10 Best Heavy Equipment and Industrial Machinery Stocks to Buy

4) Oshkosh Corporation (NYSE:OSK)

Number of Hedge Fund Holders: 33

Oshkosh Corporation (NYSE:OSK) offers purpose-built vehicles and equipment worldwide. It operates through 3 segments: Access, Defense, and Vocational segments.

Oshkosh Corporation (NYSE:OSK) completed the acquisition of AUSA, a manufacturer of telehandlers, dumpers, and forklifts, improving its specialty equipment offerings. The company believes that the deal will ramp up its growth strategy and strengthen JLG’s equipment portfolio. Oshkosh Corporation (NYSE:OSK) owns JLG Industries, Inc., which is a manufacturer of mobile elevating work platforms (MEWPs) and telehandlers.

Oshkosh Corporation (NYSE:OSK)’s acquisition of AUSA should enhance JLG’s line of telehandlers and complement its line of tracked dumpers and forklifts. Apart from this, the acquisition provides Oshkosh Corporation (NYSE:OSK) access to niche markets.

Also, during Q3 2024, Oshkosh Corporation (NYSE:OSK) achieved a significant milestone as the US Postal Service (USPS) began placing its next-generation delivery vehicles, or NGDV, in service for last-mile delivery. This means that these vehicles are now actively being used to deliver mail and packages to customers as part of USPS’s daily operations. Beyond initial production, Oshkosh Corporation (NYSE:OSK) is expected to generate recurring revenue through parts, maintenance, and fleet management services for the USPS vehicles over their operational life. This provides strong revenue visibility for the company.

Aristotle Capital Management, LLC, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

Oshkosh Corporation (NYSE:OSK), a manufacturer of purpose‐built vehicles worldwide, was a main detractor during the quarter. Despite a decline in share price, the company has seen fundamental improvements and strong demand for its vehicles, including an increasing backlog of orders for fire trucks. As such, revenue for Oshkosh’s Vocational segment was up over 35% year‐over‐year. We believe this segment should be able to expand its margins, particularly as the company was awarded a contract to produce the “Next Generation Delivery Vehicle” for the U.S. Postal Service, which should begin to ramp up at the beginning of next year. This contract could generate in excess of $6 billion in revenue for the company. Furthermore, we continue to believe that Oshkosh is a high‐quality business that should be able to create innovative equipment and gain market share across segments. This includes its aerial work platforms as global safety standards increase around the world.