RESTON, Va., March 17, 2025 /PRNewswire/ -- V2X (NYSE: VVX) has been awarded a position on the U.S. Navy's Worldwide Expeditionary Multiple Award Contract (WEXMAC) 2.0, a key vehicle for delivering enhanced global logistics capabilities. Administered jointly by the Army Contracting Command and the Naval Supply Systems Command, WEXMAC 2.0 streamlines procurement processes and integrates technology to enhance logistical support for joint forces and federal agencies worldwide. The contract is designed to stren ...

Core Points - V2X, Inc. has been awarded a $100 million contract to support the U.S. Navy's Aegis Ashore facilities in Poland, which are vital for NATO's missile defense system [1][2] - The contract is a firm-fixed-price agreement with a one-year base period, seven one-year options, and an additional six-month extension [3] Company Overview - V2X specializes in integrating physical and digital environments to enhance mission readiness, optimize resource management, and improve security [4] - The company employs approximately 16,000 professionals and leverages AI and machine learning to address challenges across various operational domains [4]

RESTON, Va., Feb. 26, 2025 /PRNewswire/ -- V2X (NYSE: VVX) Inc., announces its award of a $100 million contract to provide aviation maintenance and support services for the Federal Bureau of Investigation's (FBI) Critical Incident Response Group. Under this contract, V2X will deliver mission-critical aviation resources that enable the FBI to conduct intelligence gathering, investigate operations, and law-enforcement activities. V2X will support the FBI's specialized aviation fleet by providing field-level m ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 increased by 11% year-over-year to $1.16 billion, while full-year revenue grew by 9% to $4.32 billion, exceeding guidance by approximately $47 million [8][9][38] - Adjusted EBITDA for Q4 was $86.2 million, representing a 5% year-over-year growth, and for the full year, it was $310 million, reflecting a 6% increase [9][38] - Adjusted EPS for Q4 and the full year was $1.33 and $4.34, respectively, indicating year-over-year growth of 9% and 16% [9][40] - Net debt improved by $210 million year-over-year, resulting in a net leverage ratio of 2.6 times [9][43] Business Line Data and Key Metrics Changes - The Indo-Pacific region saw a notable revenue increase of 27%, contributing to overall growth [8][14] - The company secured contract wins totaling over $5.5 billion in 2024, marking a record for the company [10] Market Data and Key Metrics Changes - Total backlog at the end of 2024 was $12.5 billion, with a book-to-bill ratio of 1.2 times [10][47] - The company expects modest contributions from recompetes in 2025, estimating a 4% contribution [49] Company Strategy and Development Direction - The company aims to deliver full lifecycle capabilities in support of national security priorities, enhancing mission effectiveness and reducing costs [30][49] - The focus on readiness and modernization aligns with the current administration's priorities, particularly in the Indo-Pacific and Arctic regions [15][19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to meet national security demands and highlighted the strong performance in 2024 as a foundation for future growth [12][34] - The company anticipates continued growth driven by existing contracts and new awards, with a revenue guidance range for 2025 set at $4.375 billion to $4.5 billion [49][50] Other Important Information - The company is celebrating its 80th anniversary in 2025, emphasizing its long-standing role in supporting critical missions [24] - The introduction of Roger Mason as Chief Growth Officer is expected to enhance growth strategies [11] Q&A Session Summary Question: Can you elaborate on outcome-based contracting and its evolution? - Management indicated that they have successfully converted contracts to fixed price in the past and are actively pursuing more performance-based contracting opportunities [55][56] Question: What is the impact of the continuing resolution (CR) on guidance? - Management believes that most of their work is immune to the CR, as it primarily involves existing contracts [60][61] Question: Can you clarify the Warfighter Training Readiness Solutions contract? - The contract is expected to add approximately $120 million to revenue, predominantly in the second half of the year [63][65] Question: What are the growth prospects in the Indo-Pacific region? - Management confirmed that the Indo-Pacific region's growth includes INDOPACOM activities and highlighted ongoing exercises that may present opportunities [70][71] Question: How much of the 9% growth in 2024 came from new contracts versus on-contract growth? - The majority of the growth was attributed to on-contract growth, with new awards contributing as well [85][87] Question: What are the implications of potential budget cuts across the DoD? - Management speculated that cuts would likely be influenced by policy changes rather than a uniform percentage cut across all programs [121][124] Question: What are the future capital deployment options given the improved leverage ratio? - Management indicated that the improved leverage ratio provides optionality for pursuing opportunities that generate shareholder value [128][131]

Fourth Quarter & Full-Year 2024 Results MISSION ENABLEMENT l END-TO-END CAPABILITIES l GLOBAL REACH February 24, 2025 GO TOWARDS TOMORROW #goV2X GO TOWARDS TOMORROW #goV2X ibdroot\projects\IBD-NY\vitus2024\938510_1\03. Roadshow Presentation\V2X - Roadshow Presentation (Nov- 2024)_vF.pptx ibdroot\projects\IBD-NY\vitus2024\938510_1\03. Roadshow Presentation\V2X - Roadshow Presentation (Nov- 2024)_vF.pptx Disclaimers FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the me ...

Group 1 - V2X reported quarterly earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, and showing an increase from $1.22 per share a year ago, resulting in an earnings surprise of 16.67% [1] - The company achieved revenues of $1.16 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.27%, compared to $1.04 billion in the same quarter last year [2] - Over the last four quarters, V2X has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock has underperformed, losing about 12% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $1.04 billion, and for the current fiscal year, it is $4.78 on revenues of $4.45 billion [7] - The Zacks Industry Rank indicates that the Technology Services sector is in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Record revenue of $1.16 billion in Q4 2024, representing an 11% year-over-year growth[5] - Record net income of $25.0 million in Q4 2024; adjusted net income of $42.7 million, up 10% year-over-year[5] - Full-year revenue for 2024 was $4.32 billion, up 9% year-over-year[7] - Net income for the year ended December 31, 2024, was $34,684, compared to a net loss of $(22,573) in 2023[25] - Revenue for the twelve months ended December 31, 2024, was $4,322,155, an increase from $3,963,126 in 2023, representing a growth of approximately 9.1%[32] - Adjusted diluted EPS for 2024 increased 16% year-over-year to $4.34[7] - Operating income for the year ended December 31, 2024, was $159,204, up from $124,416 in 2023, representing a growth of approximately 28%[32] Revenue Breakdown - Indo-Pacific region revenue grew by 27% year-over-year, driven by increased demand[5] - Revenue from the Army segment was $1,837,843, up 12.5% from $1,633,525 in 2023[35] - Revenue from prime contracts amounted to $4,049,543, representing a 8.7% increase from $3,726,199 in 2023[37] - Cost-plus and cost-reimbursable contracts generated $2,531,792 in revenue, a rise of 14.6% from $2,209,241 in 2023[36] - Revenue from the United States was $2,388,598, reflecting a growth of 4.5% compared to $2,286,052 in 2023[38] - The Middle East region contributed $1,399,436, an increase of 17.3% from $1,193,598 in 2023[38] - The Air Force segment's revenue decreased to $481,265, down 10.7% from $538,698 in 2023[35] Cash Flow and Debt Management - Strong year-to-date cash flow from operations of $254 million[5] - Net cash provided by operating activities for the year ended December 31, 2024, was $254,237, up from $187,968 in 2023, indicating a growth of approximately 35.2%[25] - Cash, cash equivalents, and restricted cash at the end of the year was $268,321, compared to $72,651 at the beginning of the year, showing a significant increase[25] - Net debt reduced by $210 million year-over-year, with a net leverage ratio of 2.6x at the end of Q4 2024[6] - Cash and cash equivalents totaled $265,173, while total debt stood at $1,138,833[33] Future Outlook - Book-to-bill ratio of 1.2x in Q4 2024, with a total backlog of $12.5 billion as of December 31, 2024[5][6] - 2025 revenue guidance set at a midpoint of $4.44 billion, assuming approximately 4% contribution from recompetes[8][9] Adjusted Metrics - Adjusted EBITDA for Q4 2024 was $86.2 million, with a margin of 7.4%[6] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $310,211, compared to $293,857 in 2023, reflecting an increase of about 5.5%[32] - Adjusted operating cash flow for the year ended December 31, 2024, was $160,982, compared to $159,459 in 2023, indicating a slight increase[32] - The company incurred $36,124 in M&A, integration, and related costs for the year ended December 31, 2024[32] - The company reported additional permitted add-backs of $71,284, which include non-cash losses and transaction-related costs[33]

Employee and Workforce Management - As of December 31, 2024, the company employed approximately 16,100 full-time employees and utilized about 6,200 subcontract workers[45] - Approximately 28% of the company's employees were represented by 45 collective bargaining agreements with labor unions[45] - The company offers a comprehensive benefits package, including flexible work options, education benefits, wellness programs, and retirement savings plans[48] - In 2024, the company provided access to over 4,000 virtual courses through its online V2X University to support employee development[51] - The company has established a robust talent and succession planning process to develop its talent pipeline for critical roles[52] - The Chief Growth Officer, appointed in January 2025, previously led a $2 billion business focused on advanced products and solutions for the space and defense markets[60] - The company has been recognized as a military-friendly employer, with over 38% of U.S. employees voluntarily reporting a military background[50] - The company conducts annual employee engagement surveys to assess workplace culture and employee satisfaction[47] Health and Safety - The health and safety management system aligns with ISO 45001 standards, focusing on continuous improvement and incident management[54] - The company is committed to complying with human rights provisions and has established a Code of Conduct to address issues like human trafficking and child labor[56] Financial Management and Market Risks - The company reported a $7.1 million change in annual cash interest expenses for each one percentage point change in the variable rate of the Vertex First Lien Credit Agreement[282] - A fully drawn 2023 Revolver at $500.0 million would result in a $5.1 million change in annual cash interest expense for each one percentage point change in interest rates[282] - As of December 31, 2024, the notional value of the company's interest rate swap agreements totaled $439.1 million[283] - The company has discontinued its forward foreign exchange contracts, which expired in January 2022, and no such contracts are outstanding as of December 31, 2024[284] - The majority of the company's business is conducted in U.S. dollars, but it is exposed to foreign currency exchange risks due to some contracts denominated in foreign currencies[284] - Earnings, cash flows, and financial position are exposed to market risks related to fluctuations in interest rates and foreign currency exchange rates[281] - The company has a history of entering into forward foreign exchange contracts to protect against volatility in foreign currency values, although the impact was previously deemed immaterial[284] Strategic Initiatives - The company intends to use its website for disclosing material non-public information and complying with disclosure obligations under Regulation FD[65] - The company has a focus on inorganic activities, including merger & acquisition strategy and execution, managed by the Corporate Vice President of Treasury, Investor Relations and Corporate Development[63] - The company aims to enhance operational efficiency and organic growth through strategic initiatives led by its senior executives[64]

Core Insights - V2X, Inc. reported a record revenue of $1.16 billion for Q4 2024, reflecting an 11% year-over-year growth, with significant contributions from the Indo-Pacific region, which saw a 27% increase [2][3][9] - The company achieved a book-to-bill ratio of 1.2x and has a total backlog of $12.5 billion as of December 31, 2024, indicating strong future revenue potential [3][9] - Full-year revenue for 2024 reached $4.32 billion, a 9% increase from the previous year, with adjusted diluted EPS rising 16% year-over-year to $4.34 [4][9] Financial Performance - Q4 2024 operating income was reported at $51.6 million, with adjusted operating income at $80.6 million, and adjusted EBITDA at $86.2 million, representing a margin of 7.4% [3][4] - The company generated net cash from operating activities of $223.1 million in Q4, with adjusted net cash provided by operating activities increasing 122% year-over-year to $168.2 million [3][4] - For the full year, V2X reported an operating income of $159.2 million and adjusted EBITDA of $310.2 million, with a margin of 7.2% [4][9] Debt and Cash Management - V2X reduced its net debt by $210 million year-over-year, ending Q4 2024 with a net debt of $874 million and a net leverage ratio of 2.6x, improving by 0.7x from the previous year [3][4][9] - The company emphasized its commitment to cash generation and debt reduction as key priorities for financial health [3][4] Future Outlook - For 2025, V2X set guidance with a mid-point revenue target of $4.44 billion and adjusted EBITDA of $313 million, anticipating stronger performance in the second half of the year [5][9] - The company expects approximately 4% of revenue to come from recompetes, indicating a strategic focus on maintaining and expanding its market position [5][9] Revenue Breakdown - In 2024, V2X's revenue by customer included $1.84 billion from the Army, $1.44 billion from the Navy, and $481 million from the Air Force, showcasing a diversified customer base [27][30] - Revenue by contract type showed $2.53 billion from cost-plus and cost-reimbursable contracts, and $1.68 billion from firm-fixed-price contracts, indicating a balanced approach to contract types [28][30] - Geographically, the U.S. accounted for $2.39 billion of total revenue, followed by the Middle East at $1.40 billion, highlighting the company's international reach [30]

Core Insights - V2X Inc. has secured a $21 million contract to maintain critical avionics and electronic warfare systems for the U.S. Air Force, specifically for the B-52, B-1B, and C-130 aircraft [1][4] - The contract emphasizes the importance of V2X's role in enhancing the operational effectiveness of legacy aircraft through advanced electronic warfare capabilities [2][3] Contract Details - The contract is a firm-fixed-price agreement aimed at the repair and maintenance of AN/ALQ-172 and AN/ALQ-161 components [1] - Work will be conducted at Robins Air Force Base in Georgia and Indianapolis, Indiana, with an expected completion date in 2029 [4] Electronic Warfare Capabilities - The AN/ALQ-172 system provides multi-threat countermeasures against various radar threats, while the AN/ALQ-161 system has been upgraded to counter evolving electronic threats since its initial deployment in the 1980s [2] - V2X's expertise in sustaining and enhancing these systems is crucial for extending the lifespan and effectiveness of legacy aircraft [3] Company Mission and Vision - V2X aims to enhance legacy systems with cost-effective, technology-driven solutions while ensuring the safety of aircrews in a changing threat landscape [4] - The company integrates AI and machine learning capabilities to address challenges across national security, defense, and civilian markets [5]