U.S. Army orders $89 million in Oshkosh Defense tactical vehicles

Published 01/10/2025, 13:38
U.S. Army orders $89 million in Oshkosh Defense tactical vehicles

OSHKOSH, Wis. - Oshkosh Defense, a division of the financially healthy Oshkosh Corporation (NYSE:OSK) with over $10.3 billion in annual revenue, announced Wednesday that it has received an $89 million order from the U.S. Army for new Palletized Load System (PLS) A2 vehicles, kits, and installations under the Family of Heavy Tactical Vehicles contract. According to InvestingPro, the company maintains strong liquidity with current assets exceeding short-term obligations.

The PLS A2 vehicles feature advanced technologies including by-wire functionality for autonomous operation and active safety systems designed to enhance protection for soldiers in complex environments. These capabilities support multi-domain operations across dispersed battlefields and contested supply lines.

"Together, we are delivering next generation capabilities that keep Soldiers safer for today’s missions while providing a foundation to enable the fleet for the future fight," said Pat Williams, Chief Programs Officer for Oshkosh Defense, in a press release statement.

The Family of Heavy Tactical Vehicles program also includes the Heavy Expanded Mobility Tactical Truck A4, allowing the Army to use common militarized commercial components to reduce lifecycle costs. The program enables the Army to integrate new and recapitalized variants efficiently, with vehicle procurement possible until August 2029.

Oshkosh Defense is a business of Oshkosh Corporation (NYSE:OSK), which employs over 18,000 team members worldwide and supplies products to more than 150 countries. The company has maintained dividend payments for 13 consecutive years, with a recent dividend yield of 1.57%. Detailed financial analysis and additional insights are available through InvestingPro’s comprehensive research reports, which cover over 1,400 US stocks including Oshkosh Corporation.

In other recent news, Oshkosh has been the focus of several analyst updates following its second-quarter earnings report. UBS raised its price target for Oshkosh to $164, noting strong quarterly results with earnings per share surpassing consensus estimates, alongside improved profit margins across all business segments. Similarly, Raymond James increased its price target to $155, highlighting Oshkosh’s adjusted earnings per share of $3.41, which exceeded expectations. DA Davidson also raised its target to $160, citing normalizing conditions in the company’s Access segment.

KeyBanc took a more optimistic stance, increasing its price target from $140 to $180, driven by higher estimates for fiscal year 2027, despite lower expectations for the Access segment. KeyBanc also reiterated its Overweight rating, emphasizing Oshkosh’s solid progress toward its 2028 targets and the removal of a previously anticipated $0.50 tariff impact. These developments reflect growing confidence among analysts in Oshkosh’s performance and future prospects.

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