V2X(VVX) - 2024 Q4 - Annual Results

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]