V2X Inc.

Company Overview

Business Model: V2X, Inc. is a leading provider of critical mission solutions primarily to defense customers globally. The Company delivers end-to-end capabilities at scale, offering a broad suite of services including multi-domain high impact readiness, integrated supply chain management, assured communications, mission solutions, and platform renewal and modernization. V2X, Inc. supports national security, defense, civilian, and international customers by enhancing mission effectiveness, extending utility, lowering costs, and improving security and mission outcomes.

Market Position: V2X, Inc. is a leading national security solutions provider, primarily serving the U.S. Department of Defense (DoD) and other government agencies. The Company operates across 329 locations in 47 countries and territories. V2X, Inc. competes with a range of companies, including Amentum Holdings, Inc., Valiant Integrated Services, divisions of Leidos Holdings, Inc., Science Applications International Corp., General Dynamics Corporation Technologies Segment., KBR, Inc., Fluor Corporation, Intrepid Global Solutions, AAR Corp., M1 Support Services, L.P., Marvin Engineering Co., and divisions of Northrop Grumman Corporation. Competitive factors include technical qualifications, corporate experience, and price sensitivity.

Recent Strategic Developments:

• Merger with Vertex Aerospace Services Holding Corp.: On July 5, 2022, Vectrus, Inc. completed its merger with Vertex Aerospace Services Holding Corp., forming V2X, Inc. This merger created a larger and more diversified company, enhancing its ability to compete for integrated business opportunities and generate revenue across geographies, clients, and contract types.
• ERP System Implementation: V2X, Inc. is implementing a new Enterprise Resource Planning (ERP) system, SAP S/4HANA, at one of its subsidiaries within Vertex Aerospace Services Holding Corp.
• Debt Refinancing: On May 30, 2024, the First Lien Credit Agreement was amended to provide new term loans totaling $906.6 million, replacing existing term loans. A further amendment occurred on January 2, 2025, providing new term loans of $899.8 million.

Geographic Footprint: V2X, Inc. operates across 329 locations in 47 countries and territories worldwide, spanning six continents.

• Primary Operational Regions (2024 Revenue Contribution):
  • United States: $2,388.6 million
  • Middle East: $1,399.4 million
  • Asia: $327.0 million
  • Europe: $207.2 million
• Key Markets: National security, defense, civilian, and international customers.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 7.9%
• Operating Margin: 3.7%
• Net Margin: 0.8%

Investment in Growth:

• Capital Expenditures: $11.8 million
• Strategic Investments: $16.9 million for acquisition of businesses

Business Segment Analysis

Single Reportable Segment

V2X, Inc. operates as a single reportable business segment. The Company provides a comprehensive suite of integrated solutions and critical service offerings across operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients.

Financial Performance:

• Revenue: $4,322.2 million (+9.1% YoY)
• Operating Margin: 3.7%
• Key Growth Drivers: Organic growth on legacy programs and performance on new programs, particularly in the Middle East, the U.S., and Asia.

Product Portfolio:

• High Impact Readiness: Full life-cycle training solutions, synthetic training environments, subject matter experts, live training systems, augmented and virtual reality, training aids, devices, simulators, and simulations.
• Integrated Supply Chain Management: Rapid response and deployment, Supply Chain as a Service, smart warehouse management and distribution, integrated and automated logistics.
• Assured Communications: Full lifecycle network management, network systems installation and activation, information assurance, situational awareness software/hardware, multi-sensor systems for border security and critical infrastructure, system upgrades, obsolescence management, DevSecOps, spectrum deconfliction, digital integration, Smart X engineering, and 5G development.
• Mission Solutions: Full-spectrum support for logistics, infrastructure sustainment, contingency operations, infrastructure operations and sustainment, preventative/predictive/reliability-centered maintenance, logistical support, critical infrastructure and logistics for intelligence operations, classified IT, intelligence services, cybersecurity, airfield management, civil engineering, and integrated electronic surveillance.
• Platform Renewal and Modernization: Engineering, facilities, and skilled workforce for system/platform sustainment, organic engineering, supply chain management, manufacturing, rapid prototyping, FAA Part 145 Repair Stations, in-house testing (cyber, E3, environmental, AR/VR), development labs, aircraft maintenance & management, aviation and ground platform maintenance & repair, end-to-end organizational, intermediate, and depot-level capabilities, AS-9100/9110 Certified Quality Management System (QMS).

Market Dynamics:

• Customer Base: Primarily U.S. government customers, with the Department of Defense being the largest.
  • Army: $1,837.8 million (43% of total revenue in 2024)
  • Navy: $1,441.4 million (33% of total revenue in 2024)
  • Air Force: $481.3 million (11% of total revenue in 2024)
  • Other: $561.7 million (13% of total revenue in 2024)
• Contract Types (2024 Revenue Mix):
  • Cost-plus and cost-reimbursable: 58%
  • Firm-fixed-price: 39%
  • Time-and-materials: 3%
• Contract Relationship (2024 Revenue Mix):
  • Prime contractor: 94%
  • Subcontractor: 6%
• Key Contracts:
  • The Logistics Civil Augmentation Program V (LOGCAP V) - Kuwait Task Order: $450.3 million (10.4% of 2024 revenue). This contract provides services to support military operations in the Kuwait region, with an estimated period of performance completion in December 2026.
  • Naval Test Wing Atlantic (NTWL): Provides maintenance in support of the Navy’s test and evaluation aircraft.
  • Cobra Dane Radar Maintenance Operation (COBRA DANE): Operates, maintains, and upgrades the AN/FPS-108 radar and associated systems in Alaska.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: V2X, Inc. did not repurchase any equity securities for the year ended December 31, 2024.
• Dividend Payments: V2X, Inc. does not currently plan to pay dividends on its common stock.
• Future Capital Return Commitments: The declaration of any future cash dividends is subject to the discretion of the Board of Directors and depends on factors including financial condition, earnings, capital requirements, and debt covenants. The Shareholders Agreement restricts dividends exceeding $25.0 million in any fiscal year if Investment funds affiliated with American Industrial Partners (AIP) collectively beneficially own 34% or more of outstanding common stock.

Balance Sheet Position:

• Cash and Equivalents: $268.3 million (as of December 31, 2024), including $35.7 million held by foreign subsidiaries.
• Total Debt: $1,138.8 million (as of December 31, 2024)
• Net Cash Position: $-870.5 million (Net Debt)
• Debt Maturity Profile (as of December 31, 2024):
  • Less than 1 Year: $20.0 million
  • 1 - 3 Years: $21.6 million
  • 3 - 5 Years: $212.2 million
  • More than 5 Years: $854.4 million
• Credit Rating: Not disclosed in the filing.

Cash Flow Generation:

• Operating Cash Flow: $254.2 million
• Free Cash Flow: $242.5 million (Operating Cash Flow less Capital Expenditures of $11.8 million for 2024)
• Cash Conversion Metrics: Days Sales Outstanding (DSO) was 57 days as of December 31, 2024, compared to 58 days as of December 31, 2023.

Operational Excellence

Production & Service Model: V2X, Inc. delivers full lifecycle capabilities in support of national security priorities, focusing on performance excellence, innovation, and global expansion. The Company's approach emphasizes high standards of quality, efficiency, and reliability, aiming to complete projects on time and within budget. V2X, Inc. integrates technologies like 5G and advanced simulation systems to address evolving threats and mission requirements.

Supply Chain Architecture: Key Suppliers & Partners: V2X, Inc. relies on third-party subcontractors to perform some of the services it provides to customers. The Company also engages with foreign subcontractors and labor brokers for international operations.

Facility Network:

• Manufacturing: Over 1,000,000 square feet of engineering, lab, manufacturing, and repair space, including four FAA Part 145 Repair Stations. Comprehensive in-house testing (cyber, E3, environmental, AR/VR, and development labs) is consolidated at the Indianapolis, Indiana facility.
• Research & Development: The Company leverages innovation for differentiated solutions and identifies emerging technological trends.
• Key Locations:
  • Corporate Headquarters: Reston, Virginia (8,656 sq ft, expires 2032)
  • Operations Offices: Colorado Springs, Colorado (64,335 sq ft, expires 2028); Madison, Mississippi (164,000 sq ft, expires 2030); Indianapolis, Indiana (900,000 sq ft, expires 2026).

Operational Metrics:

• Employees: Approximately 16,100 employees and 6,200 subcontract personnel as of December 31, 2024.
• Unionized Workforce: Approximately 28% of employees (4,500 individuals) are represented by 45 collective bargaining agreements as of December 31, 2024.
• Contract Performance: V2X, Inc. was the prime contractor on contracts representing 94% of its revenue for the year ended December 31, 2024.

Market Access & Customer Relationships

Go-to-Market Strategy: V2X, Inc. focuses on delivering full lifecycle capabilities in support of national security priorities. The Company leverages its global presence and expertise to expand its reach in emerging markets and extend its capabilities into new domains.

Distribution Channels:

• Direct Sales: Primarily through direct contracts with U.S. government agencies, especially the DoD.
• Channel Partners: V2X, Inc. participates with small businesses as a subcontractor for select opportunities and relies on teaming relationships with other prime contractors and subcontractors for large procurements.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: The U.S. Department of Defense is the primary customer, accounting for the substantial majority of revenue.
• Customer Concentration: The LOGCAP V - Kuwait Task Order represented 10.4% of total revenue in 2024.
• Strategic Partnerships: Teaming arrangements with other prime contractors and subcontractors for large procurements.

Geographic Revenue Distribution:

• United States: 55.3% of total revenue
• Middle East: 32.4% of total revenue
• Asia: 7.6% of total revenue
• Europe: 4.8% of total revenue
• Growth Markets: V2X, Inc. is focused on growing its reach in emerging markets.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The U.S. government services market is highly regulated and competitive, characterized by long acquisition cycles (generally 12 to 24 months) and typically multi-year contracts (three to ten years). The market is influenced by U.S. government defense budgets, procurement policies, and cost-saving initiatives, with a preference for multiple award Indefinite Delivery/Indefinite Quantity (IDIQ) contracts.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Amentum Holdings, Inc.: Competitive overlap in government services.
• Valiant Integrated Services: Competitive overlap in integrated services.
• Leidos Holdings, Inc.: Competitive overlap in technology and defense solutions.
• Science Applications International Corp.: Competitive overlap in technology and defense solutions.
• General Dynamics Corporation Technologies Segment.: Competitive overlap in defense technology.
• KBR, Inc.: Competitive overlap in government services and logistics.
• Fluor Corporation: Competitive overlap in government services and infrastructure.
• Intrepid Global Solutions: Competitive overlap in global solutions.
• AAR Corp.: Competitive overlap in aviation services.
• M1 Support Services, L.P.: Competitive overlap in support services.
• Marvin Engineering Co.: Competitive overlap in engineering.
• Northrop Grumman Corporation: Competitive overlap in defense and aerospace.

Emerging Competitive Threats: New entrants, disruptive technologies (including advanced forms of AI), and alternative solutions pose competitive threats. Competitors may consolidate or form teaming relationships.

Competitive Response Strategy: V2X, Inc. aims to drive performance excellence, leverage innovation for differentiated solutions, expand global presence and markets, and build on a culture of mission success. The Company focuses on providing integrated solutions across the mission lifecycle to enhance mission effectiveness, extend utility, lower cost, and improve security and mission outcomes.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• U.S. Government Defense Budget Uncertainty: Dependence on the U.S. DoD budget, which is subject to congressional authorization and appropriations. Changes in procurement policies, budget considerations, federal debt ceiling, economic conditions, presidential administration priorities, government shutdowns, and geopolitical developments can significantly affect financial performance and growth.
• Competition: Highly competitive market with larger companies, those with greater financial resources, and small businesses. Consolidation among competitors or new alliances could reduce revenue and market share.
• Contract Win/Recompete Risk: Inability to win new contracts or successfully recompete existing ones could adversely impact business and prospects.
• Customer Concentration: Significant portion of revenue from a concentrated number of large contracts (e.g., LOGCAP V - Kuwait Task Order at 10.4% of 2024 revenue); loss or reduction of such contracts could materially affect results.
• Technology Disruption: Rapidly changing technologies, including advanced forms of AI, could lead to obsolescence risks. Deployment of AI solutions with unintended consequences or controversy could result in reputational harm or legal liability.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on third-party subcontractors; disruptions or performance problems could affect ability to meet customer commitments, leading to disputes, reduced profits, or contract termination.
• Geographic Concentration: Operations in high to moderate risk international locations (e.g., Middle East, parts of Asia and South America) expose employees and contractors to security risks, political/economic instability, military conflict, and hostile environments, potentially leading to harm, substantial costs, or inability to meet obligations.

Internal Systems & Processes:

• IT System Disruption/Failure: Reliance on internal and external IT systems (including MSPs and SaaS providers) for core business functions. Disruption or failure, including during ERP system implementation (SAP S/4HANA), could affect invoicing, payroll, supply chain, financial reporting, and lead to increased costs.
• Internal Control Material Weaknesses: Identified material weaknesses in internal control over financial reporting within Vertex Aerospace Services Holding Corp. related to IT general controls (ITGCs) over user access and logical access/change management for ERP systems. Remediation efforts are ongoing and expected to be completed prior to the end of fiscal year 2025.
• Workplace Safety: Contract sites are inherently dangerous due to mechanized equipment, moving vehicles, and regulated materials. Failure to maintain safe sites or respond to pandemics could result in injuries, deaths, environmental disasters, reduced profitability, loss of projects, or litigation.
• Labor Relations: Approximately 28% of the workforce is unionized. Prolonged work stoppages or unfavorable contract terms during renegotiations could disrupt operations, increase costs, and harm reputation.
• Integration Risk (Merger): Integration of Vertex Aerospace Services Holding Corp. with legacy business is complex, costly, and time-consuming, with potential challenges in consolidating infrastructure, integrating financial reporting/IT systems, and realizing anticipated cost savings.

Financial & Regulatory Risks

Market & Financial Risks:

• Demand Volatility: Revenue distribution affected by timing of awards, product deliveries, customer acceptance, contract phase-in/completion, world events, and customer funding availability.
• Foreign Exchange: Exposure to foreign currency exchange rate fluctuations for some contracts, though the majority of business is in U.S. dollars. Past hedging was discontinued.
• Credit & Liquidity: Increased indebtedness post-Merger ($1,138.8 million as of December 31, 2024) increases interest payment demands and reduces funds for working capital, capital expenditures, and acquisitions. Variable rate debt exposes the Company to interest rate risks, though interest rate swaps are in place for $439.1 million of notional value.
• Goodwill Impairment: Goodwill of $1.7 billion (51.3% of total assets) as of December 31, 2024; any future impairment could negatively impact results.
• Backlog Realization: Total backlog of $12.5 billion (with $2.3 billion funded) as of December 31, 2024, may not fully convert to revenue due to program changes, cancellations, funding reductions, or unexercised options.

Regulatory & Compliance Risks:

• Industry Regulation: Subject to numerous U.S. government procurement laws (FAR, DFARS, Truthful Cost or Pricing Data Statute, Procurement Integrity Act, Civil False Claims Act, Combating Trafficking in Persons (CTIP) Act, and U.S. Government Cost Accounting Standards (CAS)). Non-compliance could lead to fines, penalties, contract termination, or debarment.
• Audits & Investigations: Subject to routine audits and investigations by U.S. government agencies (DCAA, DCMA). Unfavorable outcomes could result in cost adjustments, disallowances, refunds, penalties, or suspension of payments.
• Cybersecurity Regulations: Subject to DoD Cybersecurity Maturity Model Certification (CMMC) requirements for contractors processing, storing, or transmitting critical national security information. Failure to achieve certification could limit eligibility for contract awards.
• International Compliance: Subject to U.S. and foreign laws (e.g., FCPA, EU GDPR) in international operations. Non-compliance could lead to administrative, civil, or criminal liabilities.
• Security Restrictions: As a U.S. defense contractor, subject to security restrictions limiting information dissemination about classified contracts, potentially hindering investor insight.
• Intellectual Property: Reliance on patents, confidentiality agreements, copyright, trademark, patent, and trade secret laws, and data rights under FAR and DFARS to protect IP. Inability to adequately protect IP or manage third-party IP could negatively impact competitive position and financial results.
• Government Withholding: DFARS rule allows withholding of payments (up to 10%) for significant deficiencies in contractor business systems, potentially affecting revenue and financial position.
• Data Privacy: Subject to U.S. federal/state and international (e.g., GDPR) privacy and data security laws. Non-compliance could lead to risks, liabilities, and negative business impact.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: Operations in regions with political or economic instability, military conflict, or hostile environments (e.g., Middle East, parts of Asia and South America).
• Sanctions & Export Controls: Subject to International Traffic in Arms Regulations, Export Administration Regulations, and sanctions compliance.

Innovation & Technology Leadership

Research & Development Focus: V2X, Inc. integrates technologies like 5G and advanced simulation systems to create solutions that address evolving threats and mission requirements. The Company fosters a culture of continuous innovation to provide customers with capabilities that offer a decisive edge.

Core Technology Areas:

• [Technology Category]: Advanced simulation systems, 5G development, situational awareness software and hardware, multi-sensor systems for border security and critical infrastructure protection, DevSecOps, spectrum deconfliction, digital integration, Smart X engineering.
• Innovation Pipeline: The Company focuses on identifying emerging technological trends and developing technologically advanced, innovative, and cost-effective products and services.

Intellectual Property Portfolio:

• Patent Strategy: V2X, Inc. relies on a combination of patents, confidentiality agreements, contractual arrangements, copyright, trademark, patent, and trade secret laws, and data rights under FAR and DFARS to protect its intellectual property rights and interests.

Technology Partnerships: V2X, Inc. relies on teaming relationships and other arrangements with other prime contractors or subcontractors for large procurements or other opportunities.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: V2X, Inc. has a robust talent and succession planning process, including a specialized program to support the development of its talent pipeline for critical roles. Periodic reviews of succession plans and individual development plans for emerging and diverse talent are conducted. Senior leadership development events are held, and the Program Management Executive Committee was established in 2024 to develop new emerging talent and facilitate problem-solving.

Board Composition: The Board of Directors, through its Audit Committee, is responsible for overseeing the Company’s risk management program, including cybersecurity risks. The Audit Committee reviews the cybersecurity program, incident response processes, emerging threats, and risk assessments.

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 16,100 full-time employees (as of December 31, 2024).
• Geographic Distribution: Employees are located across 329 locations in 47 countries and territories.
• Skill Mix: Not explicitly detailed, but the Company makes significant investments in attracting and retaining talented and experienced individuals for its specialized business needs.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Significant investments in attracting and retaining talented and experienced individuals.
• Retention Metrics: Management routinely reviews employee turnover rates at various levels of the organization.
• Employee Value Proposition: Competitive pay and a comprehensive benefits package, including flexible work options, education benefits (tuition reimbursement), a wellness program, a paid parental leave program, an employee assistance program, and a retirement savings plan.

Diversity & Development:

• Diversity Metrics: Over 38% of U.S. employees voluntarily report a military background. V2X, Inc. has been recognized as a military-friendly employer, a Leading Disability Employer, a Top 10 Diversity Supplier, a Top 10 Military Spouse Employer, and a Best for Vets Employer.
• Development Programs: V2X University provides employees access to over 4,000 virtual courses covering leadership/management, information technology skills, and organizational/compliance topics. Development programs are offered for early-in-career employees, supervisors, and select employees for learning, development, and mentoring sessions.
• Culture & Engagement: Annual employee engagement surveys indicate a collaborative company culture, a positive workplace, and managers whose behaviors are consistent with the V2X, Inc. Code of Conduct. The Company's culture is rooted in its commitment to national security, fostering teamwork, integrity, and customer trust.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: Not explicitly detailed beyond general exposure to climate-related change risks and increasing scrutiny on sustainability practices. Supply Chain Sustainability:

• Supplier Engagement: V2X, Inc. monitors its subcontractors to verify compliance with Combating Trafficking in Persons (CTIP) and other provisions in their contracts.
• Responsible Sourcing: Not explicitly detailed beyond CTIP compliance.

Social Impact Initiatives:

• Human Rights: V2X, Inc. is committed to complying with internationally recognized human rights provisions and prohibitions against human trafficking and modern slavery established under the FAR CTIP. The Company maintains an active CTIP awareness campaign at its Outside the Continental United States program locations.
• Health and Safety: V2X, Inc.'s health and safety management system aligns with the ISO 45001 standard, encompassing annual program-level goals, monitoring legal and customer-specific requirements, providing training, assessing risks, engaging with the workforce, and conducting internal audits. The comprehensive EHS program aims to prevent work-related injuries, illnesses, and incidents.
• Ethics and Compliance: All employees are required to adhere to the V2X, Inc. Code of Conduct (COC), which establishes standards for appropriate behavior and includes mandatory annual training on preventing unlawful discrimination, unethical behavior, and unacceptable conduct.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Various factors may affect the distribution of revenue between accounting periods, including the timing of awards, product deliveries, customer acceptance of products and services, contract phase-in durations, contract completions, world events, and the availability of customer funding. The U.S. government's fiscal year ends on September 30, and it is not uncommon for agencies to award extra tasks or complete contract actions in the weeks before year-end to utilize unexpended funds.
• Economic Sensitivity: Business conditions have become more challenging and uncertain due to macroeconomic conditions, including inflation and rising interest rates, as well as recent international events. Global hostilities could create additional demand for products and services, but the timing and extent of any incremental contract activity remain uncertain.
• Industry Cycles: The U.S. government’s investment in services and capabilities in response to changing security challenges creates a complex and fluid business environment. V2X, Inc. believes its core functions are mission-essential, and spending to maintain readiness, improve performance, increase service life, lower cost, and modernize capabilities will continue to be a U.S. government priority.

Planning & Forecasting: Not explicitly detailed beyond general contract estimation processes.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• U.S. Government Procurement Laws: V2X, Inc. is subject to the Federal Acquisition Regulation (FAR), agency-specific regulations like the DoD’s Federal Acquisition Regulation Supplement (DFARS), the Truthful Cost or Pricing Data Statute, the Procurement Integrity Act, the Civil False Claims Act, the Combating Trafficking in Persons (CTIP) Act, and the U.S. Government Cost Accounting Standards (CAS).
• International Compliance: When working overseas, V2X, Inc. must comply with foreign government laws, regulations, and procurement policies, including those related to import/export control, foreign tax considerations, data privacy (e.g., EU General Data Protection Regulation (GDPR)), foreign labor, and anti-corruption.
• Cybersecurity Regulations: V2X, Inc. will be subject to the DoD Cybersecurity Maturity Model Certification (CMMC) requirements, which will require specific third-party certifications for contractors processing, storing, or transmitting critical national security information.

Trade & Export Controls:

• Export Restrictions: V2X, Inc. is subject to the International Traffic in Arms Regulations and the Export Administration Regulations.
• Sanctions Compliance: The Company must comply with sanctioned entity restrictions and monitoring.

Legal Proceedings: V2X, Inc. is party to various investigations, lawsuits, arbitration, claims, enforcement actions, and other legal proceedings, including government investigations and claims for fines, penalties, and repayments. As of December 31, 2024, V2X, Inc. estimated and accrued $13.1 million in other accrued liabilities for legal proceedings and claims.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 10.7% for the year ended December 31, 2024, and 7.9% for the year ended December 31, 2023.
• Geographic Tax Planning: The effective tax rate reflects the impact of certain undistributed foreign earnings for which U.S. taxes have not been recognized, as these earnings are considered to be reinvested indefinitely.
• Tax Reform Impact: V2X, Inc. accounts for Global Intangible Low Taxed Income (GILTI) under the period cost method.
• Tax Audits: V2X, Inc. is no longer subject to U.S. federal or state income tax examinations for years prior to 2021.
• Uncertain Tax Positions: Unrecognized tax benefits from uncertain tax positions were $3.6 million as of December 31, 2024. It is reasonably possible that the total unrecognized tax benefits will decrease by approximately $2.2 million during the next 12 months.

Insurance & Risk Transfer

Risk Management Framework: V2X, Inc. maintains insurance coverage with third-party insurers as part of its overall risk management strategy and to meet contractual requirements.

• Insurance Coverage: Not every risk or liability is or can be protected by insurance, and coverage limits may not be sufficient to cover all actual losses or liabilities incurred. V2X, Inc. is subject to the requirements of the Defense Base Act (DBA), which generally requires insurance coverage for persons employed at U.S. military bases outside of the U.S.