V2X Q2 Earnings Call Highlights

V2X raised its 2026 outlook after second-quarter revenue rose 17% year over year to $1.26 billion. The company now expects $4.875 billion–$5.025 billion in revenue, $347.5 million–$362.5 million in adjusted EBITDA, and adjusted diluted EPS of $5.90–$6.30. The company reported a $12.7 billion backlog and received approximately $1 billion in awards after quarter-end, spanning weapons production, unmanned aircraft training, Air Force fleet readiness, and electronic security. Recent awards are expected to improve portfolio margins. V2X is managing lower expected Kuwait activity while expanding national security, aerospace, training, and international programs. Management is also embedding AI in internal operations and customer bids, while targeting net leverage of approximately 2x or below by the end of 2026. V2X NYSE: VVX reported second-quarter 2026 revenue of $1.26 billion, up 17% from a year earlier, as training and aerospace program ramp-ups and national security activity supported growth. The company raised its full-year outlook for revenue, adjusted EBITDA and adjusted diluted earnings per share. Adjusted EBITDA increased 9% year over year to $89.8 million, while adjusted EBITDA margin was 7.1%. Adjusted net income rose 22% to $51.6 million, and adjusted diluted EPS increased 23% to $1.64. Net income for the quarter was $25.5 million, or $0.81 per diluted share. “In the second quarter and first half, our consistent execution, recent contract wins, and continued alignment to national security priorities drove double-digit revenue growth,” President and Chief Executive Officer Jeremy Wensinger said on the company’s earnings call. Full-Year Guidance Raised V2X increased its 2026 revenue forecast to a range of $4.875 billion to $5.025 billion. The company now expects adjusted EBITDA of $347.5 million to $362.5 million and adjusted diluted EPS of $5.90 to $6.30. It maintained expected adjusted net cash from operating activities of $160 million to $180 million. At the midpoint of its updated guidance, V2X expects revenue and adjusted EBITDA to rise about 10% year over year, while adjusted diluted EPS is expected to increase 16%, according to Wensinger. For the first half, revenue increased 20% to $2.51 billion, driven by new programs and growth on existing contracts, partially offset by lower volume on certain logistics programs. First-half adjusted EBITDA rose about 17% to $175.4 million, with a 7% margin. Adjusted net income increased 35% to $99.7 million, while adjusted diluted EPS rose 37% to $3.16. Senior Vice President and Chief Financial Officer Shawn Mural said the company’s guidance assumes a significant reduction in Kuwait activity during the second half. Kuwait activities generated about $180 million in first-half revenue, while the company expects $20 million to $30 million in second-half revenue from those activities. National security support missions generated about $200 million of revenue during the first half, and V2X expects about $180 million in the second half. Mural said the company currently expects these customer requirements to continue through 2026 and into the early part of 2027, though he described the operating environment as dynamic. Backlog, Recent Awards and Geographic Activity V2X reported $600 million of quarterly bookings, representing a 0.5x book-to-bill ratio for the quarter and a trailing 12-month book-to-bill ratio of 1.4x. Total backlog stood at $12.7 billion, including the modified scope of the company’s LOGCAP work in Kuwait. Funded backlog rose 10% sequentially and 8% year over year to $2.5 billion. Management noted that bookings did not include about $1 billion of recent awards received shortly after the end of the second ...