V2X NYSE: VVX executives highlighted double-digit growth, record bookings, and a higher full-year outlook during the company’s first-quarter 2026 earnings call, pointing to continued demand across its portfolio of mission support, aerospace, and training capabilities.
First-quarter results show revenue and earnings gains
President and CEO Jeremy Wensinger said the company delivered “double-digit growth in revenue and earnings,” attributing the performance to “consistent strategic execution” and alignment with national security priorities.
For the quarter, V2X reported revenue of $1.25 billion, up 23% year-over-year. Wensinger called it a “record year-over-year organic growth rate for V2X.”
Senior Vice President and CFO Shawn Mural said growth was driven primarily by the ramp-up of training, foreign military sales, and rapid prototyping in engineering programs, along with “some discrete activities to support a national security customer.”
Adjusted EBITDA totaled $85.6 million, up 28% from the year-ago period, with an adjusted EBITDA margin of 6.8%, improving about 20 basis points year-over-year. Adjusted net income was $48.1 million, up 53%, and adjusted diluted EPS was $1.53, up 55%.
Mural noted that first-quarter adjusted operating cash flow was a $22.1 million use, but said it improved “significantly year-over-year,” citing solid cash collections and an effort to enhance quarterly cadence. He added the company expects first-half 2026 cash flow to be “more favorable relative to our historical profile.”
Bookings surge, led by T-6 award, pushing backlog to a record
V2X posted quarterly bookings of about $4.1 billion and ended the period with record total backlog of $13.8 billion, up from $11.1 billion at the end of the fourth quarter. Wensinger said the quarter’s bookings produced a 3.2x book-to-bill and a trailing 12-month book-to-bill of 1.5x.
During Q&A, Mural said the T-6 award contributed $3.3 billion of bookings in the quarter. He also updated investors on revenue visibility, saying, “In terms of the revenue that is in backlog today, it’s about 94% that we have visibility into and that we are under contract to perform.”
Mural told analysts that average contract durations are typically five to seven years, while the T-6 award is expected to span 10 years.
Contract activity and operating tempo discussions
Wensinger said the company secured about 50 contract awards totaling roughly $4.1 billion across business areas in the quarter. He cited work to modernize components of the F-18 and integrate advanced infrared countermeasures for the KC-130J, as well as training awards in North America and Europe, full operational execution for T-6, support for NASA’s Artemis II mission, and ongoing mission readiness and logistics support across geographies.
Asked about operational tempo and timing, Wensinger said the company can respond quickly to customer needs. “I think there is a bit of a lag, but, you know, not as much as you think,” he said, adding that in some cases the company’s response has been measured in days or weeks rather than months.
On regional posture, Wensinger said V2X’s missions in Europe were “maybe not necessarily at risk,” citing programs such as COBRA DANE, Ascension Island, and Thule, Greenland. On Kuwait, he said the situation was “a TBD,” but added he did not see the company changing its posture in the Middle East based on what it was hearing.
Mural also referenced a subsequent-event disclosure related to a Kuwait task order, noting the company had about $500 million in backlog tied to Kuwait and that V2X’s guidance assumed performance continues at first-quarter levels.
AI and innovation efforts highlighted, along with capital allocation framework
Wensinger detailed progress tied to the company’s “Go Towards Tomorrow” strategy, including enterprise investments in artificial intelligence. He said V2X introduced three AI platforms over the past six months that are operating on enterprise IT infrastructure and are seeing adoption across the employee base. He said AI-enabled productivity is improving operational efficiency in support functions and is expected to drive lower costs over time.
He also described an early prototype AI-enabled aerospace sustainment platform being built with Google, Tactile, and NVIDIA products, aimed at capturing unstructured data and turning it into predictive insights and automated decision support. Wensinger said the goal is to improve aircraft availability, reduce delays, and streamline sustainment operations.
In response to a question on whether these were “build it and they will come” efforts, Wensinger said partners are “core to some of the bids we have on the street today,” and added, “This is not vaporware.”
On liquidity and leverage, Mural said V2X ended the quarter with about $200 million in cash and a $500 million revolver with a zero balance. He said the company expects net leverage to fall to less than 2x by the end of 2026. He also outlined capital deployment criteria focused on investments that accelerate innovation, expand capabilities, provide access to growth, and enhance the margin profile, while emphasizing discipline.
Guidance increased; executives bridge drivers of the raise
Management raised its outlook for 2026, with Mural providing updated guidance ranges:
- Revenue: $4.825 billion to $4.975 billion
- Adjusted EBITDA: $345 million to $360 million
- Adjusted diluted EPS: $5.75 to $6.15
- Adjusted net cash from operations: $160 million to $180 million
Wensinger said the company now expects revenue and adjusted EBITDA to rise about 9% year-over-year at the midpoint, and adjusted diluted EPS to increase about 14% at the midpoint.
In Q&A, Wensinger said the guidance increase reflected “a little bit of both” new work wins and accelerating programs. He cited the T-6 program and “some announcements around a job in the Middle East” that will accelerate, particularly in the back half of the year.
He also raised expectations for T-6 revenue contribution, telling analysts the company was now “closer to the $175 million-$180 million type of number for the year” versus a prior range discussed of $140 million to $160 million.
Mural provided a bridge to the increased revenue outlook at the midpoint, attributing it to three main items: about $70 million to $80 million tied to national security customer activity, about $40 million to $50 million of additional Middle East support, and about $20 million to $25 million associated with T-6.
He also said the time-and-materials mix increased in the quarter due to the discrete national security customer activity, adding that, as part of the guidance increase, that activity set is expected to continue throughout the year.
Regarding expense cadence, Mural said the company saw non-recurring SG&A costs tied to potential growth opportunities, including about $12 million of professional fees in the first quarter.
Wensinger also addressed an executive order focused on maximizing fixed-price contracts, saying V2X welcomes fixed-price work and views it as an opportunity in sustainment and modernization to create customer value and savings, while noting it remains to be seen how the policy will manifest.
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.
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