Oshkosh Defense to Produce Modernized FHTVs for U.S. Army

Rhea-AI Summary

Oshkosh Defense, a subsidiary of Oshkosh (NYSE: OSK), has secured orders worth $231.9 million from the U.S. Army Contracting Command – Detroit Arsenal for modernized heavy tactical vehicles. The orders include the production of HEMTT A4 tankers, cargos, wreckers, load handling systems, Common Bridge Transports, and Palletized Load System A1s. Oshkosh will also integrate advanced capabilities into the PLS A1 fleet through recapitalization, extending vehicle life and reducing operating costs. Oshkosh Defense has produced over 50,000 heavy tactical vehicles for the U.S. Military and allies, emphasizing reliability and versatility.

Pat Williams, chief programs officer at Oshkosh Defense, highlighted the importance of the company’s long-standing partnership with the U.S. Army, focusing on modernizing fleet capabilities to support future combat environments. Oshkosh’s commitment to providing durable and flexible heavy tactical vehicles is evident in its continued collaboration with the U.S. Army.

Positive

• $231.9 million order from U.S. Army for modernized heavy tactical vehicles.
• Production includes HEMTT A4 tankers, cargos, wreckers, load handling systems, Common Bridge Transports, and Palletized Load System A1s.
• Integration of advanced capabilities into PLS A1 fleet through recapitalization.
• Over 50,000 heavy tactical vehicles produced for U.S. Military and allies.

Negative

• None.

Insights

Financial Analyst

Oshkosh Defense's $231.9 million order from the U.S. Army is a significant development for the company and its shareholders. This contract not only enhances revenue streams but also reinforces Oshkosh’s strong relationship with the U.S. military, likely leading to future contracts. The consistent demand for heavy tactical vehicles underscores the company's reliability and market dominance in this segment.

From a financial perspective, this order will contribute positively to Oshkosh's bottom line. Given the current geopolitical landscape, defense spending is expected to remain robust, which bodes well for Oshkosh’s future revenue prospects. Investors should note that defense contracts often come with multi-year commitments, providing a steady income stream and reducing revenue volatility.

However, one should be cautious about the long-term sustainability of such contracts, as they can be subject to political changes and budget constraints. A key point to watch will be how Oshkosh manages production costs and potential supply chain disruptions, which could affect profit margins.

Defense Industry Expert

The order for modernized heavy tactical vehicles, including the HEMTT A4 and PLS A1, highlights Oshkosh Defense’s ability to meet evolving military requirements. Recapitalization is a strategy where older vehicles are upgraded to meet modern standards, extending their operational life and reducing costs. This is a common practice in the defense industry, aimed at maximizing the utility of existing assets while integrating new technologies.

The emphasis on advanced capabilities and flexibility suggests that Oshkosh Defense is not just meeting current needs but also preparing for future combat scenarios. This proactivity positions the company well within the defense sector, as it indicates a forward-thinking approach that aligns with long-term military strategies.

Moreover, the statement about delivering vehicles in “zero-miles zero-hours condition” with a new vehicle warranty is crucial. It assures stakeholders of the quality and reliability of the recapitalized vehicles, which is a significant selling point for military contracts. This practice not only enhances operational readiness but also provides a cost-effective solution for the U.S. Army.

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 orders valued at $231.9 million for modernized heavy tactical vehicles, kits and kit installs.

Oshkosh Defense Family of Heavy Tactical Vehicles (FHTV) (Photo: Business Wire)

Under the orders, Oshkosh will produce new Heavy Expanded Mobility Tactical Truck (HEMTT) A4 tankers, cargos, wreckers, load handling systems (LHS), Common Bridge Transports (CBT) and Palletized Load System (PLS) A1s.

“We are extremely honored that the U.S. Army continues to call on Oshkosh to provide our Soldiers with the only heavy tactical vehicles proven to be rugged and flexible enough to meet the demands of contested logistics," stated Pat Williams, chief programs officer at Oshkosh Defense. “Having produced more than 50,000 heavy tactical vehicles for the U.S. Military and its allied partners, these delivery orders underscore the unmatched reliability and versatility of the Oshkosh Defense Family of Heavy Tactical Vehicles (FHTVs).”

As part of the orders, Oshkosh will also integrate advanced capabilities into the PLS A1 fleet through recapitalization, which is a critical and cost-effective means to modernize the fleet, extend vehicle life, and reduce operating costs. For decades, Oshkosh has partnered with the U.S. Army to recapitalize over 20,000 heavy tactical vehicles and return to field operations in zero-miles zero-hours condition, and with the same warranty of a new vehicle.

Williams concluded, “Oshkosh is dedicated to our long-standing partnership with the U.S. Army to modernize the Oshkosh FHTV with new and enhanced capabilities through cost-effective and targeted upgrades. Room for growth as both threats and requirements evolve is key to these heavy platforms providing the payload, protection, and mobility to support our Warfighters in future combat environments.”

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 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/20240708594025/en/

Alexandra Hittle, Director, Global Marketing and Communications

920-410-1929

ahittle@defense.oshkoshcorp.com

Source: Oshkosh Corporation

FAQ

What is the value of Oshkosh Defense’s new order from the U.S. Army?

The new order from the U.S. Army is valued at $231.9 million.

What types of vehicles will Oshkosh Defense produce under the new U.S. Army order?

Oshkosh Defense will produce HEMTT A4 tankers, cargos, wreckers, load handling systems, Common Bridge Transports, and Palletized Load System A1s.

How will Oshkosh Defense enhance the PLS A1 fleet?

Oshkosh Defense will integrate advanced capabilities into the PLS A1 fleet through recapitalization to extend vehicle life and reduce operating costs.

What is the significance of Oshkosh Defense's long-standing partnership with the U.S. Army?

The long-standing partnership signifies the U.S. Army's continued trust in Oshkosh Defense to provide reliable and versatile heavy tactical vehicles important for future combat environments.

How many heavy tactical vehicles has Oshkosh Defense produced for the U.S. Military and its allies?

Oshkosh Defense has produced over 50,000 heavy tactical vehicles for the U.S. Military and its allies.