V2X, Inc. (VVX): Results of Operations and Financial Condition
V2X, Inc. (VVX) filed an SEC Form 8-K — Results of Operations and Financial Condition. PRESS RELEASE V2X Reports Third Quarter 2026 Results Third Quarter Financial Highlights Revenue of $1.27 billion, up 9% year-over-year Net income of $32.0 million, up 30% year-over-year; Adjusted net income1 of $51.7 million, up 19% year- over-year Adjusted EBITDA1 of $88.6
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to attract buying interest, especially from defense sector investors.
Market read
First‑report earnings with raised guidance for a mid‑cap defense contractor, offering a clear trading catalyst.
What to watch
Potential integration costs from recent M&A activity are not quantified in the release.
V2X Reports Third Quarter 2026 Results
Third-quarter revenue grew 9% year-over-year, net income grew 30%, diluted EPS grew 32%, and the Company increased full-year 2026 guidance across revenue, adjusted EBITDA, adjusted diluted earnings per share, and adjusted operating cash flow.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended October 2, 2026GAAP | $1.27B | – | 9% |
| Cost of revenue, three months ended October 2, 2026GAAP | 1,168,031 | – | – |
| Selling, general, and administrative expenses, three months ended October 2, 2026GAAP | 43,951 | – | – |
| Operating income, three months ended October 2, 2026GAAP | $59.48M | – | – |
| Interest expense, net, three months ended October 2, 2026GAAP | (15,534) | – | – |
| Other expense, net, three months ended October 2, 2026GAAP | (2,428) | – | – |
| Income from operations before income taxes, three months ended October 2, 2026GAAP | 41,519 | – | – |
| Income tax expense, three months ended October 2, 2026GAAP | 9,526 | – | – |
| Net income, three months ended October 2, 2026GAAP | $31.99M | – | 30% |
| Diluted earnings per share, three months ended October 2, 2026GAAP | $1.01 | – | 32% |
| Basic earnings per share, three months ended October 2, 2026GAAP | $1.02 | – | – |
| Adjusted operating income, three months ended October 2, 2026non-GAAP | $83.61M | – | – |
| Adjusted EBITDA, three months ended October 2, 2026non-GAAP | $88.60M | – | 4% |
| Adjusted EBITDA margin, three months ended October 2, 2026non-GAAP | 7.0% | – | – |
| Adjusted net income, three months ended October 2, 2026non-GAAP | $51.74M | – | 19% |
| Adjusted diluted earnings per share, three months ended October 2, 2026non-GAAP | $1.64 | – | 19% |
| Net cash provided by operating activities, three months ended October 2, 2026GAAP | $67.32M | – | – |
| Adjusted operating cash flow, three months ended October 2, 2026non-GAAP | $61.85M | – | – |
| Revenue, nine months ended October 2, 2026GAAP | $3.78B | – | – |
| Operating income, nine months ended October 2, 2026GAAP | $157.4M | – | – |
| Net income, nine months ended October 2, 2026GAAP | $76.46M | – | – |
| Diluted earnings per share, nine months ended October 2, 2026GAAP | $2.42 | – | – |
| Adjusted EBITDA, nine months ended October 2, 2026non-GAAP | $264.0M | – | – |
| Adjusted EBITDA margin, nine months ended October 2, 2026non-GAAP | 7.0% | – | – |
| Adjusted net income, nine months ended October 2, 2026non-GAAP | $151.4M | – | – |
| Adjusted diluted earnings per share, nine months ended October 2, 2026non-GAAP | $4.80 | – | – |
| Net cash used in operating activities, nine months ended October 2, 2026GAAP | −$41.04M | – | – |
| Adjusted operating cash flow, nine months ended October 2, 2026non-GAAP | $111.5M | – | – |
| Net debt, period ending October 2, 2026non-GAAP | $811.7M | – | improvement of $140.3 million year-over-year |
| Net leverage ratio, period ending October 2, 2026non-GAAP | 2.2x | – | – |
| Total backlog, as of October 2, 2026non-GAAP | $12.8B | – | – |
| Funded backlog, as of October 2, 2026non-GAAP | $2.6B | – | – |
| Book-to-bill, third quarter 2026non-GAAP | approximately 1.2x | – | – |
| Trailing twelve-month book-to-bill, third quarter 2026non-GAAP | approximately 1.4x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Revenue by contract type: Cost-plus and cost-reimbursableContract type | $692.5M | – | (1.4)% |
| Revenue by contract type: Firm-fixed-priceContract type | $419.1M | – | (4.0)% |
| Revenue by contract type: Time-and-materialsContract type | $159.9M | – | 470.0% |
| Revenue by geographic region: United StatesGeographic region | $894.1M | – | 30.6% |
| Revenue by geographic region: Middle EastGeographic region | $240.5M | – | (30.2)% |
| Revenue by geographic region: AsiaGeographic region | $88.21M | – | 8.3% |
| Revenue by geographic region: EuropeGeographic region | $48.64M | – | (13.9)% |
| Revenue by contract relationship: Prime contractorContract relationship | $1.22B | – | 9.9% |
| Revenue by contract relationship: SubcontractorContract relationship | $51.80M | – | (9.9)% |
| Revenue by customer: ArmyCustomer | $337.7M | – | (24.8)% |
| Revenue by customer: NavyCustomer | $389.7M | – | (0.2)% |
| Revenue by customer: Air ForceCustomer | $251.3M | – | 50.0% |
| Revenue by customer: OtherCustomer | $292.8M | – | 83.0% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full-year 2026 outlook
- Revenue$4,950 to $5,100
- NoteAdjusted EBITDA: $352.5 to $367.5
- NoteAdjusted Diluted Earnings Per Share: $6.15 to $6.55
- NoteAdjusted Net Cash Provided by Operating Activities: $175 to $195
- NoteNet leverage ratio: approximately 2.0x by the end of 2026
Capital returns
- Purchase of treasury stock, nine months ended October 2, 2026: $ —
- Payment of employee withholding taxes on stock-based compensation, nine months ended October 2, 2026: $(5,417)
What drove it
- Third-quarter revenue was $1.27 billion, up 9% year-over-year.
- United States revenue was $894,067, up 30.6%, while Air Force revenue was $251,275, up 50.0%, and Other customer revenue was $292,774, up 83.0%.
- Time-and-materials revenue was $159,900, up 470.0% year-over-year.
- Prime contractor revenue was $1,219,666, up 9.9% year-over-year.
- Total backlog was $12.8 billion and funded backlog was $2.6 billion as of October 2, 2026.
Concerns
- Middle East revenue was $240,547, down 30.2% year-over-year.
- Army revenue was $337,688, down 24.8% year-over-year.
- Cost-plus and cost-reimbursable revenue was $692,452, down 1.4%, and firm-fixed-price revenue was $419,111, down 4.0%.
- Adjusted EBITDA margin was 7.0%, compared with 7.3% in the prior-year quarter.
- Net cash used in operating activities for the nine months ended October 2, 2026 was $(41,041).
What to watch
- Delivery against updated full-year 2026 revenue guidance of $4,950 to $5,100.
- Delivery against updated full-year 2026 adjusted EBITDA guidance of $352.5 to $367.5.
- Delivery against updated full-year 2026 adjusted diluted earnings per share guidance of $6.15 to $6.55.
- Delivery against updated full-year 2026 adjusted net cash provided by operating activities guidance of $175 to $195.
- Progress toward the expected net leverage ratio of approximately 2.0x by the end of 2026.
- Backlog conversion and book-to-bill trends, with third-quarter book-to-bill of approximately 1.2x and trailing twelve-month book-to-bill of approximately 1.4x.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash as of October 2, 2026: $265,070
- Cash and cash equivalents as of October 2, 2026: $261,057
- Total debt as of October 2, 2026: $1,072,774
- Short-term debt as of October 2, 2026: $17,591
- Long-term debt, net as of October 2, 2026: $1,034,151
- Net debt as of October 2, 2026: $811,718
- Total assets as of October 2, 2026: $3,217,858
- Total liabilities as of October 2, 2026: $2,047,063
- Total shareholders' equity as of October 2, 2026: $1,170,795
- Purchases of capital assets, nine months ended October 2, 2026: $(6,737)
- Net cash used in investing activities, nine months ended October 2, 2026: $(6,719)
- Repayments of long-term debt, nine months ended October 2, 2026: $(51,045)
- Net cash used in financing activities, nine months ended October 2, 2026: $(57,515)
- Net change in cash, cash equivalents and restricted cash, nine months ended October 2, 2026: $(103,924)
Analysis
V2X reported third-quarter revenue of $1.27 billion, up 9% year-over-year. GAAP net income was $32.0 million, up 30%, while GAAP diluted EPS was $1.01, up 32%. On a non-GAAP basis, adjusted net income was $51.7 million and adjusted diluted EPS was $1.64, each up 19%. Adjusted EBITDA was $88.6 million, while adjusted EBITDA margin was 7.0%, compared with 7.3% in the prior-year quarter.
The disclosed revenue mix showed strong domestic and customer concentration trends alongside international and Army declines. United States revenue increased 30.6% to $894,067. Air Force revenue increased 50.0% to $251,275 and Other customer revenue increased 83.0% to $292,774. These gains contrasted with a 30.2% decline in Middle East revenue to $240,547 and a 24.8% decline in Army revenue to $337,688. Time-and-materials revenue increased 470.0% to $159,900, while both cost-plus and cost-reimbursable revenue and firm-fixed-price revenue declined.
Cash generation differed between the quarter and year-to-date period. Third-quarter net cash provided by operating activities was $67.3 million and adjusted operating cash flow was $61.8 million. For the nine months ended October 2, 2026, net cash used in operating activities was $(41,041), while adjusted operating cash flow was $111,538. The Company reported total debt of $1,072,774, cash and cash equivalents of $261,057, net debt of $811,718, and a 2.2x net leverage ratio as of October 2, 2026.
Demand indicators included total backlog of $12.8 billion, funded backlog of $2.6 billion, third-quarter book-to-bill of approximately 1.2x, and trailing twelve-month book-to-bill of approximately 1.4x. Management raised 2026 guidance across all guided financial metrics. Updated revenue guidance is $4,950 to $5,100, adjusted EBITDA guidance is $352.5 to $367.5, adjusted diluted earnings per share guidance is $6.15 to $6.55, and adjusted net cash provided by operating activities guidance is $175 to $195. The Company also expects a net leverage ratio of approximately 2.0x by the end of 2026.
Management, verbatim
We delivered another strong quarter, with revenue growth and double-digit increases in net income and diluted EPS. Our results reflect our team’s consistent execution and continued demand for V2X’s mission-critical capabilities.
Jeremy C. Wensinger, President and Chief Executive Officer
Based on our year-to-date performance, current backlog position and existing demand signals, we are increasing our full-year 2026 guidance.
Jeremy C. Wensinger, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the disclosed financial metrics.
- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- A GAAP tax rate was not reported.
- Dividend declarations or payments were not reported.
- Formal operating segments were not reported. The filing instead disclosed revenue by contract type, geographic region, contract relationship, and customer.
- Previous-release outlook was not provided; therefore, comparisons of reported results with prior guidance were not made.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
V2X filed a Form 8‑K reporting its Q3 2026 financial results and updated guidance.
Ticker impact
V2X reported Q3 2026 results with revenue up 9% YoY and raised full-year 2026 guidance across all metrics.
likely upward pressure as investors price in the raised guidance
The company delivered better-than-expected earnings and increased its full-year outlook, which typically drives buying interest.
Market effects
Defense and aerospace sector may see modest uplift as V2X signals strong demand.
U.S. defense contractors could benefit from perceived market tailwinds.
Limited to investors focused on U.S. defense and technology stocks.
Counterpoint
If guidance is overly optimistic, the stock could face a pullback on future earnings scrutiny.
Key entities
- CompanyV2X, Inc.
U.S. defense and technology firm listed on NYSE under ticker VVX.
