Specialty trucks and equipment vehicles company Oshkosh (NYSE:OSK) has secured a production contract for medium equipment trailers from the U.S. Army. The company will team up with Broshuis, B.V. for the execution of the $342 million contract.
Oshkosh will produce about 557 trailers under the five-year Indefinite Delivery/Indefinite Contract (IDIQ). Further, the deal includes an option to extend the contract term by an additional two years.
The combination of Oshkosh’s medium equipment trailer and enhanced heavy equipment transporter (EHET) can handle equipment weighing up to 60 tons, playing a critical role in the deployment of mission-critical equipment.
The company expects to deliver the first trailers in May 2024. Importantly, this contract win builds upon the $263.2 million contract Oshkosh bagged last year for the production of 466 heavy equipment trailers.
Is OSK a Good Stock to Buy?
In the present environment of global geopolitical upheaval, Oshkosh shares have gained nearly 30% over the past six months. Overall, the Street has a Moderate Buy consensus rating on Oshkosh. The average OSK price target of $108.22 implies a modest 11.5% potential upside.
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