Oshkosh Awarded $1.54 Billion FHTV V Follow-On Contract
Oshkosh Defense, a subsidiary of Oshkosh (NYSE: OSK), has been awarded a $1.54 billion contract by the U.S. Army for the Family of Heavy Tactical Vehicles (FHTV) V program. This five-year contract allows Oshkosh to continue delivering new and recapitalized Heavy Tactical Vehicles and associated trailers until 2031.
The FHTV fleet includes the Heavy Expanded Mobility Tactical Truck (HEMTT A4), Palletized Load System (PLS A1), PLS Trailer, and Heavy Equipment Transporter (HET A1). Oshkosh plans to integrate enhanced capabilities into the fleet through targeted upgrades, focusing on modernization, extended vehicle life, and reduced operating costs. These upgrades may include drive-by-wire capability, Condition Based Maintenance, electrification, and fuel efficiency improvements.
Oshkosh Defense, una sussidiaria di Oshkosh (NYSE: OSK), ha ricevuto un contratto di 1,54 miliardi di dollari dall'Esercito degli Stati Uniti per il programma Family of Heavy Tactical Vehicles (FHTV) V. Questo contratto di cinque anni consente a Oshkosh di continuare a fornire nuove e ristrutturate Veicoli Tattici Pesanti e rimorchi associati fino al 2031.
La flotta FHTV include il Heavy Expanded Mobility Tactical Truck (HEMTT A4), il Palletized Load System (PLS A1), il rimorchio PLS e l'Heavy Equipment Transporter (HET A1). Oshkosh prevede di integrare capacità avanzate nella flotta attraverso aggiornamenti mirati, concentrandosi sulla modernizzazione, l'allungamento della vita del veicolo e la riduzione dei costi operativi. Questi aggiornamenti potrebbero includere la tecnologia drive-by-wire, la Manutenzione Basata sulle Condizioni, l'elettrificazione e i miglioramenti nella qualità del carburante.
Oshkosh Defense, una filial de Oshkosh (NYSE: OSK), ha recibido un contrato de 1.54 mil millones de dólares del Ejército de EE. UU. para el programa Family of Heavy Tactical Vehicles (FHTV) V. Este contrato de cinco años permite a Oshkosh continuar entregando nuevos y recapitalizados Vehículos Tácticos Pesados y remolques asociados hasta 2031.
La flota FHTV incluye el Heavy Expanded Mobility Tactical Truck (HEMTT A4), el Palletized Load System (PLS A1), el remolque PLS y el Heavy Equipment Transporter (HET A1). Oshkosh planea integrar capacidades mejoradas en la flota mediante actualizaciones específicas, enfocándose en la modernización, la prolongación de la vida útil del vehículo y la reducción de costos operativos. Estas actualizaciones podrían incluir la tecnología drive-by-wire, el Mantenimiento Basado en Condiciones, la electrificación y mejoras en la eficiencia de combustible.
오쉬코시 방위(Oshkosh Defense), 오쉬코시(NYSE: OSK)의 자회사,가 미국 육군으로부터 15억 4천만 달러 규모의 계약을 체결하였습니다. 이는 중량 전술 차량(FHTV) V 프로그램을 위한 계약입니다. 이 5년 계약을 통해 오쉬코시는 2031년까지 신규 및 재건된 중량 전술 차량과 관련 트레일러를 계속 납품할 수 있게 됩니다.
FHTV 플릿에는 중량 확장 이동 전술 트럭(HEMTT A4), 팔레타이즈드 로드 시스템(PLS A1), PLS 트레일러, 중량 장비 수송기(HET A1)가 포함됩니다. 오쉬코시는 현대화, 차량 수명 연장 및 운영 비용 감소에 중점을 두고 표적 업그레이드를 통해 차량에 향상된 기능을 통합할 계획입니다. 이러한 업그레이드는 드라이브 바이 와이어 기술, 상태 기반 유지보수, 전기화 및 연료 효율 개선을 포함할 수 있습니다.
Oshkosh Defense, une filiale d'Oshkosh (NYSE: OSK), a reçu un contrat de 1,54 milliard de dollars de l'Armée américaine pour le programme Family of Heavy Tactical Vehicles (FHTV) V. Ce contrat de cinq ans permet à Oshkosh de continuer à livrer de nouveaux et récapitalisés Véhicules Tactiques Lourds et des remorques associées jusqu'en 2031.
La flotte FHTV comprend le Heavy Expanded Mobility Tactical Truck (HEMTT A4), le Palletized Load System (PLS A1), le remorque PLS et le Heavy Equipment Transporter (HET A1). Oshkosh prévoit d'intégrer des capacités améliorées dans la flotte grâce à des mises à niveau ciblées, en mettant l'accent sur la modernisation, l'allongement de la durée de vie du véhicule et la réduction des coûts d'exploitation. Ces mises à niveau peuvent inclure la technologie drive-by-wire, la maintenance basée sur l'état, l'électrification et des améliorations de l'efficacité énergétique.
Oshkosh Defense, ein Tochterunternehmen von Oshkosh (NYSE: OSK), wurde mit einem 1,54 Milliarden Dollar schweren Vertrag vom US-Militär für das Programm Family of Heavy Tactical Vehicles (FHTV) V ausgezeichnet. Dieser fünfjährige Vertrag ermöglicht es Oshkosh, bis 2031 neue und rekapitalisierte Schwerlasttaktische Fahrzeuge und zugehörige Anhänger zu liefern.
Die FHTV-Flotte umfasst den Heavy Expanded Mobility Tactical Truck (HEMTT A4), das Palletized Load System (PLS A1), den PLS-Anhänger und den Heavy Equipment Transporter (HET A1). Oshkosh plant, durch gezielte Upgrades verbesserte Fähigkeiten in die Flotte zu integrieren, wobei der Schwerpunkt auf Modernisierung, verlängerte Fahrzeuglebensdauer und reduzierte Betriebskosten gelegt wird. Diese Upgrades können die Drive-by-Wire-Technologie, zustandsabhängige Wartung, Elektrifizierung und Verbesserungen der Kraftstoffeffizienz umfassen.
- Secured a $1.54 billion contract for the FHTV V program
- Contract extends vehicle delivery until 2031
- Opportunity to integrate new technologies and enhance operational efficiency
- Previous contract extension in June 2024 valued at $231.9 million
- None.
Insights
The $1.54 billion FHTV V contract is a significant win for Oshkosh Defense, reinforcing its position as a key supplier to the U.S. Army. This five-year agreement provides steady revenue streams and operational visibility through 2031, which is important for long-term planning and investor confidence.
The contract's focus on vehicle modernization and recapitalization aligns with the military's strategy to extend fleet life and reduce costs. Oshkosh's ability to integrate advanced technologies like drive-by-wire, condition-based maintenance and electrification demonstrates its innovation capabilities, potentially opening doors to future contracts and maintaining its competitive edge.
Investors should note the $231.9 million order from June 2024, indicating immediate demand. With production starting in August 2024, we can expect to see the impact on Oshkosh's financials in the coming quarters, potentially boosting the company's defense segment performance.
This contract significantly bolsters Oshkosh's order backlog, providing revenue visibility for the next 5-7 years. The
Investors should pay attention to the economic price adjustment clause, which helps mitigate inflation risks over the contract's duration. This feature is particularly valuable in the current economic environment, protecting profit margins.
The contract's focus on modernization and recapitalization could lead to higher-margin work compared to new vehicle production. Additionally, the potential for technology integration and upgrades may create opportunities for upselling and contract expansions in the future, further enhancing the long-term value of this agreement for Oshkosh.
The FHTV V contract underscores the U.S. Army's commitment to maintaining and upgrading its heavy tactical vehicle fleet. The focus on adaptability and modernization is crucial, given the evolving nature of warfare and logistics requirements.
Oshkosh's emphasis on integrating advanced technologies like condition-based maintenance and electrification aligns with broader military trends towards improved efficiency and reduced operational costs. The mention of "future-proofing" vehicles suggests a strategic approach to long-term fleet management, which could lead to sustained business opportunities for Oshkosh.
The contract's scope, covering various vehicle types like HEMTT, PLS and HET, demonstrates Oshkosh's comprehensive capabilities in heavy military logistics. This positions the company well for potential foreign military sales and allied nation contracts, expanding its market beyond the U.S. Army.
Oshkosh Defense Heavy Expanded Mobility Tactical Truck (HEMTT) A4 (Photo: Business Wire)
The Oshkosh FHTV fleet includes the Heavy Expanded Mobility Tactical Truck (HEMTT A4), Palletized Load System (PLS A1), PLS Trailer, and Heavy Equipment Transporter (HET A1). Adaptability is key to these heavy platforms providing the payload, protection, and mobility to support combat formations in the most demanding environments. To date,
"We are extremely honored that the
"The evolution of the FHTV through technical insertions and recapitalization is a testament to our innovation and focus on increased capabilities,” continued Williams. “By integrating new technologies into the FHTV fleet, we are not only enhancing operational efficiency but also future proofing our vehicles to meet the evolving needs of the Warfighter."
In June 2024, as part of the FHTV IV contract extension, the Army awarded a number of contract modifications valued at
About Oshkosh Defense
Oshkosh Defense is a global leader in the design, production and sustainment of best-in-class military vehicles, technology solutions and mobility systems.
Oshkosh Defense, LLC is an Oshkosh Corporation business [NYSE: OSK]. Learn more about Oshkosh Defense at www.oshkoshdefense.com.
About Oshkosh Corporation
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240820318683/en/
Alexandra Hittle, Director, Global Marketing & Communications
920-410-1929
ahittle@defense.oshkoshcorp.com
Source: Oshkosh Corporation
FAQ
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