Josh Sullivan's questions to VSE Corp (VSEC) leadership • Q2 2025
Question
Josh Sullivan of The Benchmark Company asked for details on the new hydraulics opportunity with Eaton, including market size, and sought perspective on the long-term industry cycle for when component demand might outpace the currently strong engine demand.
Answer
President & CEO John Cuomo estimated the hydraulics MRO market to be between $50 million and $100 million, noting VSE is a strong partner for Eaton due to its ability to drive fast turn-around times and customize solutions. On the market cycle, Cuomo stated his opinion that the engine aftermarket will continue to outpace the component side for the next three years, driven primarily by ongoing supply chain constraints and MRO capacity shortages.