Core Viewpoint - V2X is a small-cap defense company that has recently secured significant contracts from the Pentagon, making it a potential value stock in the defense sector [1][3]. Group 1: Company Overview - V2X was formed from the merger of Vectrus and Vertex Aerospace in 2022 [1]. - The company has a market capitalization of $1.8 billion, which appears low given its recent contract wins [8]. Group 2: Recent Contracts - On July 31, V2X was awarded a $4.3 billion contract for the T-6 training jet aircraft, which will be distributed over the next 10 years [4]. - In addition, V2X secured a $3.7 billion contract last year to provide readiness capabilities to the U.S. Army [5]. - The total value of contracts won by V2X in the last two years amounts to $8 billion [7]. Group 3: Financial Performance - V2X reported $4.3 billion in revenue last year, reflecting a 9% increase from 2023 [8]. - The company earned less than $35 million in profit, resulting in a net profit margin of less than 1% [9]. - Analysts estimate that V2X could earn up to $73 million this year and generate $135 million in positive free cash flow [10]. Group 4: Future Outlook - There is potential for V2X to improve its profit margins and accelerate earnings growth, with forecasts suggesting per-share profits may double over the next three years [12]. - The company is expected to benefit from cost synergies as the merger matures [10].