Third Quarter 2026
Filed Nov 2, 2026V2X 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.