$VSEC reports strong Q4 results, poised for growth amid COVID-19 risks.
Mar 9th 2023, 11:10 am
Analyst Summary: VSE Corporation has reported successful Q4 2022 results supported by program execution excellence and commercial market momentum. The company's Aviation segment contributed to two-thirds of total Q4 profits, while the Fleet segment opened a new distribution and e-commerce fulfillment center in the greater Memphis, Tennessee area, expected to generate $50 million in new, incremental sales for 2023. VSE Corporation is also actively investing in the development of its Defense segment to ensure sustainable long-term growth, with $1.5 billion in contracts currently awaiting award. Adjusted EBITDA margins for the fourth quarter increased by 528 basis points YoY, driven by the execution of new program awards and strong MRO results. Despite several risks including uncertainty surrounding the ongoing COVID-19 outbreak, global economic and political conditions, and risks related to technology security and cyber-attack, VSE Corporation remains well-positioned to grow.