V2X awarded $118 million contract for Iraq F-16 program support

RESTON, Va. - V2X Inc. (NYSE:VVX), a defense services provider with annual revenue of $4.3 billion, has secured a $118 million cost-plus-fixed-fee undefinitized contract to provide support services for Iraq’s F-16 program, the company announced Monday. According to InvestingPro analysis, the company appears undervalued at its current market capitalization of $1.5 billion.

The contract, awarded under the Foreign Military Sales program, covers base operations, life support services, and other operational support at Martyr BG Ali Flaih Air Base in Iraq. The initial contract value enables immediate service commencement, with full contract definitization expected before the end of 2025.

The agreement has a projected five-year performance period, according to the company’s press release statement.

Work will be performed at the Iraqi air base as part of ongoing support for the Iraqi Air Force’s F-16 fleet.

"This award is a testament to the strength of V2X’s full-spectrum capabilities," said Ken Shreves, Senior Vice President of Mission Support at V2X.

Jeremy C. Wensinger, President and Chief Executive Officer of V2X, noted that "foreign military sales and international markets represent a significant and growing area of opportunity" for the company.

V2X, which employs approximately 16,000 professionals globally, provides services across national security, defense, civilian, and international markets.

In other recent news, V2X Inc. reported its Q1 2025 earnings, with an earnings per share (EPS) of $0.98, surpassing the forecast of $0.95. Despite this, the company’s revenue of $1.02 billion fell short of the anticipated $1.04 billion. In a significant development, V2X secured a spot on the U.S. Army’s Live Training, Ranges, and Combat Training Centers (LTRaC) contract, which has a maximum value of $379 million over eight years. The contract will see V2X providing comprehensive training support, including life-cycle management and modernization projects.

Additionally, Vertex Aerospace Holdco LLC announced the sale of 2 million V2X shares in an underwritten public offering, with RBC Capital Markets as the sole underwriter. This sale will reduce Vertex Aerospace’s stake in V2X to approximately 38.4%. Furthermore, V2X’s recent earnings call highlighted the company’s strategic positioning and reaffirmed its 2025 guidance, projecting revenues of $4.4 billion and adjusted EPS of $4.65.

The company also reported a notable 10% year-over-year increase in revenue within the Indo-Pacific region, reflecting strong growth. V2X’s net income surged to $8.1 million from $1.1 million in the prior year, showcasing effective cost management. These developments underline V2X’s continued efforts in expanding its footprint and maintaining robust financial performance.

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