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Mar 31, 2023
VSE Q1 2023 Earnings Report
VSE Corporation announced first quarter 2023 results.
Key Takeaways
VSE Corporation reported strong first quarter 2023 results, with a 10.5% increase in total revenues to $255.4 million and a 46.0% increase in GAAP net income to $9.1 million. The company is also raising full-year revenue and adjusted EBITDA margin guidance for the Aviation segment.
Total revenues increased by 10.5% to $255.4 million.
GAAP Net Income increased 46.0% to $9.1 million.
Aviation segment revenue increased 21% year-over-year to $113.2 million.
Fleet segment revenue increased 12% year-over-year to $75.4 million.
VSE
VSE
Forward Guidance
VSE is narrowing its full year 2023 revenue guidance and increasing its Adjusted EBITDA margin guidance for its Aviation segment. The Company is reaffirming its full year 2023 revenue and Adjusted EBITDA guidance for its Fleet segment.
Positive Outlook
- Aviation segment is narrowing its full year 2023 Aviation revenue guidance from 7 to 15% growth to 10 to 15% growth, as compared to the prior year, to reflect an improvement in commercial and business and general aviation markets
- Aviation Adjusted EBITDA margin is expected to increase from a range of 12 to 14% to 13 to 15%, driven by an increase in MRO activity and commercial customer demand
- Fleet segment revenue is expected to grow by 12 to 20%
- Fleet segment Adjusted EBITDA margin range is 11 to 13%
- Demand in all commercial end markets remains strong