In This Article:
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Revenue: $1.08 billion, representing 8% growth year over year.
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Indo-Pacific Revenue Growth: 31% year over year.
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Adjusted EBITDA: $82.7 million, up 28% year over year with a 7.6% margin.
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Adjusted Diluted EPS: $1.29, up 77% year over year.
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Adjusted Operating Cash Flow: $130 million, demonstrating high cash flow yield.
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Year-to-Date Revenue: $3,164 million, increasing 8% year over year.
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Year-to-Date Adjusted EBITDA: $224.1 million, increasing 5.8% from the prior year with a 7.1% margin.
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Interest Expense: $27.2 million for the quarter; cash interest expense was $25.6 million.
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Net Leverage Ratio: Improved to 3.27 times, with a target to reach at or below three times by year-end.
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Total Backlog: $12.2 billion in the third quarter.
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Book to Bill Ratio: Approximately one for the quarter.
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2024 Revenue Guidance: Raised to $4,225 million to $4,275 million.
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2024 Adjusted EPS Guidance: Raised to $3.95 to $4.20.
Release Date: November 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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V2X Inc (NYSE:VVX) reported strong third quarter results with revenue of $1.08 billion, representing an 8% growth year over year.
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The company achieved a 28% increase in adjusted EBITDA, reaching $82.7 million with a 7.6% margin.
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V2X Inc (NYSE:VVX) secured approximately $5 billion in recent awards, indicating strong positioning in the marketplace.
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The company raised the low end of its 2024 revenue guidance and adjusted EPS, reflecting confidence in future performance.
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V2X Inc (NYSE:VVX) demonstrated strong cash flow generation with adjusted operating cash flow of $130 million in the quarter.
Negative Points
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European revenues were down 22% in the quarter, indicating regional challenges.
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The company faces potential headwinds from program sunsets and the timing of new awards.
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Interest expense for the quarter was $27.2 million, which remains a significant cost.
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The company is experiencing a higher mix of cost-type work, which tends to be at lower margins.
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There is uncertainty regarding the impact of international dynamics and funding priorities on future performance.
Q & A Highlights
Q: With the strong contract awards, book-to-bill, and funded backlog growth, what kind of rate of organic growth do you think would be reasonable for the company to attain as we go into next year? A: (Shawn Mural, CFO) We are in the middle of planning, but we expect to grow in 2025. We have some headwinds like program sunsets and high operational tempo in logistics support. However, we feel good about our backlog and visibility, though I can't provide specific numbers yet.