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STOCK-BASED COMPENSATION | 6 Months Ended
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Jul. 03, 2026
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company maintains an equity incentive plan, the Third Amendment and Restatement of the V2X, Inc. 2014 Omnibus Incentive Plan, as amended and restated effective as of May 8, 2025 (the 2014 Omnibus Plan), to govern awards granted to V2X employees and directors, including nonqualified stock options (NQOs), restricted stock units (RSUs), performance share units (PSUs) and other awards. The Company accounts for NQOs, stock-settled RSUs and PSUs as equity-based compensation awards. Stock-based compensation expense and the associated tax benefits impacting the Company's Condensed Consolidated Statements of Income were as follows:
|  |  |  | Three Months Ended |  | Six Months Ended |  |  |  |
|  |  |  |  |  | July 3, |  | June 27, |  | July 3, |  | June 27, |  |  |  |  |  |  |  |
(In thousands) |  |  |  |  |  | 2026 |  | 2025 |  | 2026 |  | 2025 |  |  |  |  |  |  |  |
Compensation costs for equity-based awards, pre-tax |  |  |  |  |  | $ | 4,810 |  |  | $ | 3,729 |  |  | $ | 8,419 |  |  | $ | 6,181 |  |  |  |  |  |  |  |  |
Future tax benefit |  |  |  |  |  | $ | 1,112 |  |  | $ | 888 |  |  | $ | 1,946 |  |  | $ | 1,471 |  |  |  |  |  |  |  |  |
As of July 3, 2026, total unrecognized compensation costs related to equity-based awards were $31.4 million, which are expected to be recognized ratably over a weighted average period of 1.8 years. The following table provides a summary of the activities for NQOs, RSUs and PSUs for the six months ended July 3, 2026:
|  | NQOs |  | RSUs |  | PSUs
(In thousands, except per share data) |  | Shares |  | Weighted Average Exercise Price Per Share |  | Shares |  | Weighted Average Grant Date Fair Value Per Share |  | Shares |  | Weighted Average Grant Date Fair Value Per Share
Outstanding at January 1, 2026 |  | 10 |  |  | $ | 21.19 |  |  | 408 |  |  | $ | 46.96 |  |  | 368 |  |  | $ | 48.48 |
Granted |  | — |  |  | $ | — |  |  | 190 |  |  | $ | 70.57 |  |  | 120 |  |  | $ | 76.64 |
Exercised |  | (7) |  |  | $ | 20.78 |  |  | — |  |  | $ | — |  |  | — |  |  | $ | — |
Vested |  | — |  |  | $ | — |  |  | (208) |  |  | $ | 45.76 |  |  | (34) |  |  | $ | 40.96 |
Cancelled |  | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | (109) |  |  | $ | 43.85 |
Forfeited or expired |  | — |  |  | $ | — |  |  | (11) |  |  | $ | 53.80 |  |  | (1) |  |  | $ | 77.07 |
Outstanding at July 3, 2026 |  | 3 |  |  | $ | 21.98 |  |  | 379 |  |  | $ | 59.26 |  |  | 344 |  |  | $ | 61.70 |
Restricted Stock Units RSUs awarded to employees vest in one-third increments on each of the three anniversary dates following the grant date subject to continued employment as described in the RSU award agreement. RSUs issued to directors are typically granted annually and vest approximately one year after the grant date. The fair value of each RSU grant was determined based on the closing price of V2X common stock on the date of grant. Stock compensation expense will be recognized ratably over the requisite service period of the RSU awards. As of July 3, 2026, there was $17.1 million of unrecognized RSU related compensation expense. Performance Share Units During the six months ended July 3, 2026, the Company granted PSUs that become eligible to vest based on the achievement of Adjusted Earnings Per Share (adjusted EPS) and relative Total Shareholder Return (rTSR) goals over the three-year performance period. The performance-based awards will vest and the stock will be issued at the end of a three-year period based on i) Company performance against an annual adjusted EPS target established each year, over 3 years, as determined by the Compensation and Human Capital Committee of the Company’s Board of Directors (Compensation Committee), and a 3-year rTSR modifier as compared to certain Aerospace & Defense companies approved by the Compensation Committee and assuming ii) the employee’s continued service through the vesting date in accordance with the terms of the 2014 Omnibus Plan. The number of shares ultimately awarded, if any, can range up to 200% of the specified target awards. A Monte Carlo valuation model was used to determine the fair value of the awards by simulating 50,000 potential Total Shareholder Return outcomes for the Company and a group of peer companies over the performance periods and determine the amount of the payout that would occur in each simulation. The fair value is based on the average of the results. As of July 3, 2026, there was $14.3 million of unrecognized PSU related compensation expense.

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