V2X, Inc. Q3 FY2024 earnings call

• Recognized veterans and V2X employees for their service and dedication. - Reported strong Q3 results with revenue, adjusted EBITDA, and EPS growth. - Mentioned key wins including F-5 adversarial aircraft program, NCTAMS PAC, Saudi Arabia Aviation Support Training program, and others. - Outlined optimization efforts such as building and enhancing pipeline, investing in talent and solutions, leveraging engineering expertise, and optimizing tools/processes. - Discussed capabilities in high-impact readiness, assured communications, platform modernization, and more.

V2X reported revenue of $1.08 billion in the third quarter, representing 8% year-over-year growth. Adjusted EBITDA was $82.7 million, up 28% year-over-year with a 7.6% margin. Adjusted diluted EPS was $1.29, up 77% year-over-year. Indo-Pacific revenue grew 31% year-over-year. Revenue contribution from Indo-Pacific was highlighted as part of strong growth driven by DoD priorities in the region.

• Raised the low end of 2024 revenue guidance to $4.225 billion to $4.275 billion. - Raised the low end of adjusted EPS guidance to $3.95 to $4.20 due to an improved tax rate. - Reaffirmed adjusted EBITDA and adjusted net cash from operating activities.

• Dynamic environments affecting funding priorities and international customer contracts. - Program sunset and other headwinds that could impact growth.

Q: With the strong contract awards, book-to-bill and funded backlog growth, what rate of organic growth can be attained in 2025?

A: Shawn Mural said they are in the middle of planning, expect growth in 2025 but didn't give specific numbers as they are deep in planning with various assumptions.

Q: How big a slice of the company does the IndoPACOM geography represent? Any incremental opportunities?

A: Shawn Mural said they did over $80 million in the quarter in IndoPACOM, expect growth next year with exercises and initiatives like Pacific Deterrence Initiative.