V2X Reports Third Quarter 2026 Results

Higher full-year targets accompany lower net debt, while nine-month operating cash use widened from the prior-year period.

Rhea-AI Summary

V2X (VVX) reported third-quarter 2026 revenue of $1.27 billion and raised its full-year outlook across all guided metrics. Revenue rose 9% year over year, net income increased 30% to $32.0 million, and diluted earnings per share rose 32% to $1.01. Adjusted EBITDA, a non-GAAP earnings measure, was $88.6 million with a 7.0% margin.

V2X now expects 2026 revenue of $4,950–$5,100 million and adjusted diluted EPS of $6.15–$6.55. Quarterly operating cash flow was $67.3 million, but nine-month operating cash use widened to $41.041 million from $27.484 million. Net debt fell $140.3 million year over year to $811.7 million, with net leverage of 2.2x; the company expects approximately 2.0x by year-end. Total backlog was $12.8 billion, including $2.6 billion funded, as of October 2, 2026.

22 points · 1 major

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0 major · 4 points

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Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance increased to $4,950–$5,100 million from $4,875–$5,025 million.
• Moderate pointThird-quarter revenue rose 9% year over year to $1.27 billion.
• Moderate pointThird-quarter net income increased 30% year over year to $32.0 million.
• Moderate pointAdjusted net income increased 19% year over year to $51.7 million in the third quarter.
• Moderate pointThird-quarter adjusted EBITDA reached $88.6 million, with a 7.0% margin.
• Moderate pointNet debt improved $140.3 million year over year to $811.7 million, with 2.2x net leverage.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Year-end 2026 net leverage is expected to reach approximately 2.0x.
• Moderate pointTotal backlog was $12.8 billion at October 2, 2026, including $2.6 billion funded.

14 minor points

• Minor pointThird-quarter diluted EPS rose 32% year over year to $1.01.
• Minor pointAdjusted diluted EPS increased 19% year over year to $1.64 in the third quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance increased to $352.5–$367.5 million from $347.5–$362.5 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted diluted EPS guidance increased to $6.15–$6.55 from $5.90–$6.30.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted operating cash flow guidance increased to $175–$195 million from $160–$180 million.
• Minor pointThird-quarter operating cash flow was positive at $67.3 million; adjusted operating cash flow was $61.8 million.
• Minor pointBookings relative to revenue were approximately 1.2x quarterly and approximately 1.4x over the trailing twelve months.
• Minor pointNine-month revenue increased to $3,782.234 million from $3,261.390 million in the comparable 2025 period.
• Minor pointNine-month net income increased to $76.458 million from $55.103 million in the comparable 2025 period.
• Minor pointNine-month diluted EPS increased to $2.42 from $1.73 in the comparable 2025 period.
• Minor pointThird-quarter operating income increased to $59.481 million from $55.669 million a year earlier.
• Minor pointNine-month operating income increased to $157.381 million from $142.907 million in the comparable 2025 period.
• Minor pointThird-quarter net interest expense declined to $15.534 million from $19.961 million a year earlier.
• Minor pointNine-month net interest expense declined to $50.364 million from $60.278 million in the comparable 2025 period.

Negative

• Moderate pointNine-month operating cash use widened to $41.041 million from $27.484 million in the comparable 2025 period.
• Moderate pointCash, cash equivalents and restricted cash fell to $265.070 million from $368.994 million at December 31, 2025.
• Moderate pointNine-month selling, general and administrative expenses rose to $161.373 million from $125.434 million in the comparable 2025 period.
• Minor pointThird-quarter selling, general and administrative expenses rose to $43.951 million from $38.836 million a year earlier.

News Explained

At October 2, 2026, V2X reported 31,347,992 common shares outstanding, versus 31,171,445 at December 31, 2025; a higher outstanding share count reduces an existing holder’s percentage ownership absent offsetting changes.

Key Figures

Revenue: $1.27 billion; up 9% year-over-year Net income: $32.0 million; up 30% year-over-year Diluted EPS: $1.01; up 32% year-over-year +5 more

Revenue

$1.27 billion; up 9% year-over-year

Third quarter 2026

Net income

$32.0 million; up 30% year-over-year

Third quarter 2026

Diluted EPS

$1.01; up 32% year-over-year

Third quarter 2026

Adjusted diluted EPS

$1.64; up 19% year-over-year

Third quarter 2026

Revenue guidance

$4,950M–$5,100M

Updated 2026 guidance; prior $4,875M–$5,025M

Adjusted EBITDA guidance

$352.5M–$367.5M

Updated 2026 guidance; prior $347.5M–$362.5M

Adjusted diluted EPS guidance

$6.15–$6.55

Updated 2026 guidance; prior $5.90–$6.30

Adjusted net cash from operating activities guidance

$175M–$195M

Updated 2026 guidance; prior $160M–$180M

Previous Earnings Reports

1 past event · Latest: Aug 03

Same Type 1 event

1. Aug 03

   Quarterly earnings

   24h Move

   -8.8%

   Q2 revenue rose 17%, and V2X raised 2026 revenue, EBITDA and EPS guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, gaap, book-to-bill, net leverage ratio, +1 more

5 terms

ebitda financial

"Adjusted EBITDA1 of $88.6 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

gaap financial

"Third quarter GAAP diluted EPS was $1.01"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

book-to-bill financial

"Book-to-bill1 in the third quarter was approximately 1.2x"

The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.

net leverage ratio financial

"representing an improvement of $140.3 million year-over-year and a 2.2x net leverage ratio1"

The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.

non-gaap financial

"forward-looking non-GAAP measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

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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 million; Adjusted EBITDA margin¹ of 7.0%
• Diluted EPS of $1.01, up 32% year-over-year; Adjusted diluted EPS¹ of $1.64, up 19% year-over-year
• Increasing full-year 2026 guidance across all metrics

RESTON, Va., Nov. 2, 2026 /PRNewswire/ -- V2X, Inc. (NYSE: VVX) today announced third quarter 2026 financial results and increased 2026 guidance.

"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," said Jeremy C. Wensinger, President and Chief Executive Officer. "Recent award activity and on-contract growth reinforce the momentum underway, and we believe our global presence and diverse capabilities position us to scale quickly as customers' requirements continue to evolve. Based on our year-to-date performance, current backlog position and existing demand signals, we are increasing our full-year 2026 guidance. Looking forward, we expect to continue investing in areas of growth that we believe will enable us to advance our Go Towards Tomorrow strategy, create long-term value for our shareholders and deliver for our customers and their missions."

Third Quarter 2026 Results

In the third quarter, V2X reported revenue of $1.27 billion, representing 9% year-over-year growth. The Company reported solid topline growth and strong operating performance, yielding double-digit growth in adjusted net income¹ and adjusted EPS¹. Net income for the quarter was $32.0 million, an increase of 30% year-over-year. Adjusted net income¹ was $51.7 million, an increase of 19%, year-over-year. Third quarter GAAP diluted EPS was $1.01, an increase of 32% year-over-year. Adjusted diluted EPS¹ for the quarter increased 19% year-over-year to $1.64.

V2X delivered adjusted EBITDA¹ of $88.6 million, with an adjusted EBITDA margin¹ of 7.0%, representing an increase of 4% year-over-year.

1   See "Key Performance Indicators and Non-GAAP Financial Measures" for descriptions and reconciliations.

Third quarter net cash provided by operating activities was $67.3 million. Adjusted net cash provided by operating activities¹ was $61.8 million.

At the end of the third quarter, net debt for V2X was $811.7 million, representing an improvement of $140.3 million year-over-year and a 2.2x net leverage ratio¹. The Company expects to achieve a net leverage ratio¹ of approximately 2.0x by the end of 2026.

As of October 2, 2026, total backlog¹ was $12.8 billion and funded backlog¹ was $2.6 billion. Book-to-bill¹ in the third quarter was approximately 1.2x. Trailing twelve-month book-to-bill¹ was approximately 1.4x.

Increasing 2026 Guidance

The Company is increasing its 2026 guidance as follows:

$ millions, except for per share amounts	Prior 2026 Guidance		Updated 2026 Guidance
Revenue	$4,875	$5,025	$4,950	$5,100
Adjusted EBITDA1	$347.5	$362.5	$352.5	$367.5
Adjusted Diluted Earnings Per Share1	$5.90	$6.30	$6.15	$6.55
Adjusted Net Cash Provided by Operating Activities1	$160	$180	$175	$195

The Company is not providing a quantitative reconciliation with respect to the foregoing forward-looking non-GAAP measures in reliance on the "unreasonable efforts" exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, which relate to M&A, integration and related activities cannot be reasonably estimated. Forward-looking statements are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including those factors set forth in the Cautionary Note Regarding Forward-Looking Statements below. 

1   See "Key Performance Indicators and Non-GAAP Financial Measures" for descriptions and reconciliations.

Third Quarter Conference Call

Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, November 2, 2026. U.S.-based participants may dial in to the conference call at 833-862-0305, while international participants may dial 412-634-6017. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/rqDM9X62Bez 

A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through November 16, 2026, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10212511.  

Presentation slides that will be used in conjunction with the conference call will also be made available online in advance on the "investors" section of the company's website at https://gov2x.com. V2X recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under the U.S. Securities and Exchange Commission ("SEC") Regulation FD.

About V2X

V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission's lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,200 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today's toughest challenges across all operational domains.

Investor Contact	Media Contact
Mike Smith, CFA	Angelica Spanos Deoudes
IR@goV2X.com	Communications@goV2X.com
719-637-5773	571-338-5195

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the "Act"): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act.

Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "could," "potential," "continue" or similar terminology. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. Forward-looking statements in this press release, include, but are not limited to our future performance and capabilities; all of the statements and items listed under "Increasing 2026 Guidance" above and other assumptions contained therein for purposes of such guidance; our belief that prior performance provides substantial visibility for future performance; market trends; product development; capital deployment; future net leverage ratio; and our belief that our innovation strategy, visibility, and targeted growth opportunities provide substantial demand for our services and opportunities for value creation.

These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside our management's control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections.

Important factors that could cause actual results to differ materially include, among others: our ability to submit proposals for and/or win all potential opportunities in our pipeline; our ability to retain and renew our existing contracts; our ability to compete with other companies in our market; security breaches, cyber-attacks or cyber intrusions, including cyber risks associated with the increased frequency and use of sophisticated artificial intelligence technologies, and other disruptions to our information technology and operation; our mix of cost-plus, cost-reimbursable, firm-fixed-price and time-and-materials contracts; maintaining our reputation and relationship with the U.S. government; protests of new awards; economic, political and social conditions in the countries in which we conduct our businesses; changes in U.S. or international government defense budgets, including potential changes or uncertainty arising from the U.S. president and administration; government regulations and compliance therewith, including changes to the procurement process of the Department of War; changes in technology, including artificial intelligence and/or super intelligence; our ability to protect our intellectual property rights; governmental investigations, reviews, audits and cost adjustments; contingencies related to actual or alleged environmental contamination, claims and concerns; delays in completion of the U.S. government budget; our success in extending, deepening, and enhancing our technical capabilities; our success in expanding our geographic footprint or broadening our customer base; our ability to realize the full amounts reflected in our backlog; impairment of goodwill; misconduct of our employees, subcontractors, agents, prime contractors and business partners; our ability to control costs; our level of indebtedness; terms of our credit agreements; inflation and interest rate risk; geopolitical risk, including as a result of recent global hostilities and tariffs; our suppliers' performance; economic and capital markets conditions; our ability to maintain safe work sites and equipment; our ability to retain and recruit qualified personnel; our ability to maintain good relationships with our workforce and unions; our teaming relationships with other contractors; changes in our accounting estimates; the adequacy of our insurance coverage; volatility in our stock price; changes in our tax provisions; our expectation with respect to the resolution of certain tax claims or exposure to additional income tax liabilities; risks and uncertainties relating to integrating and refining internal control systems, including enterprise resource planning and business systems; changes in GAAP; and other factors described in Part I. "Item 1A Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Report on Form 10-Q for the quarterly period ended October 2, 2026, and described from time to time in our future reports filed with the SEC.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

 

V2X, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended				Nine Months Ended
		October 2,		September 26,		October 2,		September 26,
(In thousands, except per share data)		2026		2025		2026		2025
Revenue		$    1,271,463		$     1,167,137		$   3,782,234		$     3,261,390
Cost of revenue		1,168,031		1,072,632		3,463,480		2,993,049
Selling, general, and administrative expenses		43,951		38,836		161,373		125,434
Operating income		59,481		55,669		157,381		142,907
Loss on extinguishment of debt		—		—		(1,739)		(2,527)
Interest expense, net		(15,534)		(19,961)		(50,364)		(60,278)
Other expense, net		(2,428)		(2,962)		(7,011)		(7,836)
Income from operations before income taxes		41,519		32,746		98,267		72,266
Income tax expense		9,526		8,141		21,809		17,163
Net income		$        31,993		$         24,605		$       76,458		$         55,103
Earnings per share
Basic		$           1.02		$            0.78		$          2.44		$            1.74
Diluted		$           1.01		$            0.77		$          2.42		$            1.73
Weighted average common shares outstanding - basic		31,346		31,617		31,295		31,634
Weighted average common shares outstanding - diluted		31,588		31,856		31,563		31,881

 

V2X, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		October 2,		December 31,
(In thousands, except per share data)		2026		2025
Assets
Current assets
Cash, cash equivalents and restricted cash		$       265,070		$      368,994
Receivables		809,786		730,256
Prepaid expenses and other current assets		172,700		127,102
Total current assets		1,247,556		1,226,352
Property, plant, and equipment, net		48,169		52,383
Goodwill		1,676,954		1,677,154
Intangible assets, net		171,267		239,760
Other non-current assets		73,912		76,525
Total non-current assets		1,970,302		2,045,822
Total Assets		$    3,217,858		$    3,272,174
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable		$       467,959		$      557,042
Compensation and other employee benefits		161,794		176,530
Short-term debt		17,591		14,935
Other accrued liabilities		270,222		258,373
Total current liabilities		917,566		1,006,880
Long-term debt, net		1,034,151		1,083,234
Deferred tax liabilities		38,004		28,357
Other non-current liabilities		57,342		69,067
Total non-current liabilities		1,129,497		1,180,658
Total liabilities		2,047,063		2,187,538
Commitments and contingencies (Note 7)
Shareholders' Equity
Preferred stock; $0.01 par value; 10,000,000 shares authorized; No shares issued and  outstanding		—		—
Common stock; $0.01 par value; 100,000,000 shares authorized; 31,911,630 shares  issued and 31,347,992 shares outstanding as of October 2, 2026; 31,735,083 shares  issued and 31,171,445 shares outstanding as of December 31, 2025		319		317
Treasury stock, at cost - (563,638) shares as of both October 2, 2026 and December 31,  2025		(30,274)		(30,274)
Additional paid-in capital		785,645		779,084
Retained earnings		419,875		343,417
Accumulated other comprehensive loss		(4,770)		(7,908)
Total shareholders' equity		1,170,795		1,084,636
Total Liabilities and Shareholders' Equity		$    3,217,858		$    3,272,174

 

V2X, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		Nine Months Ended
		October 2,		September 26,
(In thousands)		2026		2025
Operating activities
Net income		$        76,458		$        55,103
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense		11,817		12,468
Amortization of intangible assets		68,693		67,726
Amortization of cloud computing arrangements		3,763		3,676
Loss on disposal of property, plant, and equipment		6		826
Stock-based compensation		11,838		9,121
Deferred taxes		8,717		(9,077)
Amortization of debt issuance costs		4,787		4,588
Loss on extinguishment of debt		1,739		2,527
Changes in assets and liabilities:
Receivables		(72,718)		(58,473)
Other assets		(44,918)		(15,473)
Accounts payable		(89,640)		(63,230)
Compensation and other employee benefits		(14,509)		(10,583)
Other liabilities		(7,074)		(26,683)
Net cash used in operating activities		(41,041)		(27,484)
Investing activities
Purchases of capital assets		(6,737)		(9,660)
Proceeds from the disposition of assets		18		2,285
Acquisitions of businesses		—		(27,500)
Net cash used in investing activities		(6,719)		(34,875)
Financing activities
Repayments of long-term debt		(51,045)		(7,546)
Proceeds from revolver		—		459,000
Repayments of revolver		—		(459,000)
Proceeds from stock awards and stock options		141		558
Purchase of treasury stock		—		(10,000)
Payment of debt issuance costs		(1,194)		(3,909)
Payments of employee withholding taxes on stock-based compensation		(5,417)		(2,982)
Net cash used in financing activities		(57,515)		(23,879)
Exchange rate effect on cash		1,351		235
Net change in cash, cash equivalents and restricted cash		(103,924)		(86,003)
Cash, cash equivalents and restricted cash - beginning of period		368,994		268,321
Cash, cash equivalents and restricted cash - end of period		$       265,070		$       182,318
Supplemental disclosure of cash flow information:
Interest paid		$        50,181		$        52,587
Income taxes paid, net of refunds		$        10,185		$          6,435
Purchase of capital assets on account		$          1,130		$            768
Purchase of treasury stock on account		$              —		$              56

Key Performance Indicators and Non-GAAP Financial Measures

The primary financial performance measures we use to monitor results of operations are revenue and operating income. Management believes that these financial performance measures are the primary drivers for our earnings and net cash from operating activities. Management evaluates its contracts and business performance by focusing on revenue and operating income. Operating income represents revenue less both cost of revenue and selling, general and administrative (SG&A) expenses. Cost of revenue consists of labor, subcontracting costs, materials, and an allocation of indirect costs. SG&A expenses consist of indirect labor costs (including wages and salaries for executives and administrative personnel), bid and proposal expenses and other general and administrative expenses not allocated to cost of revenue. Backlog includes funded amounts (funding is contractually authorized and appropriated by the customer) and unfunded amounts (amounts not currently contractually obligated by the customer, including unexercised options when the exercise of those options is considered probable). Total backlog excludes potential orders under IDIQ contracts and contracts awarded to us that are being protested by competitors with the GAO or in the COFC for which a stop work order has been received by the Company. Bookings includes approved values formally booked into V2X's backlog for new business contract awards including unexercised options, contract modifications, recompetes, contract extensions and add-on work to existing contracts. Book-to-bill is derived by dividing bookings by revenue.

We manage the nature and amount of costs at the program level, which forms the basis for estimating our total costs and profitability. This is consistent with our approach for managing our business, which begins with management's assessing the bidding opportunity for each contract and then managing contract profitability throughout the performance period.

In addition to the key performance measures discussed above, we consider adjusted net income, adjusted diluted earnings per share, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio and adjusted operating cash flow to be useful to management and investors in evaluating our operating performance, and to provide a tool for evaluating our ongoing operations. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives. We provide this information to our investors in our earnings releases, presentations, and other disclosures.

Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio, cash interest expense, net, and adjusted net cash provided by (used in) operating activities, however, are not measures of financial performance under GAAP and should not be considered a substitute for financial measures determined in accordance with GAAP.  Definitions and reconciliations of these items are provided below.

• Adjusted EBITDA is defined as operating income, adjusted to exclude depreciation and amortization of intangible assets, and items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration, and related costs.
• Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue.
• Adjusted net income is defined as net income, adjusted to exclude items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration and related costs, amortization of acquired intangible assets, amortization of debt issuance costs, and loss on extinguishment of debt.
• Adjusted diluted earnings per share is defined as adjusted net income divided by the weighted average diluted common shares outstanding.
• Cash interest expense, net is defined as interest expense, net adjusted to exclude amortization of debt issuance costs.
• Adjusted net cash provided by (used in) operating activities or adjusted operating cash flow is defined as net cash provided by (or used in) operating activities adjusted to exclude non-operating items, such as M&A payments and related costs, and MARPA facility activity.
• Net leverage ratio is defined as net debt (or total debt less unrestricted cash) divided by trailing twelve-month (TTM) bank EBITDA.

Non-GAAP Tables

($K, except per share data)	Three Months Ended				Nine Months Ended
	October 2, 2026		September 26, 2025		October 2, 2026		September 26, 2025
Revenue	$1,271,463		$1,167,137		$3,782,234		$3,261,390
Net income	$31,993		$24,605		$76,458		$55,103
Plus:
Income tax expense	9,526		8,141		21,809		17,163
Other expense, net	2,428		2,962		7,011		7,836
Interest expense, net	15,534		19,961		50,364		60,278
Loss on extinguishment of debt	-		-		1,739		2,527
Operating income	$59,481		$55,669		$157,381		$142,907
Plus:
Amortization of intangible assets	22,897		22,601		68,693		67,726
M&A, integration and related costs	1,236		1,370		22,313		7,775
Adjusted operating income	$83,614		$79,640		$248,388		$218,407
Plus:
Depreciation and CCA amortization	4,982		5,517		15,581		16,144
Adjusted EBITDA	$88,596		$85,156		$263,968		$234,552
Adjusted EBITDA margin	7.0 %		7.3 %		7.0 %		7.2 %
Minus:
Cash interest expense, net	13,987		18,405		45,577		55,690
Income tax expense, as adjusted	15,464		14,620		44,359		37,169
Depreciation and CCA amortization	4,982		5,517		15,581		16,144
Other expense, net, as adjusted	2,428		2,962		7,011		8,086
Adjusted net income	$51,736		$43,653		$151,441		$117,463
($K, except per share data)	Three Months Ended				Nine Months Ended
	October 2, 2026		September 26, 2025		October 2, 2026		September 26, 2025
Diluted earnings per share	$1.01		$0.77		$2.42		$1.73
Plus:
M&A, integration and related costs	0.03		0.03		0.54		0.18
Amortization of intangible assets	0.56		0.53		1.67		1.61
Amortization of debt issuance costs and Loss on extinguishment of debt	0.04		0.04		0.16		0.17
FMV land impairment	—		—		—		—
Gain on acquisition, net	—		0.00		—		(0.01)
Adjusted diluted earnings per share	$1.64		$1.37		$4.80		$3.68
Average shares outstanding:
Basic, as reported	31,346		31,617		31,295		31,634
Diluted, as reported	31,588		31,856		31,563		31,881
Adjusted diluted	31,588		31,856		31,563		31,881

Non-GAAP Tables

($K)	Three Months Ended				Nine Months Ended
	October 2, 2026		September 26, 2025		October 2, 2026		September 26, 2025
Net cash provided by/(used in) by operating activities	$67,319		$39,448		$(41,040)		$(27,484)
Plus:
M&A, integration, and related payments	2,033		1,298		11,475		12,060
MARPA facility activity	(7,505)		(4,991)		141,103		(8,641)
Adjusted operating cash flow	$61,847		$35,755		$111,538		$(24,064)

 

($K)	TTM
	October 2, 2026
Net income	$99,237
Plus:
Interest expense, net	69,996
Income tax expense	27,667
Depreciation and amortization	112,928
Additional permitted add-backs1	59,584
TTM Bank EBITDA	$369,412

 

($K, except ratio)	Period Ending
	October 2, 2026
Total debt	$1,072,774
Cash, cash equivalents and restricted cash	265,070
Less:
Restricted cash	(4,014)
Cash and cash equivalents	$261,057
Net debt	$811,718
TTM bank EBITDA	$369,412
Net leverage ratio	2.2x

SUPPLEMENTAL INFORMATION

Revenue by contract type, geographic region, contract relationship, and customer for the periods presented below was as follows: 

Revenue by Contract Type:

		Three Months Ended						Nine Months Ended
		October 2,		September 26,		%		October 2,		September 26,		%
(In thousands)		2026		2025		Change		2026		2025		Change
Cost-plus and cost-reimbursable		$    692,452		$       702,557		(1.4) %		$ 2,180,075		$    1,973,210		10.5 %
Firm-fixed-price		419,111		436,528		(4.0) %		1,181,520		1,205,705		(2.0) %
Time-and-materials		159,900		28,052		470.0 %		420,639		82,475		410.0 %
Total revenue		$ 1,271,463		$     1,167,137				$ 3,782,234		$    3,261,390

Revenue by Geographic Region:

		Three Months Ended						Nine Months Ended
		October 2,		September 26,		%		October 2,		September 26,		%
(In thousands)		2026		2025		Change		2026		2025		Change
United States		$     894,067		$      684,659		30.6 %		$             2,502,133		$     1,894,474		32.1 %
Middle East		240,547		344,605		(30.2) %		879,430		983,267		(10.6) %
Asia		88,213		81,417		8.3 %		250,916		234,188		7.1 %
Europe		48,636		56,456		(13.9) %		149,755		149,461		0.2 %
Total revenue		$  1,271,463		$    1,167,137				$             3,782,234		$     3,261,390

Revenue by Contract Relationship:

		Three Months Ended						Nine Months Ended
		October 2,		September 26,		%		October 2,		September 26,		%
(In thousands)		2026		2025		Change		2026		2025		Change
Prime contractor		$  1,219,666		$     1,109,660		9.9 %		$ 3,623,728		$    3,081,746		17.6 %
Subcontractor		51,797		57,477		(9.9) %		158,506		179,644		(11.8) %
Total revenue		$  1,271,463		$     1,167,137				$ 3,782,234		$    3,261,390

Revenue by Customer:

		Three Months Ended						Nine Months Ended
		October 2,		September 26,		%		October 2,		September 26,		%
(In thousands)		2026		2025		Change		2026		2025		Change
Army		$   337,688		$         449,031		(24.8) %		$  1,199,914		$    1,348,610		(11.0) %
Navy		389,726		390,542		(0.2) %		1,147,819		1,090,936		5.2 %
Air Force		251,275		167,571		50.0 %		634,298		374,519		69.4 %
Other		292,774		159,993		83.0 %		800,203		447,325		78.9 %
Total revenue		$ 1,271,463		$       1,167,137				$  3,782,234		$    3,261,390

 

 

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SOURCE V2X, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were V2X's third-quarter 2026 earnings?

V2X reported $32.0 million in net income and $1.01 diluted EPS, up 30% and 32% year over year, respectively. Revenue increased 9% to $1.27 billion. Adjusted diluted EPS, a non-GAAP measure, increased 19% to $1.64.

What is V2X's updated 2026 guidance?

V2X expects $4,950–$5,100 million in revenue, adjusted EBITDA of $352.5–$367.5 million, adjusted diluted EPS of $6.15–$6.55, and adjusted operating cash flow of $175–$195 million. Each range increased from its prior guidance.

What does V2X include in funded and unfunded backlog?

V2X's funded backlog includes amounts contractually authorized and appropriated by customers. Unfunded backlog includes amounts not currently contractually obligated by customers, including unexercised options when exercising those options is considered probable.