V2X, Inc. Reports $4.32 Billion Revenue for Fiscal Year 2024, Up 9.1%

V2X, Inc. reported a total revenue of $4.32 billion for the fiscal year ending December 31, 2024, marking a 9.1% increase from $3.96 billion in 2023. The growth was primarily driven by organic expansion in legacy programs and new contracts, particularly in the Middle East, the U.S., and Asia. Operating income also saw a significant rise, reaching $159.2 million, up 28% from $124.4 million in the previous year. The company's operating margin improved to 3.7%, compared to 3.1% in 2023, attributed to increased revenue and reduced selling, general, and administrative expenses.

The company experienced notable changes in its customer base, with the U.S. Army contributing approximately 43% of total revenue, followed by the Navy at 33% and the Air Force at 11%. V2X's backlog as of December 31, 2024, stood at $12.5 billion, a slight decrease from $12.8 billion in 2023, primarily due to the timing of new awards and revenue recognition. The funded backlog decreased to $2.25 billion, while the unfunded backlog increased to $10.25 billion, indicating a shift in contract dynamics.

Strategically, V2X continues to integrate operations following its merger with Vertex Aerospace Services in July 2022, which has expanded its capabilities and market reach. The company operates in 329 locations across 47 countries and territories, employing approximately 16,100 individuals and utilizing around 6,200 subcontractors. The merger has allowed V2X to compete for more integrated business opportunities, enhancing its service offerings in areas such as high-impact readiness, integrated supply chain management, and platform renewal.

The filing also highlighted the company's focus on maintaining strong relationships with the U.S. government, which accounts for 96% of its revenue. However, V2X faces challenges, including the need to navigate a highly competitive environment and potential impacts from changes in U.S. government defense budgets. The company reported a net income of $34.7 million for 2024, a significant turnaround from a net loss of $22.6 million in 2023, reflecting improved operational performance and effective cost management.

Looking ahead, V2X anticipates continued growth driven by its strategic focus on national security priorities and the ongoing demand for its services. The company is committed to enhancing its operational efficiencies and expanding its market presence, despite the uncertainties surrounding government funding and geopolitical factors. The management remains optimistic about leveraging its capabilities to meet evolving customer needs and capitalize on emerging opportunities in the defense sector.