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VSEC stock rises 5.2% on record Q3 and raised guidance
VSEC stock rose 5.2% after VSE posted record Q3 2026 revenue of $541.0 million, up 91.2%, and raised its full-year revenue and margin guidance.
VSEC stock rose 5.2% in early trading on November 5, 2026, the morning after VSE Corporation reported record third-quarter results and raised its 2026 guidance. Revenue jumped 91.2% from a year earlier to $541.0 million.
What VSE Corporation reported
| Metric | This period | A year earlier | Change |
|---|---|---|---|
| Revenue | $541.0 million | $282.9 million | +91.2% |
| Net income (continuing operations) | $47.3 million | $3.6 million | +1,216.2% |
| Adjusted EPS (diluted) | $2.01 | $1.35 | +48.9% |
| Adjusted EBITDA | $107.2 million | $47.4 million | +126.3% |
| Adjusted EBITDA margin | 19.8% | 16.7% | +~310 bps |
Adjusted EPS is profit per share excluding items such as acquisition costs and amortization. Adjusted EBITDA is operating profit before interest, taxes, depreciation and amortization, also excluding one-off items. A basis point (bps) is one hundredth of a percentage point.
VSE now expects full-year 2026 revenue growth of 65% to 66.5%, up from 61% to 64%, and an adjusted EBITDA margin of 18.9% to 19.1%, up from 18.7% to 19.0%. Acquisitions, mainly a full quarter of Precision Aviation Group (PAG), added about 74 percentage points of the revenue growth. Repair revenue rose 197.6% and distribution revenue 26.7%.
Why the stock rose 5.2%
The gain was a bit more than twice the size of a typical day's swing for the stock. The guidance raise on both revenue and margin was the most direct trigger. Organic growth, which strips out acquired businesses, was about 17%, led by commercial aviation engine aftermarket demand. The company said margins widened mainly because of a richer mix of higher-margin engine products and repair work, plus synergies from earlier deals.
What to watch next
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Fourth-quarter free cash flow and debt reduction, with net debt at $894.2 million on September 30.
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Integration of VSE and PAG, including joint sales and more repair work done in-house.
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Contribution and synergies from the Atech Turbine Components acquisition.
FAQ
What is Atech Turbine Components, which VSE bought?
VSE acquired Atech on August 31, 2026. It repairs hot-section parts for aircraft turbine engines, mainly on Pratt & Whitney Canada platforms, with repair approvals covering more than 300 part numbers.
How much cash did VSE generate in the third quarter?
VSE produced $56.0 million of operating cash flow and $46.6 million of free cash flow (operating cash minus capital spending), compared with $18.0 million of free cash flow a year earlier.
Sources
This article is for information only and is not investment advice.