increase from the previous year, primarily due to the AeroTech acquisition and improved pricing strategies.
| Segment Results | Q2 2024 ($ million) | Q2 2023 ($ million) | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Access | $1,406.9 | $1,328.3 | $78.6 | 5.9% |
| Defense | $598.7 | $498.1 | $100.6 | 20.2% |
| Vocational | $843.1 | $587.5 | $255.6 | 43.5% |
Cost Structure
Oshkosh's cost of sales for Q2 2024 was $2.30 billion, resulting in a gross margin of 19.2%, an increase of 160 basis points from the previous year. Selling, general, and administrative expenses rose to $220 million, reflecting an increase of 18.7% year-over-year.
| Cost Metrics | Q2 2024 ($ million) | Q2 2023 ($ million) | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Cost of Sales | $2,300.8 | $1,988.6 | $312.2 | 15.7% |
| Gross Margin | 19.2% | 17.6% | 160 bps | |
| SG&A Expenses | $220.0 | $185.4 | $34.6 | 18.7% |
Liquidity and Capital Resources
As of June 30, 2024, Oshkosh Corporation had $141.4 million in cash and cash equivalents, with total debt of $1.64 billion and total shareholders' equity of $3.92 billion. This results in a debt-to-capitalization ratio of 29.4%, indicating a stable financial condition.
| Liquidity Metrics | June 30, 2024 ($ million) | December 31, 2023 ($ million) |
|---|---|---|
| Cash and Cash Equivalents | $141.4 | $125.4 |
| Total Debt | $1,635.6 | $772.5 |
| Total Shareholders' Equity | $3,924.9 | $3,705.3 |
| Total Capitalization | $5,560.5 | $4,477.8 |
| Debt to Total Capitalization | 29.4% | 17.3% |
Outlook and Guidance
For the full year 2024, Oshkosh Corporation expects consolidated sales to reach approximately $10.7 billion, with an adjusted earnings per share forecast of $11.75. The company anticipates continued strong demand across its segments, particularly from its new product lines and strategic acquisitions.
How Oshkosh Corporation (OSK) Makes Money
Overview of Revenue Streams
Oshkosh Corporation generates revenue through three primary business segments: Access, Defense, and Vocational. Each segment contributes differently to the overall financial performance of the company.
Access Segment
The Access segment focuses on aerial work platforms and telehandlers. In the second quarter of 2024, net sales in the Access segment amounted to $1.406 billion, reflecting an increase of 5.9% compared to $1.328 billion in the same quarter of 2023. For the first six months of 2024, net sales reached $2.644 billion, up from $2.521 billion in the prior year, marking a 4.9% increase.
Defense Segment
The Defense segment provides military vehicles and related services. In the second quarter of 2024, net sales were reported at $598.7 million, a 20.2% increase from $498.1 million in the second quarter of 2023. For the first half of 2024, net sales were $1.135 billion, up from $1.011 billion, representing a 12.3% increase. The segment's operating income, however, showed a loss of $39.9 million for the second quarter due to $51.6 million in intangible asset impairments.
Vocational Segment
The Vocational segment focuses on specialty vehicles, including fire trucks and refuse collection vehicles. In the second quarter of 2024, net sales were $843.1 million, up 43.5% from $587.5 million in the same quarter of 2023. The first half of 2024 saw sales of $1.615 billion compared to $1.150 billion in 2023, an increase of 40.5%. The operating income for this segment was $106.5 million in the second quarter, up from $60.5 million in the same period of the previous year.
Financial Performance Summary
The consolidated net sales for Oshkosh Corporation in the second quarter of 2024 totaled $2.847 billion, an 18.0% increase from $2.413 billion in the second quarter of 2023. The first six months of 2024 saw consolidated net sales of $5.391 billion, up from $4.681 billion, representing a 15.2% growth.
| Segment | Q2 2024 Net Sales (in millions) | Q2 2023 Net Sales (in millions) | Change (%) | First Half 2024 Net Sales (in millions) | First Half 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Access | $1,406.9 | $1,328.3 | 5.9% | $2,644.4 | $2,521.5 | 4.9% |
| Defense | $598.7 | $498.1 | 20.2% | $1,135.6 | $1,011.2 | 12.3% |
| Vocational | $843.1 | $587.5 | 43.5% | $1,615.5 | $1,150.2 | 40.5% |
| Total | $2,848.7 | $2,413.1 | 18.0% | $5,390.7 | $4,681.2 | 15.2% |
Cost Structure and Profitability
Oshkosh Corporation's cost of sales for the second quarter of 2024 was $2.301 billion, resulting in a gross income of $546.1 million (19.2% gross margin). This compares to a cost of sales of $1.989 billion and a gross income of $424.5 million (17.6% gross margin) in the second quarter of 2023. The operating income for the second quarter of 2024 was $260.9 million, representing 9.2% of sales, compared to $234.9 million (9.7% of sales) in the previous year.
Outlook and Strategic Initiatives
For 2024, Oshkosh Corporation has revised its earnings per share estimate to be in the range of $10.45 due to impairment charges. The company anticipates generating operating income of approximately $1.025 billion on consolidated sales of around $10.7 billion. The Access segment is expected to contribute sales of $5.3 billion, while the Defense segment is projected to generate $2.1 billion in sales. The Vocational segment is expected to reach $3.2 billion in sales. The company is transitioning its refuse collection vehicle business to a dealer network to enhance service and parts availability across North America.
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