Oshkosh Corp Share Price Drops Amid EV Contract Concerns

Shares of Oshkosh (NYSE:OSK) Corp experienced a significant drop, plummeting as much as 7.8% due to worries that President-elect Donald Trump might cancel the US Postal Service's contracts for electric vehicles. This represents the largest intraday decline since February 2023.

The potential termination stems from Trump's team exploring options to annul USPS agreements with both Oshkosh and Ford (NYSE:F), according to close sources.

In contrast, Ford's shares remained relatively stable in New York. Analyst Kyle Menges from Citi commented that while Oshkosh is still expected to produce new vehicles for the postal service, the nature of these vehicles being electric is now uncertain. Previously, it was anticipated that around 70% of the new fleet would be electric.

Menges estimated a financial impact suggesting that eliminating the electric vehicle (EV) portion of the contract could reduce Oshkosh's earnings per share (EPS) by 50 to 60 cents for 2026 and 2027.

Despite the significant drop in Oshkosh's share price, Menges claimed the market reaction was excessive and did not accurately reflect the potential EPS headwind. He maintained a positive outlook on Oshkosh, reaffirming a buy rating with a price target of $125. This commentary is notable, as Oshkosh shares have experienced a 2% decline over the past year.

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