VSE (US:VSEC)2025-05-07 12:11Financial Performance - First quarter revenue reached $256 million, a 58% increase year-over-year, driven by contributions from Aviation distribution and MRO businesses, as well as the TCI and Kellstrom acquisitions[12] - Adjusted EBITDA was $40 million, representing 15.8% of revenue, a 60% increase year-over-year, driven by distribution programs, increased MRO activity, OEM licensed manufacturing, and acquisitions[12] - Adjusted Net Income was $16 million, and Adjusted diluted earnings per share reached $0.78, increasing 125% and 73% respectively[12] - Adjusted Net Leverage reduced to 2.2x in the first quarter, pro forma for the sale of Fleet segment[12] Strategic Developments - The company completed the sale of the Fleet segment, repositioning itself as a pure-play Aviation Aftermarket business[6] - Turbine Weld Industries was acquired, expanding MRO engine component capabilities[6] - A new 5-year authorized services center agreement was signed with Eaton, supporting aftermarket MRO for Eaton hydraulics across the Americas[6] - The company completed Term Loan A and Revolving Credit Facility refinancing, providing a lower interest rate, greater flexibility, and increased capacity[6] Future Outlook - The company reaffirms its aviation guidance, expecting organic growth driven by market share gains, distribution program growth, and MRO capability expansion[21] - Kellstrom and TCI acquisitions are expected to contribute to 2025 revenue growth[21] - Net Debt outstanding was $459 million, and Cash and Revolver availability was $158 million[29]