Business Segment

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Business Segment

Business Segment

The sale of the Company's Fleet and Federal and Defense segments allow VSE to focus on a long-term strategic growth strategy focused on higher margin and higher growth aftermarket parts distribution and MRO businesses. Following the sales of the Fleet and Federal and Defense segments, management of the Company's business operations is conducted under a single reportable operating segment: Aviation.

The Company's Aviation segment provides aftermarket MRO and distribution services to commercial, business and general aviation, cargo, military and defense, and rotorcraft customers globally. Core services include parts distribution, MRO services including engine components and accessories, fuel controls, avionics, pneumatics, hydraulics, wheel and brake, and rotable exchange and supply chain services.

The operating segment reported below is the only segment for which separate financial information is available and for which segment results are evaluated regularly by the Company's President and Chief Executive Officer, who is the Chief Operating Decision Maker ("CODM"), in deciding how to allocate resources and in assessing performance. As the Company operates under a single reportable operating segment, the CODM evaluates segment performance based on net income (loss) and considers budget-to-actual, sequential period and prior period variances on a monthly basis when making decisions about allocating capital and personnel. The expenses listed below are viewed as significant segment expenses as part of the CODM’s evaluation.

Net sales of the Company exclude intercompany sales as these activities are eliminated in consolidation. The Company's segment information is as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Revenues	$	282,909	$	203,642	$	811,093	$	558,853
Costs and operating expenses:
Segment costs (a)	228,161		166,850		659,576		455,727
Depreciation and amortization (b)	10,182		6,951		28,974		17,919
Allocated corporate cost (c)	6,326		4,406		17,707		12,993
Unallocated corporate costs	28,153		5,363		47,732		33,897
Total costs and operating expenses	272,822		183,570		753,989		520,536
Operating income	10,087		20,072		57,104		38,317
Interest expense, net	4,339		8,987		18,723		28,003
Provision for income taxes	2,157		2,343		7,184		1,318
Income (loss) from discontinued operations, net of tax	321		2,908		(33,061)		(6,734)
Net income (loss)	$	3,912	$	11,650	$	(1,864)	$	2,262

(a) Segment costs consist of material, labor, overhead, and selling, general, and administrative costs attributable to the Aviation segment.

(b) This line item includes only depreciation and amortization attributable to the Aviation segment.

(c) Primarily includes costs for information technology, human resources, accounting, and legal support services allocated to the Aviation segment.