New Air Force Test Systems Contract Might Change The Case For Investing In V2X (VVX)

• Earlier in December 2025, the U.S. Air Force Life Cycle Management Center awarded V2X, Inc. a position on the Automated Test Systems Division’s multiple-award IDIQ contract, enabling the company to provide rapid, full lifecycle support for test systems across a broad range of manned and unmanned aircraft platforms worldwide.
• This long-duration, flexible contract, spanning an initial five-year base period with an option for another five years, highlights V2X’s role in sustaining mission-critical readiness for key U.S. and allied defense programs.
• We’ll now assess how V2X’s new long-duration Air Force test systems support role may influence its investment narrative and risk profile.

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V2X Investment Narrative Recap

To own V2X, you generally need to believe that rising defense modernization and mission support needs will translate into durable contract wins and improving earnings quality. The new Air Force Automated Test Systems IDIQ strengthens that narrative but does not, by itself, eliminate the company’s biggest near term risk around timing and size of major awards, which remains tied to episodic, often delayed government contracting cycles and their impact on backlog and revenue visibility.

Among recent developments, the 10 year, US$425 million F 16 cockpit display modernization IDIQ announced on December 1, 2025, is particularly relevant, as it also extends V2X’s role across the aircraft lifecycle. Together with the ATS award, it underscores how the company’s short term catalysts are increasingly linked to capturing and executing complex, long duration modernization and sustainment programs for U.S. and allied air fleets.

Yet investors should also be aware that dependence on a handful of large, protest prone awards means...

Read the full narrative on V2X (it's free!)

V2X's narrative projects $5.0 billion revenue and $148.8 million earnings by 2028. This requires 4.8% yearly revenue growth and about a $78 million earnings increase from $70.6 million today.

Uncover how V2X's forecasts yield a $67.18 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community currently see V2X’s fair value between US$37.14 and about US$142, underscoring wide disagreement on upside. Against this backdrop, the company’s reliance on large, episodic contract wins introduces timing and backlog risks that can materially influence how those valuation views play out over time.

Explore 5 other fair value estimates on V2X - why the stock might be worth 33% less than the current price!

Build Your Own V2X Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your V2X research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free V2X research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate V2X's overall financial health at a glance.

No Opportunity In V2X?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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