Osisko Development Completes 5,983 M Drilling
Osisko Development announced new infill drilling results from its ongoing 13,000-meter program on 10 meter drill spacing that commenced in August 2025 in the Lowhee Zone of the Company's permitted, 100%-owned Cariboo Gold Project, located in central British Columbia, Canada. The six drill hole fans reported herein comprise an additional ~3,704 meters of underground infill drilling, bringing the total tally of drilling with full results to 5,983 m, or ~44% of the planned total. In total, an aggregate of approximately 10,000 meters, representing ~72% of the total planned drill meters, has now been completed. Full assay results and associated quality assurance and quality control reviews are pending for the remaining holes not reported herein. Chris Lodder, President, stated, "We continue to see good alignment of ongoing infill drilling results with our modelled vein corridors and planned stope shapes, along with occurrences of upside mineralized zones outside current reserve outlines. This tighter drill spacing sharpens our understanding of vein corridor spatial geometries and local variability, while reinforcing the importance of infill drilling in underexplored zones. As this work concludes in the first quarter of 2026, the resulting information is expected to help refine production designs and sequencing."
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- Significant Contract Value: Oshkosh Defense has been awarded an additional $25 million contract from the U.S. Army to deliver FMTV A2 Low-Velocity Airdrop (LVAD) 4x4 Cargo vehicles and kits, reflecting strong customer demand for mission-critical tactical mobility solutions.
- Growing Order Volume: This order follows a recent contract for 97 vehicles, with the Army having placed orders for a total of 797 FMTV A2 LVADs to date, indicating a commitment to modernizing airborne and expeditionary logistics capabilities.
- Enhanced Operational Capability: The FMTV A2 LVAD is designed to be parachuted from aircraft, providing critical supplies and a mission-ready vehicle immediately upon deployment, thereby reducing reliance on vulnerable ground convoys and improving sustainment for forward-deployed units.
- Strategic Implications: This contract underscores Oshkosh Defense's commitment to supporting the U.S. Army, as the combination of proven mobility and airdrop capability enhances operational effectiveness in contested terrains and limited access scenarios.
- Rating Upgrade: Bank of America upgraded Oshkosh (OSK) from Underperform to Neutral, reflecting a more balanced outlook for the company's Access segment and an improved risk-reward profile.
- Sales Forecast Adjustment: Although Oshkosh has again lowered its Access sales forecast for 2026, projecting a 20% decline from peak levels, BofA views this as realistic and likely indicative of a trough in sales.
- Profit Structure Optimization: Profits are increasingly derived from more stable operations such as fire trucks and airport ground support equipment, with Access now representing a smaller share of earnings than in previous cycles, indicating a positive shift in the company's portfolio.
- Cash Flow Improvement: The company's free cash flow is improving, providing capacity for share buybacks, while a record backlog in the Vocational business and deliveries tied to the U.S. Postal Service contract enhance visibility into long-term earnings.
- Strong Financial Performance: Oshkosh Corporation reported $10.4 billion in revenue for FY 2025 with adjusted EPS of $10.79, reflecting effective tariff management and cost controls despite market challenges.
- Positive Outlook: The company anticipates sales of approximately $11 billion for 2026 with adjusted EPS projected at $11.50, primarily driven by growth in the vocational segment and NGDV ramp-up, although softness is expected in the Access segment.
- Robust Orders: Access segment orders exceeded $1.7 billion with a book-to-bill ratio of 1.5, and the vocational segment backlog surpassed $6.6 billion, providing excellent market visibility.
- Increased Shareholder Returns: Oshkosh repurchased $278 million in shares in 2025, with free cash flow of $540 million, demonstrating a balance between ongoing investments and shareholder returns.
- Dividend Increase: Oshkosh has declared a quarterly dividend increase from $0.51 to $0.57 per share, marking an 11.8% rise that reflects the company's ongoing improvement in profitability and cash flow management.
- Yield Metrics: Following this increase, Oshkosh's forward dividend yield stands at 1.56%, providing investors with a relatively stable return and enhancing its attractiveness in the current market environment.
- Payment Schedule: The new dividend will be payable on March 3, with a record date of February 17 and an ex-dividend date also set for February 17, ensuring that existing shareholders benefit from this increase.
- Historical Context: Oshkosh has consistently paid a quarterly dividend of $0.51 over the past four quarters, and this increase demonstrates the company's confidence in its future financial health, potentially attracting more long-term investors.
- Earnings Highlights: Oshkosh's Q4 non-GAAP EPS of $2.26 misses by $0.05, yet revenue of $2.69 billion, reflecting a 2.7% year-over-year increase, beats expectations by $90 million, indicating resilience in revenue growth despite EPS shortfall.
- Operating Income Decline: Adjusted operating income for Q4 decreased by 7.9% to $225.9 million, or 8.4% of sales, compared to $245.4 million and 9.4% in Q4 2024, highlighting the impact of cost pressures on profitability.
- Future Guidance: Oshkosh initiates 2026 EPS guidance in the range of $10.90 to $11.50, below the consensus of $12.33, reflecting a cautious outlook on future profitability amid market uncertainties.
- Military Order: Oshkosh Defense secures a $53 million order from the U.S. Army for Common Bridge Transporters, further solidifying its market position in the defense sector.








