OSHKOSH, Wis. - Oshkosh (NYSE:OSK) Defense, LLC, a business unit of Oshkosh Corporation (NYSE: OSK), has received a $27.3 million order from the U.S. Army Contracting Command – Detroit Arsenal (ACC-DTA) for 57 Medium Equipment Trailers (MET). The order will be fulfilled in partnership with Broshuis B.V., a European specialist trailer manufacturer.
These MET six-axle drop deck trailers are designed to integrate with the Oshkosh Enhanced Heavy Equipment Transporter System (EHETS) M1300 tractor. The combination is capable of transporting combat vehicles, such as the Bradley Fighting Vehicles (BFV) and Armored Multi-Purpose Vehicles (AMPV), weighing up to 60 tons. The MET trailers are also designed to meet European Highway Road Network Accessibility (RNA) standards for payloads up to 45 tons.
The 70-foot-long MET trailers feature a hydraulically adjustable suspension system, which allows for navigation under four-meter overpasses and the ability to adjust for obstacle clearance and water fording. This versatility supports the primary mission of the MET, which is to transport mission-critical equipment and cargo across various terrains worldwide.
Pat Williams, Chief Programs Officer for Oshkosh Defense, expressed the company's honor in providing the U.S. Army with advanced trailer systems that address logistical challenges and support the Army and its international allies.
Oshkosh Defense was awarded the five-year Indefinite Delivery/Indefinite Quantity (IDIQ) MET production contract in November 2023. The MET trailers are interoperable with many fielded tractors, including the Oshkosh EHETS tractor.
Oshkosh Defense is recognized for designing and producing military vehicles and mobility systems. The company is a global manufacturer of mission-critical equipment and employs approximately 17,000 individuals worldwide. Broshuis B.V. is known for its innovative specialty trailers.
In other recent news, Oshkosh Corporation has been making significant strides in its operations and strategic positioning. The company recently appointed Michael Pack as the new president of its Vocational segment, a role he will take on alongside his current position as CFO until a successor is found. Pack's leadership is expected to drive the segment's strong performance and growth trajectory.
In addition to this leadership change, Oshkosh Defense, an Oshkosh subsidiary, secured a $108.9 million contract from the U.S. Army for additional Family of Medium Tactical Vehicles A2 and trailers. This contract is expected to support the Army’s modernization initiatives and includes vehicles for Foreign Military Sales to international partners.
On the financial front, BofA Securities increased the price target on Oshkosh's shares, maintaining an Underperform rating despite the company's strong start to 2024. The company has revised its full-year adjusted earnings per share (EPS) guidance upward to $11.25, reflecting confidence in its financial outlook for the year.
Baird also raised the price target for Oshkosh, maintaining an Outperform rating on the stock and expressing confidence in the company's potential to significantly grow its EBIT.
Lastly, Oshkosh announced a definitive agreement to acquire AUSACORP S.L. (AUSA), a manufacturer of construction and material handling vehicles. This strategic move is expected to expand Oshkosh's product range within its Access segment, complementing its existing offerings.
InvestingPro Insights
Oshkosh Corporation (NYSE: OSK), renowned for its defense and emergency response vehicles, has demonstrated a stable financial performance, as reflected in the latest data from InvestingPro. With a market capitalization of $7.03 billion and a robust revenue growth of 15.45% over the last twelve months as of Q1 2024, Oshkosh stands out as a solid player in its industry.
The company's commitment to shareholder value is evident through its impressive track record of raising dividends for 11 consecutive years, showcasing a strong and consistent financial policy. This dedication to returning value to shareholders is further highlighted by a dividend yield of 1.71% as of mid-2024.
InvestingPro Tips indicate that Oshkosh is currently trading at a low earnings multiple, with a P/E ratio of 9.82, suggesting that the stock may be undervalued compared to its earnings potential. Additionally, analysts predict that the company will maintain profitability this year, a sentiment backed by a profitable performance over the last twelve months.
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With a moderate level of debt and a focus on innovation and quality, Oshkosh Corporation continues to secure significant contracts and expand its market presence, as demonstrated by the recent U.S. Army order. InvestingPro offers a total of 6 additional tips for Oshkosh, which investors can explore to gain a thorough understanding of the company's strategic direction and financial stability.
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