VSE Corporation (VSEC) shares are soaring 5.32% in pre-market trading on Thursday, following the release of its impressive second-quarter 2025 financial results. The company reported a substantial increase in both revenue and profitability, significantly exceeding market expectations.
The aerospace and defense services provider announced that its Q2 revenue surged 41% year-over-year to $272 million, driven by balanced growth across its Aviation distribution and MRO businesses, as well as contributions from recent acquisitions. More notably, VSE's adjusted earnings per share (EPS) skyrocketed 106% to $0.97, showcasing the company's strong operational efficiency and successful growth strategies.
Other highlights from the earnings report include a 52% increase in adjusted EBITDA to $43 million, representing 16.0% of revenue, and a remarkable 149% jump in adjusted net income to $20 million. The company also reported a healthy financial position with adjusted net leverage at 2.2x and available cash and revolver capacity of $333 million. As VSE Corporation continues its transition to ONE VSE, focusing on integrating acquired businesses and capturing synergies, investors appear optimistic about the company's future growth prospects in the aerospace and defense sectors.