First Quarter Financial Highlights
Revenue of $1.25 billion, up 23% year-over-yearNet income of $18.9 million; Adjusted net income1 of $48.1 million, up 53% year-over-yearAdjusted EBITDA1 of $85.6 million; Adjusted EBITDA1 margin of 6.8%Diluted EPS of $0.60; Adjusted diluted EPS1 of $1.53, up 55% year-over-yearRecord backlog1 of $13.8 billion, driven by 3.2x book-to-bill1 in the quarter
Increasing 2026 Guidance
Increasing full-year 2026 guidance with 9% revenue and adjusted EBITDA1 growth at the midpoint
RESTON, Va., May 4, 2026 /PRNewswire/ — V2X, Inc. (NYSE:VVX) today announced first quarter 2026 financial results, and increased guidance for full-year 2026.
“V2X delivered a strong start to 2026, with double-digit growth on both the top and bottom lines, underscoring our team’s disciplined execution and our organization’s alignment to national security priorities,” said Jeremy C. Wensinger, President and Chief Executive Officer. “We secured approximately 50 awards in the quarter totaling approximately $4.1 billion, driving total backlog1 to a record $13.8 billion and reinforcing our position as a leading provider of mission capabilities. We are increasing our full-year outlook given the momentum underway. Supported by our strong balance sheet, we will continue to prioritize investments that accelerate innovation across the enterprise and enhance global operations, to deliver differentiated outcomes for customers and greater value for shareholders.”
First Quarter 2026 Results
In the first quarter, V2X reported revenue of $1.25 billion, representing year-over-year growth of 23%. The Company reported solid topline growth and strong operating performance, yielding double-digit growth in adjusted net income1 and adjusted EPS1. Net income for the quarter was $18.9 million. Adjusted net income1 was $48.1 million, an increase of 53%, year-over-year. First quarter GAAP diluted EPS was $0.60. Adjusted diluted EPS1 for the quarter increased 55% year-over-year to $1.53.
V2X delivered adjusted EBITDA1 of $85.6 million, with a margin1 of 6.8%, representing an increase of 28%, from the prior year.
First quarter net cash used by operating activities was $129.9 million. Adjusted net cash used by operating activities1 was $22.1 million.
At the end of the first quarter, net debt for V2X was $895.4 million, representing an improvement of $77 million year-over-year and a 2.5x net leverage ratio1. The Company expects to achieve a net leverage ratio1 less than 2.0x by the end of 2026.
As of April 3, 2026, total backlog1 was $13.8 billion and funded backlog1 was $2.3 billion. Book-to-bill1 in the first quarter was approximately 3.2x. Trailing twelve-month book-to-bill1 was approximately 1.5x.
Increasing 2026 Guidance
The Company is increasing its 2026 guidance ranges as follows:
$ millions, except for per share amounts
Prior 2026 Guidance
Updated 2026 Guidance
Revenue
$4,675
$4,825
$4,825
$4,975
Adjusted EBITDA1
$335
$350
$345
$360
Adjusted Diluted Earnings Per Share1
$5.50
$5.90
$5.75
$6.15
Adjusted Net Cash Provided by Operating Activities1
$150
$170
$160
$180
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.
First Quarter Conference Call
Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, May 4, 2026. 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/Q291YZzYJpN
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 May 18, 2026, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10208314.
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 16,200 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.
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.
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; all of the statements and items listed under “Increasing 2026 Guidance” above and other assumptions contained therein for purposes of such guidance; our belief that prior performance provides substantial visibility for future performance; market trends; product development; capital deployment; future net leverage ratio; and our belief that our innovation strategy, visibility, and targeted growth opportunities provide substantial opportunities for value creation.
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 applicable law.
V2X, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended
April 3,
March 28,
(In thousands, except per share data)
2026
2025
Revenue
$ 1,254,128
$ 1,015,923
Cost of revenue
1,148,310
937,820
Selling, general, and administrative expenses
61,728
43,805
Operating income
44,090
34,298
Loss on extinguishment of debt
—
(2,214)
Interest expense, net
(18,125)
(19,719)
Other expense, net
(2,446)
(2,295)
Income from operations before income taxes
23,519
10,070
Income tax expense
4,594
1,963
Net income
$ 18,925
$ 8,107
Earnings per share
Basic
$ 0.61
$ 0.26
Diluted
$ 0.60
$ 0.25
Weighted average common shares outstanding – basic
31,214
31,590
Weighted average common shares outstanding – diluted
31,512
32,021
V2X, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
April 3,
December 31,
(In thousands, except per share data)
2026
2025
Assets
Current assets
Cash, cash equivalents and restricted cash
$ 208,666
$ 368,994
Receivables
828,759
738,922
Prepaid expenses and other current assets
131,981
127,102
Total current assets
1,169,406
1,235,018
Property, plant, and equipment, net
50,640
52,383
Goodwill
1,676,954
1,677,154
Intangible assets, net
217,060
239,760
Other non-current assets
75,409
76,525
Total non-current assets
2,020,063
2,045,822
Total Assets
$ 3,189,469
$ 3,280,840
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable
$ 467,420
$ 557,042
Compensation and other employee benefits
170,388
176,530
Short-term debt
14,935
14,935
Other accrued liabilities
280,561
267,039
Total current liabilities
933,304
1,015,546
Long-term debt, net
1,060,928
1,083,234
Deferred tax liabilities
30,232
28,357
Other non-current liabilities
61,462
69,067
Total non-current liabilities
1,152,622
1,180,658
Total liabilities
2,085,926
2,196,204
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; 31,873,847 shares issued and
31,310,209 shares outstanding as of April 3, 2026; 31,735,083 shares issued and 31,171,445 shares
outstanding as of December 31, 2025
318
317
Treasury stock, at cost – (563,638) shares as of both April 3, 2026 and December 31, 2025
(30,274)
(30,274)
Additional paid in capital
777,994
779,084
Retained earnings
362,342
343,417
Accumulated other comprehensive loss
(6,837)
(7,908)
Total shareholders’ equity
1,103,543
1,084,636
Total Liabilities and Shareholders’ Equity
$ 3,189,469
$ 3,280,840
V2X, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended
April 3,
March 28,
(In thousands)
2026
2025
Operating activities
Net income
$ 18,925
$ 8,107
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense
3,963
4,250
Amortization of intangible assets
22,900
22,562
Amortization of cloud computing arrangements
1,246
1,226
Loss on disposal of property, plant, and equipment
3
253
Stock-based compensation
3,609
2,452
Deferred taxes
1,557
(3,074)
Amortization of debt issuance costs
1,669
1,488
Loss on extinguishment of debt
—
2,214
Changes in assets and liabilities:
Receivables
(90,701)
6,502
Other assets
(5,348)
(6,411)
Accounts payable
(89,372)
(107,694)
Compensation and other employee benefits
(6,050)
(42,610)
Other liabilities
7,689
15,271
Net cash used in operating activities
(129,910)
(95,464)
Investing activities
Purchases of capital assets
(2,291)
(2,699)
Proceeds from the disposition of assets
—
90
Net cash used in investing activities
(2,291)
(2,609)
Financing activities
Repayments of long-term debt
(23,734)
—
Proceeds from revolver
—
141,000
Repayments of revolver
—
(141,000)
Proceeds from stock awards and stock options
60
77
Payment of debt issuance costs
—
(1,223)
Payments of employee withholding taxes on stock-based compensation
(4,758)
(2,653)
Net cash used in financing activities
(28,432)
(3,799)
Exchange rate effect on cash
305
2,613
Net change in cash, cash equivalents and restricted cash
(160,328)
(99,259)
Cash, cash equivalents and restricted cash – beginning of period
368,994
268,321
Cash, cash equivalents and restricted cash – end of period
$ 208,666
$ 169,062
Supplemental disclosure of cash flow information:
Interest paid
$ 17,426
$ 12,945
Income taxes paid
$ 2,707
$ 320
Purchase of capital assets on account
$ 1,510
$ 48
Key Performance Indicators and Non-GAAP Measures
The primary financial performance measures we use to monitor results of operations are revenue and operating income. 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. 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. Backlog is the estimated amount of future revenues to be recognized under negotiated contracts. Funded backlog is contractually authorized and appropriated by the customer. Bookings includes approved values formally booked into V2X’s backlog for new business contract awards including unexercised options, contract modifications, recompetes, contract extensions and add-on work to existing contracts. Book-to-bill is derived by dividing bookings by 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, net leverage ratio 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 EBITDA, adjusted EBITDA margin, net leverage ratio, cash interest expense, net, 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 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
April 3, 2026
March 28, 2025
Revenue
$1,254,128
$1,015,923
Net income
$18,925
$8,107
Plus:
Income tax expense
4,594
1,963
Other expense, net
2,446
2,295
Interest expense, net
18,125
19,719
Loss on extinguishment of debt
—
2,214
Operating income
$44,090
$34,298
Plus:
Amortization of intangible assets
22,900
22,562
M&A, integration and related costs
13,373
4,625
Adjusted operating income
$80,363
$61,485
Plus:
Depreciation and CCA amortization
5,209
5,476
Adjusted EBITDA
$85,571
$66,961
Adjusted EBITDA margin
6.8 %
6.6 %
Minus:
Cash interest expense, net
16,456
18,231
Income tax expense, as adjusted
13,366
9,234
Depreciation and CCA amortization
5,209
5,476
Other expense, net, as adjusted
2,446
2,545
Adjusted net income
$48,094
$31,475
($K, except per share data)
Three Months Ended
April 3, 2026
March 28, 2025
Diluted earnings per share
$0.60
$0.25
Plus:
M&A, integration and related costs
$0.33
0.11
Amortization of intangible assets
$0.56
0.54
Amortization of debt issuance costs and Loss on extinguishment of debt
$0.04
0.09
FMV land impairment
$—
$—
Gain on acquisition, net
$—
$(0.01)
Adjusted diluted earnings per share
$1.53
$0.98
Average shares outstanding:
Basic, as reported
31,214
31,590
Diluted, as reported
31,512
32,021
Adjusted diluted
31,512
32,021
Non-GAAP Tables
($K)
Three Months Ended
April 3, 2026
March 28, 2025
Net cash used by operating activities
$ (129,910)
$ (95,464)
Plus:
M&A, integration, and related payments
2,206
3,008
MARPA facility activity
105,628
(25,617)
Adjusted operating cash flow
$ (22,076)
$ (118,073)
($K)
TTM
April 3, 2026
Net income
$ 88,700
Plus:
Interest expense, net
78,316
Income tax expense
25,652
Depreciation and amortization
112,595
Additional permitted add-backs1
52,097
TTM Bank EBITDA
$ 357,360
($K, except ratio)
Period Ending
April 3, 2026
Total debt
$ 1,100,085
Cash, cash equivalents and restricted cash
$ 208,666
Less:
Restricted cash
(4,014)
Cash and cash equivalents
$ 204,652
Net debt
$ 895,433
TTM bank EBITDA
$ 357,360
Net leverage ratio
2.51x
____________________________
1 Includes among other items, non-cash losses like loss on extinguishment of debt and/or lease impairments, stock compensation, transaction and integration related costs
SUPPLEMENTAL INFORMATION
Revenue by contract type, geographic region, contract relationship, and customer for the periods presented below was as follows:
Revenue by Contract Type
Three Months Ended
April 3,
March 28,
%
(In thousands)
2026
2025
Change
Cost-plus and cost-reimbursable
$ 752,405
$ 623,213
20.7 %
Firm-fixed-price
372,759
363,950
2.4 %
Time-and-materials
128,964
28,760
348.4 %
Total revenue
$ 1,254,128
$ 1,015,923
Revenue by Geographic Region
Three Months Ended
April 3,
March 28,
%
(In thousands)
2026
2025
Change
United States
$ 810,554
$ 577,458
40.4 %
Middle East
314,333
318,345
(1.3) %
Asia
76,137
75,978
0.2 %
Europe
53,104
44,142
20.3 %
Total revenue
$ 1,254,128
$ 1,015,923
Revenue by Contract Relationship
Three Months Ended
April 3,
March 28,
%
(In thousands)
2026
2025
Change
Prime contractor
$ 1,197,462
$ 962,421
24.4 %
Subcontractor
56,666
53,502
5.9 %
Total revenue
$ 1,254,128
$ 1,015,923
Revenue by Customer
Three Months Ended
April 3,
March 28,
%
(In thousands)
2026
2025
Change
Army
$ 440,114
$ 442,136
(0.5) %
Navy
382,921
346,118
10.6 %
Air Force
167,833
99,126
69.3 %
Other
263,260
128,543
104.8 %
Total revenue
$ 1,254,128
$ 1,015,923
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SOURCE V2X, Inc.
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