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Dec 31, 2024
V2X Q4 2024 Earnings Report
V2X reported record revenue and strong year-end performance in the fourth quarter of 2024, driven by growth across all geographies and significant expansion in the Indo-Pacific region.
Key Takeaways
V2X achieved record revenue of $1.16 billion in Q4 2024, an 11% increase year-over-year, with strong growth in the Indo-Pacific region. The company reported record net income of $25.0 million and adjusted diluted EPS of $1.33, up 9% year-over-year. V2X also demonstrated strong cash flow from operations and reduced net debt, achieving a net leverage ratio of 2.6x.
Record revenue of $1.16 billion, up 11% year-over-year, was achieved in the fourth quarter.
Indo-Pacific revenue grew by 27% year-over-year due to increased demand.
The company reported record net income of $25.0 million and adjusted diluted EPS of $1.33, a 9% increase year-over-year.
Net debt was reduced by $210 million, resulting in a net leverage ratio of 2.6x.
V2X
V2X
V2X Revenue by Segment
V2X Revenue by Geographic Location
Revenue by Segment
Cost-plus and cost-reimbursable Revenue
CapyFin.comFirm-fixed-price Revenue
CapyFin.comTime-and-materials Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comMiddle East Revenue
CapyFin.comAsia Revenue
CapyFin.comEurope Revenue
CapyFin.com Forward Guidance
V2X anticipates continued positive trends in its business for 2025, with guidance set for revenue between $4.375 billion and $4.500 billion, and Adjusted EBITDA between $305 million and $320 million. The company expects revenue and adjusted EBITDA to be weighted more heavily in the second half of the year.
Positive Outlook
- Strategy to deliver full lifecycle solutions is expected to increase efficiency and reduce costs.
- Modernization capabilities are anticipated to improve readiness and strengthen national security.
- Substantial opportunities for future growth and value creation are expected.
- Mid-point guidance for 2025 revenue is $4.438 billion, indicating continued growth.
- Mid-point guidance for 2025 Adjusted EBITDA is $313 million, reflecting expected profitability.
Challenges Ahead
- Revenue and adjusted EBITDA are expected to be weighted more heavily in the second half of the year, implying a slower first half.
- Approximately 4% of revenue guidance at the mid-point assumes contribution from recompetes, which may carry inherent risks.
- The company is not providing a quantitative reconciliation for non-GAAP measures due to the inability to reasonably estimate certain financial information.
- Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially.
- Unusual, one-time, non-ordinary, or non-recurring costs related to M&A and integration cannot be reasonably estimated, potentially impacting financial performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income