V2X 2025 Q1 Earnings Significant Net Income Growth of 608.7%

V2X (VVX) reported its fiscal 2025 Q1 earnings on May 05th, 2025. The company delivered a strong performance with significant improvements in net income and earnings per share (EPS). V2X's net income soared by 608.7% to $8.11 million, while EPS rose by 550.0% to $0.26, surpassing expectations. The company reaffirmed its 2025 guidance, projecting revenue between $4,375 million and $4,500 million, with a midpoint of $4,438 million. Adjusted EBITDA is expected to be between $305 million and $320 million, targeting a midpoint of $313 million.

Revenue

The total revenue of V2X increased by 0.5% to $1.02 billion in 2025 Q1, up from $1.01 billion in 2024 Q1.

Earnings/Net Income

V2X's EPS rose 550.0% to $0.26 in 2025 Q1 from $0.04 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $8.11 million in 2025 Q1, marking 608.7% growth from $1.14 million in 2024 Q1. The EPS performance is notably positive, showcasing substantial growth.

Price Action

The stock price of V2X has edged down 1.05% during the latest trading day, has edged down 2.26% during the most recent full trading week, and has dropped 3.81% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, V2X's stock price experienced a generally negative impact. Despite a maximum return of only 0.70% over a 30-day period post-earnings, the stock's short-term performance tends to be lackluster. The 3-Day, 10-Day, and 30-Day win rates stand at 42.86%, 33.33%, and 47.62%, respectively, indicating a tendency for the stock to underperform in the immediate aftermath of earnings announcements. This suggests investor sentiment may not be positively swayed by the earnings figures, contributing to the downward trend in stock performance.

CEO Commentary

"Overall trends in our market remain positive and are driven by customer requirements to improve deterrence, enhance readiness, and strengthen national security," said Jeremy C. Wensinger, President and Chief Executive Officer. V2X is well-positioned with strong visibility and differentiated capabilities, capitalizing on this through increased bid velocity. The foreign military sales and international markets present a significant growth opportunity, with customers recognizing and trusting V2X's solutions. Wensinger emphasized the company's commitment to meeting critical mission requirements, attributing success to employee contributions.

Guidance

V2X reaffirms its 2025 guidance, expecting revenue between $4,375 million and $4,500 million, with a midpoint of $4,438 million. Adjusted EBITDA is projected between $305 million and $320 million, targeting a midpoint of $313 million. The company anticipates adjusted diluted earnings per share between $4.45 and $4.85, aiming for an average of $4.65. Adjusted net cash provided by operating activities is expected to be between $150 million and $170 million, with a midpoint of $160 million.

Additional News

V2X recently announced its selection for the U.S. Navy's Worldwide Expeditionary Multiple Award Contract (WEXMAC) 2.0, a significant achievement that enhances its global logistics capabilities. This contract, valued at up to $2.4 billion over a potential 10-year period, underscores V2X's commitment to supporting global military operations. Additionally, the company has continued to strengthen its capital structure, which is expected to generate interest expense savings and improved cash flow. V2X is also focused on leveraging its unique capabilities in defense and international sectors to capitalize on new growth opportunities in foreign military sales and international markets.