V2X (VVX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.02 billion, with 10% year-over-year growth in the Indo-Pacific region and strong performance in training and readiness programs.

• Net income was $8.1 million, up from $1.1 million year-over-year; adjusted net income rose 10% to $31.5 million.

• Major contract wins and extensions included LOGCAP V-Kuwait, $921 million Army IDIQ, $140 million Space Force, $103 million Navy aviation, and $100 million FBI awards.

• Backlog stands at $12–$12.5 billion, representing about three times annual revenue, with top five programs providing roughly five years of revenue runway.

• Enhanced capital structure and liquidity, with interest expense savings and improved cash flow.

Financial highlights

• Q1 2025 revenue: $1,016 million, up from $1,011 million in Q1 2024.

• Adjusted EBITDA was $67.0 million, margin 6.6%, and adjusted EPS was $0.98, up from $0.90 in Q1 2024.

• Net income for the quarter was $8.1 million, with operating income at $34.3 million.

• Cash and equivalents at quarter-end: $169.1 million; available borrowing capacity: $477.7–$500 million.

• Net cash used in operating activities: $(95.5)–$(118.1) million, reflecting working capital outflows.

Outlook and guidance

• 2025 revenue guidance reaffirmed at $4.38–$4.50 billion, midpoint $4.44 billion.

• Adjusted EBITDA guidance: $305–$320 million, midpoint $313 million; adjusted EPS: $4.45–$4.85, midpoint $4.65.

• Adjusted net cash from operations guidance: $150–$170 million, midpoint $160 million.

• Revenue and adjusted EBITDA expected to be weighted ~45% in H1 and ~55% in H2.

• Bid volume for 2025 is expected to be 50% higher than 2024, with five $1 billion+ opportunities targeted.