Core Insights - V2X reported strong second-quarter results for fiscal 2025, exceeding consensus estimates for both non-GAAP earnings and GAAP revenue, with non-GAAP EPS at $1.33 compared to the $0.97 estimate and GAAP revenue at $1.08 billion versus the $1.05 billion expectation [1][2] Financial Performance - Non-GAAP EPS increased by 60.2% year-over-year from $0.83 to $1.33 [2] - GAAP revenue showed modest growth of 0.9% year-over-year, rising from $1.07 billion to $1.08 billion [2] - Adjusted net income rose 60.8% to $42.3 million, with adjusted EBITDA at $82.4 million [2][6] - GAAP net income turned positive at $22.4 million, reversing a loss from the previous year [6] Business Operations - V2X operates in 329 locations across 47 countries, focusing on government and defense support, including training and logistics [3] - The company is integrating its merger and optimizing operations to enhance margins and growth [4] - U.S. operations drove growth, increasing by 9.2% to $632.4 million, while contributions from the Middle East and Asia declined [5] Contract Wins and Strategic Focus - A significant contract win was a $4.3 billion T-6 aircraft training program, enhancing long-term revenue visibility [7] - The company achieved full operational capability on the Army's largest training program, supporting over 700 aircraft [7] Customer Segments and Geographic Performance - Revenue from Army-related contracts remained flat at $457.4 million, while Navy revenue increased by 1.3% to $354.3 million [8] - "Other" customer segments grew by 14.9%, indicating uneven performance across different segments [8] Cash Flow and Capital Allocation - Net cash provided by operating activities reached $28.5 million, with adjusted operating cash flow exceeding $58 million [9] - V2X initiated a $100 million share repurchase authorization to enhance capital allocation flexibility [10] Future Guidance - Management raised the full-year adjusted diluted EPS forecast to a range of $4.65–$4.95, while revenue and adjusted EBITDA guidance remained unchanged [11] - Guidance for adjusted net cash from operations is set at $150–$170 million, with expectations for earnings and cash generation to be stronger in the latter half of the fiscal year [12]