V2X (VVX) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: N/A
• Average Volume (3M): 366.44K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.19
• Revenue Growth: 5.10%
• EPS Growth: 774.57%
• Country: US
• Employees: 16,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.37
• Shares Outstanding: 31,535,084
• 10 Day Avg. Volume: 421,301
• 30 Day Avg. Volume: 366,442
• PEG Ratio: -0.17
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 6.21
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 8.26
• Enterprise Value/Ebitda: 10.53
• 1Y Price Target: $65.29
• Price Target Upside: -3.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.68
• Revenue Forecast (FY): $4.70B

• Rating: 71 Outperform
• Price Target: $65.00 ▼(-4.38% Downside)

The score is driven primarily by solid financial performance—especially strong cash flow generation and sharply improved leverage—supported by a positive earnings call with raised guidance and strong demand indicators. Technicals are favorable with positive momentum, while valuation is the main constraint due to a P/E of 23.32 and no dividend yield support.

Positive Factors

Strong free cash flow growth

Sustained 28.6% TTM FCF growth indicates durable cash generation capacity that supports debt reduction, organic investment, and opportunistic share repurchases. Reliable FCF underpins strategic flexibility and resilience to timing shocks in contract collections over the next 2–6 months.

Material deleveraging and stronger balance sheet

A drop to 0.04 D/E from >1 materially lowers financial risk and interest burden, increasing capacity for multi-year contract fulfillment and strategic investment. Improved leverage gives management durable financial flexibility to fund growth or weather procurement payment lags.

Large backlog and multi‑year contracts

An $11.6B backlog plus a 1.2x book-to-bill and multi‑year IDIQ awards provide durable revenue visibility and capacity utilization. Multi‑year contracts smooth revenue recognition and support stable engineering and production planning across the next several years.

Negative Factors

Low profitability margins

Persistently low gross and net margins constrain reinvestment and free cash conversion relative to peers. Even with improving trends, sub‑10% gross margins limit competitive pricing flexibility and require sustained operational improvements to drive durable margin expansion.

Contract protest risk (T‑6 award)

The T‑6 award being under protest creates material uncertainty in backlog and revenue timing. Protest outcomes can delay or void multi‑hundred‑million dollar awards, disrupting production planning, cash flow forecasts, and long‑term capacity commitments.

Government procurement timing exposure

Reliance on government customers leaves cash collections exposed to funding interruptions and shutdowns. Recurring timing variability can pressure working capital and force cautious cash guidance, limiting the company's ability to commit to investments or accelerate hiring during disruption periods.

V2X Business Overview & Revenue Model

Company Description

V2X, Inc. is based in Colorado Springs, Colorado.

How the Company Makes Money

V2X generates revenue through multiple streams, including the sale of its V2X communication hardware and software solutions to municipalities and transportation agencies. Additionally, the company earns income from licensing its technology to automotive manufacturers and providing ongoing support and maintenance services. Strategic partnerships with technology firms and government entities amplify its market reach and provide opportunities for joint ventures, further enhancing its revenue potential. Furthermore, V2X engages in consulting services to assist cities in implementing smart mobility solutions, contributing to its overall earnings.

V2X Financial Statement Overview

Summary

Overall financials are solid: revenue growth is positive, profitability is improving (TTM net margin 1.63%) and leverage has been materially reduced (debt-to-equity 0.04). Cash generation is a standout with strong TTM free cash flow growth (28.58%) and FCF-to-net income of 1.07, though margins remain low versus typical industry levels.

Income Statement

V2X has shown consistent revenue growth with a TTM increase of 1.97% and a strong recovery from previous years. The gross profit margin is stable at 8.6%, and the net profit margin has improved to 1.63% in the TTM, indicating enhanced profitability. However, margins remain relatively low compared to industry standards, suggesting room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.04 in the TTM from over 1 in prior years, reflecting a substantial reduction in leverage. Return on equity has increased to 6.84%, indicating better utilization of equity. However, the equity ratio remains moderate at around 34%, suggesting a balanced but cautious approach to asset financing.

Cash Flow

V2X's cash flow performance is strong, with a notable free cash flow growth of 28.58% in the TTM. The operating cash flow to net income ratio is healthy at 0.17, and the free cash flow to net income ratio is robust at 1.07, indicating efficient cash generation relative to earnings. This solid cash flow position supports the company's financial stability and potential for reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.42B	4.32B	3.96B	2.89B	1.78B	1.40B
Gross Profit	375.76M	342.96M	334.86M	295.01M	160.42M	124.15M
EBITDA	294.86M	262.88M	212.20M	118.40M	78.57M	51.60M
Net Income	80.14M	34.68M	-22.57M	-14.33M	45.73M	36.95M
Balance Sheet
Total Assets	3.18B	3.23B	3.08B	3.23B	889.46M	843.81M
Cash, Cash Equivalents and Short-Term Investments	179.32M	268.32M	72.65M	116.07M	38.51M	66.95M
Total Debt	1.14B	1.15B	1.16B	1.33B	151.16M	197.57M
Total Liabilities	2.10B	2.20B	2.09B	2.24B	539.37M	538.87M
Stockholders Equity	1.08B	1.03B	990.80M	997.08M	350.09M	304.94M
Cash Flow
Free Cash Flow	184.90M	242.45M	162.95M	81.07M	51.56M	59.58M
Operating Cash Flow	195.65M	254.24M	187.97M	93.50M	61.34M	64.08M
Investing Cash Flow	-35.90M	-28.65M	-22.65M	175.96M	-12.64M	-138.03M
Financing Cash Flow	-31.64M	-24.50M	-211.02M	-193.24M	-75.58M	105.77M

V2X Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VVX, the sentiment is Positive. The current price of 67.98 is above the 20-day moving average (MA) of 59.24, above the 50-day MA of 56.61, and above the 200-day MA of 53.07, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 79.18 is Negative, neither overbought nor oversold. The STOCH value of 97.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VVX.

V2X Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDRE	80 Outperform	$1.77B	39.37	14.17%	0.90%	19.94%	33.38%
VVX	71 Outperform	$2.14B	26.97	7.70%	―	5.10%	774.57%
ATRO	65 Neutral	$2.65B	-550.55	-1.72%	―	6.19%	52.10%
DCO	65 Neutral	$1.71B	-48.89	-5.27%	―	3.16%	-213.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VOYG	58 Neutral	$2.11B	―	―	―	―	―
LUNR	57 Neutral	$3.89B	-11.56	―	―	8.07%	33.37%

V2X Corporate Events

V2X expands board with experienced defense industry leaders

On January 7, 2026, V2X, Inc.’s board of directors expanded its size from seven to ten members and appointed Nicole B. Theophilus, Gerard A. Fasano, and Ross S. Niebergall as Class I, II, and III directors, respectively, assigning them to key committees including Compensation and Human Capital, Audit, and Nominating and Governance. The new directors bring substantial executive and technical experience from major industrial, technology, and defense companies such as Wabtec, Leidos, Lockheed Martin, L3Harris, and Raytheon, and will participate in V2X’s standard non-employee director compensation program, a move that strengthens the company’s governance structure and signals an emphasis on growth, human capital, and defense-focused innovation for stakeholders.

The most recent analyst rating on (VVX) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on V2X stock, see the VVX Stock Forecast page.

V2X Board Changes and Shareholder Agreement Termination

V2X, Inc. announced the resignations of Dino M. Cusumano and Joel M. Rotroff from its Board of Directors on November 13, 2025, following the sale of shares by Vertex Aerospace Holdco LLC. This move reduced the board size from nine to seven members. The resignations were not due to any disagreements with the company. Concurrently, V2X entered into an underwriting agreement with RBC Capital Markets for a public offering of 2.25 million shares, which closed on the same day. The company repurchased some shares but did not sell any securities or receive proceeds from the sale. The sale led to the automatic termination of the Shareholders Agreement, ending the Selling Shareholder’s rights to nominate board members.

The most recent analyst rating on (VVX) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on V2X stock, see the VVX Stock Forecast page.

V2X Appoints New Chief Accounting Officer

V2X, Inc. has announced the appointment of Mr. Daniel G. Demases as its new Chief Accounting Officer, effective December 5, 2025, replacing Mr. William B. Noon. Mr. Demases will receive a base salary of $335,500 and be eligible for various incentive awards, aligning his compensation with company and individual performance, which may impact the company’s financial management and stakeholder interests.

The most recent analyst rating on (VVX) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on V2X stock, see the VVX Stock Forecast page.