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RESTON, Va. - V2X Inc. (NYSE:VVX), a company specializing in defense and national security solutions, has secured a $103 million contract from the U.S. Navy to provide Contractor Logistics Support (CLS) for the Navy’s C-26 aircraft fleet. This contract underscores the company’s position in offering cost-effective support services for military aviation. With a market capitalization of $1.54 billion and annual revenue of $4.32 billion, V2X has established itself as a significant player in the defense sector. According to InvestingPro analysis, the company’s stock currently appears undervalued based on its Fair Value assessment.
The agreement entrusts V2X with comprehensive CLS responsibilities, which encompass engineering services, maintenance, and upgrades, as well as modifications to the aircraft. The work on this firm-fixed-price contract is slated to commence in June 2025 and will support eight C-26A/D aircraft across four main operating bases, with one located in the United States and three others internationally.
V2X’s President and CEO, Jeremy C. Wensinger, expressed the Navy’s ongoing trust in the company’s proven track record of delivering aircraft that meet mission requirements with outstanding performance. The company boasts readiness rates exceeding 90%, a testament to its ability to maintain operational capability while overseeing all facets of maintenance, personnel, and equipment. InvestingPro data shows V2X maintains profitability with $270.77 million in EBITDA, though it operates with a modest gross profit margin of 7.93%.
Senior Vice President of Aerospace Systems at V2X, Vinny Caputo, highlighted the company’s FAA Part 145 repair stations as a significant factor in their ability to multiply readiness. These stations contribute to V2X’s competitive edge in the aerospace support market.
V2X is recognized for creating innovative solutions that merge physical and digital realms, focusing on aligning people, actions, and technology to enhance readiness and security. The company’s global workforce of around 16,100 professionals leverages AI and machine learning to address complex challenges across various operational domains, including national security, defense, civilian, and international markets.
This contract reaffirms V2X’s longstanding commitment to supporting Navy aviation and its role in ensuring mission-ready aircraft for operational readiness worldwide. The information in this article is based on a press release statement from V2X, Inc. For deeper insights into V2X’s financial health, growth prospects, and additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with detailed analysis and actionable intelligence.
In other recent news, V2X, Inc. has secured a significant extension of its task orders under the Logistics Civil Augmentation Program V (LOGCAP V), which will now continue through June 2030. This development is expected to contribute positively to the company’s operational stability and financial performance. Additionally, V2X has been awarded a $62 million contract to maintain the COBRA DANE radar system in Alaska, a critical component of the U.S. Ballistic Missile Defense system. This contract further solidifies V2X’s role in national security, with work expected to be completed by March 2027.
In another financial move, V2X announced a restructuring of its credit facilities, introducing new term loans and revolving credit commitments totaling $738 million, set to mature in 2030. This restructuring aims to refinance the company’s debt structure, providing greater financial flexibility. On the analyst front, Morgan Stanley initiated coverage on V2X with an Underweight rating and a price target of $51.00, citing the company’s stable core business but noting potential risks tied to changes in government contracting practices.
Furthermore, V2X has appointed Melon Yeshoalul as the new Chief Human Resources Officer, who will focus on enhancing the company’s global HR strategy. Yeshoalul’s appointment is part of V2X’s strategic efforts to scale globally and invest in its workforce. These recent developments reflect V2X’s ongoing commitment to expanding its capabilities and maintaining its position as a key player in defense and support services.
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