(Editor's Note: A previous version of this story indicated that Oshkosh's tactical truck sales would offset the loss of the Joint Light Tactical Vehicle contract. The story has been amended to indicate that the company expects tactical contract extensions following the loss of the JLTV contract.)
Oshkosh expects contract extensions for heavy and medium tactical trucks following a production drawdown for the Joint Light Tactical Vehicle, company executives said during a quarterly earnings call today.
The Wisconsin-based company reported a 20.2% sales increase in their defense segment during the second quarter of 2024, driven by higher tactical truck sales.
“While domestic JLTV production will wind down in early 2025, we continue to supply the [Defense Department] on many important programs including [Family of Heavy Tactical Vehicles] and [Family of Medium Tactical Vehicle] programs,” John Pfeifer, the company's president and CEO, said during an earnings call.
Overall, the company reported an 18% sales increase from the same quarter last year, an increase of $433.8 million to $2.85 billion, driven by organic sales in all segments, according to a company statement.
“We believe these key programs as well as other programs such as Stryker [Medium Caliber Weapon System] and the Rogue Fires family of carriers provide enhanced profitability and important visibility for the business into the future,” Pfeifer added during the call.
The MCWS program intends to arm a portion of the Army’s Stryker infantry carrier vehicles with 30mm cannons while the Marine Corps Rogue Fires program uses the JLTV as a wheelbase for coastal anti-ship missiles.
The JLTV 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. In June 2023, the Government Accountability Office denied Oshkosh's protest of the decision.
Oshkosh will continue to produce the JLTV for the Army in 2025 along with international orders. Last December, the company announced it would produce the vehicle for Israel.
Pfeifer added that the company received a $232 million order for the Family of Heavy Tactical Vehicles, which will be the last order of the current contract for the vehicles but expects a five-year extension to the contract in August 2024.
He added he expects a similar extension for the FMTV in early 2025.
The company is developing the A2 variant of the FMTV, which features a more powerful engine, and improved capabilities compared to the previous A1 variant.
Oshkosh is also competing with Textron, HDT and General Dynamics for the Robotic Combat Vehicle, an unmanned vehicle designed to operate alongside manned units.
Additionally, the company faces Navistar, Mack Defense as well as a joint bid American Rheinmetall and General Motors Defense for the Common Tactical Truck, a replacement program for the FHTV.
Pfiefer added that orders for the company’s Next Generation Delivery Vehicle, a new mail carrier vehicle for the United States Postal Service, will "exceed the decline of JLTV revenue from 2024 to 2025."