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Oshkosh's (OSK) Defense Arm Wins $911M JLTV Order From U.S. Army

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Oshkosh Corporation’s (OSK - Free Report) subsidiary — Oshkosh Defense LLC — recently announced that the company has secured an order for joint light tactical vehicles (JLTV) worth $911 million from the U.S. Army Contracting Command, Detroit Arsenal, making it the second largest order till date for Oshkosh Defense JLTVs.

The contract consists of supplying 2,738 JLTV, 1,001 companion trailers and associated kits. The vehicles will be supplied to the Army, Navy, Marine Corps and the U.S. Air Force.  As part of the agreement, 59 vehicles will be delivered to NATO and non-NATO allies, including Lithuania, North Macedonia, and Brazil.
 
Since Oshkosh is one of Wisconsin’s largest in-state supply chain buyers, the order is anticipated to aid the state’s manufacturing sector as well.

The Oshkosh Defense JLTV is built, designed and delivered for the battleground with reconstruction capabilities catering to the military’s evolving demands. It offers the world’s most capable light tactical vehicle, encompassing features like security, off road portability, network capability and firepower options, to operate with combat formations.

Oshkosh’s Defense unit designs, manufactures and markets military tactical wheeled vehicles. Oshkosh Defense offers a wide range of products, which include severe-duty, heavy- and medium-payload tactical trucks, hauling tanks, missile systems, ammunition, fuel, troops, and cargo for combat units. As the industry-dominating tactical vehicle manufacturer, Oshkosh Defense serves both domestic and international customers providing the army with breakthrough technology at the best possible price. Oshkosh Defense aims to meet or exceed customers’ transforming needs with next-generation defense capabilities and state-of-the-art mobility systems.

As a pioneer of combat-ready vehicle solutions, the company considers the Oshkosh JLTV as one of its greatest accomplishments and plans to continue building the Oshkosh JLTV for many years to come.

Moreover, Oshkosh’s defense segment registered sales of more than $2.26 billion for fiscal 2020 (ending Sep 30, 2020), up from the $2.03 billion witnessed in fiscal 2019. This revenue growth can be attributed to the continued revamp of the JLTV program.

The latest deal comes in nearly a year after Oshkosh nabbed an $803.9-million contract to provide 2,721 JLTVs to the U.S. military and military of Montenegro last December.

In July this year, the U.S. Army Contracting Command  ordered the construction of 248 JLTVs by Oshkosh, having a contract value of $127.7 million, and in February Oshkosh was awarded a $407.3-million contract to supply 1,240 JLTVs for the Army.

The largest order for JLTVs was secured by Oshkosh in 2015, when the company landed an eight-year $6.7-billion contract from the U.S. Army.

Oshkosh Corporation — peers of which include Autoliv, Inc. (ALV - Free Report) , Lear Corporation (LEA - Free Report) , Magna International (MGA - Free Report) — currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, shares of the company have declined 12.9%, year to date, as against its industry’s rise of 12.3%.

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