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V2X(VVX) - 2024 Q4 - Annual Results
VVXV2X(VVX)2025-02-24 21:07

Financial Performance - Record revenue of 1.16billioninQ42024,representingan111.16 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 42.7million,up1042.7 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,comparedtoanetlossof34,684, compared to a net loss of (22,573) in 2023[25] - Revenue for the twelve months ended December 31, 2024, was 4,322,155,anincreasefrom4,322,155, 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]−OperatingincomefortheyearendedDecember31,2024,was4.34[7] - Operating income for the year ended December 31, 2024, was 159,204, up from 124,416in2023,representingagrowthofapproximately28124,416 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 1,633,525in2023[35]−Revenuefromprimecontractsamountedto1,633,525 in 2023[35] - Revenue from prime contracts amounted to 4,049,543, representing a 8.7% increase from 3,726,199in2023[37]−Cost−plusandcost−reimbursablecontractsgenerated3,726,199 in 2023[37] - Cost-plus and cost-reimbursable contracts generated 2,531,792 in revenue, a rise of 14.6% from 2,209,241in2023[36]−RevenuefromtheUnitedStateswas2,209,241 in 2023[36] - Revenue from the United States was 2,388,598, reflecting a growth of 4.5% compared to 2,286,052in2023[38]−TheMiddleEastregioncontributed2,286,052 in 2023[38] - The Middle East region contributed 1,399,436, an increase of 17.3% from 1,193,598in2023[38]−TheAirForcesegment′srevenuedecreasedto1,193,598 in 2023[38] - The Air Force segment's revenue decreased to 481,265, down 10.7% from 538,698in2023[35]CashFlowandDebtManagement−Strongyear−to−datecashflowfromoperationsof538,698 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,upfrom254,237, 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,comparedto268,321, compared to 72,651 at the beginning of the year, showing a significant increase[25] - Net debt reduced by 210millionyear−over−year,withanetleverageratioof2.6xattheendofQ42024[6]−Cashandcashequivalentstotaled210 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]FutureOutlook−Book−to−billratioof1.2xinQ42024,withatotalbacklogof1,138,833[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 4.44billion,assumingapproximately44.44 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,comparedto310,211, 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,comparedto160,982, 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]