VSE Corporation: Transition To Aerospace MRO Is Complete

May 17, 2025 6:03 AM ETVSE Corporation (VSEC) StockVSEC
(9min)

Summary

  • VSE's strategic reset and M&A have accelerated aviation growth, as the fleet business is sold at a not so impressive price.
  • Despite strong 2025 guidance and bolt-on acquisitions, shares now trade at lofty multiples—over 30x forward earnings—even with optimistic margin improvements.
  • Recent deals, including Turbine Weld, and debt reduction efforts support growth, but aggressive leverage targets add risk.
  • While momentum is strong, valuations look stretched; I remain cautious and will closely monitor M&A execution and cost absorption post-divestiture.
  • Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More »

Beeld van zonnige dag in de luchthaven met vliegend personeel

Svitlana Hulko/iStock via Getty Images

In February, I offered some cautionary words on shares of VSE Corporation (NASDAQ:VSEC) after the company appeared to be selling its fleet business on the cheap.

A strategic reset and M&A efforts resulted in

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