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Oshkosh's (OSK) Defense Arm Gets 1st NGDV Fleet Order From USPS
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Oshkosh Corporation’s (OSK - Free Report) fully-owned subsidiary, Oshkosh Defense, has received an order from the U.S. Postal Service (“USPS”) for Next Generation Delivery Vehicles (NGDV). The initial order for 50,000 NGDVs is valued at $2.98 billion. Preparations at the South Carolina facility are underway, and new recruitment has already begun.
Oshkosh won the NGDV contract in February 2021. The production is expected to begin in 2023.
Oshkosh Defense will produce zero-emission battery electric vehicles (BEV) and internal combustion engine (ICE) vehicles that reduce fuel dependency and emission for the USPS in its Spartanburg, SC facility. The first order consists of a minimum of 10,019 BEVs. The NGDV contract allows room to increase the percentage of BEV production even after an order is placed, once funding is provided
Oshkosh is enthusiastic about the order as it will empower the firm to build modern, safe and dependable vehicles for the carriers.
Significant program wins in Oshkosh’s Defense segment offer long-term growth visibility. For instance, the 10-year contract from the USPS to modernize the latter’s fleet of postal delivery vehicles positions Oshkosh well for growth. In June 2021, the company won U.S. Army's Stryker MCWS contract worth up to $943 million. In November 2021, it secured another substantial JLTV order valued at just more than $590 million. While sales from the Defense segment in 2022 are expected to be down year over year, Oshkosh anticipates important program wins like the NGDV and MCWS (medium caliber weapon system) to drive profitability over the next several years.
Shares of OSK have lost 8% over the past year, outperforming its industry’s 44.6% decline.
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Oshkosh's (OSK) Defense Arm Gets 1st NGDV Fleet Order From USPS
Oshkosh Corporation’s (OSK - Free Report) fully-owned subsidiary, Oshkosh Defense, has received an order from the U.S. Postal Service (“USPS”) for Next Generation Delivery Vehicles (NGDV). The initial order for 50,000 NGDVs is valued at $2.98 billion. Preparations at the South Carolina facility are underway, and new recruitment has already begun.
Oshkosh won the NGDV contract in February 2021. The production is expected to begin in 2023.
Oshkosh Defense will produce zero-emission battery electric vehicles (BEV) and internal combustion engine (ICE) vehicles that reduce fuel dependency and emission for the USPS in its Spartanburg, SC facility. The first order consists of a minimum of 10,019 BEVs. The NGDV contract allows room to increase the percentage of BEV production even after an order is placed, once funding is provided
Oshkosh is enthusiastic about the order as it will empower the firm to build modern, safe and dependable vehicles for the carriers.
Significant program wins in Oshkosh’s Defense segment offer long-term growth visibility. For instance, the 10-year contract from the USPS to modernize the latter’s fleet of postal delivery vehicles positions Oshkosh well for growth. In June 2021, the company won U.S. Army's Stryker MCWS contract worth up to $943 million. In November 2021, it secured another substantial JLTV order valued at just more than $590 million. While sales from the Defense segment in 2022 are expected to be down year over year, Oshkosh anticipates important program wins like the NGDV and MCWS (medium caliber weapon system) to drive profitability over the next several years.
Shares of OSK have lost 8% over the past year, outperforming its industry’s 44.6% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
OSK currently has a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include Harley-Davidson (HOG - Free Report) and LCI Industries (LCII - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Tesla (TSLA - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harley-Davidson has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 28.1% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.6%, on average. The stock has gained 7.8% over the past year.
LCI Industries has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 16% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other one. LCII pulled off a trailing four-quarter earnings surprise of 12.9%, on average. The stock has declined 14% over the past year.
Tesla has an expected earnings growth rate of 42% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 11.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has risen 58.3% over the past year.