V2X's third-quarter revenue rose 9% year on year to $1.27 billion, while net income and EPS also improved significantly. The company subsequently raised its full-year 2026 guidance and referred to regional risks in its 2027 outlook.
V2X's third-quarter revenue was $1.27 billion, up 9% from $1.17 billion in the year-earlier period. Net income increased from $24.6 million to $32.0 million, while diluted EPS rose from $0.77 to $1.01, and adjusted operating cash flow also expanded. Against this backdrop, the company raised its full-year 2026 revenue and earnings guidance and also increased its adjusted EPS outlook.
Third-quarter total bookings were approximately $1.6 billion, while backlog stood at $12.8 billion, maintaining growth from the previous quarter and on a year-to-date basis. The book-to-bill ratio was 1.2x and 1.4x over the past 12 months, indicating a solid order base. Cash generation improved and adjusted EBITDA expanded, although margins declined slightly.
As part of the full-year guidance increase, 2026 revenue was raised from the previous range of $4.775 billion-$5.025 billion to $4.950 billion-$5.10 billion. Adjusted EBITDA was raised to $352.5 million-$367.5 million, and the associated adjusted diluted EPS outlook was increased to $6.15-$6.55. The outlook for operating cash flow was also raised to $175 million-$195 million.
Assumptions as of July, including cash interest expense, depreciation and amortization, and amortization of intangible assets, were also updated. The effective tax rate was set at approximately 23%, weighted-average diluted shares at approximately 32 million, and capital expenditures at approximately $20 million. While growth in the Asia-Pacific region and opportunities in modernization are expected, uncertainty from geopolitical risks and budget fluctuations was also noted.