Home Harley davidson Oshkosh Defense Arm (OSK) Obtains First NGDV Fleet Order from USPS – March 25, 2022

Oshkosh Defense Arm (OSK) Obtains First NGDV Fleet Order from USPS – March 25, 2022

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Oshkosh Corporationit’s (OSK Free Report), Oshkosh Defense, a wholly owned subsidiary, has received an order from the United States Postal Service (“USPS”) for Next Generation Delivery Vehicles (NGDV). The initial order for 50,000 NGDVs is valued at $2.98 billion. Preparations at the South Carolina site are underway and new recruiting has already begun.

Oshkosh won the NGDV contract in February 2021. Production is expected to begin in 2023.

Oshkosh Defense will produce zero-emission battery electric vehicles (BEVs) and internal combustion engine vehicles (ICEs) that reduce fuel dependency and emissions for the USPS at its plant in Spartanburg, SC. The first order consists of a minimum of 10,019 BEV. NGDV contract allows BEV’s production percentage to increase even after an order is placed, once financing is provided

Oshkosh is excited about the order as it will enable the company to build modern, safe and reliable vehicles for haulers.

Significant programs won in Oshkosh’s defense segment provide long-term growth visibility. For example, the USPS’ 10-year contract to upgrade its fleet of postal delivery vehicles positions Oshkosh well for growth. In June 2021, the company won the US Army’s Stryker MCWS contract worth up to $943 million. In November 2021, he secured another substantial order from JLTV valued at just over $590 million. While Defense segment sales in 2022 are expected to decline year-over-year, Oshkosh expects major won programs like the NGDV and MCWS (Medium Caliber Weapon System) to drive profitability over the next few months. years.

Shares of OSK have lost 8% over the past year, outpacing its industry’s 44.6% decline.

Image source: Zacks Investment Research

Zacks ranking and key picks

OSK currently has a Zacks rank of #3 (Hold).

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