VSEC VSE CORP

Overview and Growth

Fiscal 2025 results for VSE CORP combined $1.11B of revenue with net income of $11.70M and an operating cash inflow of $26.99M. At $1.11B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 41.5% from $786.26M in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $0.55, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 35.3% decrease from fiscal 2024 diluted EPS of $0.85. Asset turnover was 0.55x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The reported operating result was $89.59M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 8.1%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $11.70M for the fiscal year. Measured against reported revenue, net income produced a 1.1% margin after operating costs and the remaining recognized items. Pretax income was $69.04M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 6.2% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $15.55M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 22.5%, without assuming a statutory-rate comparison. Net income equaled 0.8% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 0.6%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

Total assets were $2.03B, supported by $589.77M of liabilities and $1.44B of shareholder equity. Current assets were $893.33M against $237.51M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 3.76x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $69.36M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 29.2% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $292.80M of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.2x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 14.4%, comparing borrowing with the total asset balance. Liabilities represented 29.1% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 3.4% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 16.4% from $1.74B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

The company reported $26.99M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 2.31x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $21.28M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 78.8% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $5.71M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 0.5%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 0.3%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.