VSE Q1 revenue rises on strong performance in distribution

VSE

05/05/2026 22:04

Overview

Aviation aftermarket distributor's Q1 revenue rose 27%, beating analyst expectations

Q1 adjusted EPS and adjusted EBITDA both beat analyst expectations

Company completed acquisitions of Precision Aviation Group and NorthStar, expanding service capabilities

Outlook

VSE raises 2026 revenue growth outlook to 57%-61% from 19%-23% after PAG acquisition

Company lifts 2026 Adjusted EBITDA margin forecast to 18.1%-18.5%, up from 16.8%-17.3%

VSE expects pro forma Adjusted Net Leverage below 3.0x, improving through 2026

Result Drivers

DISTRIBUTION AND MRO GROWTH - Co said Q1 organic revenue growth was led by strong performance in distribution and supported by continued growth in MRO

COMMERCIAL ENGINE AFTERMARKET - Robust commercial engine aftermarket activity, execution on new programs, and market share gains drove revenue growth, per CEO John Cuomo

HIGHER-MARGIN MIX - Adjusted EBITDA margin increased due to a greater mix of higher-margin product and repair activity, higher-margin OEM licensed manufacturing sales, and synergy realization from recent acquisitions

Company press release: ID:nBw9n838La

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$324.58 mln
$311.57 mln (6 Analysts)
Q1 Adjusted EPS
Beat
$1.04
$0.90 (7 Analysts)
Q1 EPS
$1.04
Q1 Adjusted Net Income
Beat
$32.60 mln
$25.51 mln (5 Analysts)
Q1 Net Income
$29.10 mln
Q1 Adjusted EBITDA
Beat
$55.40 mln
$51.55 mln (7 Analysts)
Q1 Operating Income
$32.75 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "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 54.7% above its May 4 closing price of $168.11

The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 49 three months ago

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.)