VSE Corp Reports Record Q2 Results, Raises Full-Year 2026 Revenue and Profitability Guidance
VSEC sits 45% above its 52-week low of $152.47.
Summary
VSE Corp announced record second-quarter 2026 financial results, with revenue up 65% and net income up 109%, leading to an upward revision of its full-year revenue and Adjusted EBITDA margin guidance.
Key Events · Earnings and Guidance · VSEC
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Record Q2 2026 Financial Performance
Total revenues increased 65.0% year-over-year to $449.1 million, GAAP Net Income rose 109.1% to $28.5 million, and GAAP Diluted EPS increased 37.9% to $0.91.
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Raised Full-Year 2026 Guidance
The company increased its full-year revenue growth outlook to 61-64% (from 57-61%) and its Adjusted EBITDA margin guidance to 18.7-19.0% (from 18.1-18.5%).
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Successful Acquisition Integration
Strong results were attributed to organic growth and the successful integration of the Precision Aviation Group (PAG) and NorthStar Technologies acquisitions, which significantly expanded VSE's scale and capabilities.
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Strong Cash Flow and Deleveraging
Generated $27.6 million in operating cash flow and $18.7 million in free cash flow in Q2, with an Adjusted Net Leverage ratio of 2.4x, and expects stronger free cash flow generation in the second half of 2026.
Analysis · VSEC · Trade & Services
VSE Corp delivered exceptionally strong second-quarter results, significantly exceeding prior expectations with substantial increases in revenue, net income, and EPS. The company also raised its full-year 2026 guidance for both revenue and Adjusted EBITDA margin, driven by strong organic growth and successful integration of recent acquisitions, particularly the $2.025 billion PAG acquisition.
At the time of this filing, VSEC was trading at $221.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $6.1B. The 52-week trading range was $152.47 to $240.56. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.