Short answer
VSE CORP (VSEC) filed its fiscal 2025 10-K annual report with the SEC on Feb 27, 2026. It reported revenue of $1.1B (+3.0% year over year) and net income of $12M.
- Top risk flagged: Regulatory risk from FAA and equivalent agencies' potential adoption of new stringent airworthiness standards for aircraft components and repair facilities
FY2025 key financial metrics · XBRL
- Revenue
- $1.1B
- +3.0% YoY
- Net income
- $12M
- −23.6% YoY
- Operating margin
- 8.1%
- +0.5 pp YoY
- EPS (diluted)
- $0.55
- −35.3% YoY
- ROE
- 0.8%
- −0.7 pp YoY
- Operating cash flow
- $27M
- +187.0% YoY
Source: XBRL data from the VSE CORP (VSEC) FY2025 10-K on SEC EDGAR. USD.
VSE CORP FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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