V2X secures $921 million Army training contract

RESTON, Va. - V2X Inc. (NYSE: VVX), a provider of training and readiness solutions currently trading at $50.86, has been awarded a significant contract to support the U.S. Army’s Tactical Engagement Simulation Systems (TESS). The contract, known as the Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems Multiple-Award Contract (BEST MAC) Lot 1, has a total ceiling value of $921 million and encompasses a ten-year period, including a five-year base and two optional extensions. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

Under the terms of the contract, V2X will be responsible for updating and maintaining TESS devices, which are essential for live military training exercises simulating combat scenarios. These systems, which include simulated weapons, vehicles, and aviation assets, require continual upgrades to keep pace with evolving military technology and tactics.

The award strengthens V2X’s existing relationship with the U.S. Army, complementing a $3.7 billion Warfighter-Training Readiness Solutions task order previously secured by the company. With annual revenue of $4.32 billion and EBITDA of $270.77 million in the last twelve months, V2X has demonstrated solid financial performance. Jeremy C. Wensinger, President and CEO of V2X, emphasized the importance of the contract in supporting the U.S. Army’s training capabilities and enhancing national security.

Ken Shreves, Senior Vice President of Mission Support at V2X, highlighted the company’s position as a prime contractor for the Army’s largest training services program, asserting V2X’s capability to deliver services that meet the future requirements of the BEST MAC contract.

V2X specializes in integrating physical and digital environments, aligning people, technology, and actions to enhance mission readiness and security. The company employs approximately 16,000 professionals globally and injects AI and machine learning into its solutions to address challenges across various operational domains, including national security and defense.

The contract award is expected to solidify V2X’s role in supporting the U.S. Army’s readiness initiatives and demonstrates the company’s ongoing commitment to national security. Analysts maintain a positive outlook on V2X, with price targets reaching as high as $80 per share. This announcement is based on a press release statement from V2X Inc. For comprehensive analysis and additional insights, including more than 30 key financial metrics and exclusive ProTips, visit InvestingPro, where you can access the detailed Pro Research Report covering V2X’s financial health and growth prospects.

In other recent news, V2X Inc reported a significant financial performance for the fourth quarter and full-year 2024, with a notable 11% year-over-year increase in Q4 revenue, reaching $1.16 billion. The company’s adjusted earnings per share (EPS) rose by 16% to $4.34, reflecting a robust growth trajectory. Additionally, V2X secured over $5.5 billion in contract wins during 2024, contributing to a total backlog of $12.5 billion. In terms of recent contracts, V2X was awarded a $100 million firm-fixed-price contract to support the U.S. Navy’s Aegis Ashore missile defense facilities in Poland, indicating its expanding role in international security efforts. The company also secured a spot on the U.S. Navy’s Worldwide Expeditionary Multiple Award Contract 2.0, valued at up to $2.4 billion over ten years. Analyst firm BTIG reaffirmed its Buy rating for V2X, maintaining an $80 price target, highlighting the company’s strategic positioning in the defense sector. V2X’s recent achievements underscore its growing focus on fixed-price contracts, which are seen as providing more predictable revenue streams.

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