Oshkosh targets $13-14 billion revenue by 2028

OSHKOSH, Wis. - Oshkosh Corporation (NYSE: OSK), a global manufacturer of specialty vehicles and equipment, has set its financial goals for the year 2028, aiming for a revenue range of $13 billion to $14 billion and an adjusted operating income margin between 12% and 14%. These targets, representing significant growth from current revenue of $10.5 billion, were announced during the company’s Investor Day on Thursday. According to InvestingPro analysis, Oshkosh appears undervalued at its current market capitalization of $6.85 billion, with a P/E ratio of 11.28x and strong financial health metrics.

The company’s president and CEO, John Pfeifer, expressed optimism about Oshkosh’s future, citing a strong foundation and clear vision for achieving significant revenue and adjusted earnings per share (EPS) growth over the next three years. This confidence is supported by InvestingPro data showing consistent dividend growth of 10.87% and a 12-year streak of dividend increases. Pfeifer emphasized the company’s commitment to innovation and serving "everyday heroes around the world."

Oshkosh’s financial projections are supported by a backlog of $14.6 billion as of March 31, 2025, which is expected to contribute to approximately half of the targeted revenue growth by 2028. The company is banking on multi-year contracts and backlogs, particularly in its Vocational and Transport segments.

The company also outlined its strategy for margin expansion, which includes updated sole-source contracts, new product launches, cost reduction initiatives, and the implementation of autonomous technologies. Oshkosh plans to continue investing in customer-centric product innovations to maintain and grow its market-leading positions.

In terms of portfolio resilience, Oshkosh anticipates balanced returns with the Vocational segment’s adjusted operating income expected to match that of the Access segment by 2028. Additionally, the company foresees improved defense margins and growth in its delivery vehicle business.

Regarding capital management, Oshkosh expects to generate significant free cash flow with a conversion rate of over 90% across the cycle. The company has a disciplined approach to capital allocation, including organic reinvestment and returning cash to shareholders through dividends and share repurchases. InvestingPro analysis reveals the company operates with a moderate debt level and maintains a healthy current ratio of 1.77, indicating strong liquidity. As of the end of March 2025, Oshkosh had authorization to repurchase 9.9 million shares. For deeper insights into Oshkosh’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

These targets and strategies are part of the company’s broader aim to leverage its industry-leading brands and advanced technologies to support communities globally. Oshkosh Corporation’s portfolio includes recognized brands such as JLG®, Pierce®, and Oshkosh® Defense, serving diverse markets from construction to defense.

Investors can access a replay of the live webcast and supporting documents from the Investor Day for further details. The information in this article is based on a press release statement from Oshkosh Corporation.

In other recent news, Oshkosh Corporation has rebranded its Defense segment to the Transport segment, aiming to expand its reach into commercial markets while continuing to serve the defense industry. This strategic move includes a contract to produce the Next Generation Delivery Vehicle for the United States Postal Service, with full production expected later this year. Additionally, Oshkosh has appointed Steve Nordlund as the executive vice president and president of the new Transport segment. In leadership changes, Keith Allman has been named the new independent chair of Oshkosh’s board, succeeding Steve Newlin, who retired. Citi analysts have maintained a Buy rating on Oshkosh stock, raising the price target to $105, citing optimism about the company’s future earnings targets. They anticipate the company to reveal its 2028 financial goals at the upcoming investor day. DA Davidson also maintained a Buy rating on Oshkosh stock, adjusting their price target to $111, and noted the company’s resilience against tariff impacts. The firm highlighted potential growth in Oshkosh’s Vocational and Defense segments, despite challenges in the Access segment.

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