V2X Secures $4.3 Billion Pentagon Contract, Spotlighting Defense Sector Opportunities

V2X, the small-cap defense firm formed from the merger of Vectrus and Vertex Aerospace, has landed a monumental $4.3 billion contract with the U.S. Department of Defense. The indefinite-delivery/indefinite-quantity agreement, spanning a decade, will fund contractor-operated supply services for T-6 training jet aircraft. The deal underscores V2X's growing influence in the defense sector, despite its modest $1.8 billion market valuation.

The contract win follows another significant deal highlighted last year, signaling V2X's rising prominence. Defense investors may find the stock compelling given its outsized contract-to-market-cap ratio. The Pentagon's continued investment in contractor services suggests sustained demand for specialized defense capabilities.