Slide 1: Second Quarter 2025 Results Conference Call
Second Quarter 2025 Results Conference Call July 31, 2025 vsecorp.com
Slide 2: Introduction: Forward-Looking Statements
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: Second Quarter 2025 Key Developments
Key Developments Second Quarter 2025 Key Developments Completed the sale of the Fleet segment 1 Repositions VSE as pure-play Aviation Aftermarket business Acquired Turbine Weld Industries (“Turbine Weld”) 2 Expands MRO engine component capabilities Signed a new 5-year authorized services center agre
Slide 4: Business Update
Business Update Business Update Acquisition Program Transition to Integrations Implementations ONE VSE • Turbine Controls (TCI) • OEM Licensed Fuel • Fleet Divestiture Control Program Transition • Kellstrom Aerospace • Authorized Hydraulics • Optimize Corporate • Turbine Weld MRO Repair Station Stru
Slide 5: Second Quarter 2025 Financial Performance Highlights
Financial Highlights Second Quarter 2025 Financial Performance Highlights 2Q’25 Revenue of $272 million increased 41% driven by balanced growth from Aviation distribution and MRO businesses and contributions from recent acquisitions $272M Adjusted EBITDA of $43 million or 16.0% of revenue increased
Slide 6: Second Quarter 2025 Consolidated Results
Consolidated Results Second Quarter 2025 Consolidated Results Revenue Operating Income 2Q’24 vs. 2Q’25 $272M $193M $23M +41% $3M Revenue Growth 2Q’24 2Q’25 2Q’24 2Q’25 +52% Adj. EBITDA Adj. EPS Adj. EBITDA Growth $43M $0.97 +106% $29M 16.0% $0.47 14.8% Adj. EPS Growth 2Q’24 2Q’25 2Q’24 2Q’25 (exclud
Slide 7: Second Quarter 2025 Aviation Segment Results
Aviation Segment Results Second Quarter 2025 Aviation Segment Results 2Q’24 vs. 2Q’25 Revenue Revenue by Sales Channel Distribution MRO $272M $193M +50% +27% $174M $99M +41% $115M $77M Revenue Growth 2Q’24 2Q’25 2Q’24 2Q’25 2Q’24 2Q’25 +43% Profitability Operating Income Growth Operating Income Adju
Slide 8: FY 2025 Guidance
FY 2025 Guidance FY 2025 Guidance ▪ Revenue Guidance: Reaffirming 35 to 40% Y-O-Y Growth ▪ Aviation Adjusted EBITDA Margin Guidance: Increasing to 16.5% to 17%, the high-end of previously provided range Additional FY’25 Modeling Items Adjusted Unallocated Corporate Costs $14 to $15 million Stock-bas
Slide 9: Balance Sheet Review as of June 30, 2025
Balance Sheet Balance Sheet Review as of June 30, 2025 Adjusted Net Leverage 2Q 2025 Free Cash Flow of $6 million driven by disciplined working capital management and record profitability Net Debt outstanding was $362 million 3.3x 3.0- Cash and Revolver availability was $333 2.5x 3.25x million 2.2x
Slide 10: 2025 Priorities
2025 Priorities 2025 Priorities 1 Transition to ONE VSE 2 Expand MRO Capacity to Support Growth Opportunities 3 Integrate Acquired Businesses 4 Capture Synergies from Acquired Businesses 5 Transition OEM Licensed Manufacturing 6 Grow Organic Sales Pipeline Pg.10 vsecorp.com
Slide 11: Appendix
Appendix vsecorp.com
Slide 12: Refinancing Review
Debt Refinancing Refinancing Review $700M Lowered Interest Rate $650M Term Loan A Term Loan A $300M Improved terms $300M Expanded borrowing capacity Revolver Revolver $400M Extended maturity $350M Strong syndicate support Prior Debt New Debt Facilities Facilities Pg.12 vsecorp.com
Slide 13: Investment Highlights
Investment Highlights Investment Highlights 1 Attractive and Expanding Aviation Aftermarket 4 Customer-Centric Culture with Deep Technical Expertise Large, resilient end-markets with long-term growth Strong product line leadership and service-driven culture and share gain potential across all aviati
Slide 14: GAAP to Non-GAAP Reconciliations: EBITDA and Adjusted EBITDA
Appendix GAAP to Non-GAAP Reconciliations EBITDA and Adjusted EBITDA ($ in thousands, except per share data) Three months ended June 30, 2025 2024 % Change Net income (loss) from continuing operations $ 13,638 $ (5,288) NM Interest expense, net 6,445 9,826 (34.4)% Income taxes 2,430 (1,936) NM Amort
Slide 15: GAAP to Non-GAAP Reconciliations: Adjusted Net Income and EPS
Appendix GAAP to Non-GAAP Reconciliations Adjusted Net Income and Adjusted EPS (Diluted) Three months ended June 30, ($ in thousands, except per share data) 2025 2024 % Change Net Income (loss) from continuing operations $ 13,638 $ (5,288) NM Adjustments: Acquisition, integration and restructuring c
Slide 16: GAAP to Non-GAAP Reconciliations: Aviation Segment EBITDA
Appendix GAAP to Non-GAAP Reconciliations Segment EBITDA and Adjusted EBITDA Three months ended June 30, ($ in thousands) 2025 2024 % Change Aviation Operating income $ 35,072 $ 24,468 43.3% Depreciation and amortization 9,626 6,034 59.5% EBITDA 44,698 30,502 46.5% Acquisition, integration and restr
Slide 17: GAAP to Non-GAAP Reconciliations: Corporate Segment EBITDA
Appendix GAAP to Non-GAAP Reconciliations Segment EBITDA and Adjusted EBITDA Three months ended June 30, ($ in thousands) 2025 2024 % Change Corporate Unallocated corporate costs $ 12,559 $ 21,866 (42.6)% Depreciation and amortization (8) (48) (83.3)% EBITDA 12,551 21,818 (42.5)% Acquisition, integr
Slide 18: GAAP to Non-GAAP Reconciliations: Balance Sheet
Appendix GAAP to Non-GAAP Reconciliations Balance Sheet Reconciliation of Operating Cash Flow to Free Cash Flows ($ in thousands) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Net cash provided by (used in) operating activities 11,891 (46,632) 55,375 $10,176 Capital expenditures