V2X Finishes Strong in 2023, Hits $1B Record Revenue in Q4; Chuck Prow Quoted

V2X (NYSE: VVX) was among the big gainers on the NYSE on March 5, following the release of its fourth quarter and full-year 2023 results. In the three months ending Dec. 31, revenue grew 6.4 percent year-over-year to a record $1.04 billion. The top line rose 8 percent to $3.93 billion for the year versus 2022.

Chuck Prow, president and CEO of V2X, said in a statement published Tuesday, “I’m pleased to report a strong finish to 2023, with record revenue and strong operational performance, which drove significant cash generation and net debt reduction.”

Besides reducing total net debt by $137.1 million, net loss during the quarter thinned 95.4 percent to nearly $0.5 million from $10.6 million a year ago. Moreover, the backlog and submitted bids at year-end reached $12.8 billion and $9 billion, respectively.

The backlog provides topline visibility while the bids support backlog growth. Management said the strong reoccurring cashflow will enable V2X to achieve a net leverage ratio at or below three times by the end of 2024.

The 2024 Wash100 awardee added that V2X achieved several milestones during the fourth quarter. One of them was the first substantial foreign military sales worth around $400 million over the next five years. Another noteworthy award was the new five-year, $100 million task order with the U.S. Air Force.

For 2024, the company expects revenue between $4.1 billion and $4.2 billion, $4.15 billion at the midpoint. The Adjusted EBITDA forecast is from $300 million to $315 million.

Investors were impressed with the Q4 and full-year 2023 financial results. While the main U.S. stock indexes declined Tuesday, V2X shares climbed 12.6 percent to $43.51.

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