NYSE$VVX

V2X Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

V2X reported record revenue and strong year-end performance in the fourth quarter of 2024, driven by growth across all geographies and significant expansion in the Indo-Pacific region.

V2X achieved record revenue of $1.16 billion in Q4 2024, an 11% increase year-over-year, with strong growth in the Indo-Pacific region. The company reported record net income of $25.0 million and adjusted diluted EPS of $1.33, up 9% year-over-year. V2X also demonstrated strong cash flow from operations and reduced net debt, achieving a net leverage ratio of 2.6x.

  • Record revenue of $1.16 billion, up 11% year-over-year, was achieved in the fourth quarter.
  • Indo-Pacific revenue grew by 27% year-over-year due to increased demand.
  • The company reported record net income of $25.0 million and adjusted diluted EPS of $1.33, a 9% increase year-over-year.
  • Net debt was reduced by $210 million, resulting in a net leverage ratio of 2.6x.

Headline financials

Total Revenue

$1.16B

Previous: $1.04B+11.3%
EPS (adj)

$1.33

Previous: $1.22+9.0%
Adjusted Net Income

$42.7M

No prior period
Adjusted EBITDA

$86.2M

No prior period
Adjusted EBITDA Margin

7.4%

No prior period
Adjusted Operating Income

$80.6M

No prior period
Adj Operating Cash Flow

$168M

No prior period
Capital Expenditures

-$1.09M

Previous: -$8.46M+87.2%
Net Income

$25M

Previous: -$492K+5188.0%
Operating Income

$51.6M

Previous: $38.5M+33.8%
Gross Profit

$107M

Previous: $97.9M+9.7%

Revenue & EPS history

V2X · Revenue · Quarterly

$1.16B

Q4 2024+11.3%vs Q4 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

V2X anticipates continued positive trends in its business for 2025, with guidance set for revenue between $4.375 billion and $4.500 billion, and Adjusted EBITDA between $305 million and $320 million. The company expects revenue and adjusted EBITDA to be weighted more heavily in the second half of the year.

Tailwinds

  • Strategy to deliver full lifecycle solutions is expected to increase efficiency and reduce costs.
  • Modernization capabilities are anticipated to improve readiness and strengthen national security.
  • Substantial opportunities for future growth and value creation are expected.
  • Mid-point guidance for 2025 revenue is $4.438 billion, indicating continued growth.
  • Mid-point guidance for 2025 Adjusted EBITDA is $313 million, reflecting expected profitability.

Headwinds

  • Revenue and adjusted EBITDA are expected to be weighted more heavily in the second half of the year, implying a slower first half.
  • Approximately 4% of revenue guidance at the mid-point assumes contribution from recompetes, which may carry inherent risks.
  • The company is not providing a quantitative reconciliation for non-GAAP measures due to the inability to reasonably estimate certain financial information.
  • Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially.
  • Unusual, one-time, non-ordinary, or non-recurring costs related to M&A and integration cannot be reasonably estimated, potentially impacting financial performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.3%

Avg return

30 days after

57%

30 / 53 earnings

Positive

+35.4%

Q4 2017

Best reaction

-22.6%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+4.1%+22.4%
Q4 2025+4.3%+2.7%+0.8%
Q3 2025-2.1%-4.5%-2.8%
Q1 2025-2.2%+3.4%-9.1%
Q4 2024+15.7%+11.6%+21.3%
Q3 2024+2.0%+8.2%-2.5%
Q2 2024-2.4%-0.2%+2.7%
Q1 2024-4.2%-5.7%-9.8%
Q4 2023+15.1%+16.3%+19.5%
Q3 2023-17.6%-18.6%-16.6%
Q2 2023+2.5%-1.8%-10.7%
Q1 2023+0.3%-5.0%+3.7%
Q4 2022-5.5%-6.7%-17.2%
Q3 2022+2.2%-2.6%-7.7%
Q2 2022+27.7%+20.4%+9.0%
Q1 2022+5.8%+5.9%+0.7%
Q4 2021-18.4%-25.5%-17.9%
Q3 2021-0.1%-2.9%-17.7%
Q2 2021+6.9%+3.1%+7.1%
Q1 2021+2.0%-1.0%-2.4%
Q4 2020+4.8%+8.7%-2.6%
Q3 2020+8.2%+6.1%+22.1%
Q2 2020-7.6%-15.8%-22.7%
Q1 2020-3.7%-0.6%+26.6%
Q4 2019-2.6%-5.5%-24.5%
Q3 2019+13.4%+16.7%+10.2%
Q2 2019+11.6%+12.1%+12.8%
Q1 2019+3.9%+7.1%+53.4%
Q4 2018-3.1%+0.6%-6.2%
Q3 2018-1.4%-4.2%-13.8%
Q2 2018+15.1%+15.0%+5.2%
Q1 2018-1.2%+0.8%-1.8%
Q4 2017+35.4%+35.6%+36.5%
Q3 2017+9.8%+5.9%+0.7%
Q2 2017-22.6%-13.9%-14.0%
Q1 2017+0.7%-0.8%+16.2%
Q4 2016-12.0%-11.0%-7.7%
Q3 2016+20.4%+28.4%+42.6%
Q2 2016-5.3%-2.3%-16.2%
Q1 2016-2.3%
Q4 2015+7.4%
Q3 2015+1.9%
Q2 2015+16.0%
Q1 2014+1.8%
Q1 2015+0.9%
Q1 2013-10.3%
Q4 2012-10.3%
Q4 2014-10.3%
Q2 2014-10.3%
Q2 2013-10.3%
Q3 2014+5.1%
Q3 2013+5.1%
Q4 2013+5.1%

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