Here are 1-3 brief analogies to describe VSEC:

• Think of VSEC as a **Grainger for military and aviation maintenance and supply chain.**
• Like the **Caterpillar dealer network, but for military vehicles and commercial aircraft.**
• Similar to **GE Aviation Services, but for a wider range of military vehicles and diverse aircraft.**

• Defense Sustainment & Logistics: Provides maintenance, repair, overhaul, and supply chain management for military vehicles, systems, and equipment.
• Government Technical Services: Offers specialized engineering, technical, and IT support to various U.S. government agencies.
• Aircraft Engine MRO (Maintenance, Repair, & Overhaul): Performs maintenance, repair, and overhaul of aircraft engines and components for commercial and general aviation.
• Aviation Parts Distribution: Supplies and manages parts distribution and supply chain solutions for the global aviation industry.

VSE Corporation (VSEC) primarily sells its products and services to other organizations and companies, rather than individuals.

Major Customers of VSE Corporation (VSEC):

• The company's predominant customer is the U.S. Government. VSE Corporation derives a significant majority of its revenue from contracts with various U.S. Government agencies. These agencies include, but are not limited to:
  • U.S. Department of Defense (DoD)
  • U.S. Navy
  • U.S. Army
  • U.S. Air Force
  • U.S. Postal Service (USPS)
  • Other federal agencies.

  As government entities, these customers are not public companies and therefore do not have stock symbols.

• In its Fleet and Supply Chain Services segment, VSE Corporation also serves a diverse base of commercial customers, including:
  • Commercial fleet operators (e.g., ground transportation, transit)
  • Original Equipment Manufacturers (OEMs) for their aftermarket support needs
  • Aviation customers (e.g., commercial airlines, general aviation operators)

  While VSEC serves numerous commercial clients, no single commercial company has been identified in public filings as a major customer contributing over 10% of the company's consolidated revenue. Therefore, specific names and symbols for major commercial customer companies cannot be provided.

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John A. Cuomo President & Chief Executive Officer

John A. Cuomo was appointed Chief Executive Officer and President of VSE Corporation in April 2019. He has over 20 years of experience in the aerospace distribution and services market. Prior to joining VSE, he served as Vice President and General Manager of Boeing Distribution Services Inc. Before Boeing's 2018 acquisition of the Aerospace Solutions Group (ASG) of KLX Inc., he served as General Manager of ASG and later as Group President for KLX Aerospace Solutions Group, where he led and facilitated the $4.25 billion acquisition of KLX by Boeing. From 2000 to 2014, he held various roles at B/E Aerospace, the parent company of KLX, Inc., including Vice President & General Manager and Senior Vice President, Global Sales, Marketing & Business Development. He also served as an attorney practicing commercial law, mergers and acquisitions, and litigation.

Adam Cohn Chief Financial Officer

Adam Cohn is a seasoned executive finance leader with over 15 years of aerospace and finance-related experience. He most recently served as Chief Financial Officer for Valence Surface Technologies ("Valence"), an aerospace supplier backed by ATL Partners and British Columbia Investment Management Corporation, indicating involvement with private equity firms. Before Valence, he held several senior leadership positions at Triumph (NYSE: TGI), a publicly traded aerospace manufacturer, including Treasurer and Vice President of Mergers and Acquisitions.

Ben Thomas Chief Operating Officer

Ben Thomas previously served as President of VSE's Aviation segment since October 2020. In this role, he was responsible for the strategic oversight and management of the MRO services and product distribution businesses, driving growth through sourcing, customer relationships, capital allocation, and acquisitions. Before this, Mr. Thomas managed aftermarket growth strategies in the aerospace consumables market for Boeing Global Services and KLX Aerospace Solutions.

Krista Stafford Chief Human Resource & Administrative Officer

Krista Stafford joined VSE Corporation as Senior Vice President and Chief Human Resource Officer in January 2020. She specializes in organizational development, culture transformation, executive compensation, organizational design, and employee engagement. Prior to VSE, she was the Vice President, Human Resources at Boeing Distribution Services, a subsidiary of the Boeing Corporation, and has over 15 years of experience in Human Resources, Learning and Organizational Development.

Garry Snow Chief Growth Officer

Garry Snow brings over 20 years of aerospace sales, business development, and distribution experience to VSE. Most recently, he served as Head of Sales and Marketing for Business and General Aviation for Boeing Global Services. He also held numerous leadership roles over 15 years with Boeing Global Services and the Boeing-acquired KLX Aerospace Solutions business, including Vice President of OEM Services Americas, VP of Global Business Development, and Sales Director.

The key risks to VSE Corporation (VSEC) are primarily centered around its acquisition strategy, significant debt load, and the inherent challenges within its core aviation aftermarket operations.

1. Acquisition and Integration Risks: VSE's growth strategy heavily relies on strategic acquisitions. These acquisitions, while intended to drive growth, present substantial risks related to the successful integration of acquired companies, the availability of capital for future acquisitions, the potential for write-downs of acquired intangible assets, and the possible loss of key employees from acquired businesses. Failure to effectively integrate these new operations or achieve anticipated synergies could materially impact VSE's financial results and operational efficiency.
2. Financial Risks related to Debt and Asset Impairment: VSE carries a considerable amount of debt, which exposes the company to interest rate fluctuations and may limit its financial flexibility. Additionally, the company faces risks associated with potential impairments of goodwill and other intangible assets. Changes in business conditions, or a decline in the company's stock price, could necessitate significant write-downs, leading to substantial losses and a reduction in operating income.
3. Operational Risks in the Aviation Aftermarket: VSE's business success is highly dependent on the performance and stability of the aviation aftermarket. This sector is susceptible to economic cycles, geopolitical tensions, and technological advancements, all of which can affect demand for the company's goods and services. Furthermore, the company faces intense competition from original equipment manufacturers (OEMs) and other service providers, as well as potential disruptions and increased costs within its supply chain.

VSE Corporation (VSEC) is strategically focusing its operations on the aviation aftermarket. The company recently announced an agreement to sell its Fleet business segment in February 2025, with the transaction expected to close in the second quarter of 2025. Consequently, VSE's main products and services will be centered on aftermarket parts distribution and Maintenance, Repair, and Overhaul (MRO) services for commercial, business, and general aviation operators globally.

The addressable market sizes for VSE's main products and services are as follows:

• Global Aircraft Aftermarket Parts Market: This market was valued at approximately USD 48.71 billion in 2024 and is projected to grow to USD 93.52 billion by 2032. Another estimate places the global commercial aircraft aftermarket parts market at USD 44.3 billion in 2024, expected to reach USD 72.3 billion by 2033. The broader global aerospace aftermarket market size is estimated at USD 53.07 billion in 2024 and is set to expand to USD 97.25 billion by 2033.
• North American Aircraft Aftermarket Parts Market: North America held a significant share of the aircraft aftermarket, valued at USD 14.18 billion in 2023 and increasing to USD 16.3 billion in 2024.
• Global Aviation MRO (Maintenance, Repair, and Overhaul) Market: Global MRO spending for aviation is anticipated to reach USD 119 billion in 2025 and is projected to grow to USD 156 billion by 2035.

VSE Corporation (VSEC) is poised for future revenue growth over the next 2-3 years, primarily driven by its strategic focus on the aviation aftermarket sector. Key drivers include:

1. Strategic Acquisitions and Expansion within Aviation MRO: VSE has actively pursued and integrated strategic acquisitions such as Turbine Controls, Kellstrom Aerospace, Turbine Weld Industries, and Aero 3. These acquisitions are crucial for expanding VSE's Maintenance, Repair, and Overhaul (MRO) capabilities, market presence, and service offerings, particularly for commercial aircraft engines and wheel and brake aftermarket solutions. The company's strategy involves becoming a pure-play aviation aftermarket business through these targeted integrations.
2. Robust Demand in the Aviation Aftermarket: The broader aviation aftermarket, encompassing MRO services and parts distribution, is experiencing strong demand. This growth is fueled by factors such as the increasing age of aircraft fleets and higher aircraft utilization rates. The global MRO market is projected to continue its expansion in the coming years.
3. Expansion of MRO Capabilities and New Product Offerings: Beyond acquisitions, VSE is focused on organic growth by enhancing its existing MRO capabilities, introducing new repair services, and broadening its product lines. This includes strengthening relationships with Original Equipment Manufacturers (OEMs) and transitioning towards OEM license manufacturing, which contributes to increased market share and service depth. For instance, the Turbine Weld acquisition specifically boosts MRO capabilities in business and general aviation engine components.
4. Leveraging Government Contracts and Defense Spending: VSE's established presence in the defense sector, coupled with its success in securing government contracts, provides a stable and ongoing revenue stream. Increased defense spending by the U.S. government and its allies is expected to benefit VSE's aviation aftermarket services for government and defense markets.
5. Geographical Market Expansion: The Aviation segment is actively seeking to expand its geographical footprint. An example of this is the extension of its distribution agreement with Pratt & Whitney Canada to encompass regions such as Europe, the Middle East, and Africa, indicating a strategic effort to increase international market presence and capture new customer bases.

Share Repurchases

• VSE Corporation has not conducted significant share repurchase programs over the last 3-5 years. Any share transactions in this category were primarily related to shares voluntarily forfeited by participants in employee stock plans to cover tax liabilities.

Share Issuance

• In October 2025, VSE priced an underwritten public offering of 2,352,941 common shares at $170.00 per share, with underwriters fully exercising an option for an additional 352,941 shares, resulting in approximately $441.6 million in net proceeds. These proceeds are intended to fund the acquisition of Aero 3 and for general corporate purposes.
• In October 2024, VSE completed an underwritten public offering of 1,724,137 shares at $87.00 per share, which included an option for an additional 258,620 shares, generating approximately $142.5 million in net proceeds to finance a portion of the Kellstrom Aerospace acquisition.
• Following the Turbine Controls acquisition in April 2024, VSE conducted an equity offering in May 2024, generating net proceeds of approximately $162.1 million. These funds were used to repay outstanding borrowings under its revolving credit facility, including those for the Turbine Controls acquisition, and to support potential future strategic acquisitions and general corporate purposes.

Outbound Investments

• VSE completed the acquisition of Kellstrom Aerospace Group, Inc. in December 2024 for approximately $185 million in cash and 172,414 common shares, strengthening its position in the commercial aerospace engine aftermarket.
• In April 2024, VSE acquired Turbine Controls Inc. (TCI) for approximately $120 million, comprising $110 million in cash and $10 million in common shares, enhancing its OEM authorized repair capabilities in the aviation aftermarket.
• VSE has undertaken a significant portfolio transformation, including the divestiture of its Federal and Defense Services segment for $44.0 million in cash in February 2024 and an agreement to sell its Fleet business segment to One Equity Partners for up to $230 million, expected to close in the second quarter of 2025, to become a pure-play aviation aftermarket company.

Capital Expenditures

• VSE's capital expenditures were $7.9 million in 2020, $3.8 million in 2021, $18.7 million in 2022, $11.2 million in 2023, and $20.70 million in 2024.
• For the last 12 months as of October 2025, capital expenditures were approximately $17.78 million.
• A primary focus of recent capital expenditures has been on expanding Maintenance, Repair, and Overhaul (MRO) capacity and establishing new distribution facilities, including a new European distribution facility and expansions in Kansas to support fuel control programs.