V2X (VVX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.02 billion, with 10% year-over-year growth in the Indo-Pacific region and strong U.S. government demand.

• Net income rose to $8.1 million from $1.1 million in the prior year, with adjusted net income up 10% to $31.5 million.

• Adjusted EBITDA was $67 million (6.6% margin), and adjusted EPS was $0.98, both up year-over-year.

• Major contract wins and extensions included $921M Army IDIQ, $140M Space Force, $103M Navy aviation support, and LOGCAP V-Kuwait extension.

• Enhanced revenue visibility and backlog of $12–12.5 billion, with top programs providing ~5 years of runway.

Financial highlights

• Revenue: $1,016M–$1,020M in Q1 2025, up from $1,011M in Q1 2024.

• Adjusted EBITDA: $67M (6.6% margin), slightly down from $69.1M (6.8%) in Q1 2024.

• Net income: $8.1M, up from $1.1M year-over-year; adjusted net income: $31.5M, up 10%.

• Adjusted EPS: $0.98, up from $0.90 in Q1 2024; reported EPS: $0.25, up from $0.04.

• Adjusted net cash used by operating activities: $(95.5)M–$(118.1)M, reflecting working capital outflows.

Outlook and guidance

• 2025 guidance reaffirmed: revenue $4.38–$4.50B (midpoint $4.44B), adjusted EBITDA $305–$320M (midpoint $313M), adjusted EPS $4.45–$4.85 (midpoint $4.65).

• Adjusted net cash from operations guidance: $150M–$170M (midpoint $160M).

• Revenue and adjusted EBITDA expected to be weighted ~45% in H1 and ~55% in H2.

• Over 100% net income conversion to cash expected for the year.

• Bid volume for 2025 expected to be 50% higher than 2024, with five $1B+ opportunities targeted.