V2x, Inc. ( (VVX) ) has released its Q3 earnings. Here is a breakdown of the information V2x, Inc. presented to its investors.
V2X, Inc., a company known for integrating physical and digital environments to enhance mission readiness and security, operates in national security, defense, civilian, and international markets. In its latest earnings report, the company announced a robust third quarter with record revenue of $1.08 billion, marking an 8% increase year-over-year. This growth was propelled by a 31% revenue increase in the Indo-Pacific region, aligning with the U.S. Department of Defense’s focus on enhancing readiness in the area.
Key financial highlights include a record net income of $15.1 million, adjusted net income rising 76% to $41.3 million, and adjusted EBITDA increasing by 28% to $82.7 million, reflecting a margin of 7.6%. V2X also achieved a diluted EPS of $0.47 and an adjusted diluted EPS of $1.29, representing a 77% year-over-year increase. The company secured approximately $5 billion in awards during the quarter, including a significant $3.7 billion Warfighter-Training Readiness Solutions contract, demonstrating its strategic positioning in the market.
The company’s strategic focus on expanding its capabilities and pipeline is evident as it leverages its collective strengths to enhance offerings and expand into new markets. V2X’s total backlog reached $12.2 billion, with a funded backlog of $3.0 billion, indicating strong future revenue streams. The company is also making progress in debt reduction, with a net leverage ratio improvement to 3.27x, aiming to reach or be below 3.0x by year-end.
Looking ahead, V2X has raised its full-year revenue and adjusted EPS guidance midpoint, while reaffirming its adjusted EBITDA and operating cash flow targets. The company’s management remains optimistic about its growth prospects, driven by continuous investments in expanding its pipeline and differentiating its solutions to meet global demands.
