| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 17 | 64.8x | 17.6x | Bottom tier | |
Growth | 96 | 41.6% | 7.1% | Top tier | |
Quality | 23 | 3.6% | 4.5% | Bottom tier | |
Safety | 63 | 5.4x | 2.6x | Around median | |
Capital Return | 18 | 0.22% | 2.15% | Bottom tier | |
Momentum | 43 | 45.4% | 2.3% | Around median | |
Sentiment | 38 | 6 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
VSE Corporation operates through a global aviation aftermarket services platform that combines parts distribution with maintenance, repair, and overhaul services. The company serves the commercial aviation, business aviation, general aviation, rotorcraft, original equipment manufacturer, and defense markets, with a strategy centered on partnerships with original equipment manufacturers and the expansion of engine-related content and proprietary solutions; according to management, about 50% of the business is related to engines, while business aviation and general aviation account for approximately half of the business mix.
In quarter 2 of fiscal year 2026, VSE generated revenue of $449.1 million, up 65% year over year, GAAP net income of $28.5 million, and earnings per share of $0.91. On an adjusted basis, net income was $55 million and diluted earnings per share were $1.75, while adjusted earnings before interest, taxes, depreciation, and amortization rose 98% to a record $86 million, and its margin expanded by approximately 320 basis points to 19.2%.
Growth in quarter 2 of fiscal year 2026 came from a combination of organic growth and acquisitions; organic growth was approximately 14%, while the closing of the PAG acquisition on May 5, 2026, and NorthStar on April 1, 2026, helped expand the platform. Maintenance, repair, and overhaul revenue increased 149% due to new capabilities and capacity, engine-related content, market-share gains, and acquisitions, while distribution revenue grew 17%, supported by new contracts, product-line expansion, and strong demand in the commercial aviation engine market.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $264 with a “Buy” consensus, and the target range is $230 to $290; the average is approximately 6.5% above the 52-week high of $247.85, while the highest target exceeds that high by approximately 17%. Conversely, the $60 difference between the lowest and highest targets reflects meaningful disagreement over the value of organic growth, PAG synergies, and the deleveraging trajectory, while the wide 52-week range of $154.67–$247.85 remains an indicator of valuation sensitivity to integration and execution risks.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue increased 65% to $449.1 million, driven by acquisitions and organic growth of approximately 14%. Maintenance, repair, and overhaul revenue grew 149% due to expanded repair capabilities, engine-related content, market-share gains, and contributions from PAG and Aero 3. Distribution revenue also increased 17%, supported by new contracts, product-line expansion, and strong demand in the commercial aviation engine market.
VSE closed the PAG acquisition on May 5, 2026, for approximately $2 billion in cash and stock, making it the largest transaction in the company’s history. PAG added a global presence, proprietary content, and repair capabilities across the commercial aviation, business aviation, general aviation, rotorcraft, original equipment manufacturer, and defense markets. The company is targeting approximately $15 million in annual operating synergies, but management said most of their realization will appear in fiscal year 2027.
Adjusted earnings before interest, taxes, depreciation, and amortization reached $86 million in quarter 2 of fiscal year 2026, up 98% year over year. Its margin reached a record 19.2%, an increase of approximately 320 basis points, supported by the higher-margin product and repair mix, operating leverage, and PAG contributions. The company raised its fiscal year 2026 margin outlook to 18.7%–19.0%, while maintaining its long-term target above 20%.
Total debt was $967 million and net debt was approximately $872 million at the end of quarter 2 of fiscal year 2026, while the adjusted net leverage ratio was 2.4 times. The company generated free cash flow of approximately $19 million despite incurring approximately $10 million in PAG transaction-related cash expenses. Management expects cash generation to improve in the second half of fiscal year 2026 as earnings grow, transaction expenses decline, and working capital efficiency improves, but it also expects net interest expense of between $36 million and $39 million for the full year.
Approximately 50% of VSE’s business is related to engines, and management said engine activities are growing faster than component activities. The company received seven CFM56 engines in quarter 2 of fiscal year 2026 and began repairing and tearing them down internally, while the auxiliary power unit program with Pratt & Whitney Canada accelerated beyond expectations. VSE is also building a new facility expected to increase the capacity of one of its engine shops by approximately 50%, alongside the expansion of two other facilities.
The main risks are integrating PAG and NorthStar and achieving PAG’s targeted annual synergies of approximately $15 million without disrupting core growth. Net debt of approximately $872 million and expected interest expense of between $36 million and $39 million in fiscal year 2026 also create sensitivity to the free cash flow trajectory. The distribution business also depends on substantial inventory in a supply environment that continues to experience shifting bottlenecks, while the quarterly margin may fluctuate based on the product and repair mix and the timing of business.
