12:08 PM EDT, 08/07/2024 (MT Newswires) -- V2X's (VVX) Q2 results were driven by "strong international sales" and the company's H2 set up for revenue, bookings, free cash flow and margin is "encouraging," RBC Capital Markets said in a note emailed Wednesday.

The firm said V2X's Q2 free cash flow was $25 million, half of the $50 million consensus, and debt reduction will be the company's near-term priority.

Increased order activity in H2 and "2024 book-to-bill of about 1x" will be a positive for sentiment, RBC added.

Change in leadership with the appointment of new Chief Executive Jeremy Wensinger will not change growth areas for the business, according to the note.

Management increased 2024 revenue guidance driven by a strong global contingency support business but also focused on its lower margins, RBC said.

The firm reiterated its outperform rating on V2X's stock and maintained $55 price target.

Price: 45.79, Change: +0.03, Percent Change: +0.08