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Jun 30, 2022
Oshkosh Q2 2022 Earnings Report
Oshkosh reported Q2 2022 results, with strong orders and record backlog, but lowered fiscal 2022 sales and earnings expectations due to supply chain challenges and inflation.
Key Takeaways
Oshkosh Corporation reported a decrease in net income for Q2 2022, with consolidated sales also decreasing. The company faced challenges due to supply chain disruptions, inflationary pressures, and unfavorable cumulative catch-up adjustments in the Defense segment. Despite these challenges, the company saw sequential growth in sales and operating income, driven by improved price-cost dynamics, particularly in the Access Equipment segment.
Net income decreased to $26.9 million, or $0.41 per diluted share, compared to $213.9 million, or $3.07 per diluted share, for the three months ended June 30, 2021.
Consolidated sales decreased 6.5 percent to $2.07 billion, primarily due to lower Defense segment sales and lower sales volume in the Fire & Emergency segment as a result of supply chain disruptions.
The company is lowering its outlook for fiscal 2022, now expecting earnings per share to be approximately $3.25, or adjusted earnings per share in the range of $3.50.
Second quarter performance was highlighted by sequential growth in both sales and operating income driven by a meaningful improvement in price-cost dynamics compared to the first quarter of fiscal 2022, particularly at Access Equipment.
Oshkosh
Oshkosh
Oshkosh Revenue by Segment
Revenue by Segment
Access Equipment Revenue
CapyFin.comDefense Revenue
CapyFin.com Forward Guidance
The Company now believes that revenue and adjusted1 earnings per share will be in the range of $8.3 billion and $3.50, respectively. The Company’s earnings per share expectation assumes the current supply chain and inflationary conditions will continue through fiscal 2022; if they deteriorate or improve, actual results could differ.
Positive Outlook
- Strong demand for products
- Ability to price for inflation
- Sequential growth in sales
- Sequential growth in operating income
- Meaningful improvement in price-cost dynamics
Challenges Ahead
- Supply chain disruptions reduced sales volume
- Supply chain disruptions caused labor inefficiencies
- Defense recognized unfavorable cumulative catch-up adjustments related to inflationary pressures
- Unfavorable non-cash mark-to-market adjustment on an equity investment
- Ongoing supply chain challenges and inflationary pressure
Revenue & Expenses
Visualization of income flow from segment revenue to net income