Slide 1: First Quarter 2025 Results Conference Call
First Quarter 2025 Results Conference Call May 7, 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: Recent Developments
Recent Developments Recent Developments Completed the sale of the Fleet segment 1 Repositions VSE as pure-play Aviation Aftermarket business Acquired Turbine Weld Industries 2 Expands MRO engine component capabilities Signed a new 5-year authorized services center agreement with Eaton 3 Supports aft
Slide 4: Business Update
Business Update Business Update Integration of Program Transition to Acquisitions Implementations ONE VSE • Kellstrom Aerospace • OEM Licensed Fuel • Fleet Divestiture • Turbine Controls Control Program Transition (TCI) • Turbine Weld • Authorized Hydraulics • Optimize Corporate Industries MRO Repai
Slide 5: Financial Highlights
Financial Highlights First Quarter 2025 Financial Performance Highlights 1Q’25 Revenue of $256 million; 58% increase driven by balanced contributions from Aviation distribution and MRO businesses and solid contributions from TCI and Kellstrom acquisitions $256M Adjusted EBITDA of $40 million or 15.8
Slide 6: First Quarter 2025 Consolidated Results
Consolidated Results First Quarter 2025 Consolidated Results Revenue Operating Income 1Q’24 vs. 1Q’25 $256M $162M $25M $16M +58% Revenue Growth 1Q’24 1Q’25 1Q’24 1Q’25 +60% Adj. EBITDA Adj. EPS Adj. EBITDA Growth $40M $0.78 +73% $25M $0.45 15.5% 15.8% Adj. EPS Growth 1Q’24 1Q’25 1Q’24 1Q’25 (exclude
Slide 7: First Quarter 2025 Aviation Segment Results
Aviation Segment Results First Quarter 2025 Aviation Segment Results 1Q’24 vs. 1Q’25 Revenue Revenue by Sales Channel Distribution MRO $256M $162M +49% +76% $161M $95M +58% $108M $54M Revenue Growth 1Q’24 1Q’25 1Q’24 1Q’25 1Q’24 1Q’25 +41% Profitability Operating Income Growth Operating Income Adjus
Slide 8: Reaffirming Aviation Guidance
Aviation Segment Guidance Reaffirming Aviation Guidance Revenue Adjusted EBITDA % 16.0-17.0% +35-40% 16.3% ~50 bps 10-110 bps HSD/LDD% ~(90) bps 26%-28% $786M 2024 Full Year M&A VSE Organic 2025 M&A Margin Aviation Margin Stock-based Contribution Growth 2024 Dilution Expansion/ Compensation 2025 M&A
Slide 9: 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.9 vsecorp.com
Slide 10: Balance Sheet Review
Balance Sheet Balance Sheet Review Adjusted Net Leverage Net Debt outstanding was $459 million Cash and Revolver availability was $158 million Free Cash Flow use of $50 million 3.2x 3.3x 3.0- driven by strategic inventory 2.5x 3.25x investments 2.2x Adjusted Net Leverage improved sequentially driven
Slide 11: 2025 Priorities
2025 Priorities 2025 Priorities 1 Transition to ONE VSE 2 Expand MRO Capacity to Support Growth Opportunities 3 Integrate Acquired Businesses 4 Capture Synergies from Acquired Businesses 5 Transition OEM Licensed Manufacturing 6 Grow Organic Sales Pipeline Pg.11 vsecorp.com
Slide 12: Appendix
Appendix vsecorp.com
Slide 13: Investment Highlights
Investment Highlights Investment Highlights 1 Attractive and Expanding Aviation Aftermarket 4 Customer-Centric Culture with Deep Technical Expertise Large, resilient end-markets with long-term growth Strong product line leadership and service-driven culture and share gain potential across all aviati
Slide 14: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations EBITDA and Adjusted EBITDA ($ in thousands, except per share data) Three months ended March 31, 2025 2024 % Change Net income from continuing operations $ 13,968 $ 5,542 152.0% Interest expense, net 7,939 9,190 (13.6)% Income taxes 2,597 911 185.1% Amortizat
Slide 15: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Adjusted Net Income and Adjusted EPS (Diluted) Three months ended March 31, ($ in thousands, except per share data) 2025 2024 % Change Net Income from continuing operations $ 13,968 $ 5,542 152.0% Adjustments: Acquisition, integration and restructuring costs
Slide 16: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Segment EBITDA and Adjusted EBITDA Three months ended March 31, ($ in thousands) 2025 2024 % Change Aviation Operating income $ 31,524 $ 22,310 41.3% Depreciation and amortization 9,166 4,933 85.8% EBITDA 40,690 27,243 49.4% Acquisition, integration and rest
Slide 17: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations Balance Sheet Reconciliation of Operating Cash Flow to Free Cash Flows ($ in thousands) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Net cash (used in) provided by operating activities (46,632) 55,375 $10,176 $(17,528) Capital expenditur