Quarterly report [Sections 13 or 15(d)]

Business Segment

v3.25.3
Business Segment
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segment Business Segment
The sale of the Company's Fleet and Federal and Defense segments allow VSE to focus on a long-term strategic growth strategy focused on higher margin and higher growth aftermarket parts distribution and MRO businesses. Following the sales of the Fleet and Federal and Defense segments, management of the Company's business operations is conducted under a single reportable operating segment: Aviation.

The Company's Aviation segment provides aftermarket MRO and distribution services to commercial, business and general aviation, cargo, military and defense, and rotorcraft customers globally. Core services include parts distribution, MRO services including engine components and accessories, fuel controls, avionics, pneumatics, hydraulics, wheel and brake, and rotable exchange and supply chain services.

The operating segment reported below is the only segment for which separate financial information is available and for which segment results are evaluated regularly by the Company's President and Chief Executive Officer, who is the Chief Operating Decision Maker ("CODM"), in deciding how to allocate resources and in assessing performance. As the Company operates under a single reportable operating segment, the CODM evaluates segment performance based on net income (loss) and considers budget-to-actual, sequential period and prior period variances on a monthly basis when making decisions about allocating capital and personnel. The expenses listed below are viewed as significant segment expenses as part of the CODM’s evaluation.

Net sales of the Company exclude intercompany sales as these activities are eliminated in consolidation. The Company's segment information is as follows (in thousands):

Three months ended September 30,
Nine months ended September 30,
2025 2024 2025 2024
Revenues $ 282,909  $ 203,642  $ 811,093  $ 558,853 
Costs and operating expenses:
Segment costs (a)
228,161  166,850  659,576  455,727 
Depreciation and amortization (b)
10,182  6,951  28,974  17,919 
Allocated corporate cost (c)
6,326  4,406  17,707  12,993 
Unallocated corporate costs
 28,153  5,363  47,732  33,897 
Total costs and operating expenses 272,822  183,570  753,989  520,536 
Operating income
 10,087  20,072  57,104  38,317 
Interest expense, net 4,339  8,987  18,723  28,003 
Provision for income taxes
 2,157  2,343  7,184  1,318 
Income (loss) from discontinued operations, net of tax
 321  2,908  (33,061) (6,734)
Net income (loss)
 $ 3,912  $ 11,650  $ (1,864) $ 2,262 
(a) Segment costs consist of material, labor, overhead, and selling, general, and administrative costs attributable to the Aviation segment.
(b) This line item includes only depreciation and amortization attributable to the Aviation segment.
(c) Primarily includes costs for information technology, human resources, accounting, and legal support services allocated to the Aviation segment.