Defense services contractor V2X Q3 revenue beats estimates, partly helped by new contract wins

V2X

03/11/2025 21:27

Overview

V2X Q3 revenue grows 8% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting positive operational performance

Company repurchased $10 mln of shares, completed strategic acquisition

Outlook

V2X raises mid-point for 2025 revenue, adjusted EBITDA, and adjusted diluted EPS

Company lowers 2025 adjusted operating cash flow guidance

V2X raises 2025 adjusted EPS guidance to $4.85-$5.05 from prior guidance of $4.65-$4.95



Result Drivers

MISSION READINESS SOLUTIONS - Continued demand for mission readiness solutions drove revenue growth, according to CEO Jeremy C. Wensinger

NEW CONTRACT AWARDS - New awards, including a $425 mln contract for F-16 cockpit upgrades, contributed to Q3 results

STRATEGIC ACQUISITION - Acquisition of a specialized intelligence business expanded addressable market, enhancing growth opportunities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.17 bln
$1.13 bln (10 Analysts)
Q3 Adjusted EPS
Beat
$1.37
$0.74 (4 Analysts)
Q3 EPS
$0.77
Q3 Adjusted EBITDA
Beat
$85.20 mln
$79.70 mln (9 Analysts)
Q3 Adjusted Operating Income
Beat
$79.60 mln
$49 mln (7 Analysts)
Q3 Operating Income
$55.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for V2X Inc is $63.00, about 9.4% above its October 31 closing price of $57.09

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn5tX0nta

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)