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Reports Sales of $2.74 billion, up 9 Percent |
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Reports Earnings per Share of $2.75; Adjusted1 Earnings per Share of $2.93 |
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Updates 2024 Sales and Earnings Expectations |
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Declares Quarterly Cash Dividend of $0.46 Per Share |
| Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, today reported a 2024 third-quarter net income of $180.3 million, or $2.75 per diluted share, compared to a net income of $183.7 million, or $2.79 per diluted share, for the third quarter of 2023. Adjusted1 net income was $192.5 million, or $2.93 per diluted share, for the third quarter of 2024 compared to $200.6 million, or $3.04 per diluted share, for the third quarter of 2023. Comparisons in this news release are to the third quarter of 2023 unless otherwise noted. |
| Consolidated sales in the third quarter of 2024 increased $231.5 million, or 9.2 percent, to $2.74 billion primarily due to improved organic sales volume in all three segments, an additional month of AeroTech sales and improved pricing. |
| Consolidated operating income in the third quarter of 2024 increased 3.8 percent to $266.2 million, or 9.7 percent of sales, compared to $256.5 million, or 10.2 percent of sales, in the third quarter of 2023. The increase in operating income was primarily due to higher sales volume and favourable price/cost dynamics, offset in part by higher selling, general and administrative and engineering costs. Adjusted1 operating income in the third quarter of 2024 increased 2.2 percent to $282.5 million, or 10.3 percent of sales, compared to $276.3 million, or 11.0 percent of sales, in the third quarter of 2023. |
| “We are pleased to report solid third quarter performance with revenue growth of 9.2 percent and an adjusted operating margin of 10.3 percent, leading to adjusted earnings per share of $2.93,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation. “Our performance was highlighted by outstanding results in our Vocational segment, where we delivered revenue growth of 17.6 percent, operating income growth of 89.7 percent and adjusted operating income growth of 44.7 percent. The segment continues to benefit from industry-leading innovations driving strong demand and an extended backlog that provides excellent visibility over the next few years. |
| “Last quarter, we started low-rate production of the Next Generation Delivery Vehicle (NGDV) that we are supplying to the US Postal Service (USPS) to modernize and decarbonize North America’s largest fleet of delivery vehicles. We are pleased to highlight that the USPS has begun fielding the world's most innovative and advanced last-mile delivery vehicles. We are still in the early stages of this significant program, but we are encouraged by our progress to date. |
| “Recently, we have been experiencing some softness in the access equipment market in North America. While we believe long-term demand drivers such as aged fleets and mega projects remain positive, we are adjusting our expectations for revenue and operating income for the remainder of the year based on current market conditions. |
| “As we enter the fourth quarter, we are reducing our expectations for 2024 earnings per share to be approximately $10.00 and 2024 adjusted earnings per share to be approximately $11.35,” added Pfeifer. |
| Factors affecting third-quarter results for the Company’s business segments included: |
| Access - Access segment sales for the third quarter of 2024 increased 3.4 percent to $1.36 billion primarily as a result of higher sales volume in North America, offset in part by lower sales volume in Europe, Africa the Middle East and the Rest of the World regions. |
| Access segment operating income in the third quarter of 2024 decreased 9.6 percent to $207.9 million, or 15.2 percent of sales, compared to $229.9 million, or 17.4 percent of sales, in the third quarter of 2023. The decrease was primarily due to higher material costs as well as higher selling, general and administrative expenses, offset in part by higher sales volume and improved sales mix. |
| Adjusted1 operating income in the third quarter of 2024 was $211.4 million, or 15.5 percent of sales, compared to $231.8 million, or 17.6 percent of sales, in the third quarter of 2023. |
| Vocational - Vocational segment sales for the third quarter of 2024 increased $121.6 million, or 17.6 percent to $814.2 million due to the inclusion of sales related to the AeroTech acquisition, improved pricing and improved organic sales volume. AeroTech had sales of $194.8 million during the third quarter of 2024 compared to $115.8 million from the August 1, 2023 acquisition date to September 30, 2023. |
| Vocational segment operating income in the third quarter of 2024 increased 89.7 percent to $99.6 million, or 12.2 percent of sales, compared to $52.5 million, or 7.6 percent of sales, in the third quarter of 2023. The increase was primarily due to improved price/cost dynamics. |
| Adjusted1 operating income in the third quarter of 2024 was $111.6 million, or 13.7 percent of sales, compared to $77.1 million, or 11.1 percent of sales, in the third quarter of 2023. |
| Defence - Defense segment sales for the third quarter of 2024 increased 13.9 percent to $540.4 million due to NGDV production for the USPS and higher sales volume for the Family of Heavy Tactical Vehicles, the Family of Medium Tactical Vehicles and aftermarket parts, offset in part by lower Joint Light Tactical Vehicles sales volume. |
| Defence segment operating income in the third quarter of 2024 decreased 43.1 percent to $11.2 million, or 2.1 percent of sales, compared to $19.7 million, or 4.2 percent of sales, in the third quarter of 2023. The decrease was primarily the result of unfavourable cumulative catch-up adjustments on contract margins and the absence of a gain on the sale of a business, offset in part by improved sales volume. |
| Adjusted1 operating income in the third quarter of 2024 was $11.2 million, or 2.1 percent of sales, compared to $11.7 million, or 2.5 percent of sales, in the third quarter of 2023. |
| Corporate and other - Net operating costs for corporate and other in the third quarter of 2024 increased $6.9 million to $52.5 million due to lower operating income at the Company's Pratt Miller business unit and higher new product development investments. |
| Interest Expense Net of Interest Income - Interest expense net of interest income in the third quarter of 2024 increased $14.0 million to $31.7 million due to borrowings on the Company's revolving credit facility to fund acquisitions. |
| Provision for Income Taxes - The Company recorded income tax expense in the third quarter of 2024 of $56.6 million, or 23.8 percent of pre-tax income, compared to $55.3 million, or 22.9 percent of pre-tax income, in the third quarter of 2023. |
| Repurchases of common stock - The Company repurchased 100,212 shares of common stock in the third quarter of 2024 for $11.0 million. There were no share repurchases in the third quarter of 2023. |
| Nine-month Results |
| The Company reported net sales for the first nine months of 2024 of $8.13 billion and net income of $528.3 million, or $8.02 per diluted share. This compares with net sales of $7.19 billion and net income of $447.2 million, or $6.80 per diluted share, for the nine months ended September 30, 2023. The increase in net income for the first nine months of 2024 compared to the nine months ended September 30, 2023, was primarily due to improved price/cost dynamics, higher organic sales volume, favourable mix and the absence of acquisition costs related to the AeroTech acquisition, offset in part by intangible asset impairments, higher selling, general and administrative expense, higher interest expense net of interest income and higher engineering costs. |
| Adjusted1 net income for the first nine months of 2024 was $603.4 million, or $9.16 per diluted share compared to $487.8 million, or $7.41 per diluted share, for the nine months ended September 30, 2023. |
| 2024 Expectations |
| The Company expects its 2024 diluted earnings per share to be approximately $10.00 and its adjusted earnings per share to be approximately $11.35, compared to its most recent estimates of $10.45 and $11.75, respectively. Due to the softening of the access equipment market in North America, the Company expects net sales to be approximately $10.6 billion in 2024, compared to its most recent estimate of $10.7 billion. |
| Dividend Announcement |
| The Company’s Board of Directors today declared a quarterly cash dividend of $0.46 per share of Common Stock. The dividend will be payable on November 29, 2024, to shareholders of record as of November 15, 2024. |
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| Oshkosh Corporation |
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Oshkosh Corporation: Reports 2024 Third Quarter Results
