VSE Corporation Announces Third Quarter 2026 Results
VSE CORP (VSEC) filed an SEC Form 8-K — Results of Operations and Financial Condition. VSE Corporation Announces Third Quarter 2026 Results Record Revenue and Profitability Raises 2026 Guidance MIRAMAR, FLORIDA, November 4, 2026 - VSE Corporation (“VSE” or the “Company”) (NASDAQ: VSEC, VSECU), a leading provider of aviation aftermarket distribution and repair servi
How this was made
The 30-second read
Why it matters
The raised guidance reflects strong organic growth and synergies from recent acquisitions, positioning VSEC for continued margin expansion.
Market read
Guidance lift provides a fresh catalyst for VSEC, likely prompting short-term buying pressure.
What to watch
High leverage (net debt $894M) and integration risk of recent acquisitions could limit near-term gains.
VSE Corporation Announces Third Quarter 2026 Results Record Revenue and Profitability Raises 2026 Guidance
Third-quarter revenue increased 91.2%, Adjusted EBITDA increased 126.3%, Adjusted EBITDA margin reached a record 19.8%, operating cash flow was $56.0 million, and the company raised full-year 2026 revenue-growth and Adjusted EBITDA-margin guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 total revenuesGAAP | $541.0M | – | 91.2 % |
| Three months ended September 30, 2026 products revenueGAAP | $223.0M | – | – |
| Three months ended September 30, 2026 services revenueGAAP | $318.0M | – | – |
| Three months ended September 30, 2026 operating incomeGAAP | $77.45M | – | 667.8 % |
| Three months ended September 30, 2026 net income from continuing operationsGAAP | $47.26M | – | 1,216.2 % |
| Three months ended September 30, 2026 net income from continuing operations marginGAAP | 8.7 % | – | ~ 750 bps |
| Three months ended September 30, 2026 diluted EPS from continuing operationsGAAP | $1.49 | – | 776.5 % |
| Three months ended September 30, 2026 adjusted net income from continuing operationsnon-GAAP | $63.76M | – | 128.4 % |
| Three months ended September 30, 2026 adjusted diluted EPS from continuing operationsnon-GAAP | $2.01 | – | 48.9 % |
| Three months ended September 30, 2026 EBITDA from continuing operationsnon-GAAP | $107.6M | – | 430.5 % |
| Three months ended September 30, 2026 Adjusted EBITDA from continuing operationsnon-GAAP | $107.2M | – | 126.3 % |
| Three months ended September 30, 2026 Adjusted EBITDA margin from continuing operationsnon-GAAP | 19.8 % | – | ~ 310 bps |
| Three months ended September 30, 2026 net cash provided by operating activitiesGAAP | $55.99M | – | – |
| Three months ended September 30, 2026 capital expendituresother | −$9.37M | – | – |
| Three months ended September 30, 2026 free cash flownon-GAAP | $46.62M | – | – |
| Nine months ended September 30, 2026 total revenuesGAAP | $1.31B | – | 62.1 % |
| Nine months ended September 30, 2026 products revenueGAAP | $628.7M | – | – |
| Nine months ended September 30, 2026 services revenueGAAP | $686.0M | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | $159.2M | – | 178.7 % |
| Nine months ended September 30, 2026 net income from continuing operationsGAAP | $104.8M | – | 236.1 % |
| Nine months ended September 30, 2026 net income from continuing operations marginGAAP | 8.0 % | – | ~ 410 bps |
| Nine months ended September 30, 2026 diluted EPS from continuing operationsGAAP | $3.45 | – | 130.0 % |
| Nine months ended September 30, 2026 adjusted net income from continuing operationsnon-GAAP | $161.6M | – | 104.9 % |
| Nine months ended September 30, 2026 adjusted diluted EPS from continuing operationsnon-GAAP | $5.32 | – | 40.0 % |
| Nine months ended September 30, 2026 Adjusted EBITDA from continuing operationsnon-GAAP | $248.6M | – | 89.6 % |
| Nine months ended September 30, 2026 Adjusted EBITDA margin from continuing operationsnon-GAAP | 18.9 % | – | ~ 270 bps |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $21.28M | – | – |
| Nine months ended September 30, 2026 capital expendituresother | −$24.70M | – | – |
| Nine months ended September 30, 2026 free cash flownon-GAAP | −$3.42M | – | – |
| September 30, 2026 cash and cash equivalentsGAAP | $65.79M | – | – |
| September 30, 2026 principal amount of debtother | $978.8M | – | – |
| September 30, 2026 net debtnon-GAAP | $894.2M | – | – |
| September 30, 2026 net leverage rationon-GAAP | 3.0 x | – | – |
| September 30, 2026 Adjusted net leverage rationon-GAAP | 2.3 x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ProductsNo product-revenue driver was separately provided. | $223.0M | – | – |
| ServicesCommercial aviation engine aftermarket strength and a full-quarter impact from PAG supported revenue growth. | $318.0M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full year 2026 outlook
- Revenuerevenue growth of 65% to 66.5%
- NoteAdjusted EBITDA margin of 18.9% to 19.1%
Capital returns
- Dividends declared per share for the three months ended September 30, 2026 were $0.10.
- Dividends declared per share for the nine months ended September 30, 2026 were $0.30.
- Dividends paid for the nine months ended September 30, 2026 were $(7,952) (in thousands).
What drove it
- Organic revenue growth was approximately 17%, led by strength in the commercial aviation engine aftermarket.
- Acquisitions contributed approximately 74 percentage points of revenue growth, driven by a full-quarter impact from PAG and contributions from other acquisitions.
- Repair and distribution revenue increased 197.6% and 26.7%, respectively, compared to the prior-year period.
- Adjusted EBITDA margin expansion was driven primarily by a greater mix of higher-margin engine products and repair activity, synergies from previously acquired businesses, and contributions from recent acquisitions.
- VSE acquired Atech Turbine Components on August 31, 2026, adding OEM-approved engine repair approvals covering more than 300 part numbers.
Concerns
- Total outstanding principal borrowings were $978.8 million and net debt was $894.2 million as of September 30, 2026.
- Nine-month operating cash flow of $21,284 (in thousands) was affected by $(148,409) (in thousands) of inventory investment.
- Nine-month cash paid for acquisitions, net of cash acquired, was $(1,830,791) (in thousands).
- The company identifies risks related to integration and achievement of expected benefits and synergies from recent acquisitions, including PAG.
- Forward-looking Adjusted EBITDA margin cannot be quantitatively reconciled because certain information regarding the provision for income taxes is not available and management cannot reliably predict all necessary components of net income.
What to watch
- Fourth-quarter free cash flow, which management expects to be strong and to support continued deleveraging.
- Execution of integration across VSE and PAG, including joint commercial opportunities, more repair work brought in-house, and operational efficiency.
- Capacity expansion and technical-capability development at Atech to support new proprietary repairs.
- The continuation of OEM and customer demand supporting the raised full-year revenue-growth outlook of 65% to 66.5%.
- Progress in Adjusted EBITDA margin toward the full-year outlook of 18.9% to 19.1%.
Balance sheet and cash flow
- As of September 30, 2026, cash and cash equivalents totaled $65.8 million.
- As of September 30, 2026, unused commitments under the revolving credit facility were $479.2 million.
- Total outstanding principal borrowings were $978.8 million, and net debt was $894.2 million.
- The Adjusted net leverage ratio was approximately 2.3x as of September 30, 2026.
- Third-quarter operating cash flow was $56.0 million and free cash flow was $46.6 million.
- Nine-month net cash provided by operating activities was $21,284 (in thousands), while free cash flow was $(3,415) (in thousands).
- Nine-month cash paid for acquisitions, net of cash acquired, was $(1,830,791) (in thousands).
Analysis
VSE reported record third-quarter revenue of $541.0 million, up 91.2% from the prior-year period. The release attributes approximately 17% organic revenue growth to strength in the commercial aviation engine aftermarket, while acquisitions contributed approximately 74 percentage points of growth. Services revenue was $318,024 (in thousands), compared with $106,874 (in thousands) a year earlier, and products revenue was $222,982 (in thousands), compared with $176,035 (in thousands). Repair and distribution revenue increased 197.6% and 26.7%, respectively.
Profitability expanded sharply. Operating income was $77,451 (in thousands), up 667.8%, and net income from continuing operations was $47,264 (in thousands), up 1,216.2%. Adjusted EBITDA from continuing operations was $107,165 (in thousands), up 126.3%, while Adjusted EBITDA margin reached a record 19.8% from 16.7%. Management cited a greater mix of higher-margin engine products and repair activity, synergies from previously acquired businesses, and recent-acquisition contributions as the principal margin drivers.
Cash generation was strong in the quarter, with $55,991 (in thousands) of operating cash flow and $46,619 (in thousands) of free cash flow. For the nine-month period, operating cash flow was $21,284 (in thousands) and free cash flow was $(3,415) (in thousands), while inventories increased by $(148,409) (in thousands) in the cash-flow statement. The company ended September 30 with $65.8 million of cash and cash equivalents, $978.8 million of total outstanding principal borrowings, $894.2 million of net debt, and an Adjusted net leverage ratio of approximately 2.3x following recent acquisitions.
The company raised full-year 2026 revenue-growth guidance to 65% to 66.5% from 61% to 64% and raised Adjusted EBITDA-margin guidance to 18.9% to 19.1% from 18.7% to 19.0%. The outlook is supported by continued OEM and customer demand, strong third-quarter performance, operating execution, and expected acquisition synergies. The August 31 acquisition of Atech expands VSE's proprietary engine repair portfolio and is positioned by management as a source of future repair capacity, technical capabilities, and organic growth.
Management, verbatim
VSE delivered an exceptional third quarter, achieving record revenue and profitability, approximately 17% organic revenue growth and strong cash generation.
John Cuomo, President and Chief Executive Officer of VSE Corporation
VSE’s record third quarter results demonstrate the earnings power and cash generation of the combined VSE and PAG platform.
Adam Cohn, Chief Financial Officer of VSE Corporation
We expect strong fourth quarter free cash flow (3) to support continued deleveraging while maintaining the flexibility to invest in organic growth and pursue disciplined acquisitions.
Adam Cohn, Chief Financial Officer of VSE Corporation
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported operating metrics were not provided.
- GAAP gross margin and non-GAAP gross margin were not provided.
- Segment revenue under formal reportable operating-segment labels was not provided.
- Share repurchases were not provided.
- A quantitative reconciliation for forward-looking Adjusted EBITDA margin was not provided.
- Prior-outlook document was not provided; therefore, no actual-versus-prior-guidance comparison is included. The release itself states prior guidance ranges but does not provide actual full-year 2026 results.
- Revenue, operating-expense, and tax-rate guidance expressed as absolute amounts were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
VSEC reported record Q3 2026 results with 91% revenue growth and announced an acquisition of Atech Turbine Components.
Ticker impact
VSEC raised full-year 2026 revenue growth guidance to 65-66.5% and adjusted EBITDA margin to 18.9-19.1% after reporting record Q3 results.
likely upward pressure as investors price in higher revenue and margin expectations
Guidance lift is material and fresh; the company posted 91% revenue growth YoY, indicating momentum that could drive the stock higher.
Market effects
Aviation aftermarket services may see increased investor interest as VSEC's growth signals sector strength.
U.S. aerospace and defense suppliers could benefit from higher OEM demand.
Limited to U.S. small-cap investors; no broad macro impact.
Counterpoint
The guidance raise may already be priced in; execution risk on acquisitions could temper upside.
Key entities
- companyVSE Corporation
Aviation aftermarket distribution and repair services provider.
- companyAtech Turbine Components
MRO provider acquired by VSEC to expand engine repair capabilities.
