V2X Reports Record Revenue in Fourth Quarter 2024, Driving Strong Year-End Performance

PR Newswire

RESTON, Va., Feb. 24, 2025

Fourth Quarter Highlights

   -- Record revenue of $1.16 billion, up 11% y/y 
 
   -- Indo-Pacific revenue growth of 27% y/y driven by increased demand 
 
   -- Book-to-bill of 1.2x in the quarter and total backlog of $12.5 billion as 
      of December 31, 2024 
 
   -- Record net income of $25.0 million; Adjusted net income1 of $42.7 million, 
      up 10% y/y 
 
   -- Grew adjusted EBITDA1 $4.1 million y/y to $86.2 million, with a margin of 
      7.4% 
 
   -- Diluted EPS of $0.78; Adjusted diluted EPS1 of $1.33, up 9% y/y 
 
   -- Strong year-to-date cash flow from operations of $254 million 
 
   -- Achieved net debt reduction of $210 million and 2.6x net leverage ratio1 

RESTON, Va., Feb. 24, 2025 /PRNewswire/ -- V2X, Inc. $(VVX)$ announced fourth quarter and full-year 2024 financial results.

"Our growth momentum continued into the fourth quarter with revenue increasing 11% year-over-year, driven by solid growth in all geographies and underscored by 27% growth in the Indo-Pacific region, as the DoD continues to focus on enhancing readiness and deterrence," said Jeremy Wensinger, President and Chief Executive Officer. "The combination of our unique mission insight, comprehensive full lifecycle capabilities, and 80-year reputation as a trusted partner is yielding results through expansion in key theaters, exceptional financial performance, and recent awards, which achieved a book-to-bill of 1.2x. The leading indicators in our business remain strong with a $12.5 billion backlog, limited recompetes, and a robust pipeline of new opportunities."

Mr. Wensinger continued, "Looking ahead, we are excited about the future. We believe our track record of enhancing outcomes and increasing value for customers through innovation, modernization, and improved operational performance can enable the DoD to solve its very real challenge of having to be prepared for today while planning for the threats of tomorrow."

Mr. Wensinger concluded, "I'd like to recognize the 16,000 plus V2X employees for all their contributions and performance throughout the year and in particular during the fourth quarter. We thank you for all you have done and continue to do for our nation and our company."

Fourth Quarter 2024 Results

"V2X reported record revenue of $1.16 billion in the quarter, which represents 11% year-over-year growth," said Shawn Mural, Senior Vice President and Chief Financial Officer. "We closed the year with strong performance across all financial metrics, driven by double digit topline growth and excellent cash generation."

"For the quarter, the Company reported operating income of $51.6 million and adjusted operating income(1) of $80.6 million. V2X delivered record adjusted EBITDA(1) of $86.2 million, with a margin of 7.4%. Fourth quarter GAAP diluted EPS was $0.78. Adjusted diluted EPS(1) for the quarter increased 9% year-over-year to $1.33."

"Fourth quarter net cash provided by operating activities was $223.1 million. Adjusted net cash provided by operating activities(1) increased 122% year-over-year to $168.2 million."

"Our continued focus on cash generation and debt reduction yielded notable results with net debt improving $210 million dollars year-over-year. At the end of the fourth quarter, net debt for V2X was $874 million. Our commitment to achieve a net leverage ratio at or below 3.0x was a company-wide priority. I'm pleased to report that we demonstrated excellent performance on this front, delivering a net leverage ratio(1) of 2.6x at the end of the fourth quarter, which represents a 0.7x improvement year-over-year."

"Total backlog as of December 31, 2024, was $12.5 billion. Funded backlog was $2.3 billion. Book-to-bill in the quarter was approximately 1.2x."

Full-Year 2024 Results

"Full-year revenue was $4.32 billion, up 9% year-over-year. The Company reported full-year operating income of $159.2 million and adjusted operating income(1) of $286.2 million. Full-year adjusted EBITDA(1) was $310.2 million with a margin of 7.2%. Full-year GAAP diluted EPS was $1.08. Adjusted diluted EPS(1) for 2024 was $4.34, increasing 16% year-over-year. On a year-to-date basis, net cash provided by operating activities was $254.2 million. Adjusted net cash provided by operating activities(1) was $161.0 million."

2025 Guidance

Mr. Mural concluded, "The trends in our business remain positive and we believe our strategy to deliver full lifecycle solutions that increase efficiency, reduce costs, modernize capabilities, improve readiness, and strengthen national security provides substantial opportunities for future growth and value creation. For 2025 we are setting the mid-point of our guidance for revenue and Adjusted EBITDA(1) at $4.44 billion and $313 million, respectively. This assumes revenue and adjusted EBITDA to be weighted more heavily in the second half of the year. Revenue guidance at the mid-point assumes approximately 4% contribution from recompetes."

Guidance for 2025 is as follows:

 
$ millions, except for per share amounts      2025 Guidance   2025 Mid-Point 
-------------------------------------------  ---------------  -------------- 
Revenue                                      $4,375   $4,500      $4,438 
Adjusted EBITDA(1)                            $305     $320        $313 
Adjusted Diluted Earnings Per Share(1)        $4.45   $4.85       $4.65 
Adjusted Net Cash Provided by Operating 
 Activities(1)                                $150     $170        $160 
-------------------------------------------  -------  ------  -------------- 
 

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.

Fourth Quarter Conference Call

Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, February 24, 2025. U.S.-based participants may dial in to the conference call at 877-300-8521, while international participants may dial 412-317-6026. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/W6kmnm4z8V9

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 March 10, 2025, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10195666.

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.

 
(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 "2025 Guidance" above and other assumptions contained therein for purposes of such guidance, other statements about our 2025 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 future performance and capabilities; our expectations regarding the pipeline of new opportunities; our belief in our ability to achieve budget efficiencies; future net leverage ratio; and our belief in our ability to achieve our total year guidance.

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