V2X, Inc. Reports 8.3% Revenue Growth, Turnaround to Net Income in Nine Months Ended September 27, 2024

V2X, Inc. reported significant financial improvements for the nine months ended September 27, 2024, with total revenue reaching $3,164.4 million, an increase of 8.3% from $2,922.8 million in the same period of the previous year. The company achieved an operating income of $107.6 million, up 25.3% from $85.9 million, and net income of $9.7 million, a turnaround from a net loss of $22.1 million in the prior year. Basic and diluted earnings per share were $0.31 and $0.30, respectively, compared to losses of $(0.71) in the previous year.

The revenue growth was driven by organic growth in legacy programs and new program performance, particularly in the U.S. and Middle East markets. Notably, revenue from cost-plus and cost-reimbursable contracts increased by 16.4% for the nine months, reflecting a strategic shift in contract mix. However, revenue from the LOGCAP V - Kuwait Task Order decreased to $328.8 million from $360.5 million year-over-year.

As of September 27, 2024, V2X's total assets rose to $3,126.1 million from $3,081.9 million at the end of 2023, while total liabilities increased slightly to $2,123.5 million. Shareholders' equity improved to $1,002.6 million, up from $990.8 million. The company reported a decrease in cash, cash equivalents, and restricted cash to $59.9 million from $72.7 million at the end of 2023.

Cash flows from operating activities were $31.1 million, down from $135.2 million in the previous year, primarily due to changes in working capital. The company also reported a decrease in net cash used in financing activities, which totaled $(16.7 million) compared to $(155.7 million) in the prior year, reflecting reduced debt repayments.

V2X's strategic developments included the amendment of its First Lien Credit Agreement, which introduced a new tranche of term loans totaling $906.6 million. This amendment resulted in a loss on extinguishment of debt of $2.0 million for the nine months ended September 27, 2024. The company remains compliant with all financial covenants related to its credit agreements.

The company continues to focus on mission-essential functions, including logistics and modernization, while monitoring the impact of rising costs and geopolitical conditions on its profitability. As of September 27, 2024, V2X had accrued $14.0 million in liabilities related to legal proceedings concerning U.S. government contracts, although it does not expect these to materially affect its financial condition.