V2X Reports Fourth Quarter 2025 Results
Fourth Quarter Financial Highlights
Full-Year Highlights
2026 Guidance
RESTON, Va., Feb. 23, 2026 /PRNewswire/ -- V2X, Inc. (NYSE: VVX) today announced financial results for the fourth quarter and full-year 2025 ended December 31, 2025, and established guidance for full-year 2026.
"V2X ended 2025 with another quarter of strong performance, underscoring our team's successful execution of our strategy," said Jeremy C. Wensinger, President and Chief Executive Officer. "We are entering 2026 with significant momentum. Our recent awards and alignment to National Security priorities for readiness and modernization are creating tailwinds for continued growth. Additionally, we are continuing to prioritize investments and expand partnerships to deliver innovative solutions that anticipate and fulfill our customers' requirements. These growth priorities are further supported by the strength of our capital structure. As we look ahead, V2X is well positioned to continue to deliver readiness enabling solutions to support our customers' evolving requirements, while generating enhanced value for our shareholders."
Fourth Quarter 2025 Results
In the fourth quarter, V2X reported record revenue of $1.22 billion, which represents 5% year-over-year growth. The Company reported solid topline growth and strong operating performance, yielding double-digit growth in adjusted net income 1 and adjusted EPS 1. Net income for the quarter was $22.8 million. Adjusted net income 1 was $49.3 million, an increase of $6.6 million dollars, or 16%, year-over-year. Fourth quarter GAAP diluted EPS was $0.72. Adjusted diluted EPS 1 for the quarter increased 17% year-over-year to $1.56.
V2X delivered record adjusted EBITDA 1 of $88.7 million, with a margin of 7.3%, representing an increase of $2.6 million dollars, or 3%, from the prior year.
Fourth quarter net cash provided by operating activities was $209.5 million. Adjusted net cash provided by operating activities 1 increased 3% year-over-year to $172.4 million.
At the end of the fourth quarter, net debt for V2X was $758 million, representing an improvement of $116 million year-over-year and achieving its 2.2x net leverage ratio 1.
Total backlog as of December 31, 2025 was $11.1 billion. Funded backlog 1 was $2.3 billion. Book-to-bill 1 in the quarter was approximately 0.7x.
Full-Year 2025 Results
Full-year revenue was $4.48 billion, representing a 4% increase compared to the previous year.
Net income for the year was $77.9 million. Adjusted net income 1 was $166.8 million, an increase of $27.9 million dollars, or 20%, year-over-year. Full-year GAAP diluted EPS was $2.45. Adjusted diluted EPS 1 for 2025 was $5.24, increasing 21% year-over-year. Full-year adjusted EBITDA 1 was $323.3 million with a margin of 7.2%.
Net cash provided by operating activities in 2025 was $182.0 million. Adjusted net cash provided by operating activities 1 was $148.3 million.
2026 Guidance
Expectations for the Company's full year 2026 financial results are as follows:
$ millions, except for per share amounts
2026 Guidance
2026 Mid-Point
Revenue
$4,675
$4,825
$4,750
Adjusted EBITDA 1
$335
$350
$343
Adjusted Diluted Earnings Per Share 1
$5.50
$5.90
$5.70
Adjusted Net Cash Provided by Operating Activities 1
$150
$170
$160
The Company is not providing a quantitative reconciliation with respect to the foregoing forward-looking non-GAAP measures in reliance on the "unreasonable efforts" exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, which relate to M&A, integration and related activities cannot be reasonably estimated. Forward-looking statements are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including those factors set forth in the Safe Harbor Statement below.
Fourth Quarter Conference Call
Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, February 23, 2026. U.S.-based participants may dial in to the conference call at 877-300-8521, while international participants may dial 412-317-6026. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/3do4py9pnRx
A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through March 9, 2026, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10195666.
Presentation slides that will be used in conjunction with the conference call will also be made available online in advance on the "investors" section of the company's website at https://gov2x.com. V2X recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under the U.S. Securities and Exchange Commission ("SEC") Regulation FD.
___________________________
1 See "Key Performance Indicators and Non-GAAP Financial Measures" for descriptions and reconciliations.
About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission's lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,200 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today's toughest challenges across all operational domains.
Investor Contact
Media Contact
Mike Smith, CFA
Angelica Spanos Deoudes
[email protected]
[email protected]
719-637-5773
571-338-5195
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the "Act"): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "could," "potential," "continue" or similar terminology. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. Forward-looking statements in this press release, include, but are not limited to our future performance and capabilities; all of the statements and items listed under "2026 Guidance" above and other assumptions contained therein for purposes of such guidance; our belief that prior performance provides substantial visibility for future performance; market trends; product development; capital deployment; statements about the benefits and expectations with respect to the strategic acquisition; and our belief that our innovation strategy, visibility, and targeted growth opportunities provide substantial opportunities for value creation.
These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside our management's control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections. For a discussion of some of the risks and uncertainties that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC.
We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
V2X, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Year Ended December 31,
(In thousands, except per share data)
2025
2024
2023
Revenue
$ 4,480,038
$ 4,322,155
$ 3,963,126
Cost of revenue
4,106,656
3,979,193
3,628,271
Selling, general and administrative expenses
179,112
183,758
210,439
Operating income
194,270
159,204
124,416
Loss on extinguishment of debt
(2,527)
(1,998)
(22,298)
Interest expense, net
(79,909)
(107,900)
(122,442)
Other expense, net
(10,931)
(10,465)
(4,194)
Income (loss) from operations before income taxes
100,903
38,841
(24,518)
Income tax expense (benefit)
23,021
4,157
(1,945)
Net income (loss)
$ 77,882
$ 34,684
$ (22,573)
Earnings (loss) per share
Basic
$ 2.47
$ 1.10
$ (0.73)
Diluted
$ 2.45
$ 1.08
$ (0.73)
Weighted average common shares outstanding – basic
31,559
31,485
31,084
Weighted average common shares outstanding – diluted
31,820
31,967
31,084
V2X, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
(In thousands, except shares and per share data)
2025
2024
Assets
Current assets
Cash, cash equivalents and restricted cash
$ 368,994
$ 268,321
Receivables
738,922
710,068
Prepaid expenses and other current assets
127,102
124,081
Total current assets
1,235,018
1,102,470
Property, plant, and equipment, net
52,383
62,001
Goodwill
1,677,154
1,656,926
Intangible assets, net
239,760
323,068
Other non-current assets
76,525
84,378
Total non-current assets
2,045,822
2,126,373
Total Assets
$ 3,280,840
$ 3,228,843
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable
$ 557,042
$ 547,568
Compensation and other employee benefits
176,530
166,918
Short-term debt
14,935
20,003
Other accrued liabilities
267,039
261,735
Total current liabilities
1,015,546
996,224
Long-term debt, net
1,083,234
1,087,484
Deferred tax liabilities
28,357
20,983
Other non-current liabilities
69,067
98,000
Total non-current liabilities
1,180,658
1,206,467
Total liabilities
2,196,204
2,202,691
Commitments and contingencies
Shareholders' Equity
Preferred stock; $0.01 par value; 10,000,000 shares authorized; No shares issued and outstanding
—
—
Common stock; $0.01 par value; 100,000,000 shares authorized; 31,735,083 shares issued and 31,171,445 shares outstanding as of December 31, 2025; 31,560,490 shares issued and outstanding as of December 31, 2024
317
316
Treasury stock, at cost - 563,638 and no shares as of December 31, 2025 and 2024, respectively
(30,274)
—
Additional paid in capital
779,084
769,719
Retained earnings
343,417
265,535
Accumulated other comprehensive loss
(7,908)
(9,418)
Total shareholders' equity
1,084,636
1,026,152
Total Liabilities and Shareholders' Equity
$ 3,280,840
$ 3,228,843
V2X, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
(In thousands)
2025
2024
2023
Operating activities
Net income (loss)
$ 77,882
$ 34,684
$ (22,573)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense
16,984
20,747
22,408
Amortization of intangible assets
90,621
90,821
90,423
Amortization of cloud computing arrangements
4,919
3,314
480
Gain from acquisitions, net
—
(2,193)
—
Impairment of non-operating long-lived asset
—
2,192
—
(Gain) loss on disposal of property, plant, and equipment
(3,024)
1,450
683
Stock-based compensation
11,924
15,969
32,843
Deferred taxes
9,334
7,730
(7,509)
Amortization of debt issuance costs
6,231
7,380
9,067
Loss on extinguishment of debt
2,527
1,998
22,298
Gain on disposition of business
—
—
(450)
Changes in assets and liabilities:
Receivables
(23,485)
25,181
19,064
Other assets
9,315
(42,334)
11,285
Accounts payable
5,460
75,335
43,153
Compensation and other employee benefits
9,122
9,128
(9,901)
Other liabilities
(35,818)
2,835
(23,303)
Net cash provided by operating activities
181,992
254,237
187,968
Investing activities
Purchases of capital assets and intangibles
(11,923)
(11,787)
(25,021)
Proceeds from the disposition of assets
9,839
76
16
Acquisition of businesses, net of cash acquired
(27,500)
(16,939)
—
Disposition of business
—
—
1,349
Distributions from joint venture
—
—
1,007
Net cash used in investing activities
(29,584)
(28,650)
(22,649)
Financing activities
Proceeds from issuance of long-term debt
—
—
250,000
Repayments of long-term debt
(15,013)
(15,327)
(432,603)
Proceeds from revolver
662,500
1,266,250
922,750
Repayments of revolver
(662,500)
(1,266,250)
(922,750)
Proceeds from exercise of stock options
557
154
34
Purchase of treasury stock
(30,000)
—
—
Payment of debt issuance costs
(3,909)
(1,188)
(8,818)
Prepayment premium on early redemption of debt
—
—
(1,600)
Payments of employee withholding taxes on share-based compensation
(3,115)
(8,138)
(18,036)
Net cash used in financing activities
(51,480)
(24,499)
(211,023)
Exchange rate effect on cash
(255)
(5,418)
2,288
Net change in cash, cash equivalents and restricted cash
100,673
195,670
(43,416)
Cash, cash equivalents and restricted cash – beginning of year
268,321
72,651
116,067
Cash, cash equivalents and restricted cash – end of year
$ 368,994
$ 268,321
$ 72,651
Supplemental Disclosure of Cash Flow Information:
Interest paid
$ 78,336
$ 107,607
$ 117,482
Income taxes paid, net of amounts refunded
$ 9,632
$ 8,819
$ 8,356
Non-cash investing activities:
Purchase of capital assets on account
$ 1,446
$ 22
$ 3,043
Purchase of treasury stock on account
$ 274
$ —
$ —
Key Performance Indicators and Non-GAAP Measures
The primary financial performance measures we use to monitor results of operations are revenue and operating income. Management believes that these financial performance measures are the primary drivers for our earnings and net cash from operating activities. Management evaluates its contracts and business performance by focusing on revenue and operating income. Operating income represents revenue less both cost of revenue and selling, general and administrative (SG&A) expenses. Cost of revenue consists of labor, subcontracting costs, materials, and an allocation of indirect costs. SG&A expenses consist of indirect labor costs (including wages and salaries for executives and administrative personnel), bid and proposal expenses and other general and administrative expenses not allocated to cost of revenue. Backlog is the estimated amount of future revenues to be recognized under negotiated contracts. Funded backlog is contractually authorized and appropriated by the customer. Bookings includes approved values formally booked into V2X's backlog for new business contract awards including unexercised options, contract modifications, recompetes, contract extensions and add-on work to existing contracts. Book-to-bill is derived by dividing bookings by revenue.
We manage the nature and amount of costs at the program level, which forms the basis for estimating our total costs and profitability. This is consistent with our approach for managing our business, which begins with management's assessing the bidding opportunity for each contract and then managing contract profitability throughout the performance period.
In addition to the key performance measures discussed above, we consider adjusted net income, adjusted diluted earnings per share, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio and adjusted operating cash flow to be useful to management and investors in evaluating our operating performance, and to provide a tool for evaluating our ongoing operations. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives. We provide this information to our investors in our earnings releases, presentations, and other disclosures.
Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio, cash interest expense, net, and adjusted net cash provided by (used in) operating activities, however, are not measures of financial performance under GAAP and should not be considered a substitute for financial measures determined in accordance with GAAP. Definitions and reconciliations of these items are provided below.
Non-GAAP Tables
($K, except per share data)
Three Months Ended
Twelve Months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Revenue
$ 1,218,648
$ 1,157,752
$ 4,480,038
$ 4,322,155
Net income
$ 22,779
$ 25,033
$ 77,882
$ 34,684
Plus:
Income tax expense
5,858
1,261
23,021
4,157
Other expense, net
3,096
899
10,931
10,465
Interest expense, net
19,632
24,367
79,909
107,900
Loss on extinguishment of debt
—
—
2,527
1,998
Operating income
$ 51,363
$ 51,560
$ 194,270
$ 159,204
Plus:
Amortization of intangible assets
22,896
22,569
90,621
90,821
M&A, integration and related costs
8,717
6,480
16,492
36,124
Adjusted operating income
$ 82,976
$ 80,610
$ 301,383
$ 286,150
Plus:
Depreciation and CCA amortization
5,759
5,546
21,904
24,061
Adjusted EBITDA
$ 88,735
$ 86,156
$ 323,287
$ 310,211
Adjusted EBITDA margin
7.3 %
7.4 %
7.2 %
7.2 %
Minus:
Cash interest expense, net
17,988
22,704
73,678
100,519
Income tax expense, as adjusted
12,583
12,147
49,752
36,334
Depreciation and CCA amortization
5,759
5,546
21,904
24,061
Other expense, net, as adjusted
3,096
3,092
11,181
10,465
Adjusted net income
$ 49,309
$ 42,667
$ 166,772
$ 138,831
($K, except per share data)
Three Months Ended
Twelve Months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Diluted earnings per share
$ 0.72
$ 0.78
$ 2.45
$ 1.08
Plus:
M&A, integration and related costs
0.21
0.12
0.40
0.87
Amortization of intangible assets
0.58
0.47
2.19
2.18
Amortization of debt issuance costs and Loss on extinguishment of debt
0.04
0.03
0.21
0.23
FMV land impairment
$ —
(0.00)
$ —
0.05
Gain on acquisition, net
(0.00)
(0.07)
(0.01)
(0.07)
Adjusted diluted earnings per share
$ 1.56
$ 1.33
$ 5.24
$ 4.34
Average shares outstanding:
Basic, as reported
31,349
31,558
31,559
31,485
Diluted, as reported
31,631
32,043
31,820
31,967
Adjusted diluted
31,631
32,043
31,820
31,967
Non-GAAP Tables
($K)
Three Months Ended
Twelve Months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net cash provided by operating activities
$ 209,476
$ 223,134
$ 181,992
$ 254,237
Plus:
M&A, integration, and related payments
839
17,490
12,899
42,534
MARPA facility activity
(37,911)
(72,440)
(46,552)
(135,788)
Adjusted operating cash flow
$ 172,404
$ 168,183
$ 148,340
$ 160,982
($K)
TTM
December 31, 2025
Net income
$ 77,882
Plus:
Interest expense, net
79,909
Income tax expense
23,021
Depreciation and amortization
112,525
Additional permitted add-backs 1
44,307
TTM Bank EBITDA
$ 337,644
($K, except ratio)
Period Ending
December 31, 2025
Total debt
$ 1,123,819
Cash, cash equivalents and restricted cash
$ 368,994
Less:
Restricted cash
(3,014)
Cash and cash equivalents
$ 365,980
Net debt
$ 757,839
TTM bank EBITDA
$ 337,644
Net leverage ratio
2.24x
____________________________
1 Includes among other items, non-cash losses like loss on extinguishment of debt and/or lease impairments, stock compensation, transaction and integration related costs
SUPPLEMENTAL INFORMATION
Revenue by contract type, geographic region, contract relationship, and customer for the periods presented below was as follows:
Revenue by Contract Type
Year Ended December 31,
(In thousands)
2025
2024
2023
Cost-plus and cost-reimbursable
$ 2,744,753
$ 2,531,792
$ 2,209,241
Firm-fixed-price
1,609,027
1,675,603
1,626,262
Time-and-materials
126,258
114,760
127,623
Total revenue
$ 4,480,038
$ 4,322,155
$ 3,963,126
Revenue by Geographic Region
Year Ended December 31,
(In thousands)
2025
2024
2023
United States
$ 2,609,257
$ 2,388,598
$ 2,286,052
Middle East
1,351,318
1,399,436
1,193,598
Asia
313,024
326,961
264,346
Europe
206,439
207,160
219,130
Total revenue
$ 4,480,038
$ 4,322,155
$ 3,963,126
Revenue by Contract Relationship
Year Ended December 31,
(In thousands)
2025
2024
2023
Prime contractor
$ 4,239,080
$ 4,049,543
$ 3,726,199
Subcontractor
240,958
272,612
236,927
Total revenue
$ 4,480,038
$ 4,322,155
$ 3,963,126
Revenue by Customer
Year Ended December 31,
(In thousands)
2025
2024
2023
Army
$ 1,828,977
$ 1,837,843
$ 1,633,525
Navy
1,479,815
1,441,355
1,233,463
Air Force
570,663
481,265
538,698
Other
600,583
561,692
557,440
Total revenue
$ 4,480,038
$ 4,322,155
$ 3,963,126
SOURCE V2X, Inc.