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Oshkosh Defense, a division of the financially strong $OSK (+0 %) Corporation with an annual turnover of over 10.3 billion US dollars, announced on Wednesday that it had received a contract from the U.S. Army worth 89 million US dollars.
The order includes new Palletized Load System (PLS) A2 vehicles, kits and installations under the Family of Heavy Tactical Vehicles contract.
According to Investing.com, the company has strong liquidity, with current assets exceeding current liabilities.
The PLS A2 vehicles are equipped with advanced technologies, including by-wire functionality for autonomous operation and active safety systems designed to enhance the protection of soldiers in complex operational environments.
These capabilities support cross-domain operations on long-range battlefields and along contested supply lines.
"Together, we are delivering next-generation capabilities that better protect soldiers in today's missions while laying the foundation for future fleet sustainability," said Pat Williams, Chief Programs Officer at Oshkosh Defense.
The Family of Heavy Tactical Vehicles program includes the A4 Heavy Expanded Mobility Tactical Truck and enables the U.S. Army to reduce lifecycle costs through the use of standardized, militarized commercial components. The program allows the U.S. Army to efficiently integrate new and modernized variants, with vehicle procurement possible through August 2029.
The company has maintained its dividend payments for 13 consecutive years and currently has a dividend yield of 1.57%.
In other recent news, Oshkosh was the focus of several analysts following the publication of the second quarter report. UBS raised its price target for Oshkosh to USD 164, citing strong quarterly results in which earnings per share exceeded consensus estimates and profit margins improved in all business segments.
Raymond James also raised the price target to USD 155 and emphasized the adjusted earnings per share of USD 3.41, which exceeded expectations.
DA Davidson also raised its target to USD 160, citing a normalization of the situation in the Access segment.
KeyBanc was even more optimistic and raised its target price from USD 140 to USD 180.
The reason given was higher estimates for the 2027 financial year, despite lower expectations for the "Access" segment.
KeyBanc also reiterated its "Overweight" rating and emphasized Oshkosh's solid progress in achieving its 2028 targets and the elimination of a previously expected tariff charge of USD 0.50.
