Michael Ciarmoli's questions to VSE Corp (VSEC) leadership • Q2 2025
Question
Michael Ciarmoli of Truist Securities inquired if the new USM strategy would be accretive to repair margins, asked for a breakdown of the engine revenue exposure, and requested a target for year-end leverage.
Answer
President & CEO John Cuomo confirmed the new USM strategy is designed to be accretive by integrating new, used, and repair offerings to be more customer-friendly and enable insourcing to expand margins. He noted VSE is currently more weighted to legacy engines than next-gen platforms like LEAP. CFO Adam Cohn projected that with current performance, the company's net leverage ratio should be below 2.0x by year-end.