VSE Corporation reported record third quarter 2026 results that exceeded analyst expectations for both top and bottom-line performance. The company achieved 91.2% total revenue growth, supported by 17% organic growth and the full-quarter impact of the Precision Aviation Group (PAG) acquisition. Based on this momentum, management raised its full-year 2026 revenue and margin guidance.
Key Highlights
- Total revenue surged 91.2% year-over-year to $541.0 million, led by a 197.6% increase in repair revenue and 26.7% growth in distribution.
- Adjusted EBITDA margin expanded 310 basis points to a record 19.8%, driven by a favorable mix of higher-margin engine products and realization of acquisition synergies.
- Full-year 2026 revenue growth guidance was raised to a range of 65% to 66.5%, while Adjusted EBITDA margin guidance was increased to 18.9% to 19.1%.
- The company generated $46.6 million in free cash flow, ending the quarter with an adjusted net leverage ratio of approximately 2.3x.