V2X secures $21 million US Air Force contract

RESTON, Va. - V2X Inc. (NYSE: VVX) has secured a $21 million contract with the U.S. Air Force for the maintenance of electronic warfare and avionics systems critical to the operational effectiveness of multiple military aircraft. The company, which generated $4.2 billion in revenue over the last twelve months, announced Monday that the firm-fixed-price contract focuses on the repair and upkeep of AN/ALQ-172 and AN/ALQ-161 components, which are essential for the safety and performance of the B-52 Stratofortress, B-1B, and C-130 fleet. According to InvestingPro data, V2X is currently trading below its Fair Value, with analysts setting price targets up to $80 per share.

The AN/ALQ-172 and AN/ALQ-161 systems are integral to the aircraft’s defenses, providing countermeasures against various radar threats and evolving electronic attacks. The maintenance and enhancement of these systems by V2X play a vital role in extending the service life and capabilities of these legacy aircraft. With an EBITDA of $259 million in the last twelve months, V2X demonstrates strong operational capabilities in the defense sector.

Jeremy C. Wensinger, President and CEO of V2X, emphasized the importance of the contract in terms of both upgrading legacy systems and ensuring the safety of aircrews in the face of new threats. "This contract reinforces our commitment to delivering and sustaining cutting-edge battlefield solutions that protect warfighters and maintain combat readiness," Wensinger stated.

The work stipulated by the contract will be carried out at Robins Air Force Base in Georgia and in Indianapolis, Indiana, with an expected completion date in 2029. This agreement highlights V2X’s recognized expertise in the field of electronic warfare sustainment.

V2X is known for creating innovative solutions that bridge physical and digital realms, focusing on enhancing mission readiness, optimizing resources, and bolstering security across national security, defense, civil, and international markets. The company employs around 16,000 professionals worldwide, integrating AI and machine learning to address contemporary operational challenges. InvestingPro analysis reveals that net income is expected to grow this year, with the company maintaining profitability over the past twelve months. For detailed insights and access to the comprehensive Pro Research Report covering V2X and 1,400+ other US stocks, visit InvestingPro.

This article is based on a press release statement.

In other recent news, V2X, Inc. has secured a significant financial agreement, amending its credit arrangement to introduce a new tranche of term loans totaling approximately $899.8 million. This move, effective January 2, 2025, refinances all existing term loans, with the new loans maturing on December 6, 2030. Additionally, V2X announced a five-year $170 million contract with the Drug Enforcement Administration to support the DEA’s fleet of over 100 aircraft. Analyst activities have also been noteworthy, with Citi initiating coverage on V2X with a Buy rating and a $64 price target, citing stable margins and low recompete risk. In contrast, BofA Securities assigned a Neutral rating with a $50 price target, pointing out growth limitations due to pricing pressures. Raymond (NSE:RYMD) James downgraded V2X from Strong Buy to Outperform, adjusting the price target to $65, reflecting concerns over backlog growth and a challenging financial environment. These developments highlight the company’s strategic financial maneuvers and the mixed analyst outlooks amid evolving market conditions.

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