VSE CORP (VSEC) FY2025 10-K Annual Report
VSE CORP (VSEC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
VSE CORP FY2025 10-K Analysis
Business Overview
- • Core business model: aftermarket parts distribution and MRO services for air transportation assets in commercial and government markets
- • New emphasis: acquisition agreement to buy Precision Aviation Group for $2.025B plus up to $125M contingent earn-out, closing expected Q2 2026
- • Strategic shift: sale of Fleet segment in April 2025 to focus solely on Aviation segment operations
- • Notable metric: $2.025B purchase consideration for PAG acquisition funded partly by February 2026 Offerings
- • Distinctive fact: transition from three reportable segments to a single Aviation segment after divesting Federal and Defense and Fleet segments
Management Discussion & Analysis
- • Revenue $1.11B in 2025, up 41% YoY ($326M increase) driven by acquisitions and higher distribution (+46%) and repair (+35%) revenues
- • Operating income $89.6M, margin 8.1% vs $58.8M, margin 7.5% in 2024; net income $53.5M, up 176% YoY
- • Best performing segment: Aviation (single segment) with 46% growth in distribution revenue; no separate worst segment disclosed
- • Cash flow: Operating cash $27.0M vs -$31.0M in 2024; Capex increased; Dividends paid $8.3M ($0.40/share); Financing cash $289.8M, including $441.6M equity offering proceeds used for acquisitions and debt repayment
- • Forward outlook: Management highlights acquisitions aligned to high-margin aftermarket; monitoring inflation risk; sufficient liquidity expected for operations and acquisitions
Risk Factors
- • Regulatory risk from FAA and equivalent agencies' potential adoption of new stringent airworthiness standards for aircraft components and repair facilities
- • Geopolitical exposure to Russia-Ukraine and Middle East conflicts impacting supply chains, revenues, and contract performance
- • Supply chain delays and cost increases due to geopolitical uncertainty and disruptions affecting sourcing and contract fulfillment
- • Competitive threat from OEMs bundling services and products with greater brand recognition and resources than VSE
- • Financial risk from material customer concentration with one group accounting for ~20% of 2025 revenues, risking material revenue loss if reduced demand or contract termination occurs
VSE CORP FY2025 Key Financial MetricsXBRL
Revenue
$1.1B
▲ +3.0% YoY
Net Income
$12M
▼ -23.6% YoY
Operating Margin
8.1%
▲ +52bp YoY
Net Margin
1.1%
▼ -37bp YoY
ROE
0.8%
▼ -74bp YoY
Total Assets
$2.0B
▲ +16.9% YoY
EPS (Diluted)
$0.55
▼ -35.3% YoY
Operating Cash Flow
$27M
▲ +187.0% YoY
Source: XBRL data from VSE CORP FY2025 10-K filing on SEC EDGAR. All figures in USD.
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