V2X, Inc. secured a 10‑year, $425 million indefinite‑delivery, indefinite‑quantity contract to modernize cockpit displays for the U.S. Air Force’s F‑16 fleet. The award, the largest ever for the company’s F‑16 CDU program, will be executed at V2X’s Indianapolis facility and is slated for completion in September 2035.
The contract is a strategic win for a company that emerged from the 2022 merger of Vectrus and The Vertex Company. V2X’s Indianapolis site, a one‑million‑square‑foot complex, will host the manufacturing and integration work, underscoring the firm’s expanded domestic production capacity. By securing this IDIQ, V2X gains a stable, multi‑year revenue stream that reinforces its defense modernization portfolio and positions it as a key partner in the U.S. Air Force’s broader F‑16 upgrade effort.
In its most recent quarterly report, V2X posted revenue of $1.17 billion, up 8% year‑over‑year, and an adjusted EPS of $1.37, beating consensus estimates of $1.22 by $0.15. The earnings beat was driven by disciplined cost management, operational leverage from the new contract, and a favorable mix shift toward higher‑margin defense services. The company’s strong cash flow and margin expansion in the defense segment helped offset modest increases in indirect costs.
The F‑16 contract adds a predictable, long‑term revenue source that will help V2X sustain its growth trajectory amid rising defense budgets and geopolitical tensions. The deal also signals confidence from the U.S. Air Force in V2X’s ability to deliver cost‑effective modernization solutions, reinforcing the company’s competitive edge in a market that is increasingly focused on incremental upgrades rather than full platform replacements.
CEO Jeremy C. Wensinger said, “This is a great example of how smart modernization can deliver immediate mission enhancement. By upgrading the F‑16 cockpit display at a significantly lower cost than full replacement, we are strengthening the digital backbone of the aircraft and enhancing operational effectiveness for decades to come.”
Investors welcomed the announcement, reflecting confidence in V2X’s defense capabilities and its ability to secure high‑value, long‑term contracts.
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