Oshkosh Defense earnings increase by 11% despite JLTV production drawdown

Oshkosh Defense earnings increased by 11% even as the company draws down domestic production of the Joint Light Tactical Vehicle, company leaders said during their fourth-quarter earnings call today.

“Domestic JLTV production will conclude in early 2025 but we believe we will continue to have opportunities to supply JLTVs to foreign allies through the direct commercial sales process in 2025 and beyond,” Oshkosh President John Pfeifer said during the call.

Oshkosh Defense sales for the fourth quarter of 2023 increased 7.2%, driven by JLTV sales, in what Pfeifer called a “strong quarter.”

During an October earnings call, the company announced a decrease in sales for the defense segment but expected to increase production from other defense contracts.

Selected to build the JLTV in 2015, the four-wheeled vehicle is designed for combat operations and will replace a portion of the Army’s humvees.

In January 2023, the Army awarded AM General a follow-on production contract for the JLTV. Oshkosh appealed the outcome in June, but the Government Accountability Office denied the company’s protest.

Earlier this year, the Marine Corps selected Oshkosh for its Rogue Fires program, a JLTV variant with an anti-ship missile launcher.

Oshkosh is also scheduled to deliver Medium Equipment Trailers for testing a six-axle transport platform designed to carry 60-ton payloads on European roads.

Earlier this week, the Army announced it will extend a current contract for Oshkosh’s Family of Medium Tactical Vehicles.

In 2022, the Army selected Oshkosh to build the Medium Caliber Weapon System, a 30mm cannon designed for the Stryker combat vehicle.

The company is currently bidding for the Common Tactical Truck, a series of logistics trucks designed to replace the current Heavy Expanded Mobility Tactical Truck.

Oshkosh is also competing for the Robotic Combat Vehicle, an unmanned robotic vehicle designed to operate alongside manned units.