VSE Completes $230M Fleet Sale to Strengthen Aviation Focus

Core Insights - VSE Corporation (VSEC) has completed the sale of its Fleet business segment, Wheeler Fleet Solutions, to One Equity Partners for up to $230 million, with plans to use the proceeds to repay outstanding borrowings [1] - The divestment marks VSEC's transition into a dedicated aviation aftermarket parts and services provider, allowing the company to strengthen its position and expand within the aviation sector [2] - VSEC's aviation segment revenues increased by 45% year over year in 2024, reaching a record $786.3 million in Q4, driven by strong execution in distribution programs and expanded MRO capabilities [4] Financial Performance - For 2025, VSEC expects aviation segment revenues to grow between 35% and 40% compared to the previous year, while integrating newly acquired businesses to enhance operational efficiencies [5] - VSEC shares have gained 27% year to date, contrasting with a 17.5% decline in the Zacks Engineering - R and D Services industry [6] Strategic Moves - The acquisition of Kellstrom in December 2024 has strengthened VSEC's position in the aviation aftermarket, enhancing competitiveness and supporting accelerated growth [3] - The company is focusing on serving commercial, business, and general aviation customers, benefiting from strong end-market demand and expanding partnerships with OEM suppliers [4]