V2X (NYSE: VVX) reported record revenue of $1.07 billion during the second quarter of 2024, reflecting a year-over-over increase of 10 percent, and posted $759 million in quarterly bookings with a total backlog of $12.2 billion, of which $2.9 billion was funded.
The McLean, Virginia-based defense services contractor said Tuesday it recorded $27.4 million in Q2 operating income, adjusted diluted earnings per share of $0.83 and adjusted earnings before interest, taxes, depreciation and amortization of $72.3 million for the second quarter with a margin of 6.7 percent.
Notable Contract Wins
V2X President and CEO Jeremy Wensinger said the company secured over $4 billion in contract awards, demonstrating a “strong” demand for its mission-oriented lifecycle platforms.
One of the significant contract wins Wensinger discussed during the earnings call Tuesday is a potential five-year, $3 billion contract to deliver next-generation readiness platforms.
“This award is representative of the capability synergies that can be generated by V2X. … This includes readiness support, ability to operate large complex programs and the insertion of technologies such as smart warehousing, 5G and logistics tools,” the chief executive told analysts.
“Combining this robust set of capabilities with the insertion of artificial intelligence and a differentiated tool suite allowed V2X to submit a unique proposal. This is just one example of our combined capabilities that can be leveraged to win,” he added.
Other contract awards cited by the V2X executive are a $265 million award to support NASA operations and preparedness for human spaceflight mission at the Johnson Space Center, a $747 million contract with the U.S. Navy for the F-5 adversarial aircraft program, the five-year, $88 million Naval Computer and Telecommunications Pacific award and the five-year, $141 million Fleet Systems Engineering Team program.
Gateway Mission Routers
During the call, Wensinger mentioned a $49 million award from the U.S. Army to produce Gateway Mission Routers, which he said work to provide improved communications across multiple domains.
The V2X board member described GMR as a “cyber hardened technology designed to facilitate real-time situational awareness” and integrate assured communications and information to provide a ”truly converged operational environment.”
“GMR has broad applicability across numerous aviation and ground platforms and we believe offers opportunity for growth beyond this initial award. As such, we are continuing to enhance and invest in the solution to provide even greater advanced processing capabilities at lower size, weight and power,” said Wensinger, who took the helm of V2X in June.
“Additionally, we believe GMR is positioned to be a key enabler for the Department of Defense Combined Joint All-Domain Command and Control, or JADC2 initiative,” he added.
