Noah Levitz's questions to VSE Corp (VSEC) leadership • Q2 2025
Question
Noah Levitz of William Blair questioned the second-half margin outlook, asking why margins wouldn't meet or beat Q2's exceptional level given accelerated synergies. He also inquired about the M&A pipeline and the potential for more Honeywell fuel control-style deals.
Answer
CFO Adam Cohn attributed the strong Q2 margins to the earlier-than-anticipated capture of Kaelstrom synergies and reiterated that historical seasonality, driven by inventory costs, typically leads to stronger margins in the first half. President & CEO John Cuomo described the M&A pipeline as "very, very healthy" but stated that the company will focus on perfecting the execution of the current licensed manufacturing program before pursuing similar new deals, likely not before the back end of 2026.