8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                         PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

         DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 25, 2000

                       STEWART & STEVENSON SERVICES, INC.
             (Exact name of registrant as specified in its charter)

TEXAS                        0-8493                       74-1051605
(State or other       (Commission File Number)           (I.R.S.  Employer
jurisdiction                                              Identification No.)
of incorporation)

2707 NORTH LOOP WEST
HOUSTON, TEXAS                                            77008
(Address of principal executive offices)                 (Zip code)

       Registrant's telephone number, including area code: (713) 868-7700



Item 5.  Other Events.
         ------------

On July 25, 2000, Stewart & Stevenson Services, Inc. (the "Company") issued the
press release attached hereto as Exhibit 99.1 announcing the Receipt by Fort
Carson of the Company's New FMTV A1 Models.

Item 7.  Exhibits.
         --------

Exhibit 99.1 Company Press Release dated July 25, 2000, titled "10th Special
Forces Group (Airborne) At Fort Carson Is the First Unit to Receive New FMTV A1
Models."



SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                    STEWART & STEVENSON SERVICES, INC.



Date:  July 25, 2000               By:  /s/ JOHN H. DOSTER
                                         Name:  John H. Doster
                                         Title: Senior Vice President
                                                and Chief Financial
                                                Officer

EX-99.1

                                 EXHIBIT INDEX

99.1  Company Press  Release July 25, 2000,  titled "10th  Special Forces Group
      (Airborne) at Fort Carson is the First Unit to Receive New FMTV A1
      Models."

- ------------------

Exhibit 99.1

NEWS FROM:                                             STEWART & STEVENSON
                                                       TACTICAL VEHICLE SYSTEMS
                                                       P.O. BOX 330
                                                       SEALY, TX 77474

10TH SPECIAL FORCES GROUP (AIRBORNE) AT FORT CARSON IS THE FIRST UNIT TO
RECEIVE NEW FMTV A1 MODELS

     FORT CARSON, CO., July 25, 2000 -- STEWART & STEVENSON SERVICES, INC.
(NASDAQ:SSSS), a leading manufacturer and distributor of industrial and energy
related equipment; oilfield and airline ground support equipment; and a
manufacturer of medium tactical vehicles for the U.S. Army, announced that the
Army's Family of Medium Tactical Vehicles (FMTV) program achieved a major
milestone on July 7 with ceremonies marking the fielding of the first A1 Models
to the 10th Special Forces Group (Airborne) here.

     The 10th Special Forces Group (Airborne), which returned recently from
deployment in the Balkans, became the First Unit Equipped (FUE) with the new
FMTVs, receiving M1089 A1 5-ton wreckers and M1084 A1 5-ton standard cargo
trucks with Material Handling Equipment.

     At FUE, the Army passes the trucks to soldiers in unit sets for the first
time. Presiding over the ceremony were the Honorable Paul J. Hoeper, Assistant
Secretary of the Army (Acquisition, Technology and Logistics) and the Honorable
David L. Hobson (R-7, OH), chairman of the House Appropriations military
construction subcommittee. Col. Robert B. Lees, Jr., Project Manager, Medium
Tactical Vehicles; Michael L. Grimes, President and Chief Executive Officer for
Stewart & Stevenson Services, Inc., and Richard M. Wiater, President of Stewart
& Stevenson Tactical Vehicle Systems, LP., were also present.

     "The second generation FMTV vehicle that we are handing off today to the
10th Special Forces Group is truly a world-class tactical truck," Lees said. "It
is a system with demonstrated reliability composed of state-of-the-art
components ranging from the latest emission certified engine with increased
horsepower to Anti-lock Brake System to the most modern Interactive Electronic
Technical Manual developed to date. Not only is the FMTV A1 an outstanding
vehicle, but it unanimously received the Army's full material release approval
and was Type Classified - Standard after completion of extensive Army testing.
By achieving both critical milestones, the FMTV has raised the reliability bar
for all tactical vehicles to unmatched levels worldwide.

     "Stewart & Stevenson has assured the reliability that is designed into this
truck will be maintained throughout the production process in their ISO 9001
facility, thus guaranteeing that the FMTV A1 operational availability will
equal, if not better, the 96 percent experienced with its predecessor - the A0,"
Lees continued. "The A1 is truly a soldier's truck, designed with soldiers'
safety and comfort in mind. It has performed in an exceptional manner on rugged
test terrains like its eight-year-old predecessor operating in the field today."

     Secretary Hoeper asserted that FMTV meets the Army Chief of Staff's vision
for the future Army. "We wanted, when we fielded this truck, to be able to
provide not just a satisfactory truck, but a great truck that would meet the
needs of the Army for many years to come.

     "The FUE is an important milestone because it means that the A1 truck is
now ready for our soldiers," he continued. "Today the Army and the 10th Special
Forces will start reaping considerable operational advantages from the FMTV
because it is a truck that meets the Army's transformation needs. These trucks
are deployable, they're transportable. They fit in a C-130. They can be
air-dropped . They're available, they're supportable. As part of the Chief's
vision, we have to bring down the logistics footprint. The FMTV helps reduce
that logistics footprint by more than 60 percent - fewer parts to stock and
fewer parts to deliver, fewer mechanics to train."

     Congressman Hobson called the FMTV A1 the result of a team effort between
the Army, Congress and Stewart & Stevenson. "We shared some thoughts a couple of
years ago about this truck and where we were going," Hobson said. "I've got to
tell you it has been a team effort with the company, with the Secretary, with
the Colonel - all of us - to field this truck today ... the best truck we can do
for the men and women of our services.

     "This is the largest single procurement contract that the Army has," Hobson
pointed out. "There are more dollars in this than any other program over the
life of it, so it's very important to all of us. When I traveled to Bosnia
several years ago, before the deployment, I asked one of the officers what his
greatest need was. I expected him to say he needed some weapons system, some
communications system. But what he said to me was 'I need more trucks and I need
newer trucks. My trucks are older than the kids driving them. We can't move
without trucks'."

     Grimes also credited the team effort that made the A1 possible. "This
celebration of the first fielding of the new and improved version of the A1
model represents the success that comes when a true collaboration between the
user and the manufacturer come together to present a really unique product that
is fully optimized for the mission at hand," Grimes said He also credited the
men and women who build the trucks. "This ceremony is not only attended by you
present here today," he said, "but in spirit by the 4,000 Stewart & Stevenson
employees, and particularly by the more than 600 employees at our facility in
Sealy, Texas where the trucks are produced. They have put their heart and soul
into the particular product for you. They are proud not only of the vehicle, but
of their ability and opportunity to participate in defense of our great nation
through these vehicles."

     Lt. Colonel Robert Waltemeyer, Executive Officer of the 10th Special Forces
(A), accepted the logbook signifying the ceremonial passing of the vehicles and
told the audience, " This ceremony culminates a long process of development,
testing, production and training of a great piece of equipment and the best
soldiers in the world. It marks a great relationship between the military and
the civilian community. It underscores America's commitment to providing the
best equipment to the best Army in the world.

     "Being acknowledged as the first unit is nothing new to the 10th Special
Forces Group," he said. "As the oldest and most enduring special operations
organization in the military, the soldiers of this group are accustomed to being
first."

     Underscoring the importance of the FMTVs, he said, "In a few days the new
model M1084 A1s will be hauling equipment into the mountains to support the
training of our mountaineering teams. In a few weeks, these same trucks will be
on the road to support a field training exercise in Colorado, Wyoming and Utah.
In a few months, these same trucks will be operating under the most treacherous
ice and snow and high altitude conditions, supporting our cold weather training.
These trucks may find themselves on a C-5 or C-17 enroute to Europe where they
will support exchange training exercises with regional partners in areas like
Norway, Finland, Moldavia, Greece, Czech Republic, Turkey, Estonia, Lithuania,
Latvia - just to name a few. These trucks may shortly be called upon to haul
equipment for humanitarian missions through the mud in Georgia, Armenia, and
Azerbaijan. I have no doubt that these trucks will find their way to the
mountain passes and hairpin turns of the Balkans as we continue our mission
there. I provide this short geography lesson as I want you to understand a
couple of key points from a soldier's perspective.

     "This is not just a truck to us; it is part of our lifeline," Waltemeyer
stressed. "It is not just a truck; it's part of our ability to train and prepare
for war and it represents a means to generate combat power. Therefore, it as
important to us as any other weapons system we depend on. It is not just a
truck; it is a tool that we use to safely and effectively take care of America's
most precious and treasured national asset - the American soldier."

     The new trucks incorporate the latest in truck technology, improving on
what had already proven to be a durable and reliable vehicle, said Wiater,
president of Stewart & Stevenson Tactical Vehicle Systems, LP, manufacturer of
the trucks.

This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Stewart & Stevenson believes that its expectations, as
expressed in these statements, are based on reasonable assumptions regarding the
risks and uncertainties inherent in achieving those expectations. These
statements are not, however, guarantees of future performance and actual results
may differ materially. The most important factors that may cause actual results
to differ from our expectations are risk of cancellation, adjustment or
termination of the FMTV procurement program; unilateral changes directed by the
U. S. Army in the scope or timing of the program; future government budgeting,
and changes in applicable laws. Other risk factors are listed in Stewart &
Stevenson Services, Inc. annual report to the Securities and Exchange Commission
on Form 10-K for the year ended January 31, 2000, and Quarterly Report to the
Securities and Exchange Commission on Form 10-Q for the three months ended April
29, 2000.

Contact:  Paul Justice
          Director of Public Relations
          Tactical Vehicle Systems Division
Phone:    713-867-1774
Fax:      713-867-1518
Email:    p.justice@ssss.com
          HTTP://www.ssss.com or  www.fmtvtruck.com