V2X Inc. secures extended US Army logistics contract

Published 21/04/2025, 12:34
V2X Inc. secures extended US Army logistics contract

V2X, Inc., a provider of facilities support management services with annual revenue of $4.32 billion, has secured an extension of its task orders under the Logistics Civil Augmentation Program V (LOGCAP V), which supports U.S. military operations globally. The announcement came from the U.S. Department of the Army on Sunday, which published the Justification to Fair Opportunity (SO:FTCE11B) (JEFO) on SAM.gov. According to InvestingPro data, the company maintains a GOOD overall financial health score, suggesting strong operational capabilities.

The Indiana-based company, which trades on the New York Stock Exchange under the ticker (NYSE:VVX), is one of four awardees of the LOGCAP V contract. V2X’s task orders, including the Kuwait Task Order, Iraq Task Order, and INDOPACOM Task Order, are now scheduled to continue through June 2030. The company has demonstrated solid performance with a 9.06% revenue growth in the last twelve months, generating $270.77 million in EBITDA.

This extension reflects the Army’s ongoing need for V2X’s services in various operational theaters. The company’s role in supporting the U.S. military has been a significant part of its business, and this development is expected to contribute to V2X’s operational stability and financial performance over the next several years.

The information regarding this contract extension is based on a press release statement filed with the Securities and Exchange Commission on April 21, 2025. The original task orders were part of a broader contract designed to provide logistical support to U.S. forces around the world, indicating the strategic importance of V2X’s services to military operations.

Investors and stakeholders in the defense and support services sector may view this extension as a positive indicator of V2X’s standing and reliability as a service provider to the U.S. government. The extended duration of these task orders until June 2030 provides a long-term perspective on the company’s revenue stream from this federal contract. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with analyst targets suggesting potential upside. Get access to the complete V2X Pro Research Report and detailed analysis of 1,400+ other US stocks with an InvestingPro subscription.

V2X, previously known as Vectrus, Inc. and before that as Exelis MSCO Inc., has its headquarters in Reston, VA, and operates under the state laws of Indiana. The company’s contact number is (571) 481-2000, as per the SEC filing. With multiple InvestingPro Tips pointing to expected net income growth and profitability this year, investors seeking detailed financial analysis can access comprehensive metrics and expert insights through the Pro Research Report.

In other recent news, V2X, Inc. has been awarded a $62 million contract to maintain the COBRA DANE radar system in Alaska, a key component of the U.S. Space Force’s defense capabilities. The contract highlights V2X’s commitment to national security and is expected to be completed by March 2027. Additionally, V2X secured a $921 million contract to support the U.S. Army’s Tactical Engagement Simulation Systems, which will span a ten-year period. This contract further strengthens V2X’s relationship with the U.S. Army and complements a previous $3.7 billion task order for Warfighter-Training Readiness Solutions.

Moreover, V2X has announced a significant restructuring of its credit facilities, introducing new term loans of $237.5 million and revolving credit commitments totaling $500 million, maturing in March 2030. This financial maneuver aims to enhance the company’s capital structure, with anticipated interest savings of over 50 basis points. The repricing and extension of these financial agreements were well-received by the market, reflecting confidence in V2X’s business operations.

In analyst news, Morgan Stanley (NYSE:MS) initiated coverage on V2X with an Underweight rating and a price target of $51.00. The firm highlighted V2X’s stable core business but noted potential risks related to changes in military engagement tempo and government contracting practices. These developments underscore V2X’s strategic efforts to maintain financial stability while expanding its role in defense and national security sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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