V2X, Inc. Reports 0.5% Revenue Increase and Significant Net Income Growth in Q1 2025

V2X, Inc. reported a slight increase in revenue for the first quarter of 2025, generating $1,015.9 million compared to $1,010.6 million in the same period last year, marking a 0.5% rise. The company’s operating income also saw a significant increase, rising to $34.3 million from $30.3 million, a 13.1% improvement. Net income surged to $8.1 million, up from $1.1 million in the prior year, resulting in basic earnings per share of $0.26, compared to $0.04 in the previous year. The increase in revenue was primarily attributed to organic growth, particularly from U.S. and Asian programs, which saw increases of $32.8 million and $7.2 million, respectively, despite declines in the Middle East and Europe.

In terms of operational metrics, V2X's total backlog decreased to $11.9 billion as of March 28, 2025, down from $12.5 billion at the end of 2024. Funded backlog was reported at $2.2 billion, while unfunded backlog stood at $9.7 billion. The company received funded orders totaling $984.4 million during the quarter, an increase of $124 million compared to the same period last year. The company continues to rely heavily on U.S. government contracts, with approximately 44% of revenue derived from the U.S. Army.

V2X's financial position showed a decrease in total assets, which fell to $3.1 billion from $3.2 billion at the end of 2024. Current liabilities also decreased to $867.1 million from $996.2 million, primarily due to reductions in accounts payable and employee benefits. The company’s cash, cash equivalents, and restricted cash totaled $169.1 million, down from $268.3 million at the end of the previous year, reflecting a net cash outflow of $99.3 million during the quarter. This outflow was largely driven by working capital changes and operational cash flow dynamics.

Strategically, V2X has been active in managing its debt, having amended its First Lien Credit Agreement in January 2025 to include a new tranche of term loans totaling $899.8 million. This amendment is expected to enhance the company’s liquidity and financial flexibility. The company also reported a loss of $2.2 million on extinguishment of debt during the quarter. Looking ahead, V2X remains optimistic about its growth prospects, citing the ongoing demand for defense services and the U.S. government's commitment to national security as key drivers for future revenue. The company anticipates recognizing a substantial portion of its remaining performance obligations as revenue within the next 12 months.