V2X Raises Outlook as Revenue Growth Slows
The company lifted its 2026 revenue forecast to as much as $5.025 billion.
V2X Inc. (VVX), the government-services contractor, raised its full-year outlook after adjusted diluted earnings increased 23% to $1.64 a share in the second quarter. GAAP diluted earnings advanced to $0.81 a share from $0.60 in the first quarter.
The quarter extended V2X’s growth streak at a slower pace. Revenue rose 17% from a year earlier to $1.257 billion, easing from 23% growth in the first quarter and holding nearly flat sequentially.
Adjusted net income increased 22% from a year earlier to $51.6 million and rose about 7% from the first quarter. GAAP net income climbed to $25.5 million from $18.9 million sequentially.
Prime-contract work drove the top-line gain, with revenue from those contracts rising 19.7% to $1.207 billion. Subcontractor revenue fell 28.5% to $50.0 million. The customer mix also shifted: Air Force revenue nearly doubled and other revenue rose 53.8%, while Army revenue declined 7.7%.
Profitability remained below last year’s level despite improving from the first quarter. Adjusted EBITDA rose 9% from a year earlier and about 5% sequentially to $89.8 million, while margin recovered to 7.1% from 6.8% in the first quarter. The margin was 50 basis points lower than a year earlier. GAAP operating income edged up 2% as selling, general and administrative expense increased 30%.
Orders cooled after a strong first quarter. Quarterly book-to-bill fell to about 0.5 times from 3.2 times, and total backlog declined to $12.7 billion from a record $13.8 billion. Funded backlog increased to $2.5 billion from $2.3 billion.
V2X now expects 2026 revenue of $4.875 billion to $5.025 billion, lifting both ends of its prior range by $50 million after a $150 million increase in the first quarter. The company also raised adjusted EBITDA guidance to $347.5 million to $362.5 million and adjusted EPS guidance to $5.90 to $6.30 a share. Its adjusted operating-cash-flow forecast remains $160 million to $180 million.
Adjusted operating cash flow swung to $71.8 million from a $22.1 million use of cash in the first quarter, helping net debt decline by $19.3 million to $876.1 million. Net leverage improved to 2.4 times, leaving it above the 2.2 times recorded at year-end as V2X carried higher integration costs into the second half.