Oshkosh predicts growth in defense segment

With the Joint Light Tactical Vehicle award in hand, Oshkosh's defense segment is expecting annual sales of $1.7 billion to $2 billion for a three-year period beginning in 2017.

"Our estimates assume additional international [MRAP All-Terrain Vehicle] awards, a stable backlog for heavy and medium vehicles through 2018, a ramp-up in JLTV volumes through 2019 and steady aftermarket performance," John Bryant, the head of the defense unit, said during a Sept. 23 analyst event.

"Looking out to 2019, there is opportunity for upside if our international M-ATV pipeline matures faster than expected or if vehicle quantities exceed our customers' stated requirements," he added.

That sales mark remains well below the $7.2 billion that Oshkosh's defense segment recorded in 2010, but would show growth from the $931 million in revenue it reported in 2015.

By 2019, the JLTV program would make up about half of the defense division's sales, according to a slide released by the company.

Bryant said the JLTV is slated to reach full-rate production in 2019, and the company expects international JLTV orders "to align" with that decision, meaning they would begin in 2020.