V2X, Inc. Reports Revenue Increase and Net Income Turnaround in Q2 2025

V2X, Inc. reported a slight increase in revenue for the second quarter of 2025, reaching $1.08 billion, compared to $1.07 billion in the same period last year. For the first half of 2025, total revenue was $2.09 billion, a marginal rise from $2.08 billion in the prior year. The company achieved a net income of $22.4 million for the quarter, a significant turnaround from a net loss of $6.5 million in the second quarter of 2024. This resulted in earnings per share of $0.71, compared to a loss of $0.21 per share in the previous year.

The financial performance reflects a notable improvement in operating income, which surged to $52.9 million for the quarter, up from $27.4 million a year earlier. The increase in operating income was attributed to a favorable contract mix and reduced selling, general, and administrative (SG&A) expenses, which decreased by 7.8% to $42.8 million. The company also reported a decrease in the cost of revenue, which fell by 1.6% to $982.6 million, contributing to the improved operating margin of 4.9%, up from 2.6% in the prior year.

In terms of strategic developments, V2X has been actively managing its debt, with a loss on extinguishment of debt recorded at $0.3 million for the quarter, a significant reduction from $2.0 million in the same period last year. The company has also amended its credit agreements, resulting in lower interest expenses, which decreased by 28.5% to $20.6 million for the quarter. As of June 27, 2025, V2X had total assets of $3.15 billion, with cash and cash equivalents amounting to $190.5 million.

Operationally, V2X's customer base remains predominantly with U.S. government contracts, with the Army, Navy, and Air Force being key contributors to revenue. The company reported a funded backlog of $2.34 billion as of June 27, 2025, an increase from $2.25 billion at the end of 2024. The total backlog, including unfunded amounts, stood at $11.34 billion, indicating a robust pipeline for future revenue recognition. The company expects to recognize a substantial portion of its performance obligations as revenue within the next 12 months.

Looking ahead, V2X anticipates continued growth driven by its core capabilities in defense and national security solutions. The company is closely monitoring macroeconomic conditions, including inflation and geopolitical factors, which could impact its operations and profitability. V2X remains committed to enhancing its operational efficiency and expanding its market presence, particularly in light of the U.S. government's ongoing investment in defense and security initiatives.