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V2X
(NYSE:VVX)
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Rating:62Neutral
Price Target:
$92.00
▲(10.09% Upside)
Action:Reiterated
Date:06/25/26
Overall score reflects (1) improving fundamentals but still-thin margins, meaningful leverage, and softer recent cash-flow trends, (2) a very strong earnings-call setup with raised guidance, record bookings/backlog, and high revenue visibility, partially offset by (3) mixed-to-weak near-term technicals and (4) a moderate P/E with no dividend support.
Positive Factors
Revenue recovery & scale
Sustained double-digit top-line growth signals durable demand for V2X’s government services. Recovering from prior losses and scaling revenue improves operating leverage potential, increasing the probability that modest margin expansion will translate into materially higher long-term profits and cash flow.
Negative Factors
Structurally thin margins
Margins are narrow, leaving limited buffer versus cost inflation, subcontractor pass‑throughs, or labor rate pressure. With gross and net margins low, small execution or mix shifts can swing profitability, making sustained margin expansion a multi-quarter challenge despite higher revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery & scale
Sustained double-digit top-line growth signals durable demand for V2X’s government services. Recovering from prior losses and scaling revenue improves operating leverage potential, increasing the probability that modest margin expansion will translate into materially higher long-term profits and cash flow.
Read all positive factors
V2X Key Performance Indicators (KPIs)
V2X (VVX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.83B
Dividend YieldN/A
Average Volume (3M)673.26K
Price to Earnings (P/E)32.0
Beta (1Y)1.31
Revenue Growth9.03%
EPS Growth113.63%
CountryUS
Employees16,200
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.82
Shares Outstanding31,310,484
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
$86.11Price Target Upside3.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)6.1
Revenue Forecast (FY)$4.93B
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:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The earnings call presented a strongly positive operational and financial picture: double-digit revenue growth (+23%), substantial increases in adjusted net income (+53%), adjusted EBITDA (+28%), and adjusted EPS (+55%), record bookings ($4.1B) and backlog ($13.8B), and raised full-year guidance. Management also emphasized liquidity strength, AI/innovation progress, and high revenue visibility (~94% for 2026). Offsetting items include a Q1 cash outflow (−$22.1M), higher SG&A partly driven by one-time professional fees (~$12M), modest absolute EBITDA margin (6.8%), and some reliance on discrete national security and T-6 awards that introduce concentration and timing risks. On balance, the highlights materially outweigh the lowlights.Positive Updates
Strong Revenue Growth
Revenue increased 23% year over year to $1.254 billion in Q1 2026, a record organic growth rate for the company and a strong start to the fiscal year.
Negative Updates
Negative Operating Cash Flow in the Quarter
Adjusted operating cash flow was a $22.1 million use in Q1, indicating a negative quarterly cash flow outflow despite guidance for improved cash performance over the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue increased 23% year over year to $1.254 billion in Q1 2026, a record organic growth rate for the company and a strong start to the fiscal year.
Read all positive updates
Company Guidance
Management raised 2026 guidance, now targeting revenue of $4.825–$4.975 billion, adjusted EBITDA of $345–$360 million, adjusted diluted EPS of $5.75–$6.15, and adjusted net cash from operations of $160–$180 million (midpoint implying ~9% YoY growth for revenue and adjusted EBITDA and ~14% YoY for adjusted diluted EPS); the raise is supported by strong Q1 results—revenue $1.254 billion (+23% YoY), adjusted EBITDA $85.6 million (6.8% margin, +28% YoY), adjusted net income $48.1 million (+53% YoY) and adjusted diluted EPS $1.53 (+55% YoY)—and by robust bookings of ~$4.1 billion (including a $3.3 billion T‑6 award), record backlog of $13.8 billion (up from $11.1 billion), a quarterly book‑to‑bill of 3.2x (TTM 1.5x), ~$200 million cash, a $500 million undrawn revolver, and a plan to drive net leverage to <2x by year‑end.V2X Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.72B | 4.48B | 4.32B | 3.96B | 2.89B | 1.78B |
| Gross Profit | 401.10M | 373.38M | 342.96M | 334.86M | 295.01M | 160.42M |
| EBITDA | 307.95M | 298.37M | 262.88M | 212.20M | 118.40M | 78.57M |
| Net Income | 88.70M | 77.88M | 34.68M | -22.57M | -14.33M | 45.73M |
Balance Sheet | ||||||
| Total Assets | 3.19B | 3.39B | 3.23B | 3.08B | 3.23B | 889.46M |
| Cash, Cash Equivalents and Short-Term Investments | 208.67M | 368.99M | 268.32M | 72.65M | 116.07M | 38.51M |
| Total Debt | 1.08B | 1.17B | 1.15B | 1.16B | 1.33B | 151.16M |
| Total Liabilities | 2.09B | 2.30B | 2.20B | 2.09B | 2.24B | 539.37M |
| Stockholders Equity | 1.10B | 1.08B | 1.03B | 990.80M | 997.08M | 350.09M |
Cash Flow | ||||||
| Free Cash Flow | 136.03M | 170.07M | 242.45M | 162.95M | 81.07M | 51.56M |
| Operating Cash Flow | 147.55M | 181.99M | 254.24M | 187.97M | 93.50M | 61.34M |
| Investing Cash Flow | -29.27M | -29.58M | -28.65M | -22.65M | 175.96M | -12.64M |
| Financing Cash Flow | -76.11M | -51.48M | -24.50M | -211.02M | -193.24M | -75.58M |
V2X Technical Analysis
Positive
83.57
Price Trends
80.60
Positive
74.71
Positive
67.92
Positive
Market Momentum
2.81
Negative
58.84
Neutral
70.99
Neutral
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 83.57 is above the 20-day moving average (MA) of 80.46, above the 50-day MA of 80.60, and above the 200-day MA of 67.92, indicating a bullish trend. The MACD of 2.81 indicates Negative momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.32B | 34.26 | 11.11% | 1.26% | 13.54% | -5.10% | |
65 Neutral | $2.98B | 55.15 | 26.60% | ― | 8.64% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.83B | 32.00 | 8.19% | ― | 9.03% | 113.63% | |
61 Neutral | $2.70B | -77.16 | -4.86% | ― | 6.48% | -191.94% | |
48 Neutral | $1.45B | -11.20 | -25.84% | ― | 12.59% | -27.81% | |
47 Neutral | $2.68B | -13.87 | 26.62% | ― | 53.99% | 58.32% |
* Industrials Sector Average
VVX
V2X
86.38
37.88
78.10%
ATRO
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71.12
42.50
148.49%
DCO
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182.83
90.18
97.33%
CDRE
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30.85
-1.84
-5.64%
LUNR
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13.10
1.90
16.96%
VOYG
Voyager Technologies, Inc. Class A
28.01
-12.08
-30.13%
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.