VSE Corp Pref Shares VSECU 5.75 02/01/2029 | 8-K: FY2026 Q1 Revenue: USD 324.58 M

Revenue: As of FY2026 Q1, the actual value is USD 324.58 M.

EPS: As of FY2026 Q1, the actual value is USD 1.04.

EBIT: As of FY2026 Q1, the actual value is USD 32.75 M.

First Quarter 2026 Financial Highlights

Revenue

• Total Revenues were $324.6 million, an increase of 26.8% compared to the first quarter of 2025.
• Organic revenue growth was 15% in the quarter.
• Distribution revenue increased 26% year-over-year.
• Repair revenue increased 28% year-over-year.
• Products revenue was $202,350 thousand in Q1 2026, up from $160,551 thousand in Q1 2025.
• Services revenue was $122,230 thousand in Q1 2026, up from $95,494 thousand in Q1 2025.

Profitability

• GAAP Net Income was $29.1 million, an increase of 108.0%.
• Adjusted Net Income was $32.6 million, an increase of 101.6%.
• Operating income was $32,748 thousand in Q1 2026, a 33.6% increase from $24,504 thousand in Q1 2025.
• Adjusted EBITDA was $55.4 million, an increase of 37.4%.
• Adjusted EBITDA margin was 17.1%, an increase of approximately 130 basis points versus the prior-year period.
• Net income from continuing operations was $29,055 thousand in Q1 2026, compared to $13,968 thousand in Q1 2025, representing a 108.0% increase.
• EBITDA was $45,495 thousand in Q1 2026, up 35.1% from $33,678 thousand in Q1 2025.

Operating Costs and Expenses

• Total costs and operating expenses were $291,832 thousand in Q1 2026, compared to $231,541 thousand in Q1 2025.
• Costs of products were $164,292 thousand in Q1 2026, versus $136,867 thousand in Q1 2025.
• Costs of services were $112,289 thousand in Q1 2026, versus $86,229 thousand in Q1 2025.
• Selling, general and administrative expenses were $6,201 thousand in Q1 2026, compared to $2,311 thousand in Q1 2025.
• Amortization of intangible assets was $9,050 thousand in Q1 2026, up from $6,134 thousand in Q1 2025.
• Depreciation and other amortization was $3,697 thousand in Q1 2026, compared to $3,040 thousand in Q1 2025.
• Acquisition, integration and restructuring costs were $5,325 thousand in Q1 2026, an 85.9% increase from $2,865 thousand in Q1 2025.
• Divestiture-related restructuring costs were $68 thousand in Q1 2026, compared to $63 thousand in Q1 2025.
• Stock-based compensation was $4,542 thousand in Q1 2026, up from $3,747 thousand in Q1 2025.

Cash Flow

• Net cash used in operating activities was - $62,264 thousand in Q1 2026, compared to - $46,632 thousand in Q1 2025.
• Capital expenditures were - $6,457 thousand in Q1 2026, versus - $2,875 thousand in Q1 2025.
• Free cash flow was - $68,721 thousand in Q1 2026, compared to - $49,507 thousand in Q1 2025.
• Net cash used in investing activities was - $27,088 thousand in Q1 2026, compared to - $129 thousand in Q1 2025.
• Net cash provided by financing activities was $1,259,401 thousand in Q1 2026, compared to $28,239 thousand in Q1 2025.

Financial Position (as of March 31, 2026)

• Total debt outstanding was $366.3 million.
• The $400.0 million revolving credit facility was undrawn.
• Cash and cash equivalents were approximately $1.2 billion.
• Net Debt was - $878,432 thousand.
• TTM Adjusted EBITDA was $198,001 thousand.
• TTM Acquisition Adjusted EBITDA was $217,995 thousand.
• Net Leverage Ratio and Adjusted Net Leverage Ratio were not meaningful due to cash and cash equivalents exceeding debt.

Outlook / Guidance

• VSE Corporation updated its full year 2026 revenue guidance to a range of 57% to 61% growth, an increase from the prior outlook of 19% to 23%, primarily reflecting the inclusion of the Precision Aviation Group (PAG) acquisition. The company also revised its full year 2026 Adjusted EBITDA margin outlook to 18.1% to 18.5%, up from 16.8% to 17.3%, also driven by the PAG acquisition. These updates do not reflect any change in expectations for the underlying business.