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VSE Corporation VSEC, a leader in aftermarket distribution and repair services, has completed the sale of its Fleet business segment, Wheeler Fleet Solutions. The transaction with One Equity Partners is valued at up to $230 million.
The company plans to use the initial cash proceeds to repay outstanding borrowings under its revolving loan facility.
VSEC stock climbed 1.5% during the trading session yesterday.
The strategic divestment of the Fleet business marks the completion of VSEC’s transition into a dedicated aviation aftermarket parts and services provider. This shift allows the company to strengthen its position and expand within the aviation sector. VSEC aims to capitalize on growth opportunities in the aviation aftermarket while delivering long-term value.
The company has strengthened its position in the aviation aftermarket through the acquisition of Kellstrom, which was completed in December 2024. This acquisition enhances the company's competitiveness and supports accelerated growth. Furthermore, the company's recent strategic divestment aligns with the focus on expanding within the aviation sector, positioning it for stronger financial performance and continued growth.
In 2024, VSEC's aviation segment revenues increased 45% year over year, reaching a record $786.3 million in the fourth quarter. This upside was driven by strong execution in distribution programs, expanded MRO capabilities and contributions from recent acquisitions. VSEC’s aviation segment is benefiting from strong end-market demand and expanding partnerships with OEM suppliers. The company continues to focus on serving commercial, business and general aviation customers.
For 2025, the company expects aviation segment revenues to grow between 35% and 40% compared with the previous year. VSEC is also integrating newly acquired businesses to enhance operational efficiencies and identify new opportunities.
VSEC shares have gained 27% year to date against the Zacks Engineering - R and D Services industry’s 17.5% decline.
VSEC currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. STRL, EMCOR Group, Inc. EME and Gibraltar Industries, Inc. ROCK.
Sterling presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sterling delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has gained 6% in the past year. The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a decrease of 4.1% and the same for earnings implies an increase of 34.6% year over year.
EMCOR currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 29%, on average. The stock has gained 2.5% in the past year.
The consensus estimate for EMCOR’s 2025 sales and EPS implies an increase of 12.8% and 8.6%, respectively, from a year ago.
Gibraltar currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has lost 27.1% in the past year.
The Zacks Consensus Estimate for Gibraltar‘s 2025 sales and EPS implies an increase of 9.8% and 15.5%, respectively, from a year ago.
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This article originally published on Zacks Investment Research (zacks.com).
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