V2X Delivers Solid Third Quarter Results with Record Revenue
Third Quarter and Recent Highlights
Guidance
RESTON, Va., Nov. 3, 2025 /PRNewswire/ -- V2X, Inc. (NYSE: VVX) announced third quarter 2025 financial results. "Our third quarter results demonstrate our continued focus on operational and strategic execution," said Jeremy C. Wensinger, President and Chief Executive Officer. "The trends in our business remain positive and are being driven by continued demand for mission readiness solutions."
Mr. Wensinger continued, "Our differentiated capabilities and alignment to customer priorities were proven firsthand through several new awards during the quarter. This includes an award to deliver counter-UAS capabilities via our Tempest platform. Tempest is a rugged, commercially based combat vehicle engineered to detect, engage, and defeat various UAS. The platform, which went from idea to fielding in a matter of months, illustrates our unique ability to deliver rapid prototyping solutions that improve mission success on the modern battlefield. We were also awarded a $425 million indefinite-delivery, indefinite-quantity contract to modernize and upgrade F-16 cockpit displays for the U.S. Air Force. This is a great example of how smart modernization can deliver immediate mission enhancement at significantly lower cost than full replacement."
Mr. Wensinger concluded, "Our results and awards demonstrate the value that V2X brings to our customers. We are further building on that value and during the quarter completed a strategic acquisition that brings new capabilities and access to new opportunities in the intelligence community. We are also accelerating our innovation strategy through new partnerships with top tier technology providers in the areas of AI and smart readiness. This is representative of how we are executing our strategy and advancing V2X to be a leader in data-enabled mission solutions across all domains."
____________________
1 See "Key Performance Indicators and Non-GAAP Financial Measures" for descriptions and reconciliations.
Third Quarter 2025 Results
"Revenue grew 8% year-over-year in the third quarter to $1.17 billion," said Shawn Mural, Senior Vice President and Chief Financial Officer. "The performance in the third quarter reflects both continued demand for our solutions and our focus on execution. I'm proud of what our team has achieved thus far in 2025 and believe it positions us well as we look ahead."
"For the quarter, the Company reported operating income of $55.7 million, an increase of $5.8 million or 12% from the prior year. Adjusted operating income 1 was $79.6 million, an increase of $2.7 million dollars or 4% from the prior year. V2X delivered adjusted EBITDA 1 of $85.2 million, with a margin of 7.3%. Net income for the quarter was $24.6 million, an increase of $9.6 million or 63% from the prior year. Adjusted net income 1 was $43.7 million, an increase of $2.4 million dollars or 6% year-over-year. Third quarter GAAP diluted EPS was $0.77. Adjusted diluted EPS 1 for the quarter was $1.37, an increase of 6% year-over-year."
"Third quarter net cash provided by operating activities was $39.4 million. Adjusted net cash provided by operating activities 1 was $35.8 million."
Mr. Mural continued, "Last quarter we outlined the key components of our capital allocation strategy, which focused on accelerating value creation. I'm pleased to report that during the third quarter we put that strategy into action by repurchasing $10 million of shares and completing a strategic acquisition. These were great first steps in our capital deployment journey, which we believe will yield strong returns for shareholders."
2025 Guidance
Mr. Mural concluded, "Given our performance to date and the trends in our business we're increasing the midpoint of our revenue, adjusted EBITDA 1, and adjusted diluted EPS 1 guidance. Although we have not seen a material impact from the government shutdown to date, we are proactively lowering the midpoint of adjusted net cash provided by operating activites 1 to account for potential temporary delays in collections. I want to emphasize this is merely timing related and not indicative of a change in our underlying business."
Guidance is as follows:
$ millions, except for per share amounts
Prior 2025 Guidance
Updated 2025 Guidance
Revenue
$4,375
$4,500
$4,425
$4,500
Adjusted EBITDA 1
$305
$320
$312
$320
Adjusted Diluted Earnings Per Share 1
$4.65
$4.95
$4.85
$5.05
Adjusted Net Cash Provided by Operating Activities 1
$150
$170
$120
$150
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 the 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 mergers and acquisitions ("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.
Third Quarter Conference Call
Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, November 3, 2025. 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/80dR21K5Yr9.
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 November 17, 2025, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10202916.
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.
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 16,000 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
IR@goV2X.com
Communications@goV2X.com
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 "2025 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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended
Nine Months Ended
September 26,
September 27,
September 26,
September 27,
(In thousands, except per share data)
2025
2024
2025
2024
Revenue
$ 1,167,137
$ 1,081,656
$ 3,261,390
$ 3,164,403
Cost of revenue
1,072,632
990,220
2,993,049
2,928,858
Selling, general, and administrative expenses
38,836
41,549
125,434
127,901
Operating income
55,669
49,887
142,907
107,644
Loss on extinguishment of debt
—
—
(2,527)
(1,998)
Interest expense, net
(19,961)
(27,152)
(60,278)
(83,533)
Other expense, net
(2,962)
(3,198)
(7,836)
(9,566)
Income from operations before income taxes
32,746
19,537
72,266
12,547
Income tax expense
8,141
4,486
17,163
2,896
Net income
$ 24,605
$ 15,051
$ 55,103
$ 9,651
Earnings per share
Basic
$ 0.78
$ 0.48
$ 1.74
$ 0.31
Diluted
$ 0.77
$ 0.47
$ 1.73
$ 0.30
Weighted average common shares outstanding - basic
31,617
31,550
31,634
31,458
Weighted average common shares outstanding - diluted
31,856
31,973
31,881
31,921
V2X, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 26,
December 31,
(In thousands, except per share data)
2025
2024
Assets
Current assets
Cash, cash equivalents and restricted cash
$ 182,318
$ 268,321
Receivables
773,287
710,068
Prepaid expenses and other current assets
143,022
124,081
Total current assets
1,098,627
1,102,470
Property, plant, and equipment, net
57,597
62,001
Goodwill
1,676,926
1,656,926
Intangible assets, net
262,825
323,068
Right-of-use assets
38,202
37,774
Other non-current assets
43,633
46,604
Total non-current assets
2,079,183
2,126,373
Total Assets
$ 3,177,810
$ 3,228,843
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable
$ 487,176
$ 547,568
Compensation and other employee benefits
156,858
166,918
Short-term debt
14,935
20,003
Other accrued liabilities
255,295
261,735
Total current liabilities
914,264
996,224
Long-term debt, net
1,089,307
1,087,484
Deferred tax liabilities
12,500
20,983
Operating lease liabilities
33,163
33,811
Other non-current liabilities
48,928
64,189
Total non-current liabilities
1,183,898
1,206,467
Total liabilities
2,098,162
2,202,691
Commitments and contingencies (Note 7)
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; 31,731,719 and 31,560,490 shares issued as of September 26, 2025 and December 31, 2024, respectively
317
316
Treasury stock, at cost - 200,000 and no shares as of September 26, 2025 and December 31, 2024, respectively
(10,056)
—
Additional paid in capital
776,415
769,719
Retained earnings
320,638
265,535
Accumulated other comprehensive loss
(7,666)
(9,418)
Total shareholders' equity
1,079,648
1,026,152
Total Liabilities and Shareholders' Equity
$ 3,177,810
$ 3,228,843
V2X, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
September 26,
September 27,
(In thousands)
2025
2024
Operating activities
Net income
$ 55,103
$ 9,651
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation expense
12,468
16,442
Amortization of intangible assets
67,726
68,252
Amortization of cloud computing arrangements
3,676
2,073
Impairment of non-operating long-lived asset
—
2,192
Loss on disposal of property, plant, and equipment
826
1,170
Stock-based compensation
9,121
12,874
Deferred taxes
(9,077)
72
Amortization of debt issuance costs
4,588
5,717
Loss on extinguishment of debt
2,527
1,998
Changes in assets and liabilities:
Receivables
(58,473)
(25,614)
Other assets
(15,473)
(70,827)
Accounts payable
(63,230)
66,101
Compensation and other employee benefits
(10,583)
(42,417)
Other liabilities
(26,683)
(16,581)
Net cash (used in) provided by operating activities
(27,484)
31,103
Investing activities
Purchases of capital assets
(9,660)
(10,700)
Proceeds from the disposition of assets
2,285
14
Acquisitions of businesses
(27,500)
(16,939)
Net cash used in investing activities
(34,875)
(27,625)
Financing activities
Repayments of long-term debt
(7,546)
(7,669)
Proceeds from revolver
459,000
1,009,250
Repayments of revolver
(459,000)
(1,009,250)
Proceeds from stock awards and stock options
558
154
Purchase of treasury stock
(10,000)
—
Payment of debt issuance costs
(3,909)
(1,188)
Payments of employee withholding taxes on stock-based compensation
(2,982)
(8,036)
Net cash used in financing activities
(23,879)
(16,739)
Exchange rate effect on cash
235
467
Net change in cash, cash equivalents and restricted cash
(86,003)
(12,794)
Cash, cash equivalents and restricted cash - beginning of period
268,321
72,651
Cash, cash equivalents and restricted cash - end of period
$ 182,318
$ 59,857
Supplemental disclosure of cash flow information:
Interest paid
$ 52,587
$ 74,774
Income taxes paid
$ 6,435
$ 9,167
Purchase of capital assets on account
$ 768
$ 90
Purchase of treasury stock on account
$ 56
$ —
Key Performance Indicators and Non-GAAP Measures
The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. 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.
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 operating income, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio, 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
Nine Months Ended
September 26,
2025
September 27,
2024
September 26,
2025
September 27,
2024
Revenue
$ 1,167,137
$ 1,081,656
$ 3,261,390
$ 3,164,403
Net income
$ 24,605
$ 15,051
$ 55,103
$ 9,651
Plus:
Income tax expense
8,141
4,486
17,163
2,896
Other expense, net
2,962
3,198
7,836
9,566
Interest expense, net
19,961
27,152
60,278
83,533
Loss on extinguishment of debt
—
—
2,527
1,998
Operating income
$ 55,669
$ 49,887
$ 142,907
$ 107,644
Plus:
Amortization of intangible assets
22,601
22,727
67,726
68,252
M&A, integration and related costs
1,370
4,319
7,775
29,644
Adjusted operating income
$ 79,640
$ 76,933
$ 218,407
$ 205,540
Plus:
Depreciation and CCA amortization
5,517
5,759
16,144
18,515
Adjusted EBITDA
$ 85,156
$ 82,692
$ 234,552
$ 224,055
Adjusted EBITDA margin
7.3 %
7.6 %
7.2 %
7.1 %
Minus:
Cash interest expense, net
18,405
25,598
55,690
77,816
Income tax expense, as adjusted
14,620
6,887
37,169
24,187
Depreciation and CCA amortization
5,517
5,759
16,144
18,515
Other expense, net, as adjusted
2,962
3,198
8,086
7,373
Adjusted net income
$ 43,653
$ 41,250
$ 117,463
$ 96,163
($K, except per share data)
Three Months Ended
Nine Months Ended
September 26,
2025
September 27,
2024
September 26,
2025
September 27,
2024
Diluted earnings per share
$ 0.77
$ 0.47
$ 1.73
$ 0.30
Plus:
M&A, integration and related costs
0.03
0.14
0.18
0.75
Amortization of intangible assets
0.53
0.63
1.61
1.72
Amortization of debt issuance costs and
Loss on extinguishment of debt
0.04
0.05
0.17
0.19
FMV land impairment
$ —
0.00
$ —
0.06
Gain on acquisition, net
0.00
$ —
$ (0.01)
$ —
Adjusted diluted earnings per share
$ 1.37
$ 1.29
$ 3.68
$ 3.01
Average shares outstanding:
Basic, as reported
31,617
31,550
31,634
31,458
Diluted, as reported
31,856
31,973
31,881
31,921
Adjusted diluted
31,856
31,973
31,881
31,921
Non-GAAP Tables
($K)
Three Months Ended
Nine Months Ended
September 26,
2025
September 27,
2024
September 26,
2025
September 27,
2024
Net cash provided (used) by operating activities
39,448
62,654
(27,484)
31,103
Plus:
M&A, integration, and related payments
1,298
13,009
12,060
25,044
MARPA facility activity
(4,991)
54,471
(8,641)
(63,348)
Adjusted operating cash flow
35,755
130,134
(24,064)
(7,201)
SUPPLEMENTAL INFORMATION
Revenue by customer, contract type, contract relationship, and geographic region for the periods presented below was as follows:
Revenue by Customer
Three Months Ended
Nine Months Ended
September 26,
September 27,
%
September 26,
September 27,
%
(In thousands)
2025
2024
Change
2025
2024
Change
Army
$ 449,031
$ 455,877
(1.5) %
$ 1,348,610
$ 1,345,997
0.2 %
Navy
390,542
366,217
6.6 %
1,090,936
1,037,425
5.2 %
Air Force
167,571
121,863
37.5 %
374,519
367,899
1.8 %
Other
159,993
137,699
16.2 %
447,325
413,082
8.3 %
Total revenue
$ 1,167,137
$ 1,081,656
$ 3,261,390
$ 3,164,403
Revenue by Contract Type
Three Months Ended
Nine Months Ended
September 26,
September 27,
%
September 26,
September 27,
%
(In thousands)
2025
2024
Change
2025
2024
Change
Cost-plus and cost-reimbursable
$ 702,557
$ 649,925
8.1 %
$ 1,973,210
$ 1,850,584
6.6 %
Firm-fixed-price
436,528
403,132
8.3 %
1,205,705
1,229,565
(1.9) %
Time-and-materials
28,052
28,599
(1.9) %
82,475
84,254
(2.1) %
Total revenue
$ 1,167,137
$ 1,081,656
$ 3,261,390
$ 3,164,403
Revenue by Contract Relationship
Three Months Ended
Nine Months Ended
September 26,
September 27,
%
September 26,
September 27,
%
(In thousands)
2025
2024
Change
2025
2024
Change
Prime contractor
$ 1,109,660
$ 1,021,497
8.6 %
$ 3,081,746
$ 2,972,773
3.7 %
Subcontractor
57,477
60,159
(4.5) %
179,644
191,630
(6.3) %
Total revenue
$ 1,167,137
$ 1,081,656
$ 3,261,390
$ 3,164,403
Revenue by Geographic Region
Three Months Ended
Nine Months Ended
September 26,
September 27,
%
September 26,
September 27,
%
(In thousands)
2025
2024
Change
2025
2024
Change
United States
$ 684,659
$ 604,872
13.2 %
$ 1,894,474
$ 1,728,480
9.6 %
Middle East
344,605
346,527
(0.6) %
983,267
1,050,888
(6.4) %
Asia
81,417
82,907
(1.8) %
234,188
236,371
(0.9) %
Europe
56,456
47,350
19.2 %
149,461
148,664
0.5 %
Total revenue
$ 1,167,137
$ 1,081,656
$ 3,261,390
$ 3,164,403
SOURCE V2X, Inc.