Why These 15 Aerospace Stocks Are Surging In 2025

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7. VSE Corp (NASDAQ:VSEC)

Number of Hedge Fund Holders In Q4 2024: 17

VSE Corp (NASDAQ:VSEC) provides aftermarket distribution, maintenance, repair, and overhaul services for aviation and fleet assets.

The stock is up significantly so far in 2025 as it announced an agreement to sell its Fleet business (Wheeler Fleet Solutions) to One Equity Partners for up to $230 million, including $140 million upfront cash, a $25 million seller note, and $65 million in potential earn-outs.

This divestiture streamlines operations to focus on higher-margin aviation services, with proceeds earmarked for debt reduction.

In Q4 2024, the aviation segment revenue surged 45% year-over-year, and 2025 guidance projects 35-40% year-over-year aviation revenue growth, with EBITDA margins at 15.5-16.5%.

The company’s December 2024 acquisition of Kellstrom Aerospace expanded VSE’s commercial aerospace engine aftermarket capabilities and contributed 26% year-over-year total revenue growth in 2024 to $1.08 billion and $52 million in Q4 free cash flow.

The consensus price target of $118.67 implies 5.29% downside.

VSEC stock is up 31.87% year-to-date.

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