V2X: Marching to a higher tempo – Reiterate Buy, raise PO to $93

研报英文原文证据摘录

V2X: Marching to a higher tempo – Reiterate Buy, raise PO to $93

MEast: support to USAF, but potential changes to LOGCAP

Despite the increased support to the USAF in Israel, management was cautious around a

potential work scope change on its Kuwait task order. While the $500mn in backlog tied

to Kuwait provides near term visibility, management highlighted that the possible

operational tempo requirements and changes on work scope could imply upside and

downside risks going forward. Beyond US operations in the region, we remind investors

that Qatar and Saudi Arabia are strong contributors to VVX’s international growth.

Partnering with tech to enable AI logistics & solutions

As part of its full-life-cycle approach to logistics, VVX continues to explore new

technologies that could improve their offerings. As part of these efforts, management

highlighted an early-stage Al-enabled aerospace sustainment platform that they are

building in partnership with Google, Tactile, and NVIDIA. This comes on top of the

already announced partnership with Amazon for smart warehousing and automation

technologies announced in January 2026.

Vertex AIP selling all ownership

On May 7th, Vertex Aerospace Holdco LLC sold ~2.0mn shares of V2X common stock in

an underwritten secondary offering. After this transaction, American Industrial Partners’

direct ownership was fully liquidated. While there is no direct financial impact to VVX, we

see the final exit from the private equity sponsor as a positive event as it removes a

possible technical overhang on the stock from future periodic block sales.

Raising estimates to reflect robust demand

We are raising our 2026e $4,961mn from $4,821mn, to the higher end of $4,825-

4,975mn management outlook. Our increased topline reflects $70-80mn from the T&M