VSE Corp

Latest Results (11.10.2025):

VSE Corporation reported its second quarter of 2025 with record-breaking revenue and profitability, showcasing significant growth and successful strategic initiatives in the aviation aftermarket sector.

Record Revenue Growth

VSE Corp achieved total revenues of $272.1 million in Q2 2025, marking a 41.1% increase compared to the same quarter in 2024. This surge was driven by strong execution of new and existing distribution awards, the introduction of new product lines, and contributions from recent acquisitions.

Enhanced Profitability

The company reported a GAAP net income of $13.6 million and a GAAP EPS of $0.66 for Q2 2025. On a non-GAAP basis, adjusted EBITDA reached $43.5 million, up 51.9% year-over-year, and adjusted net income surged by 149.1% to $20.1 million, with adjusted EPS increasing by 106.4% to $0.97.

Strategic Acquisitions and Divestitures

During the quarter, VSE Corp divested its Fleet segment and acquired Turbine Weld Industries, a specialized MRO service provider for complex engine components. These strategic moves have enhanced the company’s focus and expanded its capabilities in the high-growth aviation aftermarket.

Strong Financial Position

VSE Corp generated $12 million in operating cash flow and $6 million in free cash flow during Q2 2025. The company maintains a robust balance sheet with $333 million in cash and an adjusted net leverage of approximately 2.2x as of June 30, 2025.

Reaffirmed and Improved Guidance

The company reaffirmed its full-year 2025 revenue growth outlook of 35% to 40% and increased its Aviation Adjusted EBITDA margin guidance to a range of 16.5% to 17%, up from the previous 16% to 17%. This reflects the company’s confidence in sustaining its growth momentum.