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Mar 31, 2022
VSE Q1 2022 Earnings Report
Reported a 40% increase in revenue year-over-year, driven by growth across all reporting segments.
Key Takeaways
VSE Corporation reported strong first quarter 2022 results with a 40.2% increase in total revenues, a 22.2% increase in GAAP net income, and a 42.9% increase in adjusted EBITDA compared to the first quarter of 2021. The company's Aviation and Fleet segments saw significant revenue growth, and strategic initiatives are expected to continue driving value for shareholders.
Total Revenues increased by 40.2% to $231.2 million.
GAAP Net Income increased by 22.2% to $6.2 million.
Adjusted EBITDA increased by 42.9% to $22.2 million.
Aviation segment revenue increased 110% year-over-year to $93.3 million.
Forward Guidance
VSE anticipates continued growth and margin expansion, driven by new business wins, commercial MRO activity, and strategic revenue diversification. The company remains focused on stabilizing legacy programs and investing in higher-return businesses.
Positive Outlook
- VSE Aviation secured a renewal of a three-year, $180 million distribution agreement.
- VSE Aviation reached an agreement with Honeywell Aerospace to provide repair services.
- Fleet commercial revenue has grown to 42% of total segment revenue, up from 10% in 2019.
- Federal & Defense continues to achieve steady increases in awards for logistics and distribution services.
- Aviation segment adjusted EBITDA grew significantly due to new business wins and commercial MRO activity.
Challenges Ahead
- Commercial MRO market recovery in 2022 will be slightly slower than initially anticipated.
- Fleet segment adjusted EBITDA margin declined due to a higher mix of commercial revenue and continued investment in commercial channel growth.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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