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Jun 30, 2022
VSE Q2 2022 Earnings Report
Revenue increased 38% year-over-year, with Aviation segment achieving a record $105 million revenue quarter.
Key Takeaways
VSE Corporation reported strong second-quarter results, driven by revenue growth across all segments and focused execution on new program wins. Total revenues increased by 38% year-over-year, with the Aviation segment achieving a record revenue quarter. The company continued to advance its growth and diversification strategy, focusing on aftermarket parts distribution and MRO services.
Total revenues increased 38% year-over-year to $241.7 million.
GAAP Net Income increased $19.9 million to $7.5 million.
Aviation segment revenue increased 121% year-over-year to a record $105.0 million.
Fleet segment revenue increased 12% year-over-year, with commercial revenue up 48%.
VSE
VSE
Forward Guidance
VSE expects to generate positive cash flow for the full year, as well as a corresponding improvement in net leverage.
Positive Outlook
- Continued growth and diversification strategy.
- Focused execution on new program wins.
- Strong year-over-year growth in revenue and profitability.
- Record-revenue quarter within both Aviation and commercial Fleet.
- Demand for products and services in growing, fragmented markets.
Challenges Ahead
- Expiration of a certain U.S. Army contract.
- Decline in segment adjusted EBITDA due to a higher mix of cost-plus contracts.
- Decrease in bookings primarily driven by the expiration of a certain U.S. Army contract.
- Russia/Ukraine conflict
- Net cash used in operating activities