Oshkosh Defense Secures $95 Million in FHTV V Order

Rhea-AI Summary

Oshkosh Defense [NYSE: OSK] has secured a significant $95 million order from the U.S. Army Contracting Command for their Family of Heavy Tactical Vehicle (FHTV) V contract. The order includes the modernized, autonomy-ready Palletized Load System (PLS) A2.

The PLS A2 features advanced driver assistance and autonomy-ready technologies, incorporating by-wire and active-safety systems to enhance soldier safety and battlefield awareness. This aligns with the Army's vision for a technology-enabled logistics force capable of operating in contested environments with reduced warfighter risk.

Production of the PLS A2 is scheduled to begin this year, with the FHTV V contract enabling Oshkosh to deliver future-focused enhancements to heavy tactical vehicles supporting the Army's modernization strategy.

Positive

• Secured new $95 million U.S. Army contract
• Production launch of new PLS A2 system confirmed for 2025
• Contract enables future revenue opportunities through vehicle enhancements

Negative

• None.

Insights

Defense Industry Analyst

The $95 million U.S. Army contract for Oshkosh's Palletized Load System (PLS) A2 represents a significant tactical victory in the defense sector. This award demonstrates the Army's commitment to Oshkosh's autonomy-ready logistics platforms, which incorporate critical by-wire and active-safety systems designed to enhance battlefield awareness while reducing risk to personnel.

What makes this contract particularly valuable is its alignment with the Army's "transformation in contact" initiatives - the military's approach to incrementally upgrading capabilities while maintaining operational readiness. The PLS A2's flexible architecture allows for continuous adaptation as threats evolve, preventing technological obsolescence in rapidly changing combat environments.

The timing is particularly advantageous, with production launch scheduled for this year. This isn't merely a technology demonstration but a deployable capability entering the force structure. The FHTV V contract framework establishes a pathway for Oshkosh to deliver additional modernization packages across the heavy tactical vehicle fleet, positioning the company as a long-term partner in the Army's broader modernization strategy beyond this initial order.

Financial Analyst

This $95 million order strengthens Oshkosh's defense segment revenue visibility for 2025 and beyond. While representing approximately 1.5% of the company's $6.3 billion market capitalization, the contract's strategic value exceeds its immediate financial impact.

The advanced technology integration in the PLS A2 - particularly the autonomy-ready capabilities - represents higher-value content per vehicle compared to conventional platforms. This aligns with Oshkosh's strategy of engineering differentiation in competitive defense markets where technical sophistication commands premium positioning.

The contract's timing coincides perfectly with the production launch this year, ensuring efficient manufacturing capacity utilization. For investors, defense contracts like this provide essential stability to balance potential cyclicality in Oshkosh's commercial and construction segments.

The FHTV V contract framework establishes Oshkosh as the incumbent supplier for future Army heavy tactical vehicle modernization initiatives, creating a foundation for potential follow-on orders as the military continues implementing its modernization roadmap. This represents not just immediate revenue, but positions Oshkosh at the intersection of military logistics and autonomous technology - two sectors with substantial long-term growth potential.

OSHKOSH, Wis.--(BUSINESS WIRE)-- Oshkosh Defense LLC, an Oshkosh Corporation [NYSE: OSK] business, announced today that U.S. Army Contracting Command – Detroit Arsenal (ACC-DTA) has placed an order valued at $95 million on the Family of Heavy Tactical Vehicle (FHTV) V contract. The orders include the modernized, autonomy-ready Palletized Load System (PLS) A2.

Oshkosh Defense Palletized Load System (PLS) A2

The advanced driver assistance and autonomy-ready technologies of the PLS A2 promote significant improvements to Soldier safety and broadens battlefield awareness. By integrating by-wire and active-safety systems, the PLS A2 supports the Army’s vision for a technology-enabled logistics force capable of executing missions in contested environments with reduced risk to the Warfighter. The flexible architecture of the heavy fleet allows significant room for growth and the integration of new technology to support unit innovation as both threats and requirements evolve.

“The PLS A2 exemplifies how Oshkosh Defense is harnessing next-generation autonomy to enable human-machine integration and enhance operational efficiency,” said Pat Williams, chief programs officer at Oshkosh Defense. “As the U.S. Army advances its ‘transformation in contact’ initiatives, we remain committed to engineering mission-critical solutions that deliver technologies that can be rapidly integrated within existing operational units.”

Production launch of the PLS A2 occurs this year. The FHTV V contract enables Oshkosh to deliver future-focused enhancements to heavy tactical vehicles and trailers that support the Army’s broader modernization strategy.

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 https://oshkoshdefense.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 over 18,000 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^®, Pierce^®, MAXIMETAL, Oshkosh^® S-Series™, 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/20250401704484/en/

Alexandra Hittle, Director, Global Marketing & Communications

920-410-1929

ahittle@defense.oshkoshcorp.com

Source: Oshkosh Defense LLC

FAQ

What is the value of Oshkosh Defense's (OSK) latest U.S. Army contract?

Oshkosh Defense secured a $95 million order from U.S. Army Contracting Command for the FHTV V contract.

When will Oshkosh Defense (OSK) begin production of the PLS A2 system?

Production of the PLS A2 system is scheduled to begin in 2025.

What key features does the Oshkosh Defense (OSK) PLS A2 system include?

The PLS A2 includes advanced driver assistance, autonomy-ready technologies, by-wire systems, and active-safety systems for enhanced soldier safety and battlefield awareness.

How does the PLS A2 system align with the U.S. Army's modernization strategy?

The PLS A2 supports the Army's vision for a technology-enabled logistics force capable of executing missions in contested environments with reduced risk to warfighters.