Start here if you're new
what it is
VSE sells $1.1B of airplane parts and repair services for airlines and fleets.
how it gets paid
Last year Vse made $1.1B in revenue. Aviation distribution and repair was the main engine at $0.63B, or 57% of sales.
why it's growing
Revenue grew 41.5% last year. Revenue rose 32% and net income reached $22.3M.
what just happened
VSE reported $301.2M of revenue and $0.98 EPS, with both numbers beating forecasts.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
144.6x trailing p/e — you're paying up for this one
0.2% dividend yield — cash in your pocket every quarter
4.6% return on capital — nothing to write home about
xvary composite: 56/100 — below average
What they do
VSE sells $1.1B of airplane parts and repair services for airlines and fleets.
Your airplane does not wait for a cheaper part. VSE is an authorized distributor (factory-approved seller), so the factory lets it move the parts shops need. MRO (maintenance, repair, and overhaul, or repair work) keeps your aircraft and trucks in service instead of parked, and 1,400 employees give that machine enough muscle to move.
How they make money
$1.1B
annual revenue · their business grew +41.5% last year
Aviation distribution and repair
$0.63B
+37.0%
Fleet parts and engineering
$0.31B
+41.5%
Aero 3 wheel and brake MRO
$0.16B
+32.0%
The products that matter
distributes OEM aircraft parts
Aviation Distribution
~80% of revenue base
this is the core revenue engine inside the roughly $~880M aviation segment, and distribution growth was cited at 37% last quarter.
scale driver
repairs and overhauls components
Aviation Repair (MRO)
+24% last quarter
repair revenue grew 24% last quarter, which matters because repair work is the recurring part of the aftermarket story.
aftermarket demand
maintains land vehicles
Fleet Services
~20% of revenue base
it's roughly $~220M of revenue and flat, which tells you this segment is supporting the business, not driving the rerating case.
non-core growth
Key numbers
$1.1B
annual revenue
That is the size of the business you are underwriting. Bigger sales give the company more room to absorb shocks, but they do not excuse a 144.6x multiple.
144.6x
trailing p/e
The market is charging $144.60 for every $1 of trailing profit. That leaves little room for a miss.
11.3%
operating margin
For every $100 of sales, VSE kept $11.30 after operating costs. That is decent, but not enough to make the stock cheap.
$386M
long-term debt
Debt sits at 7% of capital. That is manageable, but it still matters when rates stay high and valuation does the heavy lifting.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $386M (7% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for VSEC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
VSE reported $301.2M of revenue and $0.98 EPS, with both numbers beating forecasts.
Revenue rose 32% and net income reached $22.3M. The quarter also carried five business days of Aero 3 results.
$301.2M
revenue
$0.98
eps
$22.3M
net income
the number that mattered
The $301.2M top line matters because it jumped 32% and beat estimates by 6.3%.
source: company earnings report, 2026
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What could go wrong
the #1 risk is multiple compression if aviation growth slips below the 19–23% plan.
high
valuation leaves no room for a normal quarter
A 144.6x trailing P/E is extreme against an 11.3% operating margin and 4.6% return on capital. If growth lands below the 19–23% guide, the multiple can fall even if the business stays fine.
144.6x earnings versus a 19–23% growth target is the gap you need to respect.
med
aviation concentration
Roughly 80% of revenue comes from aviation distribution and repair. That's where the upside lives, but it also means a slowdown in flight activity, OEM supply, or aftermarket demand hits the part of the business doing the real work.
most of the revenue base is tied to one end market.
med
integration risk after PAG
Management noted that recent guidance excludes PAG acquisition effects. That's honest, but it also means part of the next chapter is still off-model. Integration can add growth or add noise. Sometimes both.
if acquired revenue arrives with weaker margins, the market may care more about quality than size.
med
cybersecurity and operational disruption
The 10-K flags cyber risk to systems and data. When you serve 5,000+ customers in parts distribution and repair, downtime is not just an IT problem — it's a service problem.
a serious breach could pressure service levels, customer trust, and near-term revenue.
roughly 80% of revenue is tied to aviation, and the stock trades at 144.6x earnings. That combination means even a modest slowdown can hit both earnings expectations and the multiple at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
growth
the 19–23% 2026 revenue plan
This is the promise built into the stock. If quarterly growth starts drifting below that range, the premium multiple gets harder to defend.
calendar
next earnings report
Expected April 28–29, 2026. The listed consensus is $0.80 EPS on about $290M revenue.
segment split
aviation growth versus flat fleet
Distribution grew 37% and repair grew 24% last quarter, while fleet stayed flat. You want that gap to remain a feature, not become a warning.
integration
PAG closing and margin quality
Management excluded PAG from recent guidance. Watch what happens when the acquisition starts showing up in reported results and margins.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not see this as a smooth, easy-to-model earnings story.
risk rank
3
That puts VSE around the middle on safety. Not fragile, not a bunker.
source: institutional data
Institutional activity
institutional ownership data for VSEC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$191
current price
n/a
target midpoint · n/a from current
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