Detailed financial statements for VSE Corporation (VSEC): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
VSE Corporation engages in providing aviation aftermarket parts distribution and maintenance, repair, and overhaul services for air transportation assets for commercial and government markets. It offers its services to global client base of commercial airlines, regional airlines, air cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators.
Analysis Summary
VSE Corporation reported revenue of $1.11B in the most recent fiscal year, growing at a 5-year CAGR of 10.9%.
Trailing-twelve-month margins: gross margin 14.0%, operating margin 11.2%, net margin 5.5%. Free cash flow grew at -28.9% CAGR over 5 years.
At $160.76 (closing price, October 6, 2026), VSEC trades at a P/E of 59.10 and an ROE of 3.73%. Market capitalisation stands at $4.5B.
Balance sheet quality for VSEC: current ratio of 3.8, net debt of $273.4M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of $5.7M represents 11% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $691.8M | $760.1M | $697.2M | $752.6M | $661.7M | $750.9M | $669.4M | $860.5M | $1.08B | $1.11B |
| Cost of Revenue | $633.7M | $703.4M | $641.0M | $688.2M | $603.8M | $725.7M | $612.2M | $764.9M | $971.9M | $980.1M |
| Gross Profit | $58.1M | $56.8M | $56.2M | $64.4M | $57.9M | $25.1M | $57.2M | $95.6M | $108.2M | $132.1M |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $6.6M | $2.4M | $3.1M | $1.9M | $1.4M | $3.6M | $3.6M | $3.9M | $5.5M | $7.1M |
| Operating Expenses | $6.6M | $2.4M | $3.1M | $1.9M | $1.4M | $3.6M | $3.6M | $3.9M | $5.5M | $7.1M |
| Operating Income | $51.5M | $54.3M | $53.1M | $62.6M | $56.5M | $21.5M | $53.6M | $91.7M | $102.7M | $125.0M |
| EBITDA | $77.6M | $80.2M | $79.5M | $87.2M | $38.1M | $47.1M | $78.2M | $111.4M | $110.2M | $129.5M |
| Interest Expense | $9.9M | $9.2M | $9.0M | $13.8M | $13.5M | $12.1M | $17.9M | $31.1M | $34.9M | $20.6M |
| Pre-tax Income | $41.7M | $45.1M | $45.2M | $46.4M | $427,000 | $9.5M | $35.7M | $56.9M | $46.5M | $69.0M |
| Income Tax | $14.9M | $6.0M | $10.2M | $9.4M | $5.6M | $1.5M | $9.1M | $13.8M | $10.0M | $15.5M |
| Net Income | $26.8M | $39.1M | $35.1M | $37.0M | -$5.2M | $8.0M | $28.1M | $39.1M | $30.5M | $53.5M |
| EPS | $2.48 | $3.61 | $3.23 | $3.38 | $-0.47 | $0.63 | $2.20 | $2.77 | $1.71 | $2.52 |
| EPS (Diluted) | $2.47 | $3.60 | $3.21 | $3.35 | $-0.47 | $0.63 | $2.19 | $2.76 | $1.70 | $2.52 |
| Shares Outstanding (Diluted) | $10.8M | $10.9M | $10.9M | $11.0M | $11.0M | $12.6M | $12.8M | $14.2M | $18.0M | $21.2M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $282.9M | $301.2M | $324.6M | $449.1M |
| Gross Profit | $34.1M | $40.2M | $38.9M | $76.4M |
| Operating Income | $33.4M | $36.5M | $32.7M | $49.0M |
| EBITDA | $20.8M | $42.4M | $45.5M | $68.5M |
| Net Income | $3.8M | $13.6M | $29.1M | $28.5M |
| EPS | $0.19 | $0.58 | $1.06 | $0.92 |
| EPS (Diluted) | $0.19 | $0.58 | $1.04 | $0.91 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $428,000 | $624,000 | $162,000 | $734,000 | $378,000 | $518,000 | $305,000 | $7.8M | $29.0M | $69.4M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $101.2M | $98.3M | $101.3M | $116.9M | $80.5M | $111.3M | $98.0M | $136.0M | $227.5M | $232.2M |
| Inventory | $136.3M | $132.6M | $166.4M | $218.6M | $253.4M | $322.7M | $380.7M | $500.9M | $576.3M | $553.8M |
| Total Current Assets | $258.5M | $248.5M | $281.2M | $355.3M | $355.0M | $464.0M | $548.9M | $774.0M | $874.8M | $893.3M |
| Property, Plant & Equipment | $62.1M | $55.1M | $49.6M | $64.4M | $56.9M | $69.8M | $82.4M | $86.8M | $138.9M | $141.2M |
| Goodwill | $198.6M | $198.6M | $198.6M | $276.4M | $238.1M | $248.8M | $248.8M | $351.8M | $491.5M | $641.2M |
| Intangible Assets | $126.9M | $110.9M | $94.9M | $132.2M | $103.6M | $108.3M | $90.6M | $114.1M | $197.3M | $296.0M |
| Total Assets | $661.8M | $629.0M | $638.8M | $845.9M | $780.1M | $918.6M | $999.8M | $1.35B | $1.73B | $2.03B |
| Accounts Payable | $94.0M | $66.0M | $57.4M | $68.1M | $72.7M | $115.1M | $128.5M | $173.0M | $187.6M | $154.5M |
| Short-term Debt | $21.0M | $7.0M | $11.1M | $16.9M | $20.4M | $14.2M | $10.0M | $22.5M | $30.0M | $13.8M |
| Total Current Liabilities | $148.4M | $114.0M | $104.9M | $164.2M | $139.2M | $180.0M | $224.6M | $286.9M | $281.8M | $237.5M |
| Long-term Debt | $193.6M | $165.6M | $151.1M | $253.1M | $230.7M | $270.4M | $276.3M | $406.8M | $400.2M | $285.3M |
| Total Liabilities | $406.6M | $335.9M | $310.4M | $482.8M | $423.8M | $501.2M | $550.3M | $733.6M | $746.4M | $589.8M |
| Retained Earnings | $231.7M | $267.9M | $301.1M | $334.2M | $325.1M | $328.4M | $351.3M | $384.7M | $392.5M | $395.6M |
| Total Equity | $255.2M | $293.1M | $328.4M | $363.1M | $356.3M | $417.3M | $449.5M | $616.7M | $988.2M | $1.44B |
| Total Debt | $236.6M | $193.2M | $181.1M | $298.2M | $277.9M | $317.7M | $308.6M | $459.3M | $485.2M | $342.8M |
| Net Debt | $236.2M | $192.5M | $180.9M | $297.4M | $277.5M | $317.2M | $308.3M | $451.5M | $456.2M | $273.4M |
| Working Capital | $110.0M | $134.6M | $176.3M | $191.2M | $215.7M | $284.0M | $324.3M | $487.1M | $593.0M | $655.8M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $8.8M | $69.4M | $1.24B | $75.4M |
| Total Assets | $1.56B | $2.03B | $3.31B | $4.40B |
| Total Liabilities | $577.1M | $589.8M | $644.4M | $1.46B |
| Total Equity | $983.3M | $1.44B | $2.67B | $2.93B |
| Total Debt | $431.3M | $342.8M | $402.5M | $1.03B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $26.8M | $39.1M | $35.1M | $37.0M | -$5.2M | $8.0M | $28.1M | $39.1M | $15.3M | $53.5M |
| Depreciation & Amortization | $26.0M | $25.9M | $25.2M | $26.9M | $24.1M | $25.6M | $25.6M | $23.4M | $28.8M | $39.9M |
| Stock-based Compensation | $2.1M | $3.1M | $3.0M | $3.3M | $2.9M | $3.9M | $4.5M | $7.7M | $8.3M | 0 |
| Change in Working Capital | -$5.3M | -$7.1M | -$41.4M | -$50.6M | -$22.1M | -$75.1M | -$50.1M | -$92.4M | -$106.9M | -$113.1M |
| Operating Cash Flow | $47.2M | $50.4M | $18.9M | $18.0M | $35.8M | -$17.6M | $8.1M | -$21.8M | -$31.0M | $27.0M |
| Capital Expenditure | -$6.5M | -$3.7M | -$3.1M | -$9.6M | -$4.4M | -$10.5M | -$11.2M | -$18.7M | -$20.7M | -$21.3M |
| Acquisitions | -$63,000 | $732,000 | $1.7M | -$113.2M | $21.8M | -$53.3M | 0 | -$218.6M | -$283.1M | -$255.2M |
| Stock Repurchased | -$499,000 | -$500,000 | 0 | -$955,000 | -$690,000 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -$2.5M | -$2.8M | -$3.3M | -$3.7M | -$4.0M | -$4.4M | -$5.1M | -$5.4M | -$7.1M | -$8.3M |
| Free Cash Flow | $40.6M | $46.7M | $15.7M | $8.4M | $31.3M | -$28.1M | -$3.2M | -$40.5M | -$51.7M | $5.7M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $24.1M | $37.6M | -$62.3M | $27.6M |
| Capital Expenditure | -$6.0M | -$6.8M | -$6.5M | -$8.9M |
| Free Cash Flow | $18.0M | $30.9M | -$68.7M | $18.7M |
| Dividends Paid | -$2.1M | -$2.1M | -$2.3M | -$2.8M |
| Stock-based Compensation | 0 | 0 | $4.6M | $4.1M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +9.9% | -8.3% | +7.9% | -12.1% | +13.5% | -10.8% | +28.5% | +25.5% | +3.0% | |
| Net Income Growth (YoY) | +45.9% | -10.3% | +5.5% | -114.0% | +254.1% | +252.2% | +39.5% | -22.0% | +75.3% | |
| EPS Growth (YoY) | +45.6% | -10.5% | +4.6% | -113.9% | +234.0% | +249.2% | +25.9% | -38.3% | +47.4% | |
| Shares Change (YoY) | +0.4% | +0.6% | +1.0% | -0.1% | +14.5% | +1.5% | +10.6% | +26.7% | +18.1% | |
| FCF Growth (YoY) | +14.8% | -66.3% | -46.9% | +274.6% | -189.7% | +88.8% | -1,181.1% | -27.8% | +111.0% | |
| Gross Margin | 8.4% | 7.5% | 8.1% | 8.6% | 8.7% | 3.3% | 8.6% | 11.1% | 10.0% | 11.9% |
| Operating Margin | 7.4% | 7.1% | 7.6% | 8.3% | 8.5% | 2.9% | 8.0% | 10.7% | 9.5% | 11.2% |
| EBITDA Margin | 11.2% | 10.6% | 11.4% | 11.6% | 5.8% | 6.3% | 11.7% | 12.9% | 10.2% | 11.6% |
| Net Margin | 3.9% | 5.1% | 5.0% | 4.9% | -0.8% | 1.1% | 4.2% | 4.5% | 2.8% | 4.8% |
| FCF Margin | 5.9% | 6.1% | 2.3% | 1.1% | 4.7% | -3.7% | -0.5% | -4.7% | -4.8% | 0.5% |
| Effective Tax Rate | 35.7% | 13.3% | 22.5% | 20.3% | 1,311.0% | 15.7% | 25.3% | 24.2% | 21.5% | 22.5% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $3.75 | $4.29 | $1.44 | $0.76 | $2.84 | $-2.23 | $-0.25 | $-2.85 | $-2.88 | $0.27 |
| Dividends Per Share | $0.23 | $0.26 | $0.30 | $0.34 | $0.36 | $0.35 | $0.40 | $0.38 | $0.39 | $0.39 |
| Shares Outstanding (Basic) | $10.8M | $10.8M | $10.9M | $11.0M | $11.0M | $12.6M | $12.8M | $14.1M | $17.9M | $21.2M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | 3.73% |
| Return on Invested Capital | 2.83% |
| Return on Assets | 1.70% |
| Gross Margin | 13.97% |
| Operating Margin | 11.16% |
| Net Margin | 5.52% |
Financial Health
| Debt / Equity | 0.35 |
| Current Ratio | 3.77 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 5.14 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 15.66 | 13.42 | 9.26 | 11.25 | -81.89 | 96.73 | 21.31 | 23.32 | 55.61 | 68.56 |
| P/B | 1.64 | 1.79 | 0.99 | 1.15 | 1.19 | 1.83 | 1.33 | 1.48 | 1.72 | 2.55 |
| P/S | 0.61 | 0.69 | 0.47 | 0.55 | 0.64 | 1.02 | 0.89 | 1.06 | 1.57 | 3.30 |
| Gross Margin | 8.4% | 7.5% | 8.1% | 8.6% | 8.7% | 3.3% | 8.6% | 11.1% | 10.0% | 11.9% |
| Operating Margin | 7.4% | 7.1% | 7.6% | 8.3% | 8.5% | 2.9% | 8.0% | 10.7% | 9.5% | 11.2% |
| Net Margin | 3.9% | 5.1% | 5.0% | 4.9% | -0.8% | 1.1% | 4.2% | 4.5% | 2.8% | 4.8% |
Related companies: FLY · MYRG · WSC · EXPO · PL · ATMU · SNDR · AIR
Explore sector: Industrials · Aerospace & Defense
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