VSE’s Strong Aviation Performance and Strategic Focus Drive Buy Rating

In a report released today, Josh Sullivan from Benchmark Co. maintained a Buy rating on VSE (VSEC – Research Report), with a price target of $140.00.

Josh Sullivan’s rating is based on VSE’s impressive financial performance and strategic decisions. The company reported adjusted EBITDA of $39.5 million, surpassing the consensus estimate of $34.5 million, largely due to record revenues and profitability in its Aviation segment. Aviation sales increased by 48% year-over-year, driven by successful execution on distribution programs, expansion of maintenance, repair, and overhaul capabilities, and recent acquisitions. Additionally, the divestiture of the Fleet segment, which exceeded expectations, positions VSE to focus on its core aviation business. Looking forward, the company anticipates substantial revenue growth and strong EBITDA margins in the Aviation segment for FY25, reinforcing its position as a leading player in the aerospace aviation aftermarket. These factors collectively contribute to Sullivan’s Buy rating for VSE.