Shares of Oshkosh Corporation (OSK) surged 5.06% in Thursday's trading session, following the company's release of its first-quarter 2025 earnings report. The stock's positive movement came despite concerns over potential tariff impacts, as investors focused on the company's strong performance and resilient outlook.

Oshkosh reported first-quarter revenue of $2.3 billion and an adjusted earnings per share of $1.92, in line with expectations. The company's Vocational segment showed particularly strong results, with a 12% year-over-year revenue growth and a robust adjusted operating income margin of nearly 15%. The Access segment, while experiencing lower sales, maintained a resilient adjusted operating margin of 11.3%.

Despite the potential headwinds from tariffs, which could impact earnings by up to $1 per share, Oshkosh management expressed confidence in their ability to mitigate these challenges. The company plans to implement cost-saving measures and strategic initiatives to offset up to $0.50 of the tariff impact. Investors seemed to appreciate the company's proactive approach and its strong backlog, which stands at $1.8 billion for the Access segment and $6.3 billion for the Vocational segment, providing good visibility for future revenue.

The stock's rise also reflects optimism about Oshkosh's ongoing innovation efforts and its progress in ramping up production for the Next Generation Delivery Vehicle (NGDV) program in its Defense segment. With full-rate production expected by year-end, this program is poised to drive strong revenue growth in the latter half of 2025 and into 2026.