V2X (VVX) Q2 2026 earnings summary

Executive summary

• Achieved double-digit revenue growth in Q2 and H1 2026, with Q2 revenue rising 17% year-over-year to $1.26 billion, driven by strategic execution, contract wins, and alignment with national security priorities.

• Secured approximately $1 billion in recent awards across modernization, global training, aerospace, and mission readiness, with aggregate margins above the current profile.

• Submitted over $8 billion in bids featuring AI-powered solutions to support national security requirements.

• Increased full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted diluted EPS, reflecting strong momentum and market positioning.

• Backlog reached $12.7 billion, up from $11.1 billion at year-end.

Financial highlights

• Q2 2026 revenue was $1.26 billion, up 17% year-over-year; H1 2026 revenue totaled $2.51 billion, up 20% year-over-year.

• Adjusted net income was $51.6 million, up 22% year-over-year; net income for the quarter was $25.5 million.

• Adjusted EBITDA reached $89.8 million (7.1% margin) in Q2; H1 adjusted EBITDA was $175.4 million (7.0% margin).

• Adjusted diluted EPS increased 23% year-over-year to $1.64 in Q2; H1 adjusted diluted EPS was $3.16, up 37% year-over-year.

• Adjusted net cash from operating activities was $71.8 million in Q2 and $49.7 million year-to-date, a $109.5 million improvement year-over-year.

Outlook and guidance

• 2026 revenue guidance raised to $4,875–$5,025 million; adjusted EBITDA to $347.5–$362.5 million; adjusted diluted EPS to $5.90–$6.30.

• Adjusted net cash from operating activities projected at $160–$180 million.

• Net leverage ratio expected to reach approximately 2.0x or below by year-end 2026.

• Guidance assumes cash interest expense of ~$67 million, depreciation/amortization of ~$113 million, tax rate of ~23%, and capex of ~$20 million.

• Management expects continued revenue growth from program ramp-ups and new business, despite the reduction in scope of the LOGCAP V - Kuwait Task Order.