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V2X
(NYSE:VVX)
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Rating:74Outperform
Price Target:
$97.00
▲(16.07% Upside)
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
High backlog and funded backlog growth
A $12.7B total backlog with funded backlog up sequentially provides durable revenue visibility, reducing near‑term award dependency. High booked work supports multi‑quarter planning, workforce allocation, and revenue conversion, helping stabilize top‑line growth over the next 2–6 months.
Negative Factors
Structurally thin margins
Low gross and net margins limit earnings scalability and make profits highly sensitive to contract mix, labor costs and subcontractor pass‑throughs. Persistent thin margins constrain free cash generation buffers and leave limited room to absorb execution setbacks over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High backlog and funded backlog growth
A $12.7B total backlog with funded backlog up sequentially provides durable revenue visibility, reducing near‑term award dependency. High booked work supports multi‑quarter planning, workforce allocation, and revenue conversion, helping stabilize top‑line growth over the next 2–6 months.
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.
Data provided by:
The Fly
The FlyV2X (VVX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.59B
Dividend YieldN/A
Average Volume (3M)673.26K
Price to Earnings (P/E)27.0
Beta (1Y)1.23
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. Volume802,920
30 Day Avg. Volume673,258
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$89.18Price Target Upside6.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)6.23
Revenue Forecast (FY)$4.98B
V2X Business Overview & Revenue Model
Company Description
Colorado Springs, Colorado, serves as the home base for V2X, Inc....
How the Company Makes Money
V2X makes money primarily by performing services under U.S. government contracts and task orders, with revenue recognized as work is delivered in accordance with contract terms. Its key revenue streams are tied to (1) base operations and facilitie...
V2X Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 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
Negative
83.57
Price Trends
80.79
Negative
76.41
Positive
69.42
Positive
Market Momentum
0.22
Positive
45.03
Neutral
30.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VVX, the sentiment is Negative. The current price of 83.57 is above the 20-day moving average (MA) of 83.56, above the 50-day MA of 80.79, and above the 200-day MA of 69.42, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 30.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.51B | 37.28 | 51.97% | ― | 14.49% | ― | |
74 Outperform | $2.59B | 26.97 | 8.35% | ― | 12.99% | 31.03% | |
69 Neutral | $1.46B | 38.91 | 10.76% | 1.26% | 19.74% | -7.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $3.02B | -104.46 | -3.72% | ― | 8.57% | -162.23% | |
59 Neutral | $4.24B | -19.09 | 26.62% | ― | 116.89% | 64.21% | |
58 Neutral | $2.37B | -16.21 | -33.05% | ― | 10.63% | -28.03% |
* Industrials Sector Average
VVX
V2X
79.01
20.15
34.23%
ATRO
Astronics
76.06
47.06
162.31%
DCO
Ducommun
189.08
96.24
103.66%
CDRE
Cadre Holdings
33.85
3.14
10.23%
LUNR
Intuitive Machines
17.93
8.97
100.11%
VOYG
Voyager Technologies, Inc. Class A
37.92
7.15
23.24%
V2X Corporate Events
Business Operations and StrategyPrivate Placements and Financing
V2X Refinances Term Loans to Enhance Financial Flexibility
Positive
Jun 1, 2026
On May 29, 2026, V2X Intermediate LLC and V2X LLC entered into a sixth amendment to their first-lien credit agreement with Royal Bank of Canada and other lenders, establishing a new tranche of term loans totaling about $868.5 million to fully refi...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
V2X completes secondary offering reshaping shareholder structure
Neutral
May 11, 2026
On May 7, 2026, V2X, Inc. and selling shareholder Vertex Aerospace Holdco LLC entered an underwriting agreement with Morgan Stanley Co. LLC for a public secondary offering of 2,004,569 shares of V2X common stock, which was conducted under an exis...
Executive/Board ChangesShareholder Meetings
V2X Announces Board Changes and Shareholder Meeting Results
Positive
May 7, 2026
At its 2026 Annual Meeting of Shareholders held on May 7, 2026, V2X, Inc. ended the term of Class III director Steven L. Waechter, 76, in line with its corporate governance rule that directors be 75 or younger at the time of nomination, noting his...
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.