Evan Page's questions to VSE Corp (VSEC) leadership • Q1 2025
Question
Evan Page of Jefferies LLC asked for a breakdown of the 12% organic growth between the MRO and distribution businesses and questioned how VSE is balancing cost versus revenue synergies across its recent acquisitions.
Answer
CFO Adam Cohn and CEO John Cuomo noted that organic growth was slightly skewed toward distribution in Q1 but that there were no material differences between the two businesses. Cuomo clarified that USM is a strategic but lower-growth part of the model. He then detailed the synergy approach, explaining it varies by deal: TCI is focused on revenue and capacity expansion, while the Telstrom integration included some upfront cost-out synergies. He expects the Turbine Weld integration to be similar to TCI's growth-focused model.