V2X Reports Strong Q1 2026 Results, Raises Full-Year Guidance, and Achieves Record Backlog
Summary
V2X, Inc. announced strong first-quarter 2026 financial results, including significant year-over-year growth in revenue and adjusted EPS, and raised its full-year 2026 guidance across key metrics, while also reporting a record backlog.
Key Events
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Strong Q1 2026 Financial Performance
Reported revenue of $1.25 billion, up 23% year-over-year, and adjusted diluted EPS of $1.53, a 55% increase year-over-year. Net income surged to $18.9 million from $8.1 million in Q1 2025.
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Raised Full-Year 2026 Guidance
Increased full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted diluted EPS, with the midpoint of all three metrics showing approximately 9% growth over prior guidance.
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Record Backlog and Strong Book-to-Bill
Achieved a record total backlog of $13.8 billion, driven by approximately $4.1 billion in new awards and a 3.2x book-to-bill ratio in the first quarter.
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Improved Balance Sheet Metrics
Reduced net debt by $77 million year-over-year to $895.4 million, resulting in a 2.5x net leverage ratio, with a target to reach below 2.0x by the end of 2026.
Analysis
V2X, Inc. delivered exceptionally strong first-quarter 2026 results, significantly exceeding prior year performance across key financial metrics. The company reported double-digit growth in revenue, adjusted net income, and adjusted diluted EPS. This robust performance has led management to increase its full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted diluted EPS, signaling strong confidence in continued operational momentum. The achievement of a record $13.8 billion backlog, driven by a 3.2x book-to-bill ratio in the quarter, provides substantial revenue visibility and reinforces the company's market position. Additionally, the improvement in net debt and the projected reduction in the net leverage ratio by year-end indicate a strengthening balance sheet. This positive financial update, coupled with the company trading near its 52-week high, suggests a strong outlook for V2X.
At the time of this filing, VVX was trading at $73.02 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $43.42 to $75.00. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.