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V2X Reports Strong Third Quarter Results with Record Revenue, Net Income, and Adjusted EBITDA

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V2X (NYSE:VVX) reported strong Q3 2024 results with record revenue of $1.08 billion, up 8% year-over-year. The company achieved significant growth in the Indo-Pacific region (31% y/y) and Middle East (13% y/y). Notable financial highlights include record net income of $15.1 million, up $21.5 million y/y, and record adjusted EBITDA of $82.7 million, up 28% y/y with a 7.6% margin. The company secured approximately $5 billion in new awards, including a significant $3.7 billion Warfighter-Training Readiness Solutions contract. Based on strong performance, V2X updated its 2024 guidance, raising revenue expectations to $4,225-$4,275 million.

V2X (NYSE:VVX) ha riportato risultati decisamente positivi per il terzo trimestre del 2024, con ricavi record di 1,08 miliardi di dollari, in crescita dell'8% rispetto all'anno precedente. L'azienda ha registrato una crescita significativa nella regione indo-pacifica (31% anno su anno) e nel Medio Oriente (13% anno su anno). Tra i principali risultati finanziari, spiccano un utile netto record di 15,1 milioni di dollari, con un incremento di 21,5 milioni di dollari rispetto all'anno passato, e un EBITDA rettificato record di 82,7 milioni di dollari, in aumento del 28% anno su anno, con un margine del 7,6%. L'azienda ha ottenuto circa 5 miliardi di dollari in nuovi contratti, inclusi un significativo contratto per soluzioni di prontezza al combattimento per 3,7 miliardi di dollari. Basandosi su queste performance robusti, V2X ha aggiornato le proprie previsioni per il 2024, aumentando le aspettative sui ricavi a 4.225-4.275 milioni di dollari.

V2X (NYSE:VVX) reportó resultados sólidos en el tercer trimestre de 2024, con ingresos récord de 1.08 mil millones de dólares, un aumento del 8% en comparación con el año anterior. La empresa logró un crecimiento significativo en la región indo-pacífica (31% interanual) y en el Medio Oriente (13% interanual). Los aspectos financieros destacables incluyen un ingreso neto récord de 15.1 millones de dólares, un aumento de 21.5 millones de dólares en comparación con el año anterior, y un EBITDA ajustado récord de 82.7 millones de dólares, un aumento del 28% interanual con un margen del 7.6%. La compañía aseguró aproximadamente 5 mil millones de dólares en nuevos contratos, incluido un importante contrato de soluciones de preparación para combatientes de 3.7 mil millones de dólares. Basándose en este sólido desempeño, V2X actualizó sus proyecciones para 2024, elevando las expectativas de ingresos a 4,225-4,275 millones de dólares.

V2X (NYSE:VVX)는 2024년 3분기 강력한 실적을 보고하며 10억 8천만 달러의 역대 수익을 기록하며 전년 대비 8% 증가했다고 발표했습니다. 이 회사는 인도-태평양 지역에서 31%의 큰 성장과 중동에서 13%의 성장을 달성했습니다. 주요 재무 하이라이트로는 1,510만 달러의 역대 순소득이 있으며, 이는 전년 대비 2,150만 달러 증가한 수치이고, 8,270만 달러의 조정 EBITDA는 전년 대비 28% 증가하여 7.6%의 마진을 기록했습니다. 이 회사는 약 50억 달러의 신규 수주를 확보했으며, 그 중 37억 달러 규모의 전투 대원 훈련 준비 솔루션 계약이 포함되어 있습니다. 강력한 실적을 바탕으로 V2X는 2024년 가이던스를 업데이트하여 수익 예상치를 42억 2,500만~42억 7,500만 달러로 상향 조정했습니다.

V2X (NYSE:VVX) a annoncé de solides résultats pour le troisième trimestre 2024, avec un chiffre d'affaires record de 1,08 milliard de dollars, en hausse de 8 % par rapport à l'année précédente. L'entreprise a connu une croissance significative dans la région indo-pacifique (31 % en glissement annuel) et au Moyen-Orient (13 % en glissement annuel). Les faits marquants financiers incluent un revenu net record de 15,1 millions de dollars, en hausse de 21,5 millions de dollars par rapport à l'année précédente, et un EBITDA ajusté record de 82,7 millions de dollars, en hausse de 28 % par rapport à l'année précédente avec une marge de 7,6 %. L'entreprise a obtenu environ 5 milliards de dollars de nouveaux contrats, y compris un contrat important de solutions de préparation des combattants d'une valeur de 3,7 milliards de dollars. Sur la base de ces solides performances, V2X a mis à jour ses prévisions pour 2024, augmentant les attentes de revenus à 4,225-4,275 millions de dollars.

V2X (NYSE:VVX) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit Revenues von 1,08 Milliarden Dollar, was einem Anstieg um 8% gegenüber dem Vorjahr entspricht. Das Unternehmen erzielte signifikantes Wachstum in der Indo-Pazifik-Region (31% im Jahresvergleich) und im Nahen Osten (13% im Jahresvergleich). Zu den bemerkenswerten finanziellen Höhepunkten gehören ein Rekord-Nettoeinkommen von 15,1 Millionen Dollar, was einen Anstieg um 21,5 Millionen Dollar im Jahresvergleich darstellt, und ein rekordverdächtiges bereinigtes EBITDA von 82,7 Millionen Dollar, was einem Anstieg um 28% im Jahresvergleich und einer Marge von 7,6% entspricht. Das Unternehmen sicherte sich neue Aufträge in Höhe von etwa 5 Milliarden Dollar, einschließlich eines signifikanten Vertrages über Lösungen zur Einsatzbereitschaft für Kampftruppen im Wert von 3,7 Milliarden Dollar. Basierend auf der starken Leistung hat V2X seine Prognose für 2024 aktualisiert und die Umsatzerwartungen auf 4.225-4.275 Millionen Dollar angehoben.

Positive
  • Record revenue of $1.08 billion, up 8% year-over-year
  • Record net income of $15.1 million, up $21.5 million y/y
  • Adjusted EBITDA increased 28% y/y to $82.7 million
  • Secured $5 billion in new awards, including $3.7 billion W-TRS contract
  • Indo-Pacific revenue growth of 31% y/y
  • Adjusted diluted EPS increased 77% y/y to $1.29
  • Net leverage ratio improved 0.29x sequentially to 3.27x
Negative
  • Net debt remains high at $1,089 million
  • Year-to-date adjusted net cash shows usage of $7.2 million

Insights

A stellar quarter showcasing robust financial performance across key metrics. Revenue of $1.08 billion with 8% YoY growth demonstrates strong market positioning. The 31% growth in Indo-Pacific revenue is particularly noteworthy, indicating successful regional expansion strategy.

The record adjusted EBITDA of $82.7 million with 7.6% margins and 28% YoY growth reflects improved operational efficiency. The 77% increase in adjusted EPS to $1.29 signals strong bottom-line execution. With $12.2 billion in total backlog and significant contract wins including the $3.7 billion W-TRS award, future revenue visibility is solid.

The reduction in net leverage ratio to 3.27x shows progress in debt management, though still above the year-end target of 3.0x. The raised guidance indicates management's confidence in sustained momentum.

The $3.7 billion Warfighter-Training Readiness Solutions contract win represents a strategic breakthrough in military training solutions. The technology-enabled approach for Army soldier training demonstrates V2X's evolution from traditional defense services to advanced military technology integration.

Strong growth in Indo-Pacific (31%) and Middle East (13%) regions aligns with current geopolitical priorities and DoD's strategic focus on Indo-Pacific presence. The $5 billion in total Q3 awards validates V2X's competitive positioning in high-priority defense markets. The company's full-spectrum capabilities across mission lifecycle provide a compelling competitive advantage in securing complex defense contracts.

Third Quarter Highlights

  • Record revenue of $1.08 billion, up 8% y/y
  • Indo-Pacific revenue growth of 31% y/y driven by increased demand
  • Operating income of $49.9 million; Adjusted operating income1 of $76.9 million
  • Record net income of $15.1 million, up $21.5 million y/y; Adjusted net income1 of $41.3 million, up 76% y/y
  • Record adjusted EBITDA1 of $82.7 million, up 28% y/y with a margin of 7.6%
  • Diluted EPS of $0.47; Adjusted diluted EPS1 of $1.29, up 77% y/y

2024 Guidance:

  • Raising full-year revenue and adjusted EPS1 guidance midpoint and reaffirming adjusted EBITDA and operating cash flow1

MCLEAN, Va., Nov. 4, 2024 /PRNewswire/ -- V2X, Inc. (NYSE:VVX) announced third quarter 2024 financial results.

"V2X reported strong third quarter results with record revenue, net income, and adjusted EBITDA1, driven by our continued alignment to well-funded critical missions and the ability to deliver capabilities at scale across the globe," said Jeremy Wensinger, President and Chief Executive Officer of V2X. "Revenue increased 8% year-over-year and adjusted EBITDA1 increased 28% year-over-year, reflecting strong program performance. Adjusted net income1 increased 76% year-over-year and adjusted diluted EPS1 increased 77% year-over-year."

Mr. Wensinger continued, "During the third quarter we demonstrated continued growth in the Indo-Pacific region with revenue increasing 31% year-over-year. This performance was tied to the DoD's continued focus on enhancing U.S. readiness in the region. We are seeing additional opportunities for growth in the region that align to improving the capacity and capabilities of U.S. allies and our partners."  

"Our full spectrum capabilities across the mission lifecycle serve as a differentiator.  The fact that we are with our customers across the globe at every phase of mission execution, gives us prodigious knowledge, allowing us to deliver best of breed cost effective solutions that are enhancing outcomes. This unique position is yielding results with V2X securing approximately $5 billion of awards in the third quarter. This includes the $3.7 billion Warfighter-Training Readiness Solutions (W-TRS) award that represents a milestone win for V2X. We delivered a technology enabled solution that was compelling and will ensure every Army soldier has the tools necessary to conduct accurate training preparing them for whenever called upon to deploy. These wins validate our strong positioning in the marketplace and are expected to contribute to our financial performance for years to come."

Mr. Wensinger concluded, "I believe there is additional opportunity to build on our momentum through further optimization of our business. This includes enhancing the breadth and depth of our pipeline as a result of the collective capabilities.  W-TRS is a great example of a solution that leveraged the collective capabilities.  We are building on that success to expand our addressable markets in all areas of the company.  We are investing in this expanded pipeline to ensure we address opportunities with talent and solutions that will differentiate V2X offerings."

Third Quarter 2024 Results

"V2X reported record revenue of $1.08 billion in the quarter, which represents 8% year-over-year growth," said Shawn Mural, Senior Vice President and Chief Financial Officer. "We continued to deliver double digit revenue growth in the Indo-Pacific (31% year-over-year) and Middle East (13% year-over-year) regions, which was achieved through continued expansion of existing business as well as new programs.

"For the quarter, the Company reported operating income of $49.9 million and adjusted operating income1 of $76.9 million. V2X delivered record adjusted EBITDA1, increasing 28% year-over-year to $82.7 million, with a margin of 7.6%, reflecting our expected second half program performance. Third quarter GAAP diluted EPS was $0.47. Adjusted diluted EPS1 for the quarter increased 77% year-over-year to $1.29."

"Third quarter net cash provided by operating activities was $62.7 million. Adjusted net cash provided by operating activities1 increased 35% year-over-year to $130.1 million. On a year-to-date basis, net cash provided by operating activities was $31.1 million. Adjusted net cash used by operating activities1 was $7.2 million."

"At the end of the quarter, net debt for V2X was $1,089 million.  Net leverage ratio1 was 3.27x, improving 0.29x sequentially. We continue to demonstrate progress on debt paydown and remain on track to be at or below a net leverage ratio of 3.0x, by the end of 2024."

"Total backlog as of September 27, 2024, was $12.2 billion. Funded backlog was $3.0 billion. Book-to-bill in the quarter was approximately 1.0x. Backlog does not include the full contract value associated with recent awards."

2024 Guidance

Mr. Mural concluded, "Given our strong performance through the first nine-months of the year we are updating our total year guidance."

Guidance for 2024 is as follows:       

$ millions, except for per share amounts

Prior 2024 Guidance

Updated 2024 Guidance

Revenue

$4,175

$4,275

$4,225

$4,275

Adjusted EBITDA1

$300

$315

$300

$315

Adjusted Diluted Earnings Per Share1

$3.85

$4.20

$3.95

$4.20

Adjusted Net Cash Provided by Operating Activities1

$145

$165

$145

$165

The Company is not providing a quantitative reconciliation with respect to the foregoing forward-looking non-GAAP measures in reliance on the "unreasonable efforts" exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, which relate to M&A, integration and related activities cannot be reasonably estimated. Forward-looking statements are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including those factors set forth in the Safe Harbor Statement below. 

Third Quarter Conference Call

Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, November 4, 2024. U.S.-based participants may dial in to the conference call at 877-506-6380, while international participants may dial 412-542-4198. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/8eqdGbMZ6Xa  

A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through November 18, 2024, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10193464. 

Presentation slides that will be used in conjunction with the conference call will also be made available online in advance on the "investors" section of the company's website at https://gov2x.com. V2X recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under the U.S. Securities and Exchange Commission ("SEC") Regulation FD.

Footnotes:
1 See "Key Performance Indicators and Non-GAAP Financial Measures" for descriptions and reconciliations.

About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission's lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today's toughest challenges across all operational domains.

Investor Contact





Media Contact

Mike Smith, CFA





Angelica Spanos Deoudes

IR@goV2X.com





Communications@goV2X.com

719-637-5773





571-338-5195

Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the "Act"): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act. These forward-looking statements include, but are not limited to, all the statements and items listed under "2024 Guidance" above and other assumptions contained therein for purposes of such guidance, other statements about our 2024 performance outlook, revenue, contract opportunities, and any discussion of future operating or financial performance.

Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "could," "potential," "continue" or similar terminology. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. Forward-looking statements in this press release, include, but are not limited to our discussion regarding the Army and its capabilities; our future performance and capabilities; investing in the expanded pipeline; future net leverage ratio; and our belief in our ability to achieve our updated total year guidance.

These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside our management's control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.  In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections. For a discussion of some of the risks and uncertainties that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

 V2X, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

 



Three Months Ended


Nine Months Ended



September 27,


September 29,


September 27,


September 29,

(In thousands, except per share data)


2024


2023


2024


2023

Revenue


$     1,081,656


$     1,001,507


$     3,164,403


$     2,922,819

Cost of revenue


990,220


930,828


2,928,858


2,685,910

Selling, general, and administrative expenses


41,549


49,640


127,901


151,021

Operating income


49,887


21,039


107,644


85,888

Loss on extinguishment of debt




(1,998)


(22,052)

Interest expense, net


(27,152)


(30,252)


(83,533)


(93,946)

Other expense, net


(3,198)


(2,024)


(9,566)


(2,335)

Income (loss) from operations before income taxes


19,537


(11,237)


12,547


(32,445)

Income tax expense (benefit)


4,486


(4,837)


2,896


(10,364)

Net income (loss)


$          15,051


$          (6,400)


$            9,651


$         (22,081)










Earnings (loss) per share









Basic


$              0.48


$            (0.21)


$              0.31


$            (0.71)

Diluted


$              0.47


$            (0.21)


$              0.30


$            (0.71)

Weighted average common shares outstanding - basic


31,550


31,179


31,458


31,048

Weighted average common shares outstanding - diluted


31,973


31,179


31,921


31,048







 

V2X, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)



September 27,


December 31,

(In thousands, except per share data)


2024


2023

Assets





Current assets





Cash, cash equivalents and restricted cash


$          59,857


$          72,651

Receivables


766,399


705,995

Prepaid expenses and other current assets


156,042


96,223

Total current assets


982,298


874,869

Property, plant, and equipment, net


65,746


85,429

Goodwill


1,652,855


1,656,926

Intangible assets, net


345,712


407,530

Right-of-use assets


33,370


41,215

Other non-current assets


46,124


15,931

Total non-current assets


2,143,807


2,207,031

Total Assets


$     3,126,105


$     3,081,900

Liabilities and Shareholders' Equity





Current liabilities





Accounts payable


$        538,225


$        453,052

Compensation and other employee benefits


115,569


158,088

Short-term debt


16,878


15,361

Other accrued liabilities


235,379


213,700

Total current liabilities


906,051


840,201

Long-term debt, net


1,096,865


1,100,269

Deferred tax liabilities


12,313


11,763

Operating lease liabilities


29,590


34,691

Other non-current liabilities


78,725


104,176

Total non-current liabilities


1,217,493


1,250,899

Total liabilities


2,123,544


2,091,100

Commitments and contingencies (Note 7)





Shareholders' Equity





Preferred stock; $0.01 par value; 10,000,000 shares authorized; No shares issued and outstanding



Common stock; $0.01 par value; 100,000,000 shares authorized; 31,556,556 and 31,191,628 shares issued and outstanding as of September 27, 2024 and December 31, 2023, respectively


316


312

Additional paid in capital


766,690


762,324

Retained earnings


240,502


230,851

Accumulated other comprehensive loss


(4,947)


(2,687)

Total shareholders' equity


1,002,561


990,800

Total Liabilities and Shareholders' Equity


$     3,126,105


$     3,081,900

 

V2X, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 



Nine Months Ended



September 27,


September 29,

(In thousands)


2024


2023

Operating activities





Net income (loss)


$            9,651


$         (22,081)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation expense


16,442


16,532

Amortization of intangible assets


68,252


67,818

Amortization of cloud computing arrangements


2,073


213

Impairment of non-operating long-lived asset


2,192


Loss on disposal of property, plant, and equipment


1,170


625

Stock-based compensation


12,874


26,809

Deferred taxes


72


(9,887)

Amortization of debt issuance costs


5,717


6,875

Loss on extinguishment of debt


1,998


22,052

Changes in assets and liabilities:





Receivables


(25,614)


9,647

Other assets


(70,827)


7,916

Accounts payable


66,101


28,094

Compensation and other employee benefits


(42,417)


(28,620)

Other liabilities


(16,581)


9,182

Net cash provided by operating activities


31,103


135,175

Investing activities





Purchases of capital assets


(10,700)


(16,559)

Proceeds from the disposition of assets


14


16

Acquisitions of businesses


(16,939)


Distribution from joint venture



834

Net cash used in investing activities


(27,625)


(15,709)

Financing activities





Proceeds from issuance of long-term debt



250,000

Repayments of long-term debt


(7,669)


(428,763)

Proceeds from revolver


1,009,250


719,750

Repayments of revolver


(1,009,250)


(669,750)

Proceeds from stock awards and stock options


154


7

Payment of debt issuance costs


(1,188)


(7,507)

Prepayment premium on early redemption of debt



(1,600)

Payments of employee withholding taxes on stock-based compensation


(8,036)


(17,871)

Net cash used in financing activities


(16,739)


(155,734)

Exchange rate effect on cash


467


(1,540)

Net change in cash, cash equivalents and restricted cash


(12,794)


(37,808)

Cash, cash equivalents and restricted cash - beginning of period


72,651


116,067

Cash, cash equivalents and restricted cash - end of period


$          59,857


$          78,259






Supplemental disclosure of cash flow information:





Interest paid


$          74,774


$          89,635

Income taxes paid


$            9,167


$            5,242

Purchase of capital assets on account


$                90


$            2,882

 

Key Performance Indicators and Non-GAAP Measures

The primary financial performance measures we use to manage our business and monitor results of operations are revenue trends and operating income trends. Management believes that these financial performance measures are the primary drivers for our earnings and net cash from operating activities. Management evaluates its contracts and business performance by focusing on revenue, and operating income. Operating income represents revenue less both cost of revenue and selling, general and administrative (SG&A) expenses. Cost of revenue consists of labor, subcontracting costs, materials, and an allocation of indirect costs, which includes service center transaction costs. SG&A expenses consist of indirect labor costs (including wages and salaries for executives and administrative personnel), bid and proposal expenses and other general and administrative expenses not allocated to cost of revenue.

We manage the nature and amount of costs at the program level, which forms the basis for estimating our total costs and profitability. This is consistent with our approach for managing our business, which begins with management's assessing the bidding opportunity for each contract and then managing contract profitability throughout the performance period.

In addition to the key performance measures discussed above, we consider adjusted net income, adjusted diluted earnings per share, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, and adjusted operating cash flow to be useful to management and investors in evaluating our operating performance, and to provide a tool for evaluating our ongoing operations. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives. We provide this information to our investors in our earnings releases, presentations, and other disclosures.

Adjusted net income, adjusted diluted earnings per share, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, and adjusted net cash provided by (used in) operating activities, however, are not measures of financial performance under GAAP and should not be considered a substitute for financial measures determined in accordance with GAAP.  Definitions and reconciliations of these items are provided below.

  • Adjusted operating income is defined as operating income, adjusted to exclude items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration, and related costs.
  • Adjusted EBITDA is defined as operating income, adjusted to exclude depreciation and amortization of intangible assets, and items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration, and related costs.
  • Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue.
  • Adjusted net income is defined as net income, adjusted to exclude items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration and related costs, amortization of acquired intangible assets, amortization of debt issuance costs, and loss on extinguishment of debt.
  • Adjusted diluted earnings per share is defined as adjusted net income divided by the weighted average diluted common shares outstanding.
  • Cash interest expense, net is defined as interest expense, net adjusted to exclude amortization of debt issuance costs.
  • Adjusted net cash provided by (used in) operating activities or adjusted operating cash flow is defined as net cash provided by (or used in) operating activities adjusted to exclude infrequent non-operating items, such as M&A payments and related costs.
  • Net leverage ratio is defined as net debt (or total debt less unrestricted cash) divided by trailing twelve-month (TTM) bank EBITDA.

 

Non-GAAP Tables

($K, except per share data)

Three Months Ended 


Nine Months Ended


September 27, 2024


September 29, 2023


September 27, 2024


September 29, 2023

Revenue

$             1,081,656


$           1,001,507


$           3,164,403


$           2,922,819

Net income (loss)

$                  15,051


$                 (6,400)


$                  9,651


$               (22,081)

Plus:








Income tax expense (benefit)

4,486


(4,837)


2,896


(10,364)

Other expense, net

3,198


2,024


9,566


2,335

Interest expense, net

27,152


30,252


83,533


93,946

Loss on extinguishment of debt



1,998


22,052

Operating income

$                  49,887


$                21,039


$              107,644


$                85,888

Plus:








Amortization of intangible assets

22,727


22,607


68,252


67,818

M&A, integration and related costs 

4,319


15,824


29,644


41,565

Adjusted operating income

$                  76,933


$                59,470


$              205,540


$              195,271

Plus:








Depreciation and CCA amortization

5,759


5,206


18,515


16,532

Adjusted EBITDA

$                  82,692


$                64,676


$              224,055


$              211,803

Adjusted EBITDA margin

7.6 %


6.5 %


7.1 %


7.2 %

Minus:








Cash interest expense, net

25,598


28,069


77,816


87,071

Income tax expense, as adjusted

6,887


5,937


24,187


26,329

Depreciation and CCA amortization

5,759


5,206


18,515


16,532

Other expense, net, as adjusted

3,198


2,024


7,373


2,335

Adjusted net income

$                  41,250


$                23,440


$                96,163


$                79,536









($K, except per share data)

Three Months Ended 


Nine Months Ended


September 27, 2024


September 29, 2023


September 27, 2024


September 29, 2023

Diluted earnings (loss) per share

$                      0.47


$                  (0.21)


$                    0.30


$                  (0.71)

Plus:








M&A, integration and related costs 

0.14


0.37


0.75


0.97

Amortization of intangible assets

0.63


0.52


1.72


1.58

Amortization of debt issuance costs and
Loss on extinguishment of debt

0.05


0.05


0.19


0.67

FMV land impairment

0.00


$                       —


0.06


$                       —

Adjusted diluted earnings per share

$                      1.29


$                    0.73


$                    3.01


$                    2.51









Average shares outstanding:








Basic, as reported

31,550


31,179


31,458


31,048

Diluted, as reported

31,973


31,179


31,921


31,048

Adjusted diluted

31,973


31,761


31,921


31,520









($K)

Three Months Ended 


Nine Months Ended


September 27, 2024


September 29, 2023


September 27, 2024


September 29, 2023

Net cash provided by operating activities

62,654


57,035


31,103


135,175

Plus:








M&A, integration, CARES Act, and related payments

13,009


11,854


25,044


34,248

MARPA facility activity

54,471


27,168


(63,348)


(85,832)

Adjusted operating cash flow

130,134


96,057


(7,201)


83,591

 

($K)

TTM


September 27, 2024

Net income (loss)

$                            9,159

Plus:


Interest expense, net

112,030

Income tax expense

11,315

Depreciation and amortization

115,248

Additional permitted add-backs1

85,707

TTM Bank EBITDA

$                         333,458



($K, except ratio)

Period Ending


September 27, 2024

Total debt

$                      1,146,490



Cash, cash equivalents and restricted cash

$                          59,857

Less:


Restricted cash

(2,117)

Cash and cash equivalents

$                          57,740



Net debt

$                      1,088,750

TTM bank EBITDA

$                         333,458

Net leverage ratio

 3.27x 


1Additional permitted add-backs includes among other items, non-cash losses like loss on extinguishment of debt and/or lease impairments, stock compensation, transaction and integration related costs, and pro forma cost savings.

SUPPLEMENTAL INFORMATION
Revenue by client branch, contract type, contract relationship, and geographic region for the periods presented below was as follows: 

Revenue by Client




Three Months Ended


Nine Months Ended



September 27,


September 29,


%


September 27,


September 29,


%

(In thousands)


2024


2023


Change


2024


2023


Change

Army


$        455,877


$        412,841


10.4 %


$     1,345,997


$     1,196,843


12.5 %

Navy


366,217


311,088


17.7 %


1,037,425


896,976


15.7 %

Air Force


121,863


134,728


(9.5) %


367,899


418,710


(12.1) %

Other


137,699


142,850


(3.6) %


413,082


410,290


0.7 %

Total revenue


$     1,081,656


$     1,001,507




$     3,164,403


$     2,922,819




Revenue by Contract Type

 



Three Months Ended


Nine Months Ended



September 27,


September 29,


%


September 27,


September 29,


%

(In thousands)


2024


2023


Change


2024


2023


Change

Cost-plus and cost-reimbursable


$        649,925


$        570,402


13.9 %


$     1,850,584


$     1,589,619


16.4 %

Firm-fixed-price


403,132


402,219


0.2 %


1,229,565


1,237,110


(0.6) %

Time-and-materials


28,599


28,886


(1.0) %


84,254


96,090


(12.3) %

Total revenue


$     1,081,656


$     1,001,507




$     3,164,403


$     2,922,819




Revenue by Contract Relationship

 


Three Months Ended


Nine Months Ended



September 27,


September 29,


%


September 27,


September 29,


%

(In thousands)


2024


2023


Change


2024


2023


Change

Prime contractor


$     1,021,497


$        945,669


8.0 %


$     2,972,773


$     2,740,908


8.5 %

Subcontractor


60,159


55,838


7.7 %


191,630


181,911


5.3 %

Total revenue


$     1,081,656


$     1,001,507




$     3,164,403


$     2,922,819




Revenue by Geographic Region



Three Months Ended


Nine Months Ended



September 27,


September 29,


%


September 27,


September 29,


%

(In thousands)


2024


2023


Change


2024


2023


Change

United States


$        604,872


$        571,405


5.9 %


$     1,728,480


$     1,698,689


1.8 %

Middle East


346,527


305,918


13.3 %


1,050,888


866,122


21.3 %

Asia


82,907


63,259


31.1 %


236,371


193,109


22.4 %

Europe


47,350


60,925


(22.3) %


148,664


164,899


(9.8) %

Total revenue


$     1,081,656


$     1,001,507




$     3,164,403


$     2,922,819



     

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-reports-strong-third-quarter-results-with-record-revenue-net-income-and-adjusted-ebitda-302295766.html

SOURCE V2X, Inc.

FAQ

What was V2X's (VVX) revenue in Q3 2024?

V2X reported record revenue of $1.08 billion in Q3 2024, representing an 8% increase year-over-year.

How much was V2X's (VVX) adjusted EBITDA in Q3 2024?

V2X achieved record adjusted EBITDA of $82.7 million in Q3 2024, up 28% year-over-year, with a margin of 7.6%.

What is V2X's (VVX) updated revenue guidance for 2024?

V2X updated its 2024 revenue guidance to $4,225-$4,275 million.

What major contract did V2X (VVX) win in Q3 2024?

V2X won the $3.7 billion Warfighter-Training Readiness Solutions (W-TRS) contract in Q3 2024.

V2X, Inc.

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