MCLEAN, Va. - V2X Inc. (NYSE: VVX), a provider of engineering solutions, has been awarded a $141 million task order to provide continued support for the U.S. Navy's Command, Control, Communications, Computer, and Intelligence (C4I) systems. This task order is part of the ongoing Fleet Systems Engineering Team (FSET) program, a contract that V2X has been fulfilling for the past 25 years.
Under the new task order, V2X will deliver comprehensive C4I systems engineering support to the U.S. Navy's afloat force, including command ships and ballistic missile defense ships, among others. The company's role will include systems engineering, technical innovation, and the integration of new capabilities to address emerging threats to Navy networks.
V2X's support is aimed at ensuring that Navy C4I systems are consistently updated and protected, particularly in the face of mission-impacting events. The contract is set to run through July 2029, with an option to extend until 2030.
"Since 1999, we have delivered complex C4I support under FSET, showcasing our longstanding history of innovative solutions," said Jeremy C. Wensinger, President and CEO of V2X. He emphasized the company's commitment to maintaining the readiness of U.S. Navy ships through its services.
V2X, which employs approximately 16,000 professionals globally, focuses on integrating physical and digital environments to enhance mission readiness, optimize resource management, and strengthen security across national security, defense, civilian, and international markets.
This announcement underscores V2X's expanding relationship with the Navy and its position in providing critical support to U.S. defense operations. The information is based on a press release statement from V2X Inc.
In other recent news, V2X, Inc. has made significant strides in various areas. The company secured a $265 million contract with NASA to maintain the Sonny Carter Training Facility, a critical component of astronaut training for upcoming space missions. This contract extends through 2033, ensuring the facility's readiness for future explorations.
V2X also reported a 7% year-over-year revenue increase, reaching $1.01 billion in the first quarter of 2024. The company reaffirmed its full-year 2024 guidance, projecting a non-GAAP EPS of $4.09 on revenue growth of 6%.
In terms of leadership changes, Charles L. Prow resigned from his roles as President, CEO, and board member, with Jeremy Wensinger stepping in as his successor.
The company also successfully repriced and extended its $907 million First Lien Term Loan, reducing the annual interest margin to 2.75% and extending the loan's maturity to December 2030.
Noble Capital reiterated an Outperform rating on V2X, while Stifel maintained a Hold rating on the shares. These are among the recent developments for V2X, Inc.
InvestingPro Insights
In light of V2X Inc.'s recent $141 million task order to support the U.S. Navy's C4I systems, investors may find the following insights from InvestingPro particularly relevant. V2X has demonstrated a significant return over the last month, with a 13.82% increase, and an even more impressive 37.18% jump over the last six months. This performance is a testament to the company's robust engagement in defense contracts and its potential for growth in this sector.
InvestingPro Data also sheds light on the financial health and valuation metrics of the company. V2X currently has a Price / Book ratio of 1.66 as of the last twelve months up to Q1 2024, which can be appealing to investors looking for companies with potentially undervalued assets. Furthermore, the company has achieved a 19.31% revenue growth over the same period, indicating a solid expansion in its business operations.
It's worth noting, however, that V2X does not pay dividends to shareholders, which might be a consideration for income-focused investors. Despite this, analysts predict that the company will be profitable this year, which could signal a positive outlook for potential investors.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available that could further guide investment decisions. For example, while V2X suffers from weak gross profit margins, currently at 8.1%, the expectation of net income growth this year could indicate a turnaround in profitability. Moreover, with a high shareholder yield and anticipated positive earnings revisions, V2X's financial trajectory appears promising.
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