VSE CORPVSEC

VSE CORP Segments Disclosure

10-KFiled Feb 27, 20263 min read
Business Segment and Customer Information
Segment Information

Following the sales of the Company's Fleet and Federal and Defense segments, the Company manages its business as a single reportable and operating segment focused on higher margin and higher growth aftermarket parts distribution and MRO activities. The Company's single operating 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, as well as rotable exchange and supply chain services.

The operating segment presented below represents the Company's only segment for which discrete financial information is available and is the basis on which operating results are regularly reviewed by the Company's President and Chief Executive Officer, who serves as the Chief Operating Decision Maker ("CODM"), for purposes of resource allocation and performance assessment. The CODM evaluates segment performance based on consolidated net income as the measure of segment profit or loss and considers budget-to-actual results, sequential period and prior period comparisons on a monthly basis when making decisions regarding capital and personnel allocation. The expenses presented below represent significant segment expenses that are regularly provided to and considered by the CODM in evaluating segment performance. Segment assets are reported on the consolidated balance sheets as total assets.

The Company's segment information is as follows (in thousands):
For the years ended December 31,
202520242023
Revenues$1,112,275 $786,256 $544,020 
Costs and operating expenses:
Segment costs (a)
900,759 641,298 431,412 
Depreciation and amortization (b)
39,160 25,500 16,080 
Allocated corporate cost (c)
24,020 18,071 12,411 
Unallocated corporate costs (d)
58,741 42,631 33,972 
    Total costs and operating expenses
1,022,680 727,500 493,875 
Operating income
89,595 58,756 50,145 
Interest expense, net20,556 34,947 31,085 
Provision for income taxes
15,546 4,407 4,495 
(Loss) income from discontinued operations, net of tax
(41,790)(4,078)24,569 
Net income
$11,703 $15,324 $39,134 
(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.
(d) Primarily includes earn-out receivable fair value adjustments and corporate costs for acquisition, integration and restructuring activities.

Customer and Geographical Information

The Company's revenues are derived from the delivery of products and services performed for commercial and government customers. Customers also include various other commercial entities and government agencies. See Note (4) "Revenue Recognition" for revenue by customer. Revenues from a group of affiliated customers under common ownership represented 20%, 21%, and 14% of consolidated revenues for the years ended December 31, 2025, 2024 and 2023, respectively.
Revenue by geography is based on the billing address of the customer. Revenue by geographic area is as follows (in thousands):
 For the years ended December 31,
 202520242023
United States$629,665 $492,297 $340,915 
Canada
149,034 107,305 72,448 
Other Countries (a)
333,576 186,654 130,657 
Total revenue$1,112,275 $786,256 $544,020 
(a) No individual country, other than disclosed above, exceeded 10% of the Company's total revenue for any period presented.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025
2023Mar 8, 2024
2022Mar 10, 2023
2021Mar 11, 2022
2020Mar 5, 2021
2019Mar 9, 2020
2018Mar 7, 2019
2017Mar 7, 2018
2016Mar 1, 2017
2015Mar 3, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew Standards