V2X reported $1.02 billion in revenue during the first quarter of 2025 with a 10 percent year-over-year growth in the Indo-Pacific region.
Q1 Financial Highlights
In an earnings release published Monday, the Reston, Virginia-based defense services contractor said its Q1 adjusted net income was $31.5 million, reflecting a 10 percent year-over-year increase.
The company reported adjusted diluted earnings per share of $0.98, up 9 percent; and adjusted earnings before interest, taxes, depreciation and amortization of $67 million for the first quarter with a margin of 6.6 percent.
At Monday’s earnings call, Mike Smith, corporate vice president of treasury, corporate development and investor relations at V2X, informed investors and analysts about the company’s forward-looking statements and references to certain non-GAAP financial measures.
In light of the overall market environment, Shawn Mural, senior vice president and chief financial officer of V2X, told investors that the company is performing well.
“We remain on track to achieve our commitments and are confident in the strength and resiliency of our business model that generates strong predictable cash flow,” Mural said.
“During the quarter, we continued to demonstrate our steadfast commitment to increasing shareholder value by making further enhancements to our capital structure,” the CFO added.
V2X President and CEO Jeremy Wensinger said the overall market trends “remain positive and are being driven by customer requirements to improve deterrence, enhance readiness, and strengthen national security.”
V2X Executives on M&A Environment
In response to an analyst’s question about mergers and acquisitions, Mural said the company is “always looking at optionality.”
“The things that will return the greatest value to shareholders are our utmost priority. Relative to M&A, it’s stuff that we’re consistently looking at. We’ve never stopped,” the SVP said.
Mural also responded to a question about what the company is looking for with respect to M&A.
“We think about it from a complementary nature … When we talk about the things that we do and do very, very well, it’s training, equipping, deploying, modernization and repair and refurbishment. So those are core capabilities that the company offers, and I think you’ll see us stay true to what and who we are,” the executive noted.
Meanwhile, Wensinger told analysts that “patience is probably best served at this point in time to see how the market is going to react to this administration and things that might or might not become available.”
“I think the best thing we can do for the shareholder at this point is try to create greater optionality around what we serve in terms of core markets, and that means creating greater balance in terms of how we serve that customer,” the chief executive added.
