V2X Reports Third Quarter 2026 Results

Third Quarter Financial Highlights

• Revenue of $1.27 billion, up 9% year-over-year
• Net income of $32.0 million, up 30% year-over-year; Adjusted net income¹ of $51.7 million, up 19% year-over-year
• Adjusted EBITDA¹ of $88.6 million; Adjusted EBITDA margin¹ of 7.0%
• Diluted EPS of $1.01, up 32% year-over-year; Adjusted diluted EPS¹ of $1.64, up 19% year-over-year
• Increasing full-year 2026 guidance across all metrics

RESTON, Va., Nov. 2, 2026 /PRNewswire/ — V2X, Inc. (NYSE: VVX) today announced third quarter 2026 financial results and increased 2026 guidance.

“We delivered another strong quarter, with revenue growth and double-digit increases in net income and diluted EPS. Our results reflect our team’s consistent execution and continued demand for V2X’s mission-critical capabilities,” said Jeremy C. Wensinger, President and Chief Executive Officer. “Recent award activity and on-contract growth reinforce the momentum underway, and we believe our global presence and diverse capabilities position us to scale quickly as customers’ requirements continue to evolve. Based on our year-to-date performance, current backlog position and existing demand signals, we are increasing our full-year 2026 guidance. Looking forward, we expect to continue investing in areas of growth that we believe will enable us to advance our Go Towards Tomorrow strategy, create long-term value for our shareholders and deliver for our customers and their missions.”

Third Quarter 2026 Results

In the third quarter, V2X reported revenue of $1.27 billion, representing 9% year-over-year growth. The Company reported solid topline growth and strong operating performance, yielding double-digit growth in adjusted net income¹ and adjusted EPS¹. Net income for the quarter was $32.0 million, an increase of 30% year-over-year. Adjusted net income¹ was $51.7 million, an increase of 19%, year-over-year. Third quarter GAAP diluted EPS was $1.01, an increase of 32% year-over-year. Adjusted diluted EPS¹ for the quarter increased 19% year-over-year to $1.64.

V2X delivered adjusted EBITDA¹ of $88.6 million, with an adjusted EBITDA margin¹ of 7.0%, representing an increase of 4% year-over-year.

¹   See “Key Performance Indicators and Non-GAAP Financial Measures” for descriptions and reconciliations.

Third quarter net cash provided by operating activities was $67.3 million. Adjusted net cash provided by operating activities¹ was $61.8 million.

At the end of the third quarter, net debt for V2X was $811.7 million, representing an improvement of $140.3 million year-over-year and a 2.2x net leverage ratio¹. The Company expects to achieve a net leverage ratio¹ of approximately 2.0x by the end of 2026.

As of October 2, 2026, total backlog¹ was $12.8 billion and funded backlog¹ was $2.6 billion. Book-to-bill¹ in the third quarter was approximately 1.2x. Trailing twelve-month book-to-bill¹ was approximately 1.4x.

Increasing 2026 Guidance

The Company is increasing its 2026 guidance as follows:

$ millions, except for per share amounts

Prior 2026 Guidance

Updated 2026 Guidance

Revenue

$4,875

$5,025

$4,950

$5,100

Adjusted EBITDA¹

$347.5

$362.5

$352.5

$367.5

Adjusted Diluted Earnings Per Share¹

$5.90

$6.30

$6.15

$6.55

Adjusted Net Cash Provided by Operating
Activities¹

$160

$180

$175

$195

The Company is not providing a quantitative reconciliation with respect to the foregoing forward-looking non-GAAP measures in reliance on the “unreasonable efforts” exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, which relate to M&A, integration and related activities cannot be reasonably estimated. Forward-looking statements are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including those factors set forth in the Cautionary Note Regarding Forward-Looking Statements below. 

¹   See “Key Performance Indicators and Non-GAAP Financial Measures” for descriptions and reconciliations.

Third Quarter Conference Call

Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, November 2, 2026. U.S.-based participants may dial in to the conference call at 833-862-0305, while international participants may dial 412-634-6017. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/rqDM9X62Bez 

A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through November 16, 2026, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10212511.  

Presentation slides that will be used in conjunction with the conference call will also be made available online in advance on the “investors” section of the company’s website at https://gov2x.com. V2X recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under the U.S. Securities and Exchange Commission (“SEC”) Regulation FD.

About V2X

V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,200 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.

Investor Contact

Media Contact

Mike Smith, CFA

Angelica Spanos Deoudes

 

 

719-637-5773

571-338-5195

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the “Act”): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act.

Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “could,” “potential,” “continue” or similar terminology. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. Forward-looking statements in this press release, include, but are not limited to our future performance and capabilities; all of the statements and items listed under “Increasing 2026 Guidance” above and other assumptions contained therein for purposes of such guidance; our belief that prior performance provides substantial visibility for future performance; market trends; product development; capital deployment; future net leverage ratio; and our belief that our innovation strategy, visibility, and targeted growth opportunities provide substantial demand for our services and opportunities for value creation.

These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside our management’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections.

Important factors that could cause actual results to differ materially include, among others: our ability to submit proposals for and/or win all potential opportunities in our pipeline; our ability to retain and renew our existing contracts; our ability to compete with other companies in our market; security breaches, cyber-attacks or cyber intrusions, including cyber risks associated with the increased frequency and use of sophisticated artificial intelligence technologies, and other disruptions to our information technology and operation; our mix of cost-plus, cost-reimbursable, firm-fixed-price and time-and-materials contracts; maintaining our reputation and relationship with the U.S. government; protests of new awards; economic, political and social conditions in the countries in which we conduct our businesses; changes in U.S. or international government defense budgets, including potential changes or uncertainty arising from the U.S. president and administration; government regulations and compliance therewith, including changes to the procurement process of the Department of War; changes in technology, including artificial intelligence and/or super intelligence; our ability to protect our intellectual property rights; governmental investigations, reviews, audits and cost adjustments; contingencies related to actual or alleged environmental contamination, claims and concerns; delays in completion of the U.S. government budget; our success in extending, deepening, and enhancing our technical capabilities; our success in expanding our geographic footprint or broadening our customer base; our ability to realize the full amounts reflected in our backlog; impairment of goodwill; misconduct of our employees, subcontractors, agents, prime contractors and business partners; our ability to control costs; our level of indebtedness; terms of our credit agreements; inflation and interest rate risk; geopolitical risk, including as a result of recent global hostilities and tariffs; our suppliers’ performance; economic and capital markets conditions; our ability to maintain safe work sites and equipment; our ability to retain and recruit qualified personnel; our ability to maintain good relationships with our workforce and unions; our teaming relationships with other contractors; changes in our accounting estimates; the adequacy of our insurance coverage; volatility in our stock price; changes in our tax provisions; our expectation with respect to the resolution of certain tax claims or exposure to additional income tax liabilities; risks and uncertainties relating to integrating and refining internal control systems, including enterprise resource planning and business systems; changes in GAAP; and other factors described in Part I. “Item 1A Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Report on Form 10-Q for the quarterly period ended October 2, 2026, and described from time to time in our future reports filed with the SEC.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

V2X, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

Nine Months Ended

October 2,

September 26,

October 2,

September 26,

(In thousands, except per share data)

2026

2025

2026

2025

Revenue

$    1,271,463

$     1,167,137

$   3,782,234

$     3,261,390

Cost of revenue

1,168,031

1,072,632

3,463,480

2,993,049

Selling, general, and administrative expenses

43,951

38,836

161,373

125,434

Operating income

59,481

55,669

157,381

142,907

Loss on extinguishment of debt

—

—

(1,739)

(2,527)

Interest expense, net

(15,534)

(19,961)

(50,364)

(60,278)

Other expense, net

(2,428)

(2,962)

(7,011)

(7,836)

Income from operations before income taxes

41,519

32,746

98,267

72,266

Income tax expense

9,526

8,141

21,809

17,163

Net income

$        31,993

$         24,605

$       76,458

$         55,103

Earnings per share

Basic

$           1.02

$            0.78

$          2.44

$            1.74

Diluted

$           1.01

$            0.77

$          2.42

$            1.73

Weighted average common shares outstanding – basic

31,346

31,617

31,295

31,634

Weighted average common shares outstanding – diluted

31,588

31,856

31,563

31,881

V2X, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

October 2,

December 31,

(In thousands, except per share data)

2026

2025

Assets

Current assets

  Cash, cash equivalents and restricted cash

$       265,070

$      368,994

  Receivables

809,786

730,256

  Prepaid expenses and other current assets

172,700

127,102

Total current assets

1,247,556

1,226,352

  Property, plant, and equipment, net

48,169

52,383

  Goodwill

1,676,954

1,677,154

  Intangible assets, net

171,267

239,760

  Other non-current assets

73,912

76,525

Total non-current assets

1,970,302

2,045,822

Total Assets

$    3,217,858

$    3,272,174

Liabilities and Shareholders’ Equity

Current liabilities

  Accounts payable

$       467,959

$      557,042

  Compensation and other employee benefits

161,794

176,530

  Short-term debt

17,591

14,935

  Other accrued liabilities

270,222

258,373

Total current liabilities

917,566

1,006,880

  Long-term debt, net

1,034,151

1,083,234

  Deferred tax liabilities

38,004

28,357

  Other non-current liabilities

57,342

69,067

Total non-current liabilities

1,129,497

1,180,658

Total liabilities

2,047,063

2,187,538

Commitments and contingencies (Note 7)

Shareholders’ Equity

 Preferred stock; $0.01 par value; 10,000,000 shares authorized; No shares issued and
 outstanding

—

—

 Common stock; $0.01 par value; 100,000,000 shares authorized; 31,911,630 shares
 issued and 31,347,992 shares outstanding as of October 2, 2026; 31,735,083 shares
 issued and 31,171,445 shares outstanding as of December 31, 2025

319

317

 Treasury stock, at cost – (563,638) shares as of both October 2, 2026 and December 31,
 2025

(30,274)

(30,274)

 Additional paid-in capital

785,645

779,084

 Retained earnings

419,875

343,417

 Accumulated other comprehensive loss

(4,770)

(7,908)

Total shareholders’ equity

1,170,795

1,084,636

Total Liabilities and Shareholders’ Equity

$    3,217,858

$    3,272,174

V2X, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended

October 2,

September 26,

(In thousands)

2026

2025

Operating activities

Net income

$        76,458

$        55,103

Adjustments to reconcile net income to net cash used in operating activities:

  Depreciation expense

11,817

12,468

  Amortization of intangible assets

68,693

67,726

  Amortization of cloud computing arrangements

3,763

3,676

  Loss on disposal of property, plant, and equipment

6

826

  Stock-based compensation

11,838

9,121

  Deferred taxes

8,717

(9,077)

  Amortization of debt issuance costs

4,787

4,588

  Loss on extinguishment of debt

1,739

2,527

Changes in assets and liabilities:

  Receivables

(72,718)

(58,473)

  Other assets

(44,918)

(15,473)

  Accounts payable

(89,640)

(63,230)

  Compensation and other employee benefits

(14,509)

(10,583)

  Other liabilities

(7,074)

(26,683)

  Net cash used in operating activities

(41,041)

(27,484)

Investing activities

Purchases of capital assets

(6,737)

(9,660)

Proceeds from the disposition of assets

18

2,285

Acquisitions of businesses

—

(27,500)

  Net cash used in investing activities

(6,719)

(34,875)

Financing activities

Repayments of long-term debt

(51,045)

(7,546)

Proceeds from revolver

—

459,000

Repayments of revolver

—

(459,000)

Proceeds from stock awards and stock options

141

558

Purchase of treasury stock

—

(10,000)

Payment of debt issuance costs

(1,194)

(3,909)

Payments of employee withholding taxes on stock-based compensation

(5,417)

(2,982)

  Net cash used in financing activities

(57,515)

(23,879)

Exchange rate effect on cash

1,351

235

Net change in cash, cash equivalents and restricted cash

(103,924)

(86,003)

Cash, cash equivalents and restricted cash – beginning of period

368,994

268,321

Cash, cash equivalents and restricted cash – end of period

$       265,070

$       182,318

Supplemental disclosure of cash flow information:

Interest paid

$        50,181

$        52,587

Income taxes paid, net of refunds

$        10,185

$          6,435

Purchase of capital assets on account

$          1,130

$            768

Purchase of treasury stock on account

$              —

$              56

Key Performance Indicators and Non-GAAP Financial Measures

The primary financial performance measures we use to monitor results of operations are revenue and operating income. Management believes that these financial performance measures are the primary drivers for our earnings and net cash from operating activities. Management evaluates its contracts and business performance by focusing on revenue and operating income. Operating income represents revenue less both cost of revenue and selling, general and administrative (SG&A) expenses. Cost of revenue consists of labor, subcontracting costs, materials, and an allocation of indirect costs. SG&A expenses consist of indirect labor costs (including wages and salaries for executives and administrative personnel), bid and proposal expenses and other general and administrative expenses not allocated to cost of revenue. Backlog includes funded amounts (funding is contractually authorized and appropriated by the customer) and unfunded amounts (amounts not currently contractually obligated by the customer, including unexercised options when the exercise of those options is considered probable). Total backlog excludes potential orders under IDIQ contracts and contracts awarded to us that are being protested by competitors with the GAO or in the COFC for which a stop work order has been received by the Company. Bookings includes approved values formally booked into V2X’s backlog for new business contract awards including unexercised options, contract modifications, recompetes, contract extensions and add-on work to existing contracts. Book-to-bill is derived by dividing bookings by revenue.

We manage the nature and amount of costs at the program level, which forms the basis for estimating our total costs and profitability. This is consistent with our approach for managing our business, which begins with management’s assessing the bidding opportunity for each contract and then managing contract profitability throughout the performance period.

In addition to the key performance measures discussed above, we consider adjusted net income, adjusted diluted earnings per share, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio and adjusted operating cash flow to be useful to management and investors in evaluating our operating performance, and to provide a tool for evaluating our ongoing operations. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives. We provide this information to our investors in our earnings releases, presentations, and other disclosures.

Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio, cash interest expense, net, and adjusted net cash provided by (used in) operating activities, however, are not measures of financial performance under GAAP and should not be considered a substitute for financial measures determined in accordance with GAAP.  Definitions and reconciliations of these items are provided below.

Non-GAAP Tables

($K, except per share data)

Three Months Ended

Nine Months Ended

October 2, 2026

September 26,
2025

October 2, 2026

September 26,
2025

Revenue

$1,271,463

$1,167,137

$3,782,234

$3,261,390

Net income

$31,993

$24,605

$76,458

$55,103

Plus:

Income tax expense

9,526

8,141

21,809

17,163

Other expense, net

2,428

2,962

7,011

7,836

Interest expense, net

15,534

19,961

50,364

60,278

Loss on extinguishment of debt

–

–

1,739

2,527

Operating income

$59,481

$55,669

$157,381

$142,907

Plus:

Amortization of intangible assets

22,897

22,601

68,693

67,726

M&A, integration and related costs

1,236

1,370

22,313

7,775

Adjusted operating income

$83,614

$79,640

$248,388

$218,407

Plus:

Depreciation and CCA amortization

4,982

5,517

15,581

16,144

Adjusted EBITDA

$88,596

$85,156

$263,968

$234,552

Adjusted EBITDA margin

7.0 %

7.3 %

7.0 %

7.2 %

Minus:

Cash interest expense, net

13,987

18,405

45,577

55,690

Income tax expense, as adjusted

15,464

14,620

44,359

37,169

Depreciation and CCA amortization

4,982

5,517

15,581

16,144

Other expense, net, as adjusted

2,428

2,962

7,011

8,086

Adjusted net income

$51,736

$43,653

$151,441

$117,463

($K, except per share data)

Three Months Ended

Nine Months Ended

October 2, 2026

September 26,
2025

October 2, 2026

September 26,
2025

Diluted earnings per share

$1.01

$0.77

$2.42

$1.73

Plus:

M&A, integration and related costs

0.03

0.03

0.54

0.18

Amortization of intangible assets

0.56

0.53

1.67

1.61

Amortization of debt issuance costs and

Loss on extinguishment of debt

0.04

0.04

0.16

0.17

FMV land impairment

—

—

—

—

Gain on acquisition, net

—

0.00

—

(0.01)

Adjusted diluted earnings per share

$1.64

$1.37

$4.80

$3.68

Average shares outstanding:

Basic, as reported

31,346

31,617

31,295

31,634

Diluted, as reported

31,588

31,856

31,563

31,881

Adjusted diluted

31,588

31,856

31,563

31,881

Non-GAAP Tables

($K)

Three Months Ended

Nine Months Ended

October 2,
2026

September 26,
2025

October 2,
2026

September 26,
2025

Net cash provided by/(used in) by
operating activities

$67,319

$39,448

$(41,040)

$(27,484)

Plus:

M&A, integration, and related payments

2,033

1,298

11,475

12,060

MARPA facility activity

(7,505)

(4,991)

141,103

(8,641)

Adjusted operating cash flow

$61,847

$35,755

$111,538

$(24,064)

($K)

TTM

October 2, 2026

Net income

$99,237

Plus:

Interest expense, net

69,996

Income tax expense

27,667

Depreciation and amortization

112,928

Additional permitted add-backs¹

59,584

TTM Bank EBITDA

$369,412

($K, except ratio)

Period Ending

October 2, 2026

Total debt

$1,072,774

Cash, cash equivalents and
restricted cash

265,070

Less:

Restricted cash

(4,014)

Cash and cash equivalents

$261,057

Net debt

$811,718

TTM bank EBITDA

$369,412

Net leverage ratio

 2.2x

SUPPLEMENTAL INFORMATION

Revenue by contract type, geographic region, contract relationship, and customer for the periods presented below was as follows: 

Revenue by Contract Type:

Three Months Ended

Nine Months Ended

October 2,

September 26,

%

October 2,

September 26,

%

(In thousands)

2026

2025

Change

2026

2025

Change

Cost-plus and cost-reimbursable

$    692,452

$       702,557

(1.4) %

$ 2,180,075

$    1,973,210

10.5 %

Firm-fixed-price

419,111

436,528

(4.0) %

1,181,520

1,205,705

(2.0) %

Time-and-materials

159,900

28,052

470.0 %

420,639

82,475

410.0 %

Total revenue

$ 1,271,463

$     1,167,137

$ 3,782,234

$    3,261,390

Revenue by Geographic Region:

Three Months Ended

Nine Months Ended

October 2,

September 26,

%

October 2,

September 26,

%

(In thousands)

2026

2025

Change

2026

2025

Change

United States

$     894,067

$      684,659

30.6 %

$             2,502,133

$     1,894,474

32.1 %

Middle East

240,547

344,605

(30.2) %

879,430

983,267

(10.6) %

Asia

88,213

81,417

8.3 %

250,916

234,188

7.1 %

Europe

48,636

56,456

(13.9) %

149,755

149,461

0.2 %

Total revenue

$  1,271,463

$    1,167,137

$             3,782,234

$     3,261,390

Revenue by Contract Relationship:

Three Months Ended

Nine Months Ended

October 2,

September 26,

%

October 2,

September 26,

%

(In thousands)

2026

2025

Change

2026

2025

Change

Prime contractor

$  1,219,666

$     1,109,660

9.9 %

$ 3,623,728

$    3,081,746

17.6 %

Subcontractor

51,797

57,477

(9.9) %

158,506

179,644

(11.8) %

Total revenue

$  1,271,463

$     1,167,137

$ 3,782,234

$    3,261,390

Revenue by Customer:

Three Months Ended

Nine Months Ended

October 2,

September 26,

%

October 2,

September 26,

%

(In thousands)

2026

2025

Change

2026

2025

Change

Army

$   337,688

$         449,031

(24.8) %

$  1,199,914

$    1,348,610

(11.0) %

Navy

389,726

390,542

(0.2) %

1,147,819

1,090,936

5.2 %

Air Force

251,275

167,571

50.0 %

634,298

374,519

69.4 %

Other

292,774

159,993

83.0 %

800,203

447,325

78.9 %

Total revenue

$ 1,271,463

$       1,167,137

$  3,782,234

$    3,261,390

SOURCE V2X, Inc.