Oshkosh Defense, a subsidiary of Oshkosh Corporation, secured a new $25 million contract from the U.S. Army to deliver FMTV A2 Low‑Velocity Airdrop (LVAD) 4×4 cargo vehicles and associated kits. The award follows a recent order of 97 FMTV A2 LVADs, bringing the total number of vehicles ordered by the Army to 797.
The $25 million contract is expected to generate incremental revenue in the coming quarters and further diversify Oshkosh’s defense portfolio. It underscores continued Army demand for the company’s tactical mobility platform, driven by the need for airdrop‑capable vehicles that can be deployed rapidly into contested or austere environments.
Management highlighted the operational value of the LVAD, with Pat Williams, Chief Programs Officer for Oshkosh Defense, stating that the award “underscores our commitment to supporting the U.S. Army with proven, mission‑ready capabilities that perform when and where the Soldier needs them most.” The contract strengthens Oshkosh’s position as a key defense supplier amid the Army’s modernization efforts.
Financially, Oshkosh reported revenue of $2.69 billion in Q4 2025, beating estimates, but EPS missed by $0.07. The company guided for full‑year 2026 adjusted EPS of $11.50, slightly below analyst expectations. The new contract adds to the company’s revenue stream and may help offset margin pressure from cost inflation and tariff impacts.
While no immediate market reaction was reported, analysts have maintained a “Moderate Buy” rating, citing the company’s strong defense segment performance and diversified portfolio. The contract reinforces Oshkosh’s strategic focus on expanding its tactical vehicle offerings and sustaining long‑term growth in the defense market.
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