Revenue growth accelerated to 65% YoY in 2026Q2, with gross margin expanding from 10.0% in 2024Q2 to 17.0%, while operating income grew 108% YoY to $49.0M, indicating strong operating leverage.
VSE Corporation (VSEC) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.36B | 1.11B | 1.08B | 860.49M | 669.45M | 750.85M | 661.66M | 752.63M | 697.22M | 760.11M | 691.79M | 533.98M | 424.07M | 471.64M | 546.75M | 618.59M | 866.04M | 1.01B | 1.04B | 653.16M | 363.73M | 280.14M | 216.01M | 134.46M | 134.38M | 111.57M | 122.27M | 157.4M | 180.2M | 155.9M | 120.1M |
| Revenue Growth % | 31.72% | 2.98% | 25.53% | 28.54% | -10.84% | 13.48% | -12.09% | 7.95% | -8.27% | 9.88% | 29.55% | 25.92% | -10.09% | -13.74% | -11.61% | -28.57% | -14.65% | -2.79% | 59.8% | 79.57% | 29.84% | 29.69% | 60.65% | 0.06% | 20.44% | -8.75% | -22.32% | -12.65% | 15.59% | 29.81% | 59.92% |
| Cost of Goods Sold | 1.17B | 980.14M | 971.93M | 764.87M | 612.21M | 725.71M | 603.78M | 688.18M | 640.97M | 703.36M | 633.65M | 480.15M | 383M | 424.25M | 490.69M | 576.65M | 825.62M | 974.9M | 1.01B | 629.35M | 350.98M | 269.78M | 209.84M | 130.9M | 132.31M | 109.99M | 118.37M | 150.8M | 174.4M | 152.5M | 114.6M |
| COGS % of Revenue | - | 88.12% | 89.98% | 88.89% | 91.45% | 96.65% | 91.25% | 91.44% | 91.93% | 92.53% | 91.6% | 89.92% | 90.32% | 89.95% | 89.75% | 93.22% | 95.33% | 96.08% | 96.9% | 96.35% | 96.49% | 96.3% | 97.14% | 97.35% | 98.46% | 98.58% | 96.81% | 95.81% | 96.78% | 97.82% | 95.42% |
| Gross Profit | 189.68M | 132.13M | 108.2M | 95.61M | 57.24M | 25.14M | 57.88M | 64.45M | 56.24M | 56.75M | 58.14M | 53.83M | 41.07M | 47.39M | 56.07M | 41.95M | 40.42M | 39.74M | 32.33M | 23.81M | 12.76M | 10.36M | 6.17M | 3.56M | 2.07M | 1.58M | 3.9M | 6.6M | 5.8M | 3.4M | 5.5M |
| Gross Margin % | 13.97% | 11.88% | 10.02% | 11.11% | 8.55% | 3.35% | 8.75% | 8.56% | 8.07% | 7.47% | 8.4% | 10.08% | 9.68% | 10.05% | 10.25% | 6.78% | 4.67% | 3.92% | 3.1% | 3.65% | 3.51% | 3.7% | 2.86% | 2.65% | 1.54% | 1.42% | 3.19% | 4.19% | 3.22% | 2.18% | 4.58% |
| Gross Profit Growth % | - | 22.12% | 13.16% | 67.05% | 127.64% | -56.56% | -10.19% | 14.59% | -0.9% | -2.38% | 8.01% | 31.06% | -13.33% | -15.48% | 33.67% | 3.78% | 1.7% | 22.94% | 35.75% | 86.68% | 23.14% | 67.89% | 73.27% | 71.78% | 31.04% | -59.38% | -40.98% | 13.79% | 70.59% | -38.18% | 12.24% |
| Operating Expenses | 38.09M | 7.14M | 5.48M | 3.92M | 3.63M | 3.63M | 1.35M | 1.89M | 3.15M | 2.43M | 6.61M | 3.29M | 3.25M | 3.29M | 3.97M | 3.47M | 2.2M | 1.26M | 1.19M | 1.5M | 694K | 580K | 636K | 352K | 328K | 237K | 1.8M | 2.6M | 2.7M | 5M | 2M |
| OpEx % of Revenue | - | 0.64% | 0.51% | 0.46% | 0.54% | 0.48% | 0.2% | 0.25% | 0.45% | 0.32% | 0.96% | 0.62% | 0.77% | 0.7% | 0.73% | 0.56% | 0.25% | 0.12% | 0.11% | 0.23% | 0.19% | 0.21% | 0.29% | 0.26% | 0.24% | 0.21% | 1.47% | 1.65% | 1.5% | 3.21% | 1.67% |
| Selling, General & Admin | 19.64M | 7.14M | 5.48M | 3.92M | 3.63M | 3.63M | 1.35M | 1.89M | 3.15M | 2.43M | 6.61M | 3.29M | 3.25M | 3.29M | 3.97M | 3.47M | 2.2M | 1.26M | 1.19M | 1.5M | 694K | 580K | 636K | 352K | 328K | 237K | 239K | 700K | 800K | 900K | 500K |
| SG&A % of Revenue | - | 0.64% | 0.51% | 0.46% | 0.54% | 0.48% | 0.2% | 0.25% | 0.45% | 0.32% | 0.96% | 0.62% | 0.77% | 0.7% | 0.73% | 0.56% | 0.25% | 0.12% | 0.11% | 0.23% | 0.19% | 0.21% | 0.29% | 0.26% | 0.24% | 0.21% | 0.2% | 0.44% | 0.44% | 0.58% | 0.42% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.56M | 1.9M | 1.9M | 4.1M | 1.5M |
| Operating Income | 151.58M | 125M | 102.72M | 91.7M | 53.6M | 21.52M | 56.53M | 62.56M | 53.1M | 54.33M | 51.53M | 50.54M | 37.82M | 44.1M | 52.1M | 38.48M | 38.21M | 38.48M | 31.13M | 22.31M | 12.06M | 9.78M | 5.53M | 3.21M | 1.75M | 1.34M | 2.09M | 4M | 3.1M | -1.6M | 3.5M |
| Operating Margin % | 11.16% | 11.24% | 9.51% | 10.66% | 8.01% | 2.87% | 8.54% | 8.31% | 7.62% | 7.15% | 7.45% | 9.46% | 8.92% | 9.35% | 9.53% | 6.22% | 4.41% | 3.79% | 2.98% | 3.42% | 3.32% | 3.49% | 2.56% | 2.39% | 1.3% | 1.21% | 1.71% | 2.54% | 1.72% | -1.03% | 2.91% |
| Operating Income Growth % | - | 21.68% | 12.03% | 71.06% | 149.09% | -61.93% | -9.63% | 17.81% | -2.26% | 5.43% | 1.96% | 33.62% | -14.24% | -15.35% | 35.4% | 0.7% | -0.69% | 23.59% | 39.56% | 84.94% | 23.35% | 76.71% | 72.45% | 83.9% | 29.74% | -35.74% | -47.67% | 29.03% | 293.75% | -145.71% | 25% |
| EBITDA | 209.42M | 164.92M | 131.49M | 115.11M | 78.21M | 47.12M | 80.67M | 89.48M | 78.32M | 80.21M | 77.58M | 76.08M | 56.59M | 64.12M | 73.26M | 53.58M | 47.15M | 46.1M | 36.57M | 25.77M | 13.94M | 11.2M | 6.84M | 4.39M | 3.16M | 2.72M | 3.66M | 5.9M | 5M | 2.5M | 5M |
| EBITDA Margin % | 15.42% | 14.83% | 12.17% | 13.38% | 11.68% | 6.28% | 12.19% | 11.89% | 11.23% | 10.55% | 11.21% | 14.25% | 13.35% | 13.59% | 13.4% | 8.66% | 5.44% | 4.54% | 3.5% | 3.95% | 3.83% | 4% | 3.17% | 3.27% | 2.35% | 2.44% | 2.99% | 3.75% | 2.77% | 1.6% | 4.16% |
| EBITDA Growth % | 52.49% | 25.43% | 14.22% | 47.19% | 65.97% | -41.59% | -9.86% | 14.25% | -2.35% | 3.39% | 1.97% | 34.43% | -11.74% | -12.48% | 36.74% | 13.64% | 2.28% | 26.06% | 41.91% | 84.82% | 24.54% | 63.73% | 55.69% | 39.03% | 16.27% | -25.68% | -38.03% | 18% | 100% | -50% | 21.95% |
| D&A (Non-Cash Add-back) | 57.84M | 39.92M | 28.76M | 23.42M | 24.6M | 25.6M | 24.14M | 26.93M | 25.22M | 25.88M | 26.05M | 25.54M | 18.77M | 20.02M | 21.16M | 15.1M | 8.94M | 7.62M | 5.44M | 3.46M | 1.88M | 1.42M | 1.3M | 1.18M | 1.41M | 1.37M | 1.56M | 1.9M | 1.9M | 4.1M | 1.5M |
| EBIT | 119.31M | 89.59M | 81.42M | 88M | 53.6M | 21.52M | 13.92M | 60.26M | 54.23M | 54.33M | 51.53M | 50.01M | 36.93M | 44.1M | 51.08M | 36.68M | 38.21M | 38.6M | 31.25M | 23.01M | 12.49M | 9.99M | 5.64M | 3.34M | 2.67M | 1.34M | 2.09M | 4M | 5M | 4.4M | 3.5M |
| Net Interest Income | -9.5M | -20.56M | -34.94M | -31.08M | -17.89M | -12.07M | -13.5M | -13.83M | -8.98M | -9.24M | -9.86M | -9.54M | -3.98M | -5.79M | -7.22M | -3.71M | -180K | 120K | 115K | 699K | 427K | 210K | 102K | 69K | 0 | 0 | 98K | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 556K | 115K | 699K | 427K | 210K | 102K | 69K | 0 | 0 | 98K | 0 | 0 | 0 | 0 |
| Interest Expense | 9.5M | 20.56M | 34.94M | 31.08M | 17.89M | 12.07M | 13.5M | 13.83M | 8.98M | 9.24M | 9.86M | 9.54M | 3.98M | 5.79M | 7.22M | 3.71M | 180K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -41.77M | -55.96M | -56.24M | -34.78M | -17.89M | -12.07M | -56.1M | -16.13M | -7.85M | -9.24M | -9.86M | -9.54M | -4.88M | -5.79M | -8.25M | -5.51M | -180K | 120K | 115K | 699K | 427K | 210K | 102K | 69K | -24K | -49K | 98K | -1.6M | -400K | -400K | -600K |
| Pretax Income | 109.81M | 69.04M | 46.48M | 56.91M | 35.71M | 9.45M | 427K | 46.43M | 45.25M | 45.09M | 41.67M | 40.99M | 32.95M | 38.31M | 43.85M | 32.97M | 38.03M | 38.6M | 31.25M | 23.01M | 12.49M | 9.99M | 5.64M | 3.28M | 1.15M | 1.3M | 2.19M | 2.4M | 2.7M | -2M | 2.9M |
| Pretax Margin % | 8.09% | 6.21% | 4.3% | 6.61% | 5.33% | 1.26% | 0.06% | 6.17% | 6.49% | 5.93% | 6.02% | 7.68% | 7.77% | 8.12% | 8.02% | 5.33% | 4.39% | 3.8% | 2.99% | 3.52% | 3.43% | 3.57% | 2.61% | 2.44% | 0.85% | 1.16% | 1.79% | 1.52% | 1.5% | -1.28% | 2.41% |
| Income Tax | 26.35M | 15.55M | 9.98M | 13.76M | 9.05M | 1.49M | 5.6M | 9.4M | 10.17M | 5.99M | 14.88M | 16.08M | 12.46M | 14.32M | 16.49M | 12.42M | 14.35M | 14.57M | 12.21M | 8.9M | 4.7M | 3.82M | 2.19M | 1.27M | 493K | 441K | 806K | 900K | 1.1M | -600K | 1M |
| Effective Tax Rate % | 23.99% | 22.52% | 21.48% | 24.18% | 25.35% | 15.71% | 1311.01% | 20.25% | 22.47% | 13.28% | 35.71% | 39.22% | 37.81% | 37.39% | 37.6% | 37.67% | 37.72% | 37.76% | 39.07% | 38.71% | 37.63% | 38.24% | 38.88% | 38.65% | 43.06% | 34.03% | 36.79% | 37.5% | 40.74% | 30% | 34.48% |
| Net Income | 74.9M | 53.49M | 30.52M | 39.13M | 28.06M | 7.97M | -5.17M | 37.02M | 35.08M | 39.1M | 26.79M | 24.92M | 19.36M | 22.85M | 21.29M | 20.55M | 23.69M | 24.02M | 19.04M | 14.1M | 7.79M | 6.17M | 3.44M | 2.01M | 652K | 855K | 968K | 1.5M | 1.6M | -1.4M | 1.7M |
| Net Margin % | 5.52% | 4.81% | 2.83% | 4.55% | 4.19% | 1.06% | -0.78% | 4.92% | 5.03% | 5.14% | 3.87% | 4.67% | 4.57% | 4.85% | 3.89% | 3.32% | 2.74% | 2.37% | 1.82% | 2.16% | 2.14% | 2.2% | 1.59% | 1.5% | 0.49% | 0.77% | 0.79% | 0.95% | 0.89% | -0.9% | 1.42% |
| Net Income Growth % | 117.23% | 75.25% | -22% | 39.47% | 252.23% | 254.05% | -113.97% | 5.54% | -10.27% | 45.92% | 7.52% | 28.68% | -15.26% | 7.32% | 3.61% | -13.24% | -1.4% | 26.18% | 35.02% | 81.05% | 26.26% | 79.12% | 71.26% | 208.44% | -23.74% | -11.67% | -35.47% | -6.25% | 214.29% | -182.35% | 6.25% |
| Net Income (Continuing) | 83.47M | 53.49M | 36.5M | 43.15M | 26.66M | 7.97M | -5.17M | 37.02M | 35.08M | 39.1M | 26.79M | 24.92M | 20.49M | 23.99M | 27.36M | 20.55M | 23.69M | 24.02M | 19.04M | 14.1M | 7.79M | 6.17M | 3.44M | 2.09M | 1.58M | 855K | 1.39M | 1.5M | 1.6M | -1.4M | 1.9M |
| Discontinued Operations | -836K | 0 | -5.97M | -4.02M | 1.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.12M | -1.14M | -6.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.39 | 2.52 | 1.70 | 2.76 | 2.19 | 0.63 | -0.47 | 3.35 | 3.21 | 3.60 | 2.47 | 2.31 | 1.81 | 2.14 | 2.01 | 1.95 | 2.27 | 2.34 | 1.87 | 1.41 | 0.81 | 0.65 | 0.37 | 0.23 | 0.08 | 0.10 | 0.12 | 0.18 | 0.19 | -0.16 | 0.20 |
| EPS Growth % | 67.9% | 48.24% | -38.41% | 26.03% | 247.62% | 234.04% | -114.03% | 4.36% | -10.83% | 45.75% | 6.93% | 27.62% | -15.42% | 6.47% | 3.08% | -14.1% | -2.99% | 25.13% | 32.62% | 74.07% | 24.62% | 75.68% | 60.87% | 206.67% | -25% | -16.67% | -33.33% | -5.26% | 218.75% | -180% | 5.26% |
| EPS (Basic) | - | 2.52 | 1.71 | 2.77 | 2.20 | 0.63 | -0.47 | 3.38 | 3.23 | 3.61 | 2.48 | 2.32 | 1.81 | 2.15 | 2.02 | 1.97 | 2.28 | 2.34 | 1.88 | 1.43 | 0.82 | 0.67 | 0.39 | 0.23 | 0.08 | 0.10 | 0.12 | 0.18 | 0.19 | -0.16 | 0.20 |
| Diluted Shares Outstanding | 31.39M | 21.23M | 17.98M | 14.18M | 12.83M | 12.63M | 11.03M | 11.04M | 10.94M | 10.87M | 10.83M | 10.79M | 10.74M | 10.69M | 10.62M | 10.54M | 10.44M | 10.29M | 10.19M | 10.01M | 9.7M | 9.57M | 9.24M | 8.94M | 8.69M | 8.55M | 8.49M | 8.46M | 8.5M | 8.49M | 8.73M |
| Basic Shares Outstanding | 30.94M | 21.23M | 17.88M | 14.13M | 12.78M | 12.55M | 11.03M | 10.96M | 10.88M | 10.83M | 10.79M | 10.75M | 10.71M | 10.66M | 10.56M | 10.46M | 10.38M | 10.26M | 10.14M | 9.91M | 9.47M | 9.29M | 8.93M | 8.74M | 8.69M | 8.55M | 8.49M | 8.46M | 8.5M | 8.49M | 8.66M |
| Dividend Payout Ratio | - | 15.45% | 23.13% | 13.89% | 18.22% | 55.57% | - | 10.06% | 9.3% | 7.2% | 9.26% | 9.06% | 10.5% | 7.92% | 7.44% | 6.62% | 4.82% | 4.05% | 4.53% | 5.25% | 7.9% | 8.27% | 11.64% | 17.35% | 53.53% | 39.88% | 34.19% | 20% | 18.75% | - | 17.65% |
Quick answers to the most common questions about buying VSEC stock.
For fiscal year 2025, VSE Corporation (VSEC) reported total revenue of $1.11B. This represents a 826.1% increase compared to $120.1M in 1996.
VSE Corporation (VSEC) is profitable, generating $53.5M in net income for the fiscal year ending 2025 with a net profit margin of 4.8%.
VSE Corporation (VSEC) reported an operating income of $125.0M, resulting in an operating profit margin of 11.2%. This margin reflects the operational efficiency of the business before interest and taxes.
VSE Corporation (VSEC) generated $132.1M in gross profit for the year, representing a gross profit margin of 11.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Integration and leverage risk
Metrics are mathematically derived from official filings.
Revenue Inflection on Aviation Pivot
VSEC's revenue surged 65% YoY in 2026Q2 to $449.1M, driven by the Honeywell fuel control acquisition and organic momentum, as reported in the latest quarterly filing.
The 65% YoY growth in 2026Q2 marks a sharp acceleration from the 41% seen in 2025Q2, indicating the acquisition is contributing significantly. However, organic growth appears to be in the high single digits, as the legacy business grew only 2.98% YoY in 2025Q4. Investors should monitor whether this pace is sustainable as integration costs and acquisition-related debt service begin to weigh on the income statement.
Gross Margin Expansion Signals Mix Shift
Gross margin expanded from 10.0% in 2024Q2 to 17.0% in 2026Q2, as per financial statements, suggesting a favorable shift toward higher-margin aviation aftermarket services.
The 700 basis point improvement in gross margin over eight quarters indicates the divestiture of low-margin federal services and the acquisition of proprietary distribution rights are reshaping the cost structure. Yet, at 17.0%, gross margin remains well below aerospace peers like TransDigm (60.1%), implying VSEC still carries significant distribution and MRO volume. The narrow gap between gross and operating margin (6.1 points in 2026Q2) suggests SG&A is lean, but this may also reflect a high proportion of pass-through costs.
Operating Leverage Emerging from Scale
Operating income grew 108% YoY in 2026Q2 to $49.0M, while SG&A rose only 20%, as per reported figures, indicating strong operating leverage from the acquisition.
The 2026Q2 operating margin of 10.9% is the highest in the trailing ten quarters, up from 8.6% in 2025Q2, despite a 65% revenue surge. This suggests that the acquired Honeywell business carries higher incremental margins and that fixed overhead is being spread over a larger base. However, the 2025Q3 SG&A of $667K appears anomalously low, possibly due to cost reclassifications, so investors should treat the apparent leverage with caution.
Earnings Volatility Masks Underlying Progress
Net income swung from a -$19.3M loss in 2024Q1 to a $28.5M profit in 2026Q2, but EPS growth has been erratic, with SBC of $4.1M in 2026Q2, per SEC filings.
The 2024Q1 loss of -$1.22 per share appears to be driven by non-operating charges, likely related to divestitures or impairments, rather than operational deterioration. Excluding these, the underlying earnings power is improving, as evidenced by the 2026Q2 EPS of $0.91. However, stock-based compensation of $4.1M in 2026Q2 represents about 14% of net income, which is a meaningful dilution that investors should factor into their valuation.
COGS Dominates Cost Structure
COGS accounted for 83% of revenue in 2026Q2, as reported, leaving little room for margin error; SG&A is minimal at $9.0M, indicating a lean overhead model.
The high COGS ratio reflects the distribution-heavy nature of the business, where parts procurement costs are passed through. The unusually low SG&A (2% of revenue) suggests that most operating expenses are embedded in COGS, which is typical for a distributor. Management's expense discipline appears strong, but the thin gross margin leaves the company vulnerable to input cost inflation or pricing pressure from OEMs.
2026Q2 Marks Strategic Inflection
The 2026Q2 quarter, with revenue of $449.1M and gross margin of 17.0%, represents a clear inflection point, as per the latest earnings release, driven by the Honeywell acquisition.
This quarter is the first to fully reflect the largest acquisition in company history, and the step-change in revenue and margins validates the strategic pivot toward aviation aftermarket. The 65% YoY revenue growth and 37.9% EPS growth indicate that the integration is off to a strong start. However, the sustainability of this inflection depends on the company's ability to maintain OEM relationships and manage the increased debt load, which could pressure future earnings if integration costs escalate.
Acquisition Integration and Leverage Risks
Despite the strong 2026Q2 beat, the record acquisition raises integration and leverage risks, as the balance sheet may be understated with debt/equity of 0.24, per reported data.
The low debt/equity ratio of 0.24 likely does not reflect post-acquisition debt, which could be significantly higher. If the company took on substantial debt to fund the Honeywell deal, interest expense could compress net margins, which were only 6.4% in 2026Q2. Additionally, the integration of a large acquisition often leads to customer attrition or margin dilution, and the thin gross margin leaves little room for error. Short-sellers might argue that the 17% gross margin is unsustainable if the acquired business's margins are lower than expected or if competition intensifies in the aviation aftermarket.