Oshkosh announces Aerotech acquisition and reports 17% revenue growth

(Editor's Note: This story has been updated to reflect that Oshkosh reported quarterly revenues of 17%, not 200%. The company also lost a JLTV protest to AM General, not General Dynamics.) 

Oshkosh announced the acquisition of the airport services firm Aerotech and reported revenues of more than 17% from its previous year, according to the company’s second-quarter earnings release.

“During the quarter we announced plans to acquire the AeroTech business from JBT Corp.,” said John Pfeifer, Oshkosh's president and chief executive officer during a Tuesday earnings call. “With this acquisition, we are even more confident in our Vocational segment’s ability to be a $3 billion plus revenue segment at attractive double-digit operating margins over time.”

AeroTech specializes in aircraft service vehicles, logistical vehicles and commercial airport services. The company’s defense segment produces vehicles used to service military aircraft at airbases.

Oshkosh acquired AeroTech from JBT Corp., an aviation conglomerate based in Chicago.

In revenues, Oshkosh reported sales of $2.4 billion for the second quarter of 2023, up from $2 billion in the second quarter of fiscal year 2022.

“We are pleased with our strong financial performance in the quarter, highlighted by significant growth in sales and operating income,” Pfeifer added during the call.

The company’s defense segment reported a decrease in revenue reporting $498.1 million in revenue in the second quarter of 2023, down from the $539.3 million reported in the second quarter of 2022.

Pfeifer said the revenue decrease was “expected” but added the company sees “income improvement” with more contract awards.

In June, the Government Accountability Office denied Oshkosh’s protest of the Army’s decision to award the next production phase of the Joint Light Tactical Vehicle to AM General. Pfeifer emphasized the company will continue to build the vehicle for the Army through the end of the contract in 2024 before focusing on international orders.

Oshkosh is also contracted to upgrade Stryker armored personnel carriers as well as build medium and heavy tactical trucks, all of which the company will continue to deliver for the Army, Pfiefer said.

In its non-defense businesses, Pfiefer added the company continues to get orders for its electric refuse collection vehicles and the electric postal vehicle, with revenues at $587.5 million in second quarter of 2023, up from the $551.8 million reported in the second quarter of 2022.

“We expect further growth in both sales and margins driven by numerous positive factors, which include improving supply chains, benefits from price cost, especially in the vocational segment,” he said.