VSE Corp Q2 revenue rises more than expected after acquisitions
VSE Corp Q2 revenue rises more than expected after acquisitions
Overview
US aviation aftermarket services firm's Q2 revenue rose 65%, beating analyst expectations
Adjusted net income and adjusted EBITDA for Q2 beat analyst expectations
Company completed two major acquisitions, driving scale and expanded capabilities
Outlook
VSE raises 2026 revenue growth guidance to 61%-64%, up from 57%-61%
VSE lifts 2026 Adjusted EBITDA margin outlook to 18.7%-19.0%, from 18.1%-18.5%
Company expects stronger free cash flow generation in second half of 2026
Result Drivers
ACQUISITIONS - PAG and NorthStar acquisitions expanded scale, global reach, and repair capabilities, contributing to revenue growth
ORGANIC GROWTH - Organic revenue growth was driven by strength in commercial engine aftermarket, new business wins, expanded product and repair capabilities, market share gains, and increased share of wallet on existing programs
INTEGRATION SYNERGIES - Integration of acquired businesses led to revenue and margin opportunities, including insourcing, joint sales initiatives, sales-channel alignment, and operating efficiencies
Company press release: ID:nBw8Kkq86a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $449.1 mln | $425.07 mln (9 Analysts) |
Q2 EPS |
| $0.91 |
|
Q2 Adjusted Net Income | Beat | $55 mln | $29.19 mln (7 Analysts) |
Q2 Net Income |
| $28.5 mln |
|
Q2 Adjusted EBITDA | Beat | $86 mln | $77.32 mln (9 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for VSE Corp is $260.00, about 21.4% above its August 4 closing price of $214.23
The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 39 three months ago
Reuters Recommended Reads
Aug 4 - TransDigm lifts 2026 forecast on robust aftermarket aircraft parts demand
Aug 5 - Newly spun-off Honeywell Aerospace cuts 2026 forecast on supply-chain woes
Aug 4 - Bristow Group Q2 revenue beats estimates on higher rates in Europe and the Americas
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)