V2X (NYSE:VVX) reported second-quarter 2026 revenue of $1.26 billion, up 17% from a year earlier, as training and aerospace program ramp-ups and national security activity supported growth. The company raised its full-year outlook for revenue, adjusted EBITDA and adjusted diluted earnings per share.
Adjusted EBITDA increased 9% year over year to $89.8 million, while adjusted EBITDA margin was 7.1%. Adjusted net income rose 22% to $51.6 million, and adjusted diluted EPS increased 23% to $1.64. Net income for the quarter was $25.5 million, or $0.81 per diluted share.
Full-Year Guidance Raised
V2X increased its 2026 revenue forecast to a range of $4.875 billion to $5.025 billion. The company now expects adjusted EBITDA of $347.5 million to $362.5 million and adjusted diluted EPS of $5.90 to $6.30. It maintained expected adjusted net cash from operating activities of $160 million to $180 million.
At the midpoint of its updated guidance, V2X expects revenue and adjusted EBITDA to rise about 10% year over year, while adjusted diluted EPS is expected to increase 16%, according to Wensinger.
For the first half, revenue increased 20% to $2.51 billion, driven by new programs and growth on existing contracts, partially offset by lower volume on certain logistics programs. First-half adjusted EBITDA rose about 17% to $175.4 million, with a 7% margin. Adjusted net income increased 35% to $99.7 million, while adjusted diluted EPS rose 37% to $3.16.
Senior Vice President and Chief Financial Officer Shawn Mural said the company’s guidance assumes a significant reduction in Kuwait activity during the second half. Kuwait activities generated about $180 million in first-half revenue, while the company expects $20 million to $30 million in second-half revenue from those activities.
National security support missions generated about $200 million of revenue during the first half, and V2X expects about $180 million in the second half. Mural said the company currently expects these customer requirements to continue through 2026 and into the early part of 2027, though he described the operating environment as dynamic.
Backlog, Recent Awards and Geographic Activity
V2X reported $600 million of quarterly bookings, representing a 0.5x book-to-bill ratio for the quarter and a trailing 12-month book-to-bill ratio of 1.4x. Total backlog stood at $12.7 billion, including the modified scope of the company’s LOGCAP work in Kuwait. Funded backlog rose 10% sequentially and 8% year over year to $2.5 billion.
Management noted that bookings did not include about $1 billion of recent awards received shortly after the end of the second quarter. Those awards span modernization, global training, aerospace and mission readiness and are expected to be margin-accretive to the company’s existing portfolio.
- A multi-year production award for carriage equipment supporting next-generation weapons for the strategic bomber fleet.
- Training awards for unmanned aircraft system maintenance and operator training.
- A five-year recompete to support U.S. Air Force C-12 fleet readiness.
- Work supporting U.S. Marine Corps assets and electronic security capabilities for a foreign military customer in the Middle East.
Wensinger said the strategic bomber program had progressed from development into full-rate production and is expected to continue until the fleet is built out. He also described the C-12 recompete as evidence of the company’s strategy and cited the company’s focus on pursuing new work outside its current portfolio.
Revenue from the Asia-Pacific region increased 13% year over year in the second quarter, while U.S. revenue rose 26%, primarily due to new program starts and national security support. Middle East revenue was slightly higher year over year due to foreign military sales, though V2X expects full-year revenue in the region to be flat to down as logistics-related support shifts within the region.
Mural said the company is ramping additional work in Israel while responding to changing customer needs in Kuwait. Management also cited demand signals in the Asia-Pacific region, though Mural said those signals must still translate into funded activity.
AI Investments and Capital Allocation
V2X said it is operating three artificial intelligence platforms across its enterprise IT infrastructure and is expanding internal AI use cases focused on employee education, productivity and operational efficiency. The company has also introduced customer-facing applications for predictive readiness and operational efficiency.
Management said more than $8 billion of recently submitted, margin-accretive bids include V2X AI solutions. Wensinger said the company is using AI both internally and in customer proposals, including for predictive analytics, training platforms and readiness-related applications.
“We wouldn’t bid something if we didn’t feel like we had a better-than-most chance of winning it,” Wensinger said, adding that the company seeks to differentiate its offers through technology, customer relationships, global capabilities and past performance.
V2X generated $71.8 million in adjusted operating cash flow in the second quarter, a 23% year-over-year improvement. For the first half, adjusted net cash from operating activities was $49.7 million, representing a $109.5 million improvement from the prior-year period.
The company said net debt improved by approximately $71.4 million year over year. It also repriced its first-lien term loan to lower borrowing costs, while Moody’s revised its credit ratings outlook to positive. Mural said V2X expects its net leverage ratio to reach approximately 2x or below by the end of 2026.
Management said its capital allocation priorities remain generating predictable cash flow, maintaining a low-capital-expenditure profile, investing in organic innovation and evaluating strategically complementary acquisitions. The company said it is assessing M&A opportunities that could expand capabilities and customer access in areas including platform modernization, counter-unmanned aircraft systems, electronic warfare, integrated air and missile defense, and C6ISR.
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.
