EarningsQ2 2026 Earnings Report
DE:VS3 Q2 2026 EPS Results
Actual EPS€1.56
Consensus EPS€0.83
Beat/MissBeat by +€0.73
One Year Ago EPS€0.86
DE:VS3 Q2 2026 Revenue Results
Actual Revenue€400.31M
Expected Revenue€378.82M
Beat/MissBeat by +€21.49M
YoY Revenue Growth+65.04%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
DE:VS3 Upcoming Earnings
VSE's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:VS3 Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong, tangible operational and financial progress: record revenue ($449M, +65% YoY), robust organic growth (~14%), exceptional margin expansion (adjusted EBITDA margin 19.2%, +320 bps) and raised full-year guidance. These positive developments were balanced by elevated absolute debt levels (total debt ~$967M, net debt ~ $872M), transaction and integration costs, and the fact that material acquisition synergies are expected to be realized primarily in 2027. On balance the favorable results, guidance raise, and clear integration plans materially outweigh the near-term financial and execution risks, producing a constructive outlook.Company Guidance
Strategic Acquisitions Closed (PAG and NorthStar)
Closed PAG acquisition on May 5 in a transaction valued at approximately $2.0 billion (cash and equity) and closed NorthStar on April 1; acquisitions materially expand global scale, proprietary content, repair capabilities and engine-related MRO/logistics, and integration workstreams and commercial collaboration have already begun.
Record Revenue and Organic Growth
Second quarter revenue of $449 million, up 65% year-over-year; organic revenue growth ~14% year-over-year excluding recent acquisitions (net of intercompany eliminations).
Strong MRO and Distribution Performance
MRO revenue increased 149% year-over-year driven by expanded repair capabilities, engine content growth and contributions from acquisitions; distribution revenue increased 17% year-over-year driven by new business wins, product expansion and Aero 3 contribution.
Record Profitability and Margin Expansion
Adjusted EBITDA of $86 million, up 98% year-over-year; adjusted EBITDA margin expanded ~320 basis points to a record 19.2% in the quarter; adjusted net income of $55 million up 101% and adjusted diluted EPS of $1.75 up 33% year-over-year.
Raised Full-Year Guidance
Full-year 2026 revenue growth guidance increased to 61%–64% (from prior 57%–61%); full-year adjusted EBITDA margin outlook increased to 18.7%–19.0% (from prior 18.1%–18.5%).
Financing and Leverage Positioning
Closed a $900 million Term Loan B and upsized revolving credit facility to $500 million; total debt outstanding of $967 million, cash on hand ~$75 million, net debt ~ $872 million; adjusted net leverage ~2.4x at quarter end and management expects leverage to improve in H2.
Free Cash Flow Improvement and Conversion
Generated approximately $19 million of free cash flow in Q2, significantly improved versus prior periods; excluding ~$10 million of PAG-related transaction expenses, free cash flow conversion was approximately 34% of adjusted EBITDA; company expects stronger cash generation in H2 as integration progresses and working capital intensity eases.
Integration and Commercial Synergy Potential
Integration governance and executive-owned workstreams are in place; early identified opportunities in insourcing, joint sales, sales channel alignment and operational efficiencies reinforce confidence in revenue synergies and margin expansion potential (management expects most synergy realization to appear in 2027).
DE:VS3 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed