V2X posted record fourth-quarter revenue of $1.16 billion, reflecting an 11 percent year-over-year growth, and full-year 2024 revenue of $4.32 billion, up 9 percent from the previous year.
Q4 & Full-Year 2024 Financial Results
In an earnings release published Tuesday, the McLean, Virginia-based defense services contractor said its book-to-bill in the quarter was approximately 1.2x and its total backlog as of Dec. 31, 2024, was $12.5 billion, of which $2.3 billion was funded.
V2X logged a 27 percent revenue growth in the Indo-Pacific region driven by increased demand.
The company recorded $25 million in Q4 net income and saw its adjusted diluted earnings per share, or EPS, for the quarter increase 9 percent to $1.33. The adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, for the quarter was $86.2 million with a margin of 7.4 percent.
For the full year, operating income was $159.2 million and adjusted operating income was $286.2 million. The company saw its adjusted diluted EPS climb 16 percent to $4.34 and reported $310.2 million in adjusted EBITDA for the entire 2024 with a margin of 7.2 percent.
On a year-to-date basis, V2X reported $254 million in cash flow from operations.
Indo-Pacific Revenue Growth
During Monday’s earnings call, Mike Smith, vice president of treasury, investor relations and corporate development at V2X, informed investors and analysts about the company’s forward-looking statements and references to certain non-GAAP financial measures.
V2X President and CEO Jeremy Wensinger mentioned the 27 percent revenue growth in the Indo-Pacific region. He told analysts that the company is supporting increased mission requirements in the region as the Department of Defense continues to consider China as a “pacing challenge” and advances investment in efforts to improve deterrence.
“Our positioning in the region and our team’s strong performance drove revenue growth of 24% in 2024. We expect continued growth building on the requirement for readiness based on the administration’s current priorities, funding requests and demand signals,” Wensinger added.
Warfighter Training Readiness Solutions Program
Wensinger said the company continues to ramp up its work on the potential $3.7 billion Warfighter Training Readiness Solutions program.
“This program is critical to national security readiness as it ensures every soldier has the tools required to conduct realistic exercises and training. As the administration has stated, improving lethality, warfighting and readiness are our priorities,” he noted.
Major Contract Wins
The chief executive mentioned two contracts worth $270 million combined to provide aircraft readiness support for the FBI and Drug Enforcement Administration to help meet the agencies’ changing operational requirements.
Wensinger also cited a $3.95 billion contract with the U.S. Space Force and how the company supports the service and DOD in expanding their position in the Arctic region.
“V2X is supporting the DoD strategic initiatives and interest in the region by delivering solutions that will enable our customer to meet new challenges as the region is becoming a venue for strategic competition,” the executive added.
