NASDAQ$VSEC

VSE Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced record revenue and profitability for the Aviation segment and raised full year 2024 Aviation revenue guidance.

VSE Corporation reported strong Q3 2024 results, highlighted by record revenue in the Aviation segment. The Fleet segment is expected to improve in Q4. The company completed an equity offering to finance the acquisition of Kellstrom Aerospace.

  • Total revenues increased by 18.3% to $273.6 million.
  • Aviation segment revenue increased 34% year-over-year to a record $203.6 million.
  • GAAP Net Income decreased 3.8% to $11.7 million.
  • Completed integration of Desser Aerospace's U.S. distribution business and launched a new Aviation e-commerce platform.

Headline financials

Total Revenue

$274M

Previous: $231M+18.3%
EPS

$0.63

Previous: $0.92-31.5%
Adjusted EBITDA

$33.2M

Previous: $32.3M+2.8%
Capital Expenditures

-$17.4M

Previous: -$10.8M-61.5%
Free Cash Flow

-$5.79M

Previous: -$1.24M-367.6%
Net Income

$11.7M

Previous: $9.56M+21.9%
Operating Income

$23.7M

Previous: $25.3M-6.2%
Gross Profit

$23.7M

Previous: $25.3M-6.2%
Cash & Equivalents

$7.91M

Previous: $20.7M-61.7%
Total Assets

$1.46B

Previous: $1.34B+9.0%
Stock-Based Comp

$1.69M

Previous: $1.92M-12.1%

Revenue & EPS history

VSE · Revenue · Quarterly

$274M

Q3 2024+18.3%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

VSE · $61M total across 1 segment · Q4 2019

  • Aviation
    $61M+42.3%

Forward guidance

VSE is increasing its full-year 2024 revenue growth and maintaining Adjusted EBITDA margin percentage guidance for its Aviation segment. VSE is revising its full-year 2024 revenue and maintaining Adjusted EBITDA margin guidance for its Fleet segment.

Tailwinds

  • Aviation segment full-year 2024 revenue guidance is increasing from 34% to 38% growth to 39% to 41%, as compared to the prior year revenue.
  • Aviation segment maintains full-year 2024 Adjusted EBITDA margin guidance of 15.5% to 16.5%.
  • Revenue contributions from the Kellstrom acquisition, which is expected to close in the in the fourth quarter of 2024, are not included in our updated guidance.
  • Fleet segment maintains full-year 2024 Adjusted EBITDA margin guidance of 6% to 8%.
  • Post-implementation of USPS' new FMIS, the Company expects an increase in repair activity, and subsequently, an increase in the usage of parts.

Headwinds

  • Fleet segment full-year 2024 revenue guidance is decreasing from 0% to 5% to (5)% to (10)%, as compared to the prior year revenue.
  • There was a temporary reduction in activity with the United States Postal Service due to their system integration.
  • Aviation segment Adjusted EBITDA margin was 16.0%, a decline of approximately 60 basis points versus the prior-year period, driven by lower margin contributions from the TCI acquisition.
  • The Fleet segment reported operating income decreased 71% year-over-year.
  • The Fleet segment Adjusted EBITDA decreased 59% year-over-year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.9%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.2%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+34.8%

Q3 2015

Best reaction

-20.5%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%-9.5%-9.4%
Q4 2025+3.0%-1.3%-22.2%
Q3 2025-1.3%-1.0%-1.4%
Q1 2025+7.9%+11.3%+13.2%
Q4 2024+16.7%+14.8%+15.5%
Q3 2024+7.6%+13.6%+11.6%
Q2 2024-3.3%-11.4%+6.8%
Q1 2024-4.9%-10.8%-3.3%
Q4 2023+3.6%+0.2%+10.3%
Q3 2023+8.8%+8.8%+14.2%
Q2 2023-2.3%+0.6%-0.1%
Q1 2023+25.7%+13.1%+11.2%
Q4 2022-20.5%-28.2%-25.1%
Q3 2022-0.8%+6.7%+12.5%
Q2 2022+15.1%+16.6%+23.3%
Q1 2022+17.0%+5.5%+0.9%
Q4 2021-4.9%-9.0%-15.6%
Q3 2021+11.7%+11.4%+15.9%
Q2 2021-3.1%-7.4%-5.0%
Q1 2021+0.1%+3.6%+7.7%
Q4 2020+0.9%+6.0%+3.6%
Q3 2020-3.1%+2.7%+16.2%
Q2 2020+3.8%+0.9%+4.8%
Q1 2020-0.9%-11.2%+28.8%
Q4 2019+3.9%-6.0%-35.2%
Q3 2019+17.7%+16.2%+20.8%
Q2 2019+14.2%+17.6%+24.2%
Q1 2019-5.2%-8.2%-20.8%
Q4 2018-3.0%-3.5%-12.1%
Q3 2018+9.8%+7.1%+1.4%
Q2 2018-5.1%-8.5%-18.1%
Q1 2018-0.6%-2.5%-3.6%
Q4 2017-2.1%+0.3%+6.6%
Q3 2017-13.8%-15.4%-17.2%
Q2 2017+9.2%+18.8%+11.3%
Q1 2017-2.6%-1.9%-3.6%
Q4 2016+0.0%-2.9%-4.6%
Q3 2016-7.3%-6.9%+26.6%
Q2 2016-6.3%-8.7%-3.4%
Q1 2016-9.2%
Q4 2015+9.7%
Q3 2015+34.8%
Q2 2015-2.5%
Q1 2015-7.3%
Q4 2014-1.0%
Q3 2014+4.2%
Q2 2014-9.4%
Q1 2014+4.3%
Q4 2013+0.0%
Q3 2013-9.2%
Q2 2013+4.7%
Q1 2013-0.3%
Q4 2012+2.3%
Q3 2012-0.6%
Q2 2012-1.7%
Q1 2011+6.7%
Q1 2012+0.2%
Q4 2009+1.4%
Q4 2011+1.4%
Q3 2011-7.2%
Q2 2011+12.9%
Q4 2010+12.9%
Q3 2010-6.8%
Q2 2010-0.3%
Q1 2010+0.1%

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