VSE's Strategic Acquisitions and Strong Financial Performance Drive Buy RatingWe continue to rate VSE shares Outperform given the robust M&A pipeline of opportunities, high-single-digit organic growth potential, future margin expansion, and investor appreciation of the OEM-centric parts distribution model. (+) Aviation revenue of $282.9 million was above consensus as growth remained high at 39%. Aviation parts distribution revenue rose 48.7% in the quarter, and repair revenue increased 25.3%. Aviation grew 10% organically, a deceleration from 13% last quarter. Aviation’s success can be attributed to contribution from the Weld acquisitions, execution on new and existing distribution agreements, and increasing MRO and aviation aftermarket activity. Management continues to view the aerospace aftermarket as robust, yet noted organic growth will moderate slightly as the cycle normalizes following the post-pandemic boom.