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1. Company Snapshot

1.a. Company Description

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

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1.b. Last Insights on VVX

V2X's recent performance was driven by strong Q2 earnings, with adjusted EPS jumping 59% year-over-year to $1.33, surpassing estimates. Revenue reached $1.08 billion, with a net income of $22.4 million. A $4.3 billion T-6 aircraft program award and improved net debt by $200 million also contributed positively. The company established a $100 million share repurchase authorization, a bullish signal. Additionally, V2X raised its full-year adjusted EPS guidance, citing tax benefits and debt refinancing.

1.c. Company Highlights

2. V2X's Q3 2025 Earnings: A Strong Performance

V2X reported a robust financial performance in Q3 2025, with revenue increasing 8% year-over-year to $1.17 billion, driven by programs such as the F-16 and F-5. The company's adjusted EPS came in at $1.37, beating estimates of $1.23. Adjusted EBITDA margin was 7.3%, with a total adjusted EBITDA of $85 million. The strong execution was a result of the team's dedication, as highlighted by Jeremy Wensinger, President and CEO, "Our dedication to our team has driven outstanding execution."

Publication Date: Nov -21

📋 Highlights
  • 3Q 2025 Revenue Growth:: Revenue rose 8% to $1.17 billion, driven by key programs like T-6 and F-16 Iraq.
  • Adjusted EPS Increase:: Adjusted EPS reached $1.37, a 6% year-over-year rise, with diluted EPS at $0.77.
  • EBITDA Performance:: Adjusted EBITDA hit $85 million (7.3% margin), reflecting operational efficiency and margin stability.
  • Share Repurchase Activity:: $10 million in share repurchases executed, signaling shareholder value focus amid strategic acquisitions.
  • 2025 Guidance Raised:: Revenue, EBITDA, and EPS midpoints increased to $4.5 billion, $316 million, and $4.95, respectively, reflecting strong bookings (1.2x book-to-bill ratio).

Revenue Growth and Margin Expansion

The revenue growth was driven by various factors, including the ramp-up of programs like WTRS. The company's adjusted EBITDA margin remained stable, and the net income was positively impacted by the revenue growth. The company's guidance for 2025 was also increased, with revenue expected to be around $4.5 billion, adjusted EBITDA of $316 million, and adjusted EPS of $4.95.

Valuation Metrics and Future Growth

Analysts estimate next year's revenue growth at 5.3%. With a current P/E Ratio of 23.42 and EV/EBITDA of 6.15, the market seems to be pricing in a moderate growth trajectory. The company's return on equity (ROE) is 6.84%, and return on invested capital (ROIC) is 6.86%, indicating a relatively stable profitability profile. The Free Cash Flow Yield is 9.73%, which is a positive indicator for investors.

Outlook and Key Drivers

The company's outlook for 2026 is positive, with expected year-over-year revenue growth. The successful outcome of the T-6 protest is expected to have incremental improvements in 2026. The company's emerging opportunities in foreign military sales, particularly with the F-16 deal in Iraq, are also expected to drive growth. However, funding uncertainty and potential headwinds from decreased contingency support activities in the Middle East may impact the growth trajectory.

3. NewsRoom

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Fisher Asset Management LLC Reduces Stake in V2X, Inc. $VVX

Dec -04

Source: defenseworld.net

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Indra Successfully Completes the First V2X Tolling Implementation on North Carolina's I-485, Paving the Way for the Nation's First Full Highway Deployment

Dec -03

Source: globenewswire.com

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V2X Wins $980 Million IDIQ Contract to Support Global Warfighter Test Systems

Dec -03

Source: prnewswire.com

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V2X to Modernize and Upgrade F-16 Cockpits Under $425 Million Award

Dec -01

Source: prnewswire.com

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Geode Capital Management LLC Increases Position in V2X, Inc. $VVX

Dec -01

Source: defenseworld.net

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V2X, INC. ANNOUNCES SALE OF 2.25 MILLION SHARES OF COMMON STOCK IN SECONDARY OFFERING BY VERTEX AEROSPACE

Nov -12

Source: prnewswire.com

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Quectel Launches New LoRa, V2X, Wi-Fi and 5G Durable Fiberglass Antennas to Empower IoT Developers With Broader Design Flexibility

Nov -04

Source: businesswire.com

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V2X, Inc. (VVX) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.79%)

6. Segments

Cost-plus and Cost-reimbursable

Expected Growth: 3%

For V2X, Inc., with a growth rate of 3, fundamental drivers for Cost-plus and Cost-reimbursable contracts include increasing demand for autonomous vehicle technology, government investments in smart infrastructure, and partnerships with automotive OEMs. Additionally, the company's focus on R&D, expanding its sales team, and strategic acquisitions will drive growth.

Firm-fixed-price

Expected Growth: 5%

Firm-fixed-price contracts from V2X, Inc. drive 5% growth, fueled by increasing demand for autonomous vehicle technology, government investments in smart infrastructure, and strategic partnerships with top automotive manufacturers, resulting in a stable revenue stream and high profit margins.

Time-and-materials

Expected Growth: 2%

Time-and-materials from V2X, Inc. is driven by increasing demand for autonomous vehicle technology, growing need for real-time data analytics, and expanding partnerships with automotive OEMs, resulting in a 2x growth rate.

7. Detailed Products

V2X Communication Platform

A comprehensive platform enabling secure and reliable communication between vehicles, infrastructure, and pedestrians

Autonomous Vehicle Software

Advanced software solutions for autonomous vehicles, including perception, motion planning, and control systems

V2X Chipsets

High-performance chipsets designed for V2X communication, providing low-latency and high-reliability connectivity

Smart Traffic Management System

An intelligent system optimizing traffic flow, reducing congestion, and improving traffic safety

V2X Cybersecurity Solutions

Comprehensive cybersecurity solutions protecting V2X systems from cyber threats and ensuring secure data transmission

Autonomous Shuttle Services

Self-driving shuttle services for last-mile transportation, providing safe and efficient transportation solutions

8. V2X, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for V2X, Inc. is medium because while there are some alternatives to our products, they are not yet widely adopted and do not pose a significant threat to our market share.

Bargaining Power Of Customers

The bargaining power of customers for V2X, Inc. is low because our products are highly specialized and customers have limited alternatives, giving us significant pricing power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for V2X, Inc. is medium because while we rely on a few key suppliers, we have developed strong relationships with them and have some flexibility in our supply chain.

Threat Of New Entrants

The threat of new entrants for V2X, Inc. is high because the barriers to entry are relatively low and there are many potential competitors in the market.

Intensity Of Rivalry

The intensity of rivalry for V2X, Inc. is high because the market is highly competitive and there are many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.27%
Debt Cost 7.34%
Equity Weight 46.73%
Equity Cost 7.34%
WACC 7.34%
Leverage 113.98%

11. Quality Control: V2X, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Intevac

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Value: 7.6

Growth: 4.3

Quality: 3.1

Yield: 3.0

Momentum: 6.5

Volatility: 3.7

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Mercury Systems

A-Score: 4.0/10

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Astronics

A-Score: 3.9/10

Value: 3.5

Growth: 4.0

Quality: 3.3

Yield: 0.0

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Volatility: 3.0

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Growth: 3.6

Quality: 4.8

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

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V2X

A-Score: 3.8/10

Value: 6.3

Growth: 4.0

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

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A-Score: 3.5/10

Value: 8.3

Growth: 2.9

Quality: 1.5

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

56.12$

Current Price

56.12$

Potential

-0.00%

Expected Cash-Flows