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Jun 30, 2024
VSE Q2 2024 Earnings Report
VSE reported record revenue and profitability for the Aviation segment.
Key Takeaways
VSE Corporation reported a 29.6% increase in total revenues to $266.0 million for Q2 2024. The Aviation segment saw record revenue and profitability, while the Fleet segment was impacted by the USPS transition to a new FMIS. The company also made progress in strengthening its balance sheet and reducing net leverage.
Total Revenues increased by 29.6% to $266.0 million.
Aviation segment revenue increased 55% year-over-year.
Fleet segment revenue decreased 9% year-over-year.
Completed a follow-on equity offering, resulting in net cash proceeds of approximately $162.0 million.
Forward Guidance
VSE is reaffirming its full-year 2024 revenue growth and Adjusted EBITDA margin guidance for its Aviation and Fleet segments.
Positive Outlook
- Aviation segment full-year 2024 revenue guidance range of 34% to 38% growth, as compared to the prior year.
- Aviation segment full-year 2024 Adjusted EBITDA margin guidance range of 15.5% to 16.5%.
- Fleet segment full-year 2024 revenue guidance range is 0% to 5%, as compared to the prior year.
- Fleet segment full-year 2024 Adjusted EBITDA margin guidance is 6% to 8%.
- Scaling new European distribution center of excellence.
Challenges Ahead
- USPS transition to a new FMIS platform.
- Decline in USPS revenue.
- Fleet segment strategic review is in process, with updates expected in late 2024.
- Corporate restructuring charges of $17 million recorded in Q2.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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