Oshkosh FMTV A2 Order Supports U.S. Army Modernization Efforts

Rhea-AI Summary

Oshkosh Defense, a subsidiary of Oshkosh (NYSE: OSK), has received a $72.9 million order from the U.S. Army for additional Family of Medium Tactical Vehicles (FMTV) A2. This marks the fourth FMTV A2 order in 2024, following a $108.9 million order in May. The FMTV A2 is important for the Army's modernization strategy and mission readiness, known for its versatility and reliability in various terrains.

To date, Oshkosh has received orders for 2,677 FMTV A2s, with initial fielding planned for Q4 2024. The company emphasizes its commitment to engineering innovation and manufacturing expertise in designing vehicles that adapt to dynamic mission demands and surpass performance requirements.

Positive

• Secured a $72.9 million order for FMTV A2 vehicles
• Fourth FMTV A2 order in 2024, indicating strong demand
• Total orders for 2,677 FMTV A2s to date
• Initial fielding planned for Q4 2024, showing progress in production

Negative

• None.

Insights

Financial Analyst

Oshkosh's $72.9 million order for FMTV A2 vehicles is a positive development for the company's defense segment. This order, combined with the $108.9 million order from May, demonstrates strong demand for Oshkosh's military vehicles. The cumulative 2,677 FMTV A2s ordered to date indicate substantial contract value and potential for recurring revenue.

While the specific impact on Oshkosh's financials isn't disclosed, defense contracts typically offer stable, long-term cash flows. Investors should monitor the profit margins in the defense segment, as they can vary based on contract terms and production efficiency. The continued orders suggest Oshkosh is maintaining its competitive edge in the defense sector, which could help offset potential fluctuations in its commercial segments.

Defense Industry Analyst

The repeated orders for FMTV A2 vehicles underscore the U.S. Army's commitment to modernization. This trend bodes well for defense contractors like Oshkosh that can deliver next-generation capabilities. The emphasis on versatility and adaptability in the FMTV A2 aligns with the military's focus on multi-domain operations and rapid deployability.

Oshkosh's success in securing these contracts demonstrates its strong positioning in the tactical vehicle market. The planned initial fielding in Q4 2024 suggests a near-term revenue boost. However, investors should be aware of potential budget constraints and shifting defense priorities that could impact future orders. The inclusion of international partners in previous orders indicates potential for export opportunities, which could further enhance Oshkosh's market position.

OSHKOSH, Wis.--(BUSINESS WIRE)-- Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) company, announced today that U.S. Army Contracting Command – Detroit Arsenal (ACC-DTA) placed a $72.9 million order for additional Family of Medium Tactical Vehicles (FMTV) A2. As a leading tactical vehicle manufacturer, this order further strengthens Oshkosh’s ongoing support of the U.S. Army modernization strategy and mission readiness.

Oshkosh Defense FMTV A2 Cargo 4x4 (Photo: Business Wire)

Building on Oshkosh’s long-standing partnership with the U.S. Army, this order provides cutting-edge, next generation military vehicles. This is Oshkosh’s fourth FMTV A2 order this year, including a $108.9 million order in May 2024 for the US Military and its international partners. Known for its versatility, adaptability, and reliability, the FMTV A2 is a critical component in supporting the Army’s operational and logistical needs in various terrains and mission sets.

“The FMTV A2 demonstrates Oshkosh’s engineering innovation and manufacturing expertise to design vehicles that adapt to dynamic mission demands and surpass performance requirements,” said Pat Williams, chief programs officer at Oshkosh Defense. “We are honored to contribute to the Army’s modernization efforts and deliver the most advanced tactical vehicles to support evolving missions while enhancing the safety and effectiveness of our Soldiers.”

Oshkosh Defense continues to work closely with the U.S. Army to prepare for initial fielding in Q4 2024. To date, Oshkosh has received orders for 2,677 FMTV A2s, reflecting the Army’s confidence in Oshkosh’s proven reliability and innovative approach to vehicle design.

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/20240912072292/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 latest FMTV A2 order from the U.S. Army?

Oshkosh Defense received a $72.9 million order for additional Family of Medium Tactical Vehicles (FMTV) A2 from the U.S. Army Contracting Command – Detroit Arsenal.

How many FMTV A2 orders has Oshkosh Defense received in 2024?

This is Oshkosh Defense's fourth FMTV A2 order in 2024, including a previous $108.9 million order in May 2024.

When is the initial fielding of the FMTV A2 vehicles expected for OSK?

Oshkosh Defense is working closely with the U.S. Army to prepare for initial fielding of the FMTV A2 vehicles in Q4 2024.

How many FMTV A2 vehicles has Oshkosh Defense (OSK) received orders for to date?

To date, Oshkosh Defense has received orders for 2,677 FMTV A2 vehicles from the U.S. Army.