AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
VSE completed $2.0B acquisition of Precision Aviation Group on May 5, 2026, driving Q2 revenue to $449.1M (+65% YoY) with net income from continuing operations of $28.5M (+109% YoY).
Biggest Revenue Drivers
Repair$245.7M+149% YoY
Market growth and share gains from newly awarded OEM distribution agreements and expanded repair capabilities, plus contributions from Aero 3, PAG, NorthStar, and Turbine Weld acquisitions.
Distribution$203.4M+17% YoY
Execution of newly awarded OEM distribution agreements, expansion of product offerings, and contributions from recent acquisitions including PAG.
Biggest Revenue Drivers
Total revenue: $449.1M+65% YoY
Repair$245.7M+149% YoY
Market growth and share gains from newly awarded OEM distribution agreements and expanded repair capabilities, plus contributions from Aero 3, PAG, NorthStar, and Turbine Weld acquisitions.
Distribution$203.4M+17% YoY
Execution of newly awarded OEM distribution agreements, expansion of product offerings, and contributions from recent acquisitions including PAG.
Largest Expense Items
Products costs$167.1M+15% YoY
Increased costs aligned with distribution revenue growth.
Margins: Operating income increased 117% YoY to $48.9M despite higher amortization and acquisition costs, reflecting strong revenue growth from organic demand and acquisitions. Operating margin expanded as revenue growth outpaced cost increases.
Watch Items from the Filing
PAG acquisition on May 5, 2026 for $2.02B ($1.77B cash, $238M equity, $33.8M contingent earn-out up to $125M if 2026 EBITDA targets met) significantly increased leverage and integration risk.
Total debt increased to $966.7M ($900M new term loan B, $66.7M amortizing notes) from $296.3M, with leverage ratio restricted by Credit Agreement covenants; company in compliance as of June 30, 2026.
Goodwill increased to $1.81B from $641.2M, primarily from PAG acquisition ($1.17B); significant impairment risk if acquisition targets not met or aviation demand declines.
Operating cash flow was negative $34.7M in H1 2026, flat YoY, driven by $115.6M increase in inventory purchases despite net income of $57.6M, reflecting working capital strain from growth and acquisitions.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Britt Anita DReporting ownerGrant or award · Jan 2, 2026
Potter John EReporting ownerGrant or award · Jan 2, 2026
Johnson Lloyd EmersonReporting ownerGrant or award · Jan 2, 2026
Dolanski Edward PReporting ownerGrant or award · Jan 2, 2026
Wachtel Bonnie KReporting ownerGrant or award · Jan 2, 2026
Congress trading in VSEC
2 transactions in VSEC reported by 1 member of Congress under the STOCK Act, most recent trade Feb 4, 2026. Reported transactions, not recommendations.
About VSE CORP (VSEC): stock profile, AI score and financials
VSE CORP (VSEC) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores VSEC at 57.4/100 on a composite quality score built from its SEC filings, placing it at rank #1,092 of 2,925 stocks — the top half of the AI-ranked universe. VSEC scores in the top quartile across revenue growth (91.8). Areas of concern include earnings quality (27.3) and free cash flow (27.6), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), VSE CORP reports quarterly revenue of $449.1M, net income of $28.5M, an operating margin of 10.9%. Top institutional holders of VSEC by reported 13-F value include BlackRock, T. Rowe Price Investment Management, STATE STREET, based on the most recent SEC filings. VSEC trades on the Nasdaq exchange and files with the SEC under CIK 102752. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate VSEC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for VSE CORP directly from SEC EDGAR.