V2X, Inc. (NYSE:VVX) Q2 2024 Earnings Call August 6, 2024 8:00 AM ET

Company Participants

Mike Smith - Vice President, Treasury, Investor Relations and Corporate Development
Jeremy Wensinger - President and Chief Executive Officer
Shawn Mural - Senior Vice President and Chief Financial Officer

Conference Call Participants

Joe Gomes - Noble capital
Tobey Sommer - Truist
Ken Herbert - RBC Capital Markets
Trevor Walsh - Citizens JMP
Bert Subin - Stifel

Operator

Thank you for joining us for the V2X Second Quarter 2024 Earnings Conference Call and Webcast. Today’s call is being recorded. My name is Megan and I’ll be the operator for today’s call. [Operator Instructions] And now I’ll pass the call over to your host, Mike Smith, Vice President of Treasury, Investor Relations and Corporate Development at V2X.

Mike Smith

Thank you. Good morning everyone. Welcome to the V2X second quarter 2024 earnings conference call. Joining us today are Jeremy Wensinger, President and Chief Executive Officer and Shawn Mural, Senior Vice President and Chief Financial Officer. Slides for today’s presentation are available on the Investor Relations section of our website, gov2x.com

Please turn to Slide 2. During today’s presentation, management will be making forward-looking statements pursuant to the Safe Harbor provisions of the federal securities laws. Please review our Safe Harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward-looking statements. The company assumes no obligation to update its forward-looking statements.

In addition, in today’s remarks, we will refer to certain non-GAAP financial measures, because the manager believes such measures are useful to investors. You can find a reconciliation of these measures to the most comparable measure, calculated and presented in accordance with GAAP on our slide presentation and in our earnings release, followed with the SEC. Both of which are available on the Investor Relations section of our website.

At this time, I’d like to turn the call over to Jeremy.

Jeremy Wensinger

Thank you, Mike and good morning everyone. Thank you for joining us today. Before I get started, I’d like to thank 16,000 V2X employees for their warm welcome. I am honored to be part of the organization that is supporting some of the most important missions around the globe and play such a critical role in our national security.

Please turn to Slide 3. V2X reported record quarter two revenue of $1.1 billion increasing 10% year-over-year. Growth was driven by the company’s continued momentum in the Pacific and Middle East. Adjusted EBITDA margin in the quarter was 6.7% and adjusted diluted EPS was $0.83. The demand for our mission-oriented full lifecycle solutions remains strong and was demonstrated through several recent awards valued at over $4 billion. This includes a production award for our Gateway Mission Routers, an award from NASA valued at $265 million, the award of the adversarial aircraft program named F-5 at $747 million, and finally, a $3 billion plus award to deliver next generation readiness. Given our year-to-date performance, backlog and awards, we are raising our 2024 revenue guidance and reaffirming our adjusted EBITDA, EPS and net cash from operations.