OSHKOSH, Wis. - Oshkosh (NYSE:OSK) Defense, LLC, a subsidiary of Oshkosh Corporation (NYSE: OSK), has been awarded a five-year contract by the U.S. Army Contracting Command – Detroit Arsenal (ACC-DTA) for the Family of Heavy Tactical Vehicles (FHTV) V program. The contract, which is a Fixed Price with Economic Price Adjustment Requirements contract, is estimated at $1.54 billion. It enables Oshkosh Defense to continue providing the U.S. military with new and recapitalized Heavy Tactical Vehicles and associated trailers through 2031.
The FHTV fleet, known for its versatility in challenging environments, includes the Heavy Expanded Mobility Tactical Truck (HEMTT A4), Palletized Load System (PLS A1), PLS Trailer, and Heavy Equipment Transporter (HET A1). Oshkosh has produced over 71,000 modernized heavy tactical vehicles and trailers for the U.S. and allied nations to date.
Pat Williams, Oshkosh Defense's chief programs officer, expressed the company's honor in the Army's continued investment in the FHTV and highlighted the collaboration with the Army to deliver high-performance vehicles equipped with advanced technologies and safety features.
Oshkosh plans to integrate enhanced capabilities into the FHTV fleet, including targeted upgrades that aim to modernize the fleet, extend vehicle life, and reduce operating costs. These upgrades will incorporate features such as drive-by-wire capability, Condition Based Maintenance (CBM), electrification, export power, fuel efficiency, and demand reduction modifications.
Williams emphasized the importance of evolving the FHTV with new technologies to enhance operational efficiency and future-proof the vehicles against the changing needs of warfighters.
Previously, in June 2024, the Army had placed a $231.9 million order for modernized trucks, kits, and kit installations under the FHTV IV contract extension. The Army is set to begin purchasing vehicles under the new FHTV V contract starting in August 2024.
Oshkosh Defense is recognized as a global leader in the design, production, and sustainment of military vehicles, technology solutions, and mobility systems. The information in this article is based on a press release statement from Oshkosh Defense.
In other recent news, Gold Fields (NYSE:GFI) Limited has agreed to purchase all outstanding shares of Osisko Mining Inc. in an all-cash transaction valued at approximately C$2.16 billion. The acquisition is expected to close in Q4 2024, subject to customary conditions including court and regulatory approvals, and the approval of at least two-thirds of the votes cast by Osisko shareholders. In other developments, Oshkosh Corporation reported an 18% increase in revenue and a 36% rise in adjusted operating income for the second quarter of 2024. The firm also revised its full-year adjusted earnings per share forecast upward to $11.75. Additionally, Oshkosh announced plans to acquire AUSA, a European specialty equipment manufacturer. Investment firm DA Davidson lowered its price target on Oshkosh's stock to $130 while maintaining a Buy rating. These are among the recent developments in the business landscape.
InvestingPro Insights
Oshkosh Corporation (NYSE: OSK) continues to demonstrate its robust position in the defense sector with the recent $1.54 billion contract award for the Family of Heavy Tactical Vehicles (FHTV) V program. This contract underscores the company's enduring relationship with the U.S. military and its commitment to providing modernized and efficient heavy tactical vehicles.
InvestingPro data highlights the financial stability and growth potential of Oshkosh Corporation. With a market capitalization of $6.6 billion and a P/E ratio of 9.78, the company presents an attractive valuation for investors, particularly when considering its PEG ratio of 0.15, which suggests a potential undervaluation relative to its earnings growth. The company has also experienced a notable revenue growth of 15.82% over the last twelve months as of Q2 2024, indicating a strong upward trajectory in its financial performance.
Furthermore, Oshkosh's commitment to shareholder returns is evident through its consistent dividend payments, having raised its dividend for 11 consecutive years. This is complemented by a dividend yield of 1.81%, providing a steady income stream for investors. An InvestingPro Tip that stands out is the fact that 11 analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's future earnings potential.
Investors interested in Oshkosh Corporation's future prospects may find additional insights and tips on InvestingPro, where there are several more InvestingPro Tips available to help evaluate the company's investment potential. For instance, Oshkosh is trading at a low earnings multiple, which could signal a buying opportunity for value-focused investors. Additionally, the company operates with a moderate level of debt and has liquid assets that exceed short-term obligations, providing a solid financial foundation.
For those looking to delve deeper into Oshkosh Corporation's financial metrics and strategic positioning, further analysis and tips can be found by visiting https://www.investing.com/pro/OSK, where a comprehensive set of InvestingPro Tips is available to guide investment decisions.
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