V2X (NYSE: VVX) saw its pro forma revenue jump 10.2 percent to $977.9 million during the second quarter of fiscal year 2023 and reported $2.1 billion in quarterly bookings with a total backlog of $13 billion, of which $3.1 billion was funded.
The McLean, Virginia-based defense services contractor said Tuesday it recorded $34.3 million in Q2 operating income, adjusted diluted earnings per share of $1.01 and adjusted earnings before interest, taxes, depreciation and amortization of $76.4 million for the second quarter with a margin of 7.8 percent.
“Our new business and recompete wins in addition to scope expansion on existing programs bolster our backlog position and set us up for positive momentum leading into 2024,” said V2X President and CEO Chuck Prow.
According to Prow, V2X secured over $520 million in recompete contracts, including a $328 million contract with Naval Facilities Systems Command Southeast for infrastructure sustainment services in support of the Naval Station at Guantanamo Bay in Cuba and a $122 million award for depot level maintenance services with Naval Air Systems Command Fleet Readiness Center Southwest.
“Furthermore, with over $5 billion in bids under evaluation and a 12-month pipeline of ~$19 billion, the outlook for V2X remains robust,” added Prow, a nine-time Wash100 awardee.
The chief executive told analysts during an earnings call Tuesday that the company’s ability to deliver full lifecycle platforms from concept to sustainnment marks a key differentiator that is driving new awards.
Prow noted that the company sees significant opportunities to advance growth with its modernization and sustainment platforms across core markets and one of those is V2X’s proprietary Gateway Mission Router 1000, a ruggedized multidomain router that works to provide situational awareness to helicopter pilots.
He said GMR-1000 has been integrated and tested on ground and air systems and demonstrated its capability to transmit information across tech platforms.
“As an outcome of a successful demonstration, the Army recently issued a notice stating that it intends to issue a sole-source contract to V2X to produce up to 3,000 GMRs,” Prow told analysts.
“Beyond this potential near-term opportunity, we believe the platform agnostic force multiplying benefits of the GMR-1000 have broad applicability and can be integrated on numerous platforms in support of the DoD’s Joint All Domain Command and Control or JADC2 effort,” the CEO added.
The company raised the midpoint of its revenue guidance for FY 2023, projecting full-year sales of $3.85 billion to $3.95 billion.