Oshkosh Defense Receives $27.3 Million Order for Medium Equipment Trailers

Rhea-AI Summary

Oshkosh Defense, an Oshkosh business, has received a $27.3 million order from the U.S. Army Contracting Command – Detroit Arsenal for 57 Medium Equipment Trailers (MET). The MET trailers are designed to transport combat vehicles up to 60 tons and meet European Highway Road Network Accessibility requirements for payloads up to 45 tons. The six-axle drop deck trailer can navigate under four-meter overpasses and features a hydraulically adjustable suspension. This order, executed with partner Broshuis B.V., falls under a five-year Indefinite Delivery/Indefinite Quantity (IDIQ) production contract awarded in November 2023. The MET trailers will be used to transport Bradley Fighting Vehicles, Armored Multi-Purpose Vehicles, Paladins, and Field Artillery Ammunition Support Vehicles.

Positive

• $27.3 million order from U.S. Army.
• 57 Medium Equipment Trailers (MET) ordered.
• MET trailers can transport up to 60 tons.
• Contracts with Broshuis B.V. for execution.

Negative

• None.

Insights

Financial Analyst

Oshkosh Defense's recent $27.3 million order for Medium Equipment Trailers (MET) is a noteworthy development for several reasons. From a financial perspective, this order will likely contribute positively to Oshkosh's revenue stream over the coming quarters. Given that Oshkosh was awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) MET production contract in November 2023, this specific order is a tangible manifestation of that contract. IDIQ contracts allow for flexibility in terms of order quantity and delivery timing, providing a steady revenue stream when orders are placed. This can be particularly beneficial in managing cash flow and financial forecasting.

For retail investors, it's important to note that defense contracts generally offer stable and predictable revenue, as they are less susceptible to market fluctuations compared to other sectors. This stability can be considered a positive aspect when evaluating the stock's risk profile. However, it is important to keep in mind that while this order is significant, it represents a small fraction of Oshkosh Corporation's overall revenue. Therefore, while beneficial, this news should be viewed in the context of the company's larger financial health and strategy.

Market Research Analyst

Analyzing this news from a market perspective, the U.S. Army's decision to place this order with Oshkosh Defense underscores the company's strong positioning within the military vehicle sector. The collaboration with Broshuis B.V., a notable player in the specialty trailer market, adds an extra layer of credibility and expertise to the project. The MET's compatibility with various combat vehicles and meeting of European Highway Road Network Accessibility (RNA) requirements highlight its versatility and potential for further orders from both domestic and international defense markets.

The defense sector is characterized by long-term contracts and repeat business, which can provide a stable revenue base. This order may also signal future opportunities for Oshkosh Defense to secure additional contracts, both from the U.S. Army and international allies who have similar logistical needs. Investors should consider the potential for scalability and recurring revenue as the MET trailer system proves its value in practical applications.

OSHKOSH, Wis.--(BUSINESS WIRE)-- Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) business, announced today that the U.S. Army Contracting Command – Detroit Arsenal (ACC-DTA) placed a $27.3 million order for 57 Medium Equipment Trailers (MET). Oshkosh will execute the order with partner Broshuis B.V.

The Oshkosh Defense Medium Equipment Trailer (MET) (Photo: Business Wire)

The MET six-axle drop deck trailer is part of the Oshkosh family of trailers and is interoperable with the Oshkosh Enhanced Heavy Equipment Transporter System (EHETS) M1300 tractor.

Combined with the EHETS M1300 tractor, the MET can transport combat vehicles weighing up to 60 tons and meet European Highway Road Network Accessibility (RNA) requirements for payloads up to 45 tons. The 70-foot-long trailer is capable of navigating under four-meter overpasses and the hydraulically adjustable suspension allows it to be lowered or raised for obstacle clearance and fording water crossings.

The primary mission of the MET is to load, secure, and transport Bradley Fighting Vehicles (BFV), Armored Multi-Purpose Vehicles (AMPV), Paladin, and Field Artillery Ammunition Support Vehicles (FAASV).

“We are honored to provide the U.S. Army with advanced trailer systems designed to deliver mission-critical equipment and cargo across any terrain worldwide,” stated Pat Williams, Chief Programs Officer for Oshkosh Defense. “The MET stands as a testament to Oshkosh Defense’s unwavering commitment to harnessing cutting-edge technology to deliver solutions that effectively address the complex logistical challenges faced by the U.S. Army and its international allies.”

Oshkosh was awarded the five-year Indefinite Delivery/Indefinite Quantity (IDIQ) MET production contract in November 2023.

The MET trailers operate with many fielded tractors, including with the Oshkosh (EHETS) tractor.

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 develops and applies emerging technologies that advance safety and mission success. Setting the industry standard for sustaining fleet readiness, Oshkosh ensures every solution is supported worldwide throughout its entire life cycle.

Oshkosh Defense, LLC is an Oshkosh Corporation business [NYSE: OSK]. Learn more about Oshkosh Defense at www.oshkoshdefense.com.

About Broshuis B.V.

Broshuis B.V. is a 100% family owned, Dutch company and one of the largest specialty trailer manufacturers in Europe. Founded in 1885, Broshuis B.V. is known in the market because of its focus on innovation, quality and safety. They introduced the market changing multi extendible trailers (up to 227 feet), independent and power steered HD suspensions and the refined PL2 pendular axle system which is fitted to the HET trailer. Broshuis B.V. experience and project management, led to numerous contracts for supplying specialty trailers to various militaries in the last decades.

Broshuis BV also provides unique solutions for special transport, since having the right equipment is a critical driver for success. Broshuis BV supplies high quality low loaders, semi-low loaders, flat semi-trailers and container trailers to provide long lasting transport solutions, for various purposes. They provide transport equipment used in agriculture, construction, infrastructure, wind energy and container transport with all its products produced on 1 site of 100.000m2.

Broshuis BV is driven by innovation. They implement innovative solutions by combining experience from the market with their experience and technical know-how which enables Broshuis BV to give the optimum solution to all of its broad customer base from individual operators needs all the way to large multinational customers knowing that they have the ideal product to meet their unique transport solution.

For more information, please visit www.broshuis.com.

About Oshkosh Corporation

At Oshkosh (NYSE: OSK), we make innovative, mission-critical equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs approximately 17,000 team members worldwide, all united behind a common purpose: to make a difference in people’s lives. Oshkosh products can be found in more than 150 countries under the brands of JLG®, Hinowa, Power Towers, Pierce®, MAXIMETAL, Oshkosh® Defense, McNeilus®, IMT®, Jerr-Dan®, Frontline™ Communications, Oshkosh® Airport Products, Oshkosh AeroTech™ and Pratt Miller. For more information, visit oshkoshcorp.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

Forward Looking Statements

This news release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions, and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this news release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this news release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240624794755/en/

Alexandra Hittle, Director, Global Marketing and Communications

920-410-1929

ahittle@defense.oshkoshcorp.com

Source: Oshkosh Corporation

FAQ

What is the value of the order Oshkosh Defense received from the U.S. Army?

Oshkosh Defense received a $27.3 million order from the U.S. Army.

How many Medium Equipment Trailers (MET) did Oshkosh Defense receive an order for?

Oshkosh Defense received an order for 57 Medium Equipment Trailers (MET).

What is the payload capacity of the Oshkosh MET trailers?

The Oshkosh MET trailers can transport combat vehicles weighing up to 60 tons and meet European Highway Road Network Accessibility requirements for payloads up to 45 tons.

Which partner is Oshkosh Defense working with to execute the MET order?

Oshkosh Defense is working with Broshuis B.V. to execute the MET order.

What vehicles are the MET trailers designed to transport?

The MET trailers are designed to transport Bradley Fighting Vehicles, Armored Multi-Purpose Vehicles, Paladins, and Field Artillery Ammunition Support Vehicles.

When was Oshkosh awarded the IDIQ MET production contract?

Oshkosh was awarded the IDIQ MET production contract in November 2023.

What are some key features of the Oshkosh MET trailers?

Key features of the Oshkosh MET trailers include a six-axle drop deck design, the ability to navigate under four-meter overpasses, and a hydraulically adjustable suspension.