OSHKOSH, Wis. - Oshkosh Corporation (NYSE: NYSE:OSK), a prominent manufacturer of specialty vehicles and equipment, has announced a significant follow-up order from Republic Services Inc . (NYSE: NYSE:RSG) for 100 McNeilus Volterra ZSL electric refuse and recycling collection vehicles. This new order, announced Today, builds on the initial acquisition of 50 vehicles in 2023 and underscores Republic Services’ dedication to fleet electrification and sustainability goals.
Republic Services, a major player in environmental services, aims to transform its fleet with electric vehicles (EVs) constituting half of its new truck purchases over the next five years. This latest investment aligns with the company's strategy to reduce greenhouse gas emissions by 35 percent by 2030.
The McNeilus Volterra electric refuse collection vehicles (eRCVs) are designed to handle the demanding requirements of waste and recycling collection while managing carbon emissions and promising a favorable total cost of ownership. Each vehicle is equipped with advanced safety features, such as 360-degree cameras and automated braking systems, enhancing both driver and community safety. The vehicles can complete a full day's route on a single charge, offering reliability and efficiency.
John Pfeifer, President and CEO of Oshkosh Corporation, expressed enthusiasm for supporting Republic Services' sustainability initiatives with the McNeilus Volterra electric vehicles, highlighting the shared vision of advancing environmental sustainability.
The deployment of these 100 electric vehicles will occur across multiple states, contributing to Republic Services' ambitious environmental goals. These vehicles have received zero-emission certifications from the California Air Resources Board (CARB) and the United States Environmental Protection Agency (EPA), aiding customers in meeting stringent environmental regulations.
The McNeilus Volterra eRCVs are designed with integrated chassis and bodies to maximize interior space and operational efficiency. This order reflects the ongoing partnership between Oshkosh and Republic Services and their collective efforts to innovate in the environmental services industry.
The information for this article is based on a press release statement from Oshkosh Corporation.
In other recent news, Oshkosh Defense, a part of Oshkosh Corporation, has secured multiple significant contracts from the U.S. Army Contracting Command. The company obtained a $72.9 million contract for the Family of Medium Tactical Vehicles (FMTV) A2, marking its fourth order in 2024, and a substantial $1.54 billion contract for the Family of Heavy Tactical Vehicles program. These contracts demonstrate the Army's continued trust in Oshkosh's advanced tactical vehicles.
In financial news, Oshkosh Corporation reported an 18% increase in revenue and a 36% rise in adjusted operating income for the second quarter of 2024. The company also revised its full-year adjusted earnings per share forecast upward to $11.75. However, investment firm DA Davidson lowered its price target on Oshkosh's stock to $130 while maintaining a Buy rating.
In acquisition news, Gold Fields (NYSE:GFI) Limited has agreed to acquire all outstanding shares of Osisko Mining Inc. in an all-cash transaction valued at approximately C$2.16 billion. The acquisition is expected to close in Q4 2024. Concurrently, Oshkosh announced plans to acquire AUSA, a European specialty equipment manufacturer.
These are among the recent developments involving Oshkosh Corporation and Gold Fields Limited.
InvestingPro Insights
Oshkosh Corporation's recent order from Republic Services for 100 electric refuse collection vehicles aligns well with the company's financial performance and market position. According to InvestingPro data, Oshkosh's revenue growth stands at 15.82% over the last twelve months, with a notable quarterly revenue growth of 17.98% in Q2 2024. This growth trajectory is likely to be further bolstered by the increasing demand for electric vehicles in the specialty vehicle sector.
An InvestingPro Tip highlights that Oshkosh is trading at a low P/E ratio relative to its near-term earnings growth. With a P/E ratio of 9.56 and an adjusted P/E ratio of 8.68 for the last twelve months as of Q2 2024, the company appears to be undervalued considering its growth prospects in the electric vehicle market. This valuation metric could be particularly appealing to investors looking at Oshkosh's potential in the evolving environmental services industry.
Another relevant InvestingPro Tip notes that Oshkosh operates with a moderate level of debt, which is crucial for a company investing in new technologies like electric vehicles. This financial prudence, combined with the company's ability to secure large orders for its electric refuse collection vehicles, suggests a balanced approach to growth and financial stability.
For readers interested in a deeper analysis, InvestingPro offers 8 additional tips for Oshkosh Corporation, providing a comprehensive view of the company's financial health and market position.
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