The stock of Oshkosh Corp (OSK) has shown a gain, today. The company grew over 7.94% at $118.32 in pre-market trading today.‎

Oshkosh corporation which was previously known as Oshkosh Truck is basically an American industrial company which deals with the designing and making of specialty trucks, military vehicles, truck bodies, airport fire apparatus, and access equipment.

The rise in the stock of OSK took place after they won a multi-billion dollar USPS contract from their rival company i-e Workhorse. The stock of Workhorse declined about 47.5% on Tuesday which was a huge setback but it didn’t stop and another 8.3% loss happened after the extended trade.

Under this recent development, USPS has given a 10-year contract to OSK. The main goal being assigned to Oshkosh is to manufacture a new generation of US-built Postal delivery vehicles. The initial investment in this contract is about $428M. With this investment, Oshkosh Defense will give the final production design of the next-generation delivery vehicle. The initial investment is also for plant tooling and build-out for the US manufacturing facility where the final assembling of vehicles will take place.  The objective of OSK is to assemble 50k to 165k vehicles over 10 years.

The new generation vehicles are going to be designed in a way that they will be equipped with either fuel-efficient internal combustion engines or battery electric power trains. This put more emphasis on how this contract will give a boost to the company. 

Finally,

This contract is not the final step rather it is the first part of a multi-billion-dollar 10-year effort to replace the postal delivery vehicle fleet. It will be highly effective for the company and its stand in the market.