V2X Secures $747 Million Contract for F-5 Aircraft Maintenance

V2X Secures $747 Million Contract for Crucial F-5 Aircraft Maintenance, Boosting Navy Readiness - V2X (NYSE:VVX)

MCLEAN, Va., Aug. 26, 2024 /PRNewswire/ -- V2X, Inc. VVX announces that it has been awarded a single award indefinite-delivery/indefinite-quantity contract valued at $747 million. The F-5 aircraft play a crucial role in training naval pilots by providing adversary combat tactics and simulation capabilities. This advanced training environment ensures that pilots are well-prepared for real-world scenarios, enhancing their combat readiness and proficiency. The use of F-5s in an aggressor-training role contributes significantly to the overall readiness of our armed forces, ensuring they are equipped with the skills and experience needed to protect the nation effectively. This contract underscores V2X's commitment to supporting our nation's military readiness and ensuring the sustainability of these essential assets. "We are honored to have been selected for this critical endeavor, further solidifying our dedication to providing industry leading support for our nation's defense," said Jeremy C. Wensinger, President and Chief Executive Officer at V2X. "We look forward to leveraging our expertise and capabilities to ensure the operational excellence of the F-5 aircraft and, by extension, the readiness of the U.S. Navy and Marine Corps." V2X will be responsible for delivering critical support and operational readiness of the F-5 Adversary aircraft. The work will encompass multiple locations across the United States. Under this firm-fixed price contract, the comprehensive scope of services is projected to continue through November 2028 on the base contract, with three one-year options that could extend through November 2031, bringing the overall contract value to more than $747 million. About V2X V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission's lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today's toughest challenges across all operational domains. Media Contact Angelica Spanos Deoudes Director, Corporate Communications [email protected] 571-338-5195 Investor Contact Mike Smith, CFA Vice President, Treasury, Corporate Development and Investor Relations [email protected] 719-637-5773 View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-secures-747-million-contract-for-crucial-f-5-aircraft-maintenance-boosting-navy-readiness-302230359.html SOURCE V2X, Inc. Market News and Data brought to you by Benzinga APIs

V2X secures $747 million Navy contract for F-5 support By Investing.com

MCLEAN, Va. - V2X, Inc. (NYSE: VVX) has been awarded a significant contract by the U.S. Navy, valued at $747 million, for the support and operational readiness of F-5 adversary aircraft. The contract, which is a single award indefinite-delivery/indefinite-quantity agreement, highlights the company's role in enhancing the training and combat readiness of naval pilots. The F-5 aircraft are integral to the Navy's training programs, where they are used to simulate enemy combat tactics. This advanced training is vital for preparing pilots for actual combat situations, thus playing a key role in national defense readiness. Jeremy C. Wensinger, President and Chief Executive Officer of V2X, expressed the company's honor in being chosen for this critical project and reiterated V2X's commitment to supporting the nation's defense. The contract involves providing comprehensive support across various locations in the United States, ensuring the F-5 aircraft are maintained and ready for their training missions. The firm-fixed price contract is set to continue through November 2028, with the possibility of extension through November 2031 if the three one-year options are exercised. This could bring the total value of the contract to over $747 million. V2X specializes in creating innovative solutions that integrate physical and digital environments, focusing on enhancing readiness, optimizing resource management, and increasing security across national security, defense, civilian, and international markets. The company, employing approximately 16,000 professionals globally, infuses AI and machine learning capabilities to address complex challenges across various operational domains. This contract underscores the importance of V2X's expertise in the defense industry and its ongoing contribution to the operational excellence of military assets. The information is based on a press release statement from V2X, Inc. In other recent news, V2X Inc. has secured a substantial $3.7 billion task order to enhance the U.S. Army's training capabilities worldwide. This development positions V2X as a leading provider of comprehensive readiness services to the Army. The company has also reported a significant increase in Q2 revenue for 2024, reaching a record $1.1 billion, a 10% rise from the previous year. This robust performance has led to raised revenue guidance for the year, now expected to be between $4.175 billion and $4.275 billion. V2X's total backlog is strong at $12.2 billion, and the company has successfully repriced and extended its term loan B, saving $5 million in cash interest expense for the year. Despite certain programs winding down, the company anticipates growth in backlog, particularly in the third and fourth quarters, driven by awards and global footprint. V2X also expects to add approximately $300 million of annual revenue over the next few years. However, while margins are expected to improve later in the year, they are not projected to reach 8% in 2025. These recent developments reflect V2X's focus on optimization and performance excellence, as discussed by company representatives Shawn Mural and Jeremy Wensinger. InvestingPro Insights V2X, Inc. (NYSE: VVX) has recently secured a lucrative contract with the U.S. Navy, bolstering its position in the defense sector. Investors monitoring VVX's financial health will find several key metrics from InvestingPro noteworthy. Notably, the company's revenue for the last twelve months as of Q2 2024 stands at $4.12 billion, a 6.92% increase, demonstrating a solid growth trajectory. This is complemented by a quarterly revenue growth of 9.65% in Q2 2024, reflecting the firm's ability to expand its earnings in a competitive market. However, the company's financials also reveal areas of concern. VVX's gross profit margin during the same period is relatively low at 7.58%, which may raise questions about the company's cost management and pricing strategies. Additionally, the company has not been profitable over the last twelve months, with a negative earnings per share (EPS) of $0.39. This could be a point of caution for investors looking for immediate profitability. Despite these challenges, VVX has delivered a strong return over the last three months, with a price total return of 23.97%. Over the last six months, the return is even more impressive at 47.63%, indicating a significant uptick in investor confidence and market performance for VVX shares. InvestingPro Tips for VVX highlight that net income is expected to grow this year, and three analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook for the company's profitability. These insights, along with over 20 additional tips available on InvestingPro, can offer investors a comprehensive understanding of VVX's potential in the market. For investors seeking a deeper dive into VVX's financials and future prospects, the full suite of InvestingPro Tips can be found at InvestingPro VVX. These tips are tailored to provide strategic insights that can inform investment decisions in the context of the company's recent contract win and overall market performance.