Shares of Oshkosh Corporation (NYSE: OSK) surged 5.06% in intraday trading on Thursday, following the company's release of better-than-expected first-quarter 2025 results and management's confident outlook despite looming tariff challenges.

The industrial equipment manufacturer reported strong performance across its segments, particularly in the Vocational division, which saw a 12% year-over-year revenue growth and an impressive adjusted operating income margin of nearly 15%. The company's Access segment also demonstrated resilience with an 11.3% adjusted operating margin, despite softer market conditions in North America.

Oshkosh's CEO, John Pfeifer, reassured investors during the earnings call that the company is well-positioned to navigate the potential impact of tariffs. "We have pricing power in all of our end markets because we lead in all the markets that we serve," Pfeifer stated, adding that the company is focusing on mitigation strategies to minimize the effect on customers.

Investors were particularly encouraged by Oshkosh's robust backlog, with the Access segment maintaining a healthy $1.8 billion and the Vocational segment boasting a substantial $6.3 billion. This strong order book provides excellent visibility for future revenue growth. Additionally, the company's Defense segment is on track to ramp up production of the Next Generation Delivery Vehicle (NGDV) for the U.S. Postal Service, promising strong revenue growth in the latter half of 2025 and into 2026.

While Oshkosh acknowledged a potential $1 per share impact from tariffs, management expressed confidence in their ability to offset up to $0.50 of this through cost actions and operational efficiencies. This proactive approach, combined with the company's strong market position and innovative product pipeline, appears to have bolstered investor confidence, driving the stock's significant gain.