V2X (VVX) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 23, 2026
AI-Generated Deep Dive Summary
V2X (VVX) delivered strong financial results in its Q4 2025 earnings call, showcasing robust growth across key metrics. Revenue reached $1.22 billion for the quarter, a 5% year-over-year increase driven by training programs, foreign military sales, and rapid prototyping initiatives. Full-year revenue totaled $4.48 billion, reflecting a 4% annual growth rate and hitting the upper end of guidance. Adjusted EBITDA rose to $88.7 million, marking a record with a 7.3% margin, while adjusted net income jumped 16% year-over-year to $49.3 million. The company’s financial resilience underscores its alignment with mission-critical needs, as the extended U.S. government shutdown had minimal impact on quarterly results.
The T-6 training contract, expected to contribute $140–$160 million in 2026, is a major highlight, along with strategic partnerships with Amazon Web Services and Google Public Sector to enhance AI and logistics capabilities. These initiatives are part of V2X’s broader focus on innovation and modernization, which have significantly expanded its bid pipeline. The company’s qualified pipeline now exceeds $60 billion, with bid velocity increasing by 50% in 2025 and a further 30% growth targeted for 2026.
V2X demonstrated strong financial health through reduced net debt of $116 million year-over-year to $758 million, lowering its net leverage ratio to 2.2x. Adjusted operating cash flow is projected at $150–$170 million in 2026, despite an anticipated $50 million increase in payroll costs. The company’s strong cash position and consistent earnings growth make it a compelling investment option.
Looking ahead, V2X faces both opportunities and challenges. The Indo-Pacific region shows flat to slightly declining revenue, with no significant improvement expected early in 2026. Meanwhile, mission support activity in the Middle East is winding down as planned, with no additional revenue anticipated from regional instability. Approximately 85% of 2026 revenue guidance is already covered by existing backlog and the upcoming T-6 award, though 3% remains subject to recompete risk.
Overall, V2X’s Q4 performance and future outlook highlight its ability to adapt to market demands while maintaining profitability. The company’s strategic investments in people, processes, and technology are driving sustained growth and positioning it for long-term success. For investors focused on finance and defense contracting, V2X’s results underscore the potential for steady returns amid a competitive landscape.
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Originally published on The Motley Fool on 2/23/2026