V2X (VVX) Q1 2026 earnings summary

Executive summary

• Revenue grew 23% year-over-year to $1.25 billion, driven by strong program ramp-ups, strategic execution, and alignment with national security priorities.

• Net income reached $18.9 million, up 133% year-over-year; adjusted net income rose 53% to $48.1 million.

• Secured approximately 50 contract awards totaling $4.1 billion, resulting in a record backlog of $13.8 billion and a 3.2x book-to-bill ratio.

• Strong balance sheet and significant capacity support both organic and inorganic growth investments.

• Company operates as a single segment, focusing on defense and national security solutions globally.

Financial highlights

• Adjusted EBITDA was $85.6 million (6.8% margin), up 28% year-over-year.

• Diluted EPS was $0.60, up from $0.25 year-over-year; adjusted diluted EPS increased 55% to $1.53.

• Net cash used in operating activities was $129.9 million; adjusted net cash used was $22.1 million.

• Cash, cash equivalents, and restricted cash at quarter-end were $208.7 million.

• Net debt at quarter-end was $895.4 million, with a net leverage ratio of 2.51x.

Outlook and guidance

• 2026 guidance raised: revenue expected between $4.825–$4.975 billion, adjusted EBITDA $345–$360 million, adjusted diluted EPS $5.75–$6.15.

• Adjusted net cash from operations expected between $160–$180 million.

• Targeting net leverage ratio below 2.0x by year-end 2026.

• A substantial portion of funded backlog ($2.29 billion) expected to be recognized as revenue within 12 months.

• Guidance assumes continued strong performance in key programs and regions, with management monitoring potential reductions in major contracts.