The PAG acquisition is immediately accretive and positions VSE as a scaled aviation aftermarket platform. Watch Q2 results for early integration progress and margin expansion. The equity offerings caused dilution but strengthened the balance sheet; monitor leverage metrics post-closing.
Price Chart
Executive Summary
VSE reported record Q1 2026 results with revenue up 27% YoY to $324.6M and GAAP EPS up 55% to $1.04, while closing the transformative $2.025B Precision Aviation Group acquisition on May 5. Full-year revenue guidance was raised to 57%-61% growth (from 19%-23%) reflecting PAG's inclusion, with adjusted EBITDA margin guidance increased to 18.1%-18.5%.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $324.6M, +26.8% YoY; GAAP EPS $1.04, +55.2% YoY
- Adjusted EPS $1.17, +50.0% YoY; Adjusted EBITDA $55.4M, +37.4% YoY
- Closed $2.025B acquisition of Precision Aviation Group on May 5, 2026
- Full-year 2026 revenue guidance raised to 57%-61% growth; Adj. EBITDA margin guidance raised to 18.1%-18.5%
- Completed follow-on equity ($829M) and tangible equity unit ($445M) offerings to fund PAG
- Organic revenue growth of 15% in Q1, driven by commercial engine aftermarket strength
Financial Impact
Q1 revenue $324.6M (26.8% YoY growth); PAG acquired for $2.025B; full-year revenue guidance implies ~$1.75B-$1.79B, vs. $1.11B in 2025
Risk Factors
- Integration risk from PAG and NorthStar acquisitions
- Dilution from equity offerings (diluted share count up 34% YoY)
- Increased leverage from debt to fund PAG (pro forma net leverage ~3.0x)
- Potential working capital strain from rapid growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000102752-26-000040 |
| Document: vsec-20260505.htm | 0000102752-26-000040 |
| Document: 0000102752-26-000040-index-headers.html | 0000102752-26-000040 |
| Document: 0000102752-26-000040-index.html | 0000102752-26-000040 |
| Document: 0000102752-26-000040.txt | 0000102752-26-000040 |
| 8-K Data (Synthetic) | 0000102752-26-000040 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 7, 2026 24w ago | 8-K | $52.58 $51.72 | ▼ −1.64% | ▼ −5.47% | $40.49 (−22.99%) |
May 5, 2026 24w ago | 8-K | $53.51 $50.78 | ▼ −5.10% | ▼ −7.16% | $40.49 (−24.33%) |
Apr 23, 2026 26w ago | DEFA14A | $49.57 $51.20 | ▲ +3.28% | ▼ −1.74% | $40.49 (−18.32%) |
Apr 20, 2026 27w ago | DEFA14A | $57.62 $52.55 | ▼ −8.80% | ▼ −15.58% | $40.49 (−29.73%) |
Apr 20, 2026 27w ago | DEFA14A | $57.62 $52.55 | ▼ −8.80% | ▼ −15.58% | $40.49 (−29.73%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers