V2X announces proposed secondary stock offering

MCLEAN, Va. - V2X, Inc. (NYSE:VVX), a provider of global mission solutions, disclosed the launch of a secondary public offering on Wednesday. A selling stockholder is offering 2,000,000 shares of common stock, with an additional option for underwriters to purchase up to 300,000 shares. V2X itself is not selling shares and will not receive proceeds from this offering.

The completion of the offering is contingent upon market conditions, and no assurances can be given regarding the final terms or timing. The Securities and Exchange Commission (SEC) has previously declared effective a registration statement related to these shares on September 12, 2022.

Goldman Sachs & Co. LLC, Morgan Stanley, and Baird are acting as the joint book-running managers for the offering. Potential investors can access the preliminary prospectus supplement and accompanying prospectus filed with the SEC by contacting the respective financial institutions.

This press release contains forward-looking statements, which are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those contemplated.

V2X specializes in providing solutions across various sectors, including defense, and has a history of government contracts. The company's performance and future results are subject to a range of factors, including but not limited to, their ability to win contracts, maintain existing ones, navigate government regulations, and manage their financial obligations.

The information provided is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy any securities.

In other recent news, V2X, Inc. has reported significant developments. The company has secured a $747 million contract from the U.S. Navy for F-5 adversary aircraft support. Additionally, V2X has been awarded a $3.7 billion task order to enhance the U.S. Army's training capabilities globally.

In terms of financial performance, V2X reported a substantial 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.

The company's total backlog is strong at $12.2 billion, and it has successfully repriced and extended its term loan B, saving $5 million in cash interest expense for the year. Despite certain programs winding down, V2X anticipates growth in backlog, particularly in the third and fourth quarters, driven by awards and global footprint. The company 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.

InvestingPro Insights

As V2X, Inc. (NYSE:VVX) announces a secondary public offering, potential investors may be weighing the company's financial health and future prospects. According to InvestingPro data, V2X has experienced a strong return over the past month, with a 13.39% increase, and an even more impressive return over the past six months at 41.12%. These metrics suggest a positive short-term investor sentiment surrounding the company's stock.

On the profitability front, V2X has faced challenges, as it has not been profitable over the last twelve months. However, analysts are optimistic about the company's potential to turn a profit this year. This outlook is supported by three analysts who have revised their earnings upwards for the upcoming period, reflecting confidence in V2X's ability to improve its bottom line.

Despite these positive indicators, V2X grapples with weak gross profit margins, currently standing at 7.58%. This could signal potential issues with cost control or pricing power in the company's operations. Additionally, V2X does not pay a dividend to shareholders, which could influence the investment decisions of those seeking regular income streams from their investments.

For investors looking for more in-depth analysis, there are additional InvestingPro Tips available on the company's profile. These tips can provide further guidance on the company's financial health and investment potential.

For those interested in the full range of insights, the InvestingPro platform lists 9 additional tips for V2X, Inc., which can be accessed at InvestingPro VVX.

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