V2X presented its third quarter 2024 results that showed strong program performance and business momentum.
Jeremy Wensinger, president and CEO of V2X, said in a press release Monday, “V2X reported strong third-quarter results with record revenue, net income, and adjusted EBITDA, driven by our continued alignment to well-funded critical missions and the ability to deliver capabilities at scale across the globe.”
Financial highlights
In the three months ending Sept. 30, 2024, revenue and adjusted EBITDA climbed 8% and 28% year-over-year to $1.08 billion and $82.7 million. Net income reached $15.05 million, a record, compared to the $6.4 million net loss in Q3 2024. Wensinger notes the increased demand in the Indo-Pacific region where revenue grew 31% from a year ago.
In addition, operating income jumped 137% year-over-year to $49.9 million during the same period. The total backlog was $12.2 billion at the quarter’s end, representing approximately 1.0x book-to-bill. According to Shawn Mural, senior vice president and chief financial officer of V2X, the funded backlog is $3 billion, but the total backlog does not include the full contract value associated with recent awards.
Wensinger believes there is additional opportunity to build on V2X’s momentum through further business optimization. Because of the collective capabilities, the company can enhance the breadth and depth of its pipeline. He cited the Warfighter-Training Readiness Solutions or W-TRS.
Updated guidance
Michael Smith, vice president of treasury, investor relations and corporate development, joined Wensinger and Mural in the conference call. The executives said V2X is updating its total year guidance due to the company’s strong performance through the first nine months of the year.
The full-year revenue guidance was revised from $4.17 billion and $4.27 billion to $4.22 billion to $4.27 billion. However, the adjusted EBITDA guidance rose slightly between $3.95 billion and $4.2 billion. V2X’s revenue has increased steadily every year since 2020. Also, on Monday, the defense stock advanced 0.73% to $61.91. The financial performance shows in the 33.31% year-to-date gain.
