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V2X
(NYSE:VVX)
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Rating:74Outperform
Price Target:
$76.00
▼(-0.54% Downside)
Action:Reiterated
Date:08/04/26
Overall score reflects improving fundamentals and a constructive technical uptrend, reinforced by a positive earnings call with raised guidance and strong backlog visibility. The main offsets are premium valuation (P/E 32), persistently thin margins, and execution/timing risks highlighted on the call (booking lumpiness, Kuwait/LOGCAP contraction, and GAAP cash-flow timing).
Positive Factors
Strong backlog visibility
The large backlog provides meaningful revenue visibility over the next several quarters and reduces reliance on immediate contract wins. Growth in funded backlog further supports near-term execution, while multiyear awards can reinforce customer relationships and sustain the company’s government-services platform.
Negative Factors
Structurally thin profitability
Thin margins leave limited room for cost overruns, unfavorable contract mix or weaker fee realization, making earnings more sensitive to execution than revenue alone suggests. Even with expected improvement, modest profitability can constrain reinvestment and reduce the buffer protecting cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong backlog visibility
The large backlog provides meaningful revenue visibility over the next several quarters and reduces reliance on immediate contract wins. Growth in funded backlog further supports near-term execution, while multiyear awards can reinforce customer relationships and sustain the company’s government-services platform.
Read all positive factors
V2X Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales across regions to show where the company is strongest and where it may face economic, regulatory, or currency headwinds. Helps spot untapped growth markets and geographic reliance that could affect future results.
Breaks down sales across regions to show where the company is strongest and where it may face economic, regulatory, or currency headwinds. Helps spot untapped growth markets and geographic reliance that could affect future results.
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The Fly
The FlyV2X (VVX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.24B
Dividend YieldN/A
Average Volume (3M)620.72K
Price to Earnings (P/E)24.5
Beta (1Y)1.07
Revenue Growth12.99%
EPS Growth31.03%
CountryUS
Employees16,200
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.92
Shares Outstanding31,345,358
10 Day Avg. Volume426,171
30 Day Avg. Volume620,719
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.59
Price to Sales (P/S)0.38
P/FCF Ratio10.12
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit7.68
Enterprise Value/Ebitda10.21
Forecast
1Y Price Target
$88.50Price Target Upside15.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)6.23
Revenue Forecast (FY)$4.98B
V2X Business Overview & Revenue Model
Company Description
V2X, Inc. provides critical mission solutions and support services to defense customers internationally. It offers a suite of integrated solutions multi-domain impact readiness, integrated supply chain management, mission solutions, platform renew...
How the Company Makes Money
V2X makes money primarily by performing work under government contracts and task orders, with revenue recognized as services are delivered in accordance with contract terms (typically over the period of performance). Key revenue streams generally ...
V2X Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational momentum with double-digit revenue growth, meaningful EPS and adjusted net income gains, strengthened backlog/funded backlog, significant new awards and a large AI-enabled bid pipeline. Management raised full-year guidance and highlighted improving cash generation, net-debt reduction and a positive credit outlook. Key near-term headwinds are lumpiness in bookings, a material contraction in Kuwait/LOGCAP activity (~$150M H2), GAAP operating cash usage in H1, and modest adjusted EBITDA margins that leave room for improvement. On balance, the positive revenue, earnings, backlog and guidance revisions outweigh the execution and timing risks discussed.Positive Updates
Strong Revenue and EPS Growth
Q2 revenue grew 17% year-over-year to $1.257 billion. Adjusted diluted EPS was $1.64, up ~23% year-over-year. Adjusted net income for the quarter was $51.6 million, up 22% year-over-year.
Negative Updates
Quarterly Bookings Weakness and Lumpiness
Bookings in Q2 were $600 million yielding a quarterly book-to-bill of 0.5x (though trailing 12-month book-to-bill was 1.4x). Management noted lumpiness and timing risk of awards, with some large awards arriving after quarter close.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and EPS Growth
Q2 revenue grew 17% year-over-year to $1.257 billion. Adjusted diluted EPS was $1.64, up ~23% year-over-year. Adjusted net income for the quarter was $51.6 million, up 22% year-over-year.
Read all positive updates
Company Guidance
V2X raised full‑year guidance to revenue of $4.875–$5.025 billion, adjusted EBITDA of $347.5–$362.5 million, adjusted diluted EPS of $5.90–$6.30 and adjusted net cash from operating activities of $160–$180 million; at the midpoints management expects roughly 10% year‑over‑year growth in revenue and adjusted EBITDA and ~16% growth in adjusted diluted EPS, aims to reach net leverage of ~2x or below by year‑end, and noted that 98% of 2026 revenue is already in backlog (total backlog $12.7 billion; funded backlog $2.5 billion, up 10% sequentially and 8% YoY). Management cited supporting operating metrics from the quarter and year‑to‑date — Q2 revenue $1.257 billion (up 17% YoY), Q2 adjusted EBITDA $89.8 million (7.1% margin), Q2 adjusted diluted EPS $1.64; YTD revenue $2.511 billion (up 20% YTD) and adjusted EBITDA $175.4 million — and bookings of $600 million in the quarter (quarterly book‑to‑bill 0.5x, trailing 12‑month 1.4x; management targets ~1.3–1.5x book‑to‑bill for the year) as the basis for the upgraded guidance.V2X Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.90B | 4.48B | 4.32B | 3.96B | 2.89B | 1.78B |
| Gross Profit | 414.87M | 373.38M | 342.96M | 334.86M | 295.01M | 160.42M |
| EBITDA | 312.07M | 298.37M | 262.88M | 212.20M | 118.40M | 78.57M |
| Net Income | 91.85M | 77.88M | 34.68M | -22.57M | -14.33M | 45.73M |
Balance Sheet | ||||||
| Total Assets | 3.20B | 3.39B | 3.23B | 3.08B | 3.23B | 889.46M |
| Cash, Cash Equivalents and Short-Term Investments | 214.31M | 368.99M | 268.32M | 72.65M | 116.07M | 38.51M |
| Total Debt | 1.06B | 1.17B | 1.15B | 1.16B | 1.33B | 151.16M |
| Total Liabilities | 2.06B | 2.30B | 2.20B | 2.09B | 2.24B | 539.37M |
| Stockholders Equity | 1.13B | 1.08B | 1.03B | 990.80M | 997.08M | 350.09M |
Cash Flow | ||||||
| Free Cash Flow | 130.45M | 170.07M | 242.45M | 162.95M | 81.07M | 51.56M |
| Operating Cash Flow | 140.56M | 181.99M | 254.24M | 187.97M | 93.50M | 61.34M |
| Investing Cash Flow | -27.87M | -29.58M | -28.65M | -22.65M | 175.96M | -12.64M |
| Financing Cash Flow | -84.64M | -51.48M | -24.50M | -211.02M | -193.24M | -75.58M |
V2X Technical Analysis
Neutral
76.41
Price Trends
76.79
Negative
78.37
Negative
72.82
Negative
Market Momentum
-1.73
Positive
43.68
Neutral
32.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VVX, the sentiment is Neutral. The current price of 76.41 is above the 20-day moving average (MA) of 73.24, below the 50-day MA of 76.79, and above the 200-day MA of 72.82, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 32.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VVX.
V2X Risk Analysis
V2X disclosed 49 risk factors in its most recent earnings report. V2X reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
V2X Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $9.67B | 30.20 | 11.76% | 0.99% | 10.46% | 28.28% | |
74 Outperform | $2.24B | 24.47 | 8.35% | ― | 12.99% | 31.03% | |
72 Outperform | $4.72B | 23.24 | 4.44% | ― | 11.44% | 291.35% | |
70 Outperform | $4.04B | 20.37 | 11.63% | 1.67% | 21.97% | 515.59% | |
67 Neutral | $4.87B | 63.14 | 3.73% | 0.23% | 23.35% | 56.45% | |
65 Neutral | $10.43B | 15.76 | 12.89% | 2.08% | 13.97% | 25.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
VVX
V2X
71.44
14.13
24.66%
AIR
AAR
100.43
19.15
23.56%
HII
Huntington Ingalls
264.80
-18.39
-6.49%
DRS
Leonardo Drs
36.24
-7.05
-16.29%
VSEC
VSE
173.63
16.22
10.31%
AMTM
Amentum Holdings, Inc.
19.29
-4.40
-18.57%
V2X Corporate Events
Business Operations and StrategyExecutive/Board Changes
V2X Growth Chief Resigns; CEO Assumes Interim Role
Neutral
Aug 10, 2026
On August 7, 2026, Senior Vice President and Chief Growth Officer Dr. L. Roger Mason, Jr. resigned from all roles at V2X and its subsidiaries to become Director of the National Reconnaissance Office at the U.S. Department of War. His departure was...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.