On this page of StockholderLetter.com we present the latest annual shareholder letter from VSE CORP — ticker symbol VSEC. Reading current and past VSEC letters to shareholders can bring important insights into the investment thesis.

 •  4/1/2024 Letter Continued (Full PDF)
 •  3/20/2023 VSEC Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  VSEC Benford's Law Stock Score = 82

VSEC Shareholder/Stockholder Letter Transcript:

2023
VSE Corporation Annual Report

VSE Corporation - 2023 Annual Report
2023 Annual Report
Table of Contents
Section          
Page
2023 Business Snapshot         02.
Message to Our Shareholders        03.
About VSE Corporation         08.
Board of Directors          09.
Financial Overview          10.
2023 Form 10-K          12.
pg.1
vsecorp.com

VSE Corporation - 2023 Annual Report
2023 Business
Snapshot
VSE delivered a year of record-breaking performance,
strategic growth and business transformation.
FY 23    Revenue
FY 23    Adj. EBITDA
$861M $114M
+29% YoY Growth
+45% YoY Growth
FLEET SOLUTIONS
FY 23    Revenue
FY 23    Adj. EBITDA
+33% YoY Growth
+68% YoY Growth
$544M $87M
51k
pg.2
740k
FY 23    Revenue
FY 23    Adj. EBITDA
+21% YoY Growth
+11% YoY Growth
90%
~80%
$317M $37M
aircraft parts harvested,
pounds of cardboard, paper,
of each aircraft in VSE   s
repurposed, recycled,
and plastic materials recycled
Southwest Airlines Boeing
of all sourced boxes and
shipping packaging is
and sold.
by VSE   s Fleet segment
737NG retirement program is
biodegradable material at
repurposed.
VSE Aviation   s Kansas facility
vsecorp.com

VSE Corporation - 2023 Annual Report
A Message To Our Shareholders
VSE Corporation achieved outstanding
to focus on higher-margin, higher-growth
results in 2023, fueled by a combination of
opportunities in the Aviation aftermarket.
new business wins, product and capability
growth initiatives, and contributions from
strategic acquisitions. Both our Aviation and
Fleet segments delivered record revenue,
propelling the company to its most profitable
year in our history and solidifying our
position as a leading provider of aftermarket
distribution and maintenance, repair
and overhaul (   MRO   ) services. We also
announced the strategic repositioning of our
business with the divestiture of our Federal
and Defense segment (   FDS   ), allowing us
In 2023, VSE drove exceptional financial
performance. Total revenue from continuing
operations of $861 million increased by
29% compared to 2022, driven by growth
across both of our business segments. Net
Income from continuing operations of $43
million increased by 62%, while Adjusted
EBITDA of $114 million increased by 45%
compared to the previous year. These strong
results validate the success of our business
transformation, the strength of our end
markets, and the excellence of the VSE team.
Aviation Segment
pg.3
vsecorp.com

VSE Corporation - 2023 Annual Report
Aviation Segment
2023 was a milestone year for our Aviation
and repair capabilities with VSE
Aviation   s aftermarket business.
segment. The segment achieved record full
year revenue of $544 million, an increase
of 33% compared to the prior year, and

record Adjusted EBITDA of $87 million, an
increase of 68% from the previous year. The
Aviation segment made significant progress
toward enhancing its operating footprint and
positioning the segment for sustainable, long-
We acquired the exclusive right to
manufacture and support specific
Honeywell fuel control systems, adding
a new revenue and profit channel and
marking a significant step into OEMlicensed manufacturing.
term profitable growth.
Product/Service Expansions and New
Business Awards:
Strategic Acquisitions:

Enhanced MRO Capabilities: We expanded
our MRO capabilities in avionics,
hydraulics, pneumatics, and fuel controls,
which provide further opportunities for
organic growth and market share gains in
the highly attractive aviation aftermarket.

Expanded Our Reach: We launched new
global distribution centers positioned
for growth, including a significant
expansion into the Asia-Pacific region
and partnerships supporting customers
in Europe, Middle East, and Africa.

We acquired Precision Fuel Controls, a
market-leading technical MRO, in early
2023 and fully integrated the business
before the end of the year.

We completed the acquisition of Desser
Aerospace, a global aftermarket solutions
provider of specialty distribution and
MRO services, including tires and tubes,
wheels, brakes, and batteries. We have
already begun to realize synergies as we
prepare to combine Desser   s distribution
Continued
pg.4
vsecorp.com



 4/1/2024 Letter Continued (Full PDF)