MCLEAN, Va. – V2X, Inc. (NYSE:VVX), known for its global mission solutions, disclosed the initiation of a secondary public offering of 2,500,000 shares of common stock by an existing stockholder. The company stated that it will not be selling any shares nor will it receive proceeds from this transaction. The offering includes an option for underwriters to purchase up to an additional 375,000 shares from the selling stockholder.
The completion and terms of the offering are subject to market conditions, and there is no guarantee of when or if the offering will be finalized. The offering's progress will be contingent on prevailing market circumstances, and the company has not disclosed the offering's expected pricing or date.
Baird, Goldman Sachs (NYSE:GS) & Co. LLC, and Morgan Stanley (NYSE:MS) have been appointed as the lead joint book-running managers for the offering. The shares are being offered under a previously filed registration statement with the Securities and Exchange Commission (SEC), which became effective on September 12, 2022. Interested parties can access the preliminary prospectus from the SEC's website or directly from the managing firms.
The press release also contains forward-looking statements, which are not assurances of future performance. These statements reflect the company's current expectations regarding the proposed offering and are subject to various risks and uncertainties that could cause actual outcomes to differ significantly.
V2X's announcement comes with the standard disclaimer that this press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.
The information provided in this article is based on a press release statement from V2X, Inc.
In other recent news, V2X, Inc. reported an 8% increase in revenue, reaching $1.08 billion in the third quarter, with a significant contribution from the Indo-Pacific region. The company's adjusted EBITDA rose by 28% to $82.7 million, and adjusted diluted EPS increased by 77% to $1.29. V2X also announced a substantial total backlog of $12.2 billion and improved net leverage to 3.27 times.
In addition to these results, V2X has secured $5 billion in recent awards and raised its 2024 revenue guidance, while maintaining stable adjusted EBITDA and net cash flow projections. Truist Securities maintained its Buy rating on V2X shares, following the company's increased midpoint for its 2024 revenue and adjusted EPS guidance.
V2X's recent contract wins are expected to contribute to additional growth, with demand in the Indo-Pacific and the Middle East regions identified as key opportunities for expansion. Despite a 22% decrease in European revenues, V2X secured a $225 million warfighter training readiness contract and expressed optimism about the transition of the F-16 cockpit upgrade contract from development to production. These are all recent developments that signify the company's commitment to growth and strategic initiatives.
InvestingPro Insights
As V2X, Inc. (NYSE:VVX) prepares for its secondary public offering, investors may find value in examining the company's recent financial performance and market position. According to InvestingPro data, V2X has demonstrated strong revenue growth, with a 7.79% increase over the last twelve months as of Q3 2024, reaching $4.2 billion. This growth trend is further supported by an 8% quarterly revenue increase in Q3 2024.
Despite the revenue growth, V2X's profitability metrics present a mixed picture. The company's gross profit margin stands at a modest 7.93%, which aligns with an InvestingPro Tip indicating that V2X suffers from weak gross profit margins. This could be a point of concern for potential investors considering the secondary offering.
On the market performance front, V2X has shown remarkable strength. InvestingPro data reveals a significant 64.12% price total return over the past year, with an impressive 45.74% return in just the last three months. These figures correspond with InvestingPro Tips highlighting the company's strong recent performance, including a "significant return over the last week" and a "large price uptick over the last six months."
It's worth noting that V2X is trading at a high earnings multiple, with a P/E ratio of 192.64. This valuation metric, combined with the InvestingPro Tip that the company is "trading at a high P/E ratio relative to near-term earnings growth," suggests that investors are pricing in substantial future growth expectations.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for V2X, providing a more comprehensive view of the company's financial health and market position. These insights could be particularly valuable for investors considering participating in the secondary offering or evaluating their current holdings in light of this new development.
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