We came across a bullish thesis on V2X, Inc. on Monte Independent Investment Research’s Substack by Monte Investments. In this article, we will summarize the bulls’ thesis on VVX. V2X, Inc.’s share was trading at $63.77 as of February 12th. VVX’s trailing and forward P/E were 25.41 and 11.35 respectively according to Yahoo Finance.
Photo by Cibi Chakravarthi on Unsplash
V2X Corporation (NYSE: VVX) is a diversified defense technology and services provider delivering mission-critical capabilities across base operations, logistics, IT mission support, engineering, digital integration, and platform sustainment. Formed through a series of transformations culminating in the 2022 merger between Vectrus and The Vertex Company, V2X today supports defense, national security, civilian, and international customers across 47 countries.
Its offerings span high-impact readiness and training solutions, integrated supply chain and logistics, assured communications, mission solutions, and platform renewal and modernization, including advanced engineering, rapid prototyping, cyber, AR/VR, and FAA-certified repair capabilities. While roughly 60% of revenue is currently derived from cost-plus contracts, V2X’s $50 billion pipeline is increasingly weighted toward firm fixed-price opportunities, positioning the company for gradual but sustained margin improvement as higher-quality backlog flows through results.
Recent large contract awards across training, avionics modernization, lifecycle support, and counter-UAS platforms reinforce revenue visibility and underscore V2X’s relevance to evolving defense priorities, particularly in autonomy, training, and drone defense. Operational momentum in Q3 FY25, marked by a 1.2x book-to-bill ratio and an $11.6 billion backlog, prompted management to raise earnings guidance despite near-term working capital headwinds tied to government disruptions.
Strategically, V2X is strengthening its technology edge through targeted acquisitions while simultaneously deleveraging and returning capital via a $100 million share repurchase program. With leverage reduced to 2.87x and management committed to a 2–3x range, balance sheet risk is moderating. Trading at approximately 8.3x EV/adjusted EBITDA, V2X offers a compelling valuation relative to defense technology peers, with upside driven by international defense spending, margin normalization, and growing exposure to high-priority programs such as counter-UAS and pilot training.
Previously, we covered a bullish thesis on Lockheed Martin Corporation (LMT) by Steve Wagner in April 2025, which highlighted the strong backlog, margin expansion across segments, solid free cash flow, and strategic acquisition supporting durable growth. LMT’s stock price has appreciated by approximately 36.55% since our coverage. Monte Investments shares a similar view but emphasizes on valuation upside and margin improvement potential at V2X, Inc. (VVX).
V2X, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held VVX at the end of the third quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of VVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VVX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW
Disclosure: None.
