Revenue growth accelerated to 23.4% in 2026Q1, though operating margins remain muted, fluctuating between 2.6% and 4.9% over the last ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 4.72B | 4.48B | 4.32B | 3.96B | 2.89B | 1.78B | 1.4B | 1.38B | 1.28B | 1.11B | 1.19B | 1.18B | 1.2B | 1.51B | 1.83B |
| Revenue Growth % | 9.03% | 3.65% | 9.06% | 37.09% | 62.07% | 27.81% | 0.94% | 8.07% | 14.76% | -6.36% | 0.83% | -1.88% | -20.42% | -17.3% | - |
| Cost of Goods Sold | 4.32B | 4.11B | 3.98B | 3.63B | 2.6B | 1.62B | 1.27B | 1.25B | 1.16B | 1.01B | 1.08B | 1.08B | 1.08B | 1.3B | 1.64B |
| COGS % of Revenue | - | 91.67% | 92.06% | 91.55% | 89.8% | 91.01% | 91.1% | 90.74% | 91.03% | 90.85% | 91.02% | 91.05% | 90.13% | 85.78% | 89.46% |
| Gross Profit | 401.1M | 373.38M | 342.96M | 334.86M | 295.01M | 160.42M | 124.15M | 127.97M | 114.69M | 101.95M | 106.91M | 105.65M | 118.76M | 215M | 192.67M |
| Gross Margin % | 8.5% | 8.33% | 7.94% | 8.45% | 10.21% | 8.99% | 8.9% | 9.26% | 8.97% | 9.15% | 8.98% | 8.95% | 9.87% | 14.22% | 10.54% |
| Gross Profit Growth % | - | 8.87% | 2.42% | 13.51% | 83.9% | 29.21% | -2.98% | 11.57% | 12.5% | -4.64% | 1.2% | -11.04% | -44.76% | 11.59% | - |
| Operating Expenses | 197.03M | 179.11M | 183.76M | 210.44M | 239.24M | 98.4M | 80.68M | 78.32M | 66.37M | 60.73M | 64.09M | 65.69M | 80.34M | 84M | 82.32M |
| OpEx % of Revenue | - | 4% | 4.25% | 5.31% | 8.28% | 5.52% | 5.78% | 5.66% | 5.19% | 5.45% | 5.38% | 5.56% | 6.68% | 5.56% | 4.5% |
| Selling, General & Admin | 197.03M | 179.11M | 183.76M | 210.44M | 239.24M | 98.4M | 80.68M | 78.32M | 66.37M | 60.73M | 64.09M | 65.69M | 80.34M | 84M | 82.32M |
| SG&A % of Revenue | - | 4% | 4.25% | 5.31% | 8.28% | 5.52% | 5.78% | 5.66% | 5.19% | 5.45% | 5.38% | 5.56% | 6.68% | 5.56% | 4.5% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 204.06M | 194.27M | 159.2M | 124.42M | 55.77M | 62.02M | 43.48M | 49.65M | 48.32M | 41.22M | 42.83M | 39.96M | 38.42M | 131M | 110.35M |
| Operating Margin % | 4.32% | 4.34% | 3.68% | 3.14% | 1.93% | 3.48% | 3.12% | 3.59% | 3.78% | 3.7% | 3.6% | 3.38% | 3.19% | 8.66% | 6.04% |
| Operating Income Growth % | - | 22.03% | 27.96% | 123.08% | -10.08% | 42.66% | -12.44% | 2.74% | 17.23% | -3.75% | 7.17% | 4.02% | -70.67% | 18.71% | - |
| EBITDA | 288.55M | 306.79M | 274.09M | 237.73M | 118.4M | 78.57M | 51.6M | 56.14M | 52.12M | 42.91M | 44.75M | 43.1M | 40.57M | 134M | 113.39M |
| EBITDA Margin % | 6.12% | 6.85% | 6.34% | 6% | 4.1% | 4.41% | 3.7% | 4.06% | 4.07% | 3.85% | 3.76% | 3.65% | 3.37% | 8.86% | 6.2% |
| EBITDA Growth % | 4.08% | 11.93% | 15.29% | 100.78% | 50.69% | 52.27% | -8.08% | 7.71% | 21.47% | -4.11% | 3.82% | 6.25% | -69.73% | 18.18% | - |
| D&A (Non-Cash Add-back) | 84.49M | 112.52M | 114.88M | 113.31M | 62.63M | 16.55M | 8.13M | 6.49M | 3.8M | 1.69M | 1.92M | 3.14M | 2.15M | 3M | 3.04M |
| EBIT | 152.61M | 185.85M | 148M | 98.89M | 55.77M | 62.02M | 43.48M | 49.65M | 48.14M | 41.22M | 42.87M | 40.04M | 38.47M | 131M | 110.35M |
| Net Interest Income | -60.59M | -82.51M | -107.9M | -122.44M | -61.71M | -7.82M | -3.89M | -6.47M | -5.07M | -4.64M | -5.64M | -6.53M | -1.53M | 111K | 45K |
| Interest Income | 1.19M | 2.44M | 1.26M | 966K | 165K | 161K | 123K | 0 | 82K | 47K | 41K | 80K | 0 | 121K | 45K |
| Interest Expense | 43.65M | 84.94M | 109.16M | 123.41M | 61.88M | 7.99M | 4.02M | 6.47M | 5.15M | 4.69M | 5.68M | 6.61M | 1.53M | 10K | 0 |
| Other Income/Expense | -89.71M | -93.37M | -120.36M | -148.93M | -61.88M | -7.99M | -4.79M | -6.47M | -5.07M | -4.64M | -5.64M | -6.53M | -1.53M | 0 | 45K |
| Pretax Income | 114.35M | 100.9M | 38.84M | -24.52M | -6.11M | 54.03M | 38.68M | 43.18M | 43.25M | 36.58M | 37.19M | 33.43M | 36.89M | 131M | 110.4M |
| Pretax Margin % | 2.42% | 2.25% | 0.9% | -0.62% | -0.21% | 3.03% | 2.77% | 3.12% | 3.38% | 3.28% | 3.12% | 2.83% | 3.07% | 8.66% | 6.04% |
| Income Tax | 25.65M | 23.02M | 4.16M | -1.95M | 8.22M | 8.31M | 1.73M | 10M | 7.96M | -22.92M | 13.53M | 2.46M | 14.08M | 47M | 35.73M |
| Effective Tax Rate % | 22.43% | 22.81% | 10.7% | 7.93% | -134.61% | 15.37% | 4.47% | 23.17% | 18.39% | -62.65% | 36.39% | 7.35% | 38.16% | 35.88% | 32.37% |
| Net Income | 88.7M | 77.88M | 34.68M | -22.57M | -14.33M | 45.73M | 36.95M | 33.18M | 35.3M | 59.5M | 23.66M | 30.97M | 22.81M | 84M | 74.67M |
| Net Margin % | 1.88% | 1.74% | 0.8% | -0.57% | -0.5% | 2.56% | 2.65% | 2.4% | 2.76% | 5.34% | 1.99% | 2.62% | 1.9% | 5.56% | 4.08% |
| Net Income Growth % | 112.98% | 124.55% | 253.65% | -57.52% | -131.34% | 23.75% | 11.38% | -6.01% | -40.68% | 151.52% | -23.63% | 35.77% | -72.84% | 12.5% | - |
| Net Income (Continuing) | 88.7M | 77.88M | 34.68M | -22.57M | -14.33M | 45.73M | 36.95M | 33.18M | 35.3M | 59.5M | 23.66M | 30.97M | 22.81M | 84M | 74.67M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.81 | 2.45 | 1.08 | -0.73 | -0.68 | 3.86 | 3.14 | 2.86 | 3.10 | 5.31 | 2.16 | 2.86 | 2.13 | 8.44 | 7.47 |
| EPS Growth % | 116.28% | 126.85% | 247.95% | -7.35% | -117.62% | 22.93% | 9.79% | -7.74% | -41.62% | 145.83% | -24.48% | 34.27% | -74.76% | 12.99% | - |
| EPS (Basic) | - | 2.47 | 1.10 | -0.73 | -0.68 | 3.91 | 3.19 | 2.90 | 3.14 | 5.40 | 2.21 | 2.94 | 2.18 | 8.44 | 7.47 |
| Diluted Shares Outstanding | 31.51M | 31.82M | 31.97M | 31.08M | 21M | 11.84M | 11.75M | 11.61M | 11.38M | 11.21M | 10.97M | 10.82M | 10.69M | 10M | 10M |
| Basic Shares Outstanding | 31.21M | 31.56M | 31.48M | 31.08M | 21M | 11.71M | 11.6M | 11.44M | 11.22M | 11.02M | 10.71M | 10.55M | 10.48M | 10M | 10M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Fixed-price contract margin erosion
According to the most recent quarterly filings, V2X achieved a notable 23.4% year-over-year revenue growth in 2026Q1, signaling a significant acceleration in top-line expansion that appears to be driven by the successful integration of recent acquisitions and increased demand for mission-critical defense logistics services.
The jump to $1.3B in revenue suggests that the company is successfully leveraging its expanded scale to capture larger, more complex government contracts. Investors should monitor whether this growth trajectory is sustainable or if it represents a temporary spike related to the timing of contract awards and project-based revenue recognition.
As reported in financial statements, V2X maintains a narrow gross margin profile of 8.33%, which reflects the inherent limitations of its government-focused business model where cost-plus and firm-fixed-price contracts dominate the revenue mix and limit the potential for significant margin expansion.
The persistent sub-10% gross margin indicates that the company lacks the pricing power typically seen in higher-margin technology or intelligence-focused peers. This structural reality suggests that any meaningful improvement in profitability will likely require a shift toward higher-value technical services rather than simple volume growth.
Based on the provided income statement data, operating income has failed to scale proportionally with revenue, as evidenced by an operating margin that fluctuated between 2.6% and 4.9% over the last ten quarters, indicating limited operating leverage within the current cost structure.
The inability to significantly expand operating margins despite revenue growth suggests that SG&A and direct labor costs are rising in lockstep with top-line gains. This trend warrants further investigation into whether the company is effectively managing its overhead or if it is trapped in a high-variable-cost environment.
Analysis of historical performance reveals that V2X's net margin has frequently dipped into negative territory, such as the -0.6% recorded in 2024Q2, highlighting the volatility and execution risks inherent in managing large-scale, fixed-price government contracts in an inflationary labor market.
Short-term volatility in net income suggests that the company is highly sensitive to cost overruns and the timing of award fees. Investors should be cautious of the potential for margin compression if wage inflation for cleared personnel continues to outpace the escalation clauses embedded in existing long-term contracts.
Quick answers to the most common questions about buying VVX stock.
For fiscal year 2025, V2X, Inc. (VVX) reported total revenue of $4.48B. This represents a 145.0% increase compared to $1.83B in 2012.
V2X, Inc. (VVX) is profitable, generating $77.9M in net income for the fiscal year ending 2025 with a net profit margin of 1.7%.
V2X, Inc. (VVX) reported an operating income of $194.3M, resulting in an operating profit margin of 4.3%. This margin reflects the operational efficiency of the business before interest and taxes.
V2X, Inc. (VVX) generated $373.4M in gross profit for the year, representing a gross profit margin of 8.3%. This demonstrates the company's core pricing power and production efficiency.