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V2X Achieves Milestone with Record Revenue in Q4 2024

V2X, Inc. has announced remarkable financial results for the fourth quarter of 2024, marking a significant milestone in its annual performance narrative. The company's revenue for this quarter hit $1.16 billion, reflecting an 11% increase compared to the same period last year. This impressive growth is particularly noteworthy, especially as the Indo-Pacific sector reported a 27% escalation in revenue year-over-year, largely due to heightened demand and strategic investments by the Department of Defense (DoD).

Quarterly Highlights and Performance Metrics

The fourth quarter saw V2X achieving not just record revenue but also a book-to-bill ratio of 1.2x, suggesting a healthy flow of new business relative to revenue recognition. The total backlog stood at an impressive $12.5 billion as of December 31, 2024, indicating a robust pipeline of opportunities for the company.

V2X's net income for the quarter was $25 million, with an adjusted net income of $42.7 million, an increase of 10% year-over-year. The adjusted EBITDA climbed to $86.2 million, representing a margin of 7.4%. In terms of earnings per share, diluted EPS was recorded at $0.78, while adjusted diluted EPS increased by 9% to reach $1.33.

The operational cash flow for the year-to-date was substantial, amounting to $254 million, accompanied by a significant $210 million reduction in net debt, bringing the net leverage ratio down to 2.6x.

Insights from Leadership

Jeremy Wensinger, President and CEO of V2X, expressed optimism regarding the company’s momentum, stating, “Our growth trajectory continues to be strong, facilitated by our comprehensive capabilities and longstanding reputation as a reliable partner.” He also underscored the importance of their mission insight and the integrated lifecycle solutions they offer, which are essential for enhancing operational readiness and addressing future threats.

The company's dedication to innovation, modernization, and strengthening operational performance is expected to contribute to continued success and value creation for their customers moving forward. Wensinger also acknowledged the contributions of the 16,000 employees at V2X, emphasizing their excellent performance and dedication throughout the year.

Yearly Performance Overview

Overall, V2X reported full-year revenues of $4.32 billion, marking a 9% increase from 2023, while operating income was noted at $159.2 million. The adjusted operating income for the year reached $286.2 million, with adjusted EBITDA standing at $310.2 million, reflecting a margin of 7.2%.

For shareholders, the adjusted diluted earnings per share for the year was recorded at $4.34, showcasing a 16% rise compared to the previous year. The operational cash flow facilitated by ongoing activities totaled $254.2 million, demonstrating the company's effective cash generation strategies.

Future Guidance and Outlook

Looking ahead to 2025, V2X has set ambitious guidance for revenue at a midpoint of $4.44 billion and an adjusted EBITDA of $313 million. This outlook assumes a heavier revenue load in the latter half of the year, with expectations of approximately 4% growth coming from recompeted contracts.

As V2X moves forward, the focus will remain on leveraging its unique solutions to meet the evolving demands of its clients and the national security landscape, reinforcing its position as a leader in the defense and technology sectors. The updated performance metrics and future guidance highlight V2X's commitment to delivering value while navigating the complexities of a challenging market environment.

In summary, V2X's record-setting fourth quarter not only serves as a testament to its operational effectiveness but also sets a strong foundation for continued growth in the coming years, with an unwavering focus on enhancing national security through innovative solutions.