VSE (VSEC) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $449.1 million, up 65% year-over-year, driven by strong core execution, organic growth, and major acquisitions including PAG and NorthStar, expanding scale and capabilities in aviation aftermarket.

• Integration and synergy capture initiatives are underway, with early progress in insourcing, sales alignment, operational efficiency, and margin expansion.

• Company now operates as a single reportable segment focused on aviation aftermarket MRO and distribution services.

Financial highlights

• Q2 2026 revenue reached $449.1 million, up 65% year-over-year, with organic growth of approximately 14%.

• Adjusted EBITDA was $86 million (19.2% margin), up 98% year-over-year; margin expanded by 320 basis points.

• Adjusted net income was $55 million, up 101%; adjusted diluted EPS was $1.75, up 33% year-over-year.

• Free cash flow for Q2 was $19 million; operating cash flow was $27.6 million.

• Net income from continuing operations for Q2 2026 was $28.5 million, up 109%.

Outlook and guidance

• Raised full-year 2026 revenue growth guidance to 61%-64% (previously 57%-61%).

• Full-year adjusted EBITDA margin outlook increased to 18.7%-19.0% (previously 18.1%-18.5%).

• Free cash flow expected to improve in the second half, supporting deleveraging and investment.

• Interest expense projected at $36M-$39M; D&A at $96M-$100M; effective tax rate ~25%-27.3%.