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VSE Q1 2025 Earnings Report
VSE Corporation announced record revenue and profitability for the first quarter of 2025, reaffirmed its 2025 guidance, and completed its strategic transformation into a pure-play aviation aftermarket parts and services provider.
Key Takeaways
VSE Corporation reported record revenue of $256.0 million and GAAP Net Income of $14.0 million for the first quarter of 2025, marking a significant increase compared to the prior year. The company also completed the divestiture of its Fleet segment, solidifying its focus on the aviation aftermarket.
Total Revenues increased by 57.7% to $256.0 million.
GAAP Net Income surged by 152.0% to $14.0 million.
Adjusted EBITDA rose by 60.0% to $40.4 million.
The company completed the sale of its Fleet business segment, transforming into a pure-play aviation aftermarket provider.
VSE
VSE
VSE Revenue by Segment
Revenue by Segment
Aviation Group Revenue
CapyFin.com Forward Guidance
VSE Corporation reaffirmed its full-year 2025 Aviation revenue growth and Adjusted EBITDA margin guidance, anticipating continued strong performance driven by acquisitions and organic growth initiatives.
Positive Outlook
- Full-year 2025 revenue growth expected to be 35% to 40% compared to prior year.
- Guidance reflects current business performance and contributions from TCI and Kellstrom acquisitions.
- Partial year contribution from Turbine Weld acquisition not expected to materially impact revenue.
- Aviation segment full-year 2025 Adjusted EBITDA margin expected to be between 16% to 17%.
- Includes an approximate 50 basis point positive impact from stock-based compensation adjustment.
Challenges Ahead
- Guidance does not assume further tariff escalation.
- Guidance does not assume a global recession.
- Near-term margin dilutive revenue contributions from recent acquisitions.
- Potential for variations between preliminary financial data and actual results due to risks and uncertainties.
- Inability to present a quantitative reconciliation of forward-looking Adjusted EBITDA margin to GAAP measures.