Oshkosh Defense sales decrease after JLTV contract loss

By Nickolai Sukharev  / October 26, 2023

After losing a production contract for tactical vehicles, Oshkosh Defense experienced a loss in sales in the third quarter but expects a “strong” fourth quarter and production capacity to increase, according to the company’s earnings call, today.

“We expect the fourth quarter to be the strongest of the year as a result of a richer aftermarket parts mix,” John Pfeifer, the company’s president, said during the call.

Oshkosh Defense experienced a 3.6% loss in the third quarter of 2023, a decrease from the second quarter of the year due to the loss of the Joint Light Tactical Vehicle contract, according to the company’s press release.

With additional contracts covering other programs, the company expects to increase production capacity, according to Mike Pack, the company’s financial officer, who also spoke during the call.

Designed to replace a portion of the Army’s current Humvees, the JLTV is a family of four-wheeled trucks designed for military operations in combat environments. The Air Force, Marine Corps and Navy are also procuring fewer numbers of JLTVs.

In January, 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 Army down selected Oshkosh, as one of four manufacturers, for the Robotic Combat Vehicle (RCV) program, which Pfeifer said was “good news.”

Competing with HDT, Textron, and General Dynamics Land Systems in the prototyping phase, the RCV will function as an unmanned scout and reconnaissance vehicle alongside crewed vehicle formations.

“Our approach [offers] a mature solution with demonstrated durability and flexibility while incorporating new technologies to meet the demands of an evolving battlefield,” Pfeifer added.

The company also received additional orders for the Family of Medium Tactical Vehicles, a set of logistical trucks that operate alongside the Heavy Expanded Mobility Tactical Truck and the M1070 tank transporter, both manufactured by Oshkosh.

Oshkosh is also producing the ROGUE-Fires for the United States Marine Corps, a JLTV variant with an anti-ship missile launcher.