V2X (NYSE:VVX) management said the company delivered record quarterly revenue, Adjusted EBITDA, and adjusted cash flow in the fourth quarter of 2025, while strengthening its balance sheet and outlining expectations for accelerating growth in 2026. Executives also highlighted a large qualified pipeline, recent major contract awards, and new technology partnerships aimed at applying AI and automation across the company’s global operations.
Fourth-quarter and full-year results
President and CEO Jeremy Wensinger said he was pleased with the team’s execution and financial performance in 2025, which he said reflects alignment with national security priorities for readiness and modernization. He emphasized a focus on innovation, targeted investments, and expanded partnerships to deliver “technology-first” solutions.
Other fourth-quarter metrics discussed on the call included:
- Interest expense of $19.6 million; cash interest expense of $18.0 million, an improvement of $4.7 million year over year
- Net income of $22.8 million; adjusted net income of $49.3 million, up 16% year over year
- Diluted EPS of $0.72; adjusted diluted EPS of $1.56, up about 17% year over year
- Adjusted operating cash flow of $172.4 million
Mural added that an extended government shutdown did not have a material effect on fourth-quarter results, which he said demonstrated the “enduring and mission-aligned” nature of the business.
For full-year 2025, revenue rose 4% to $4.48 billion, reaching the upper end of company guidance, according to management. Adjusted EBITDA totaled $323.3 million, exceeding the high end of the guidance range, with a margin of 7.2%. Net income was $77.9 million, while adjusted net income was $166.8 million, up 20% year over year. Diluted EPS was $2.45 and adjusted diluted EPS was $5.24, up 21% year over year.
Cash flow, leverage, and capital allocation
Mural said the company’s cash generation supported continued deleveraging. V2X improved net debt by $116 million year over year to $758 million and ended 2025 with a net leverage ratio of 2.2x, which he characterized as more than one full turn of improvement over 24 months.
He also noted that V2X achieved this while deploying more than $50 million in the second half of the year as part of its capital allocation strategy. Management said the improved balance sheet provides flexibility for internal investments and potential acquisitions that add capabilities, new channels, or solutions aligned with the growth strategy.
Contract wins, backlog, and pipeline
Wensinger pointed to strong award activity in 2025, saying the company won two contracts valued at more than $1 billion each and 10 awards exceeding $100 million. He highlighted a T-6 aircraft award valued at approximately $4.3 billion and an F-16 modernization and services award, along with other wins in training, space and missile defense-related work, rapid technology development programs, and classified awards across cyber operations and systems.
Backlog at year-end was $11.1 billion, and funded backlog was $2.3 billion. Mural stressed that the year-end backlog figure did not include the approximately $4 billion T-6 award. He said that subsequent to the fourth quarter the award decision was upheld and the company expects to book it into backlog in the first quarter. Management also discussed that the amount booked will reflect performance obligations and options, rather than necessarily the entire awarded value.
The trailing 12-month book-to-bill ratio was 0.9, which management said was in line with expectations. Executives said they expect book-to-bill to be above 1 in 2026, and in Q&A indicated the T-6 booking is an important component of that outlook.
Wensinger said the qualified pipeline stands at more than $60 billion and reiterated the company increased bid velocity by 50% in 2025. For 2026, V2X is targeting another 30% increase in bid activity, which management said is supported by investments in people, process, and technology.
2026 guidance and key drivers
For 2026, management guided to revenue of $4.675 billion to $4.825 billion, implying 6% growth at the midpoint. Adjusted EBITDA is expected to be $335 million to $350 million, and adjusted diluted EPS is guided to $5.50 to $5.90. The company expects adjusted net cash provided by operating activities of $150 million to $170 million, with cash interest expense of about $69 million, other expenses of $15 million, and capital expenditures of about $25 million.
Mural said the 2026 revenue outlook includes incremental contributions from training, FMS, and rapid prototyping programs, an initial ramp on the T-6 program, and the completion of certain mission support activities in the Middle East. He also said the percentage of revenue expected to come from recompetes improved heading into 2026 and represents about 3% of revenue at the midpoint of guidance. In response to a question on coverage, Mural said approximately 85% of the year’s revenue is in backlog today, excluding the T-6 award that is expected to be booked in the first quarter.
On cash flow, Mural said 2026 includes one additional payroll period versus 2025, which he estimated at about $50 million, and he expects cash generation to follow a typical seasonal pattern with more occurring in the second half of the year.
AI partnerships and operating environment
Wensinger described new partnerships with Amazon Web Services and Google Public Sector as part of a “technology-first foundation.” He said AWS will support smart warehousing and logistics automation, while Google will help deploy secure, responsible AI solutions that meet customer security and compliance requirements. Management characterized these efforts as leveraging V2X’s operational data and mission context with partners’ technology platforms to deliver faster and more efficient outcomes.
During Q&A, executives addressed a question about the Middle East, saying the situation was “fluid” and emphasizing employee safety as the top priority. Management did not include any potential upside from evolving regional requirements in its guidance, calling such outcomes speculative at this time.
About V2X (NYSE:VVX)
V2X, Inc provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.
