Oshkosh Defense sales rose by $23.8 million in the first quarter of 2024, marking a 4.6% increase from the same quarter last year, company executives reported today.
Higher aftermarket parts and sales of the company’s Family of Medium Tactical Vehicles drove the increased revenues for the segment, according to a company statement.
As a whole, Oshkosh reported $200 million in profits with the company’s vocational segment, which builds commercial trucks, reporting the largest increases of $209.7 million.
“2024 is a significant transition year as we are winding down production of domestic [Joint Light Tactical Vehicles] during the year,” John Pfeifer, the company’s CEO, said during the company’s quarterly earnings call.
Selected to build the JLTV in 2015, the four-wheel-drive 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. Last June, the Government Accountability Office denied Oshkosh's protest of the decision.
Last December, the company announced it would produce JLTVs for Israel.
Pfeifer added the company successfully conducted a low-velocity airdrop test of an FMTV A2 at Ft. Liberty, NC, calling the drop a “significant achievement.”
“Essentially, the program allows the vehicle to be parachuted from a plane and operational on the ground within 30 minutes,” Pfeifer noted.
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.
As the current manufacturer of the Army’s heavy tactical trucks, Oshkosh is also competing against Navistar, Mack Defense and Rheinmetall for the Common Tactical Truck, a replacement program.
Earlier this year, the Marine Corps selected Oshkosh for its Rogue Fires program, a JLTV variant with an anti-ship missile launcher.
Pfeifer said he expects the defense segment “to drive better margins” due to the Pentagon’s move toward sole-sourced contracts, upcoming ground vehicle programs and foreign military sales.