Slide 1: Third Quarter 2025 Results Conference Call
Third Quarter 2025 Results Conference Call October 27, 2025 vsecorp.com
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Introduction Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E o
Slide 3: Aero 3 Acquisition Announcement and Overview
Aero 3 Acquisition Aero 3 | Acquisition Announcement and Overview VSE Acquires Market Leading Aviation Wheel & Brake Platform with Highly Attractive EBITDA Margin Profile Wheel & Brake MRO Distribution Proprietary Solutions Full-Service Wheel & Brake (“W&B”) OEM-Aligned Distribution with Engineering
Slide 4: Strategic Rationale: VSE + Aero 3
Acquisition Strategic Rationale Strategic Rationale: VSE + Aero 3 Expands VSE’s Portfolio of Aftermarket Wheel & Brake (“W&B”) Services Distribution MRO Services Expanded Aftermarket Solutions Tire Distribution Proprietary Programs Wheel and Brake MRO and Exchange Solutions and Distribution New Part
Slide 5: Third Quarter Highlights
Highlights Third Quarter Highlights Organic Growth - New and Renewal Program Awards Program Implementation and Business Integration Progress Renewal AMETEK Sensors and Fluid Management Systems and Hughes Treitler Contract Renewals: Extended exclusive global distribution agreements including sensors
Slide 6: Consolidated Third Quarter 2025 Financial Performance Highlights
Financial Highlights Consolidated Third Quarter 2025 Financial Performance Highlights Revenue of $283 million increased 39% from 3Q24 to 3Q’25 3Q25 driven by balanced growth from Aviation distribution and MRO businesses and contributions from recent acquisitions $283M Adjusted EBITDA(1) of $47 milli
Slide 7: Consolidated Third Quarter 2025 Results
Consolidated Results Consolidated Third Quarter 2025 Results Revenue Operating Income(2) 3Q’24 vs. 3Q’25 $283M $204M $20M +39% $10M Revenue Growth 3Q’24 3Q’25 3Q’24 3Q’25 +58% Adj. EBITDA(1) Adj. EPS(1) Adj. EBITDA Growth(1) $47M $0.99 +87% $30M 16.7% $0.53 14.7% Adj. EPS Growth(1) 3Q’24 3Q’25 3Q’24
Slide 8: Aviation Segment Third Quarter 2025 Results
Aviation Segment Results Aviation Segment Third Quarter 2025 Results 3Q’24 vs. 3Q’25 Revenue Revenue by Sales Channel Distribution MRO $283M $204M +49% +25% $176M $107M +39% $118M $85M Revenue Growth 3Q’24 3Q’25 3Q’24 3Q’25 3Q’24 3Q’25 +50% Profitability Operating Income Growth Operating Income Adju
Slide 9: Increase to Full Year 2025 Guidance
FY 2025 Guidance Increase to Full Year 2025 Guidance (1) ▪ Revenue Guidance: Increased to 38 to 40% Y-O-Y Growth ▪ Aviation Adjusted EBITDA Margin Guidance: Increased to 17.0 to 17.25% Additional 4Q’25 Modeling Items Adjusted Unallocated Corporate Costs ~$4 million Stock-based Compensation ~$3 milli
Slide 10: Balance Sheet Review as of September 30, 2025
Balance Sheet Balance Sheet Review as of September 30, 2025 Adjusted Net Leverage(1) 3Q 2025 Free Cash Flow of $18 million supported by strong profitability and solid working capital management Net Debt outstanding was $347 million 3.0- Cash and Revolver availability was $347 2.5x 3.25x million 2.2x
Slide 11: 2025 Priorities
2025 Priorities 2025 Priorities 1 Integrate Acquired Businesses 2 Capture Synergies from Acquired Businesses 3 Accelerate MRO Capacity to Support Growth Opportunities 4 Advance OEM Licensed Manufacturing Transition 5 Grow Organic Sales Pipeline 6 Welcome Aero 3 to VSE Family Pg.11 vsecorp.com
Slide 12: Investment Highlights
Investment Highlights Investment Highlights 1 Attractive and Expanding Aviation Aftermarket 4 Customer-Centric Culture with Deep Technical Large, resilient end-markets with long-term Expertise growth and share gain potential across all Strong product line leadership and service-driven aviation secto
Slide 13: Appendix
Appendix vsecorp.com
Slide 14: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations EBITDA and Adjusted EBITDA ($ in thousands, except per share data) Three months ended September 30, 2025 2024 % Change Net income from continuing operations $ 3,591 $ 8,742 (58.9)% Interest expense, net 4,339 8,987 (51.7)% Income taxes 2,157 2,343 (7.9)% Amo
Slide 15: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Adjusted Net Income and Adjusted EPS (Diluted) ($ in thousands, except per share data) Three months ended September 30, 2025 2024 % Change Net Income from continuing operations $ 3,591 $ 8,742 (58.9)% Adjustments: Acquisition, integration and restructuring c
Slide 16: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Segment EBITDA and Segment Adjusted EBITDA Three months ended September 30, ($ in thousands) 2025 2024 % Change Aviation Operating income $ 38,240 $ 25,435 50.3% Depreciation and amortization 10,182 6,951 46.5% EBITDA 48,422 32,386 49.5% Acquisition, integra
Slide 17: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Segment EBITDA and Adjusted EBITDA Three months ended September 30, ($ in thousands) 2025 2024 % Change Corporate Unallocated corporate costs $ 28,153 $ 5,363 424.9% Depreciation and amortization (9) (39) (76.9)% EBITDA 28,144 5,324 428.6% Acquisition, integ
Slide 18: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Balance Sheet Reconciliation of Operating Cash Flow to Free Cash Flows ($ in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Net cash provided by (used in) operating activities 24,089 11,891 (46,632) 55,375 Capital expenditures (