VSE (VSEC) Investor presentation summary

Business overview and transformation

• Transitioned to a pure-play independent aerospace service provider focused on aftermarket distribution, MRO, and manufacturing services, with 100% of revenue from aerospace parts and services.

• Completed divestitures of non-core segments and executed eight aviation acquisitions since 2021, building a comprehensive aftermarket platform.

• Achieved significant scale with ~$1B+ revenue, ~1,600 employees, and 31 global distribution and MRO facilities.

• Demonstrated strong customer and supplier relationships, supporting long-term opportunities and revenue stability.

• Aligned organization to a focused aviation strategy, driving margin expansion and operational efficiencies.

Recent acquisition and integration

• Entered a definitive agreement to acquire Precision Aviation Group (PAG), a leading global provider of aviation MRO, distribution, and supply chain solutions.

• The acquisition is expected to expand scale, enhance engine and component service capabilities, and maintain a focus on high-value, high-margin services.

• PAG is projected to generate ~$615M adjusted revenue in 2025 with an adjusted EBITDA margin above 20%.

• Initial annualized cost and in-sourcing synergies estimated to exceed $15M, supporting a path to >20% adjusted EBITDA margin for the combined business.

• Total upfront consideration is ~$2.025B, funded through equity offerings and permanent debt financing.

Financial performance and guidance

• FY 2025 revenue reached $1.1B, up 41% year-over-year, driven by growth in aviation distribution, MRO, and acquisitions.

• Adjusted EBITDA for FY 2025 was $183M (16.4% margin), up 56% from FY 2024; adjusted diluted EPS was $3.92, up 87%.

• Free cash flow for FY 2025 was $6M, with a significant improvement year-over-year; net debt at year-end was $223M.

• Adjusted net leverage ratio was 1.1x at year-end, with a target of less than 3.0x post-PAG acquisition.

• 2026 guidance projects 19–23% revenue growth and adjusted EBITDA margin expansion to 16.8–17.3%.