Oshkosh Wins $6.75 Billion Military Contract to Replace Humvee

By Doug Cameron

Oshkosh Corp. won a $6.75 billion contract to build almost 17,000 new light trucks to replace aging Humvees for the U.S. Army and Marine Corps, cementing the future of its defense business.

The Wisconsin-based company was chosen over competitors Lockheed Martin Corp. and AM General LLC to build as many as 55,000 Joint Light Tactical Vehicles, or JLTVs, over the next 25 years to replace part of the Humvee fleet and some larger military trucks.

The JLTV is one of the Army’s highest priorities and follows a series of budget cuts and shifting requirements that prompted the Pentagon to cancel helicopter, artillery and communications programs, after investing billions of dollars.

The JLTV will replace aging Humvees used by the Army and Marine Corps. Photo: Yuriy Dyachyshyn/Agence France-Presse/Getty Images

Oshkosh has a long history of producing military vehicles and offered a brand-new design to meet the Army’s requirements for a four-wheeled truck to carry two or four personnel that is resistant to mines and roadside bombs, but also is light enough to be carried by air.

“It’s a historic win for us,” Oshkosh Chief Executive Charles Szews said in an interview, adding that the defense business “supports the whole infrastructure for the company.”

Oshkosh shares soared 12% to $43 apiece in after-hours trade, erasing more than half of their 20% decline this year.