Bristow Group Reports First Quarter 2025 Results; Affirms 2025 And 2026 Outlook Ranges
PR Newswire
HOUSTON, May 6, 2025
HOUSTON, May 6, 2025 /PRNewswire/ --
First Quarter Highlights
-- Total revenues of $350.5 million in Q1 2025 compared to $353.5 million in
Q4 2024
-- Net income of $27.4 million, or $0.92 per diluted share, in Q1 2025
compared to net income of $31.8 million, or $1.07 per diluted share, in
Q4 2024
-- Adjusted EBITDA (as defined herein)(1) for Q1 2025 was $57.7 million,
consistent with Q4 2024
-- Affirms 2025 Adjusted EBITDA outlook range of $230 - $260 million and
2026 Adjusted EBITDA outlook range of $275 - $335 million
Bristow Group Inc. (NYSE: VTOL) ("Bristow" or the "Company") today reported net income attributable to the Company of $27.4 million, or $0.92 per diluted share, for the quarter ended March 31, 2025 (the "Current Quarter") on total revenues of $350.5 million compared to net income attributable to the Company of $31.8 million, or $1.07 per diluted share, for the quarter ended December 31, 2024 (the "Preceding Quarter") on total revenues of $353.5 million.
The following table provides select financial highlights for the periods reflected (in thousands, except per share amounts). A reconciliation of net income to EBITDA and Adjusted EBITDA, operating income to Adjusted Operating Income and cash provided by (used in) operating activities to Free Cash Flow and Adjusted Free Cash Flow is included in the "Non-GAAP Financial Measures" section herein.
Three Months Ended
March 31, December 31,
2025 2024
---------------- ----------------
Total revenues $ 350,530 $ 353,526
Operating income 33,548 31,804
Net income attributable to Bristow Group
Inc. 27,359 31,793
Basic earnings per common share 0.95 1.11
Diluted earnings per common share 0.92 1.07
Net cash provided by (used in) operating
activities(2) (603) 51,054
Non-GAAP(1) :
Adjusted Operating Income $ 54,353 $ 52,314
EBITDA 63,895 44,581
Adjusted EBITDA 57,710 57,840
Free Cash Flow(2) (2,489) 48,315
Adjusted Free Cash Flow(2) (1,749) 45,735
(1) See definitions of these non-GAAP financial measures and the
reconciliation of GAAP to non-GAAP financial measures in the Non-GAAP
Financial Measures section further below.
(2) Working capital used $56.4 million of cash in the Current Quarter
primarily due to an increase in accounts receivables due to the timing of
customer payments, an increase in other assets related to start-up costs
for new Government Services contracts and increases in inventory to
support new contracts and to mitigate risks related to supply chain
constraints.
"While acknowledging that macroeconomic risks and uncertainties have increased significantly in recent months, we continue to have a positive outlook for Bristow's business, as underscored by the Company's financial guidance for 2025 and 2026," said Chris Bradshaw, President and CEO of Bristow Group. "This view is supported by the stability of our Government Services business, the preponderant weighting of our Offshore Energy Services business to production support activities, and the breadth and diversity of the geographic markets we serve."
Sequential Quarter Results
Offshore Energy Services
Three Months Ended
--------------------------------------------------
March 31, December 31, Favorable
($ in thousands) 2025 2024 (Unfavorable)
----------- ------------ -----------------------
Revenues $ 239,785 $ 240,164 $ (379) (0.2) %
Operating income 37,365 34,346 3,019 8.8 %
Adjusted Operating
Income 47,114 44,183 2,931 6.6 %
Operating income
margin 16 % 14 %
Adjusted Operating
Income margin 20 % 18 %
Revenues from Offshore Energy Services were $0.4 million lower in the Current Quarter. Revenues in Europe were $4.5 million lower primarily due to lower utilization in the United Kingdom ("UK"). Revenues in the Americas were $1.9 million higher primarily due to higher utilization of heavy helicopters in the U.S. Revenues in Africa were $2.2 million higher primarily due to increased aircraft capacity and increased utilization. Operating income was $3.0 million higher in the Current Quarter primarily due to lower repairs and maintenance expense of $7.1 million, partially offset by $3.2 million of increased expenses due to higher training costs and property tax savings in the Preceding Quarter.
Government Services
Three Months Ended
-------------------------------------------------
March 31, December 31, Favorable
($ in thousands) 2025 2024 (Unfavorable)
------------ ------------ ---------------------
Revenues $ 85,943 $ 82,558 $ 3,385 4.1 %
Operating income 6,011 2,266 3,745 nm
Adjusted Operating
Income 13,719 9,750 3,969 40.7 %
Operating income margin 7 % 3 %
Adjusted Operating
Income margin 16 % 12 %
Revenues from Government Services were $3.4 million higher in the Current Quarter primarily due to $2.8 million from the Irish Coast Guard ("IRCG") contract which began its transition in late 2024. Operating income was $3.7 million higher in the Current Quarter primarily due to the higher revenues.
Other Services
Three Months Ended
---------------------------------------------------
March 31, December 31, Favorable
($ in thousands) 2025 2024 (Unfavorable)
------------ ------------ -----------------------
Revenues $ 24,802 $ 30,804 $ (6,002) (19.5) %
Operating income
(loss) (622) 3,623 (4,245) nm
Adjusted Operating
Income 2,037 6,573 (4,536) (69.0) %
Operating income
(loss) margin (3) % 12 %
Adjusted Operating
Income margin 8 % 21 %
Revenues from Other Services were $6.0 million lower in the Current Quarter primarily due to lower seasonal utilization and unfavorable foreign exchange rate impacts. Operating income from Other Services was $4.2 million lower in the Current Quarter primarily due to lower revenues, partially offset by lower operating expenses of $1.4 million due to fewer flight hours.
Corporate
Three Months Ended
-----------------------------------------------------------
March 31, December 31, Favorable
($ in thousands) 2025 2024 (Unfavorable)
---------------- ---------------- -----------------------
Corporate:
Total expenses $ 8,648 $ 8,349 $ (299) (3.6) %
Losses on
disposal of
assets $(558.SI)$ (82) (476) nm
Operating loss (9,206) (8,431) (775) (9.2) %
Consolidated:
Interest income $ 2,118 $ 2,249 $ (131) (5.8) %
Interest expense,
net (9,490) (9,064) (426) (4.7) %
Other, net 11,388 (6,173) 17,561 nm
Income tax
benefit
(expense) (10,183) 12,952 (23,135) nm
Total operating loss for Corporate was $0.8 million higher than the Preceding Quarter primarily due to increased general and administrative expenses of $0.3 million and increased losses on disposal of assets of $0.5 million.
Other income, net of $11.4 million in the Current Quarter primarily resulted from higher foreign exchange gains. Other expense, net of $6.2 million in the Preceding Quarter primarily resulted from foreign exchange losses of $12.6 million, partially offset by an insurance recovery of $4.5 million and a favorable interest adjustment to the Company's pension liability of $1.7 million.
Income tax expense was $10.2 million in the Current Quarter compared to an income tax benefit of $13.0 million in the Preceding Quarter. Income tax expense in the Current Quarter was primarily due to the earnings mix of the Company's global operations and deductible business interest expense, partially offset by the recognition of certain deferred tax assets.
Affirms 2025 and 2026 Outlook
Please refer to the section entitled "Forward-Looking Statements Disclosure" below for further discussion regarding the risks and uncertainties as well as other important information regarding Bristow's guidance. The following guidance contains non-GAAP financial measures. Please read the section entitled "Non-GAAP Financial Measures" for further information.
Select financial outlook for 2025 and 2026 are as follows (in USD, millions):
2025E 2026E
--------------------------------- --------------- ---------------
Revenues:
Offshore Energy Services $950 - $1,060 $975 - $1,165
Government Services $350 - $425 $430 - $460
Other Services $120 - $130 $120 - $150
--------------- ---------------
Total Revenues $1,420 - $1,615 $1,525 - $1,775
Adjusted Operating Income:
Offshore Energy Services $190 - $210 $210 - $255
Government Services $45 - $55 $75 - $85
Other Services $15 - $20 $15 - $20
Corporate ($30 - $40) ($30 - $40)
--------------- ---------------
$220 - $245 $270 - $320
Adjusted EBITDA $230 - $260 $275 - $335
Cash interest $45 $40
Cash taxes $25 - $30 $25 - $30
Maintenance capital expenditures $15 - $20 $20 - $25
There are two main ways in which foreign currency fluctuations impact Bristow's reported financials. The first is primarily non-cash foreign exchange gains (losses) that are reported in the Other, net line on the statements of operations. These are related to the revaluation of certain balance sheet items, typically do not impact cash flows, and thus are excluded in the Adjusted EBITDA presentation. The second is through impacts to certain revenue and expense items, which impact the Company's cash flows. The primary exposure is the GBP/USD exchange rate.
Each GBP0.01 movement in the GBP/USD exchange rate would impact Adjusted EBITDA by +/- $1.2 million. The following table shows the GBP/USD exchange rate for each period presented.
2025E 2026E
------------------------------------- ----------- -----------
(in millions, except exchange rates)
Adjusted EBITDA $230 - $260 $275 - $335
Average GBP/USD exchange rate 1.33 1.40
Liquidity and Capital Allocation
As of March 31, 2025, the Company had $191.1 million of unrestricted cash and $63.2 million of remaining availability under its asset-based revolving credit facility (the "ABL Facility") for total liquidity of $254.3 million. Borrowings under the ABL Facility are subject to certain conditions and requirements.
In the Current Quarter, purchases of property and equipment were $52.1 million, of which $1.9 million were maintenance capital expenditures, and cash proceeds from dispositions of property and equipment were less than $0.1 million. In the Preceding Quarter, purchases of property and equipment were $83.5 million, of which $2.7 million were maintenance capital expenditures, and cash proceeds from dispositions of property and equipment were $5.0 million.
Conference Call
The Company's management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, May 7, 2025, to review results for the first quarter ended March 31, 2025. The conference call can be accessed using the following link:
Link to Access Earnings Call: https://www.veracast.com/webcasts/bristow/webcasts/VTOL1Q25.cfm
A replay will be available through May 28, 2025 by using the link above. A replay will also be available on the Company's website at www.bristowgroup.com shortly after the call and will be accessible through May 28, 2025. The accompanying investor presentation will be available on May 7, 2025, on Bristow's website at www.bristowgroup.com.
For additional information concerning Bristow, contact Jennifer Whalen at InvestorRelations@bristowgroup.com, (713) 369-4636 or visit Bristow Group's website at https://ir.bristowgroup.com/.
About Bristow Group
Bristow Group Inc. is the leading global provider of innovative and sustainable vertical flight solutions. Bristow primarily provides aviation services to a broad base of offshore energy companies and government entities. Our aviation services include personnel transportation, search and rescue ("SAR"), medevac, fixed-wing transportation, unmanned systems and ad hoc helicopter services. Our business is comprised of three operating segments: Offshore Energy Services, Government Services and Other Services. Our energy customers charter our helicopters primarily to transport personnel to, from and between onshore bases and offshore production platforms, drilling rigs and other installations. Our government customers primarily outsource SAR activities whereby we operate specialized helicopters and provide highly trained personnel. Our other services include fixed wing transportation services through a regional airline and dry-leasing aircraft to third-party operators in support of other industries and geographic markets.
Bristow currently has customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, the Falkland Islands, India, Ireland, the Kingdom of Saudi Arabia, Mexico, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, the United Kingdom ("UK") and the United States ("U.S.").
Forward-Looking Statements Disclosure
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements about our future business, strategy, operations, capabilities and results; financial projections; plans and objectives of our management; expected actions by us and by third parties, including our customers, competitors, vendors and regulators; and other matters. Some of the forward-looking statements can be identified by the use of words such as "believes," "belief," "forecasts," "expects," "plans," "anticipates," "intends," "projects," "estimates," "may," "might," "will," "would," "could," "should" or other similar words; however, all statements in this press release, other than statements of historical fact or historical financial results, are forward-looking statements. Our forward-looking statements reflect our views and assumptions on the date hereof regarding future events and operating performance. We believe that they are reasonable, but they involve significant known and unknown risks, uncertainties, assumptions and other factors, many of which may be beyond our control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and factors that could cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K, and in particular, the risks discussed in Part I, Item 1A, "Risk Factors" of such report and those discussed in other documents we file with the Securities and Exchange Commission (the "SEC"). Accordingly, you should not put undue reliance on any forward-looking statements.
You should consider the following key factors when evaluating these forward-looking statements: the impact of supply chain disruptions and inflation and our ability to recoup rising costs in the rates we charge to our customers; our reliance on a limited number of helicopter manufacturers and suppliers and the impact of a shortfall in availability of aircraft components and parts required for maintenance and repairs of our helicopters, including significant delays in the delivery of parts for our S92 fleet; our reliance on a limited number of customers and the reduction of our customer base as a result of consolidation and/or the energy transition; public health crises, such as pandemics and epidemics, and any related government policies and actions; our inability to execute our business strategy for diversification efforts related to government services and advanced air mobility; the potential for cyberattacks or security breaches that could disrupt operations, compromise confidential or sensitive information, damage reputation, expose to legal liability, or cause financial losses; the possibility that we may be unable to maintain compliance with covenants in our financing agreements; global and regional changes in the demand, supply, prices or other market conditions affecting oil and gas, including changes resulting from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries OPEC and other producing countries; fluctuations in the demand for our services; the possibility of significant changes in foreign exchange rates and controls; potential effects of increased competition and the introduction of alternative modes of transportation and solutions; the possibility that portions of our fleet may be grounded for extended periods of time or indefinitely (including due to severe weather events); the possibility of political instability, civil unrest, war or acts of terrorism in any of the countries where we operate or elsewhere; the possibility that we may be unable to re-deploy our aircraft to regions with greater demand; the existence of operating risks inherent in our business, including the possibility of declining safety performance; labor issues, including our inability to negotiate acceptable collective bargaining or union agreements with employees covered by such agreements; the possibility of changes in tax, environmental, trade, immigration and other laws and regulations and policies, including, without limitation, tariffs and actions of the governments that impact oil and gas operations, favor renewable energy projects or address climate change; any failure to effectively manage, and receive anticipated returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions;
the possibility that we may be unable to dispose of older aircraft through sales into the aftermarket; the possibility that we may impair our long-lived assets and other assets, including inventory, property and equipment and investments in unconsolidated affiliates; general economic conditions, including interest rates or uncertainty in the capital and credit markets; disruptions in global trade, including as a result of tariffs, trade restrictions, retaliatory trade measures or the effect of such actions on trading relationships between the United States and other countries; the possibility that reductions in spending on aviation services by governmental agencies where we are seeking contracts could adversely affect or lead to modifications of the procurement process or that such reductions in spending could adversely affect search and rescue ("SAR") contract terms or otherwise delay service or the receipt of payments under such contracts; and the effectiveness of our environmental, social and governance initiatives.
The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe are important factors to consider. All forward-looking statements in this press release are qualified by these cautionary statements and are only made as of the date thereof. The forward-looking statements in this press release should be evaluated together with the many uncertainties that affect our businesses, particularly those discussed in greater detail in Part I, Item 1A, "Risk Factors" and Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K and Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Part II, Item 1A, "Risk Factors" of our subsequent Quarterly Reports on Form 10-Q. We disclaim any obligation or undertaking, other than as required by law, to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, whether as a result of new information, future events or otherwise.
BRISTOW GROUP INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Three Months Ended March 31,
------------------------------------ ------------------
March 31, December 31, Favorable/
2025 2024 (Unfavorable)
----------------- ----------------- ------------------
Total revenues $ 350,530 $ 353,526 $ (2,996)
Costs and
expenses:
Operating expenses
Personnel 87,311 87,530 219
Repairs and
maintenance 61,315 68,164 6,849
Insurance 6,834 5,827 (1,007)
Fuel 18,875 19,575 700
Leased-in
equipment 26,049 26,150 101
Other 56,801 54,665 (2,136)
----------------- ----------------- ------------------
Total operating
expenses 257,185 261,911 4,726
General and
administrative
expenses 43,100 44,372 1,272
Depreciation and
amortization
expense 16,841 16,701 (140)
----------------- ----------------- ------------------
Total costs and
expenses 317,126 322,984 5,858
Losses on disposal
of assets (558) (82) (476)
Earnings from
unconsolidated
affiliates 702 1,344 (642)
----------------- ----------------- ------------------
Operating
income 33,548 31,804 1,744
Interest income 2,118 2,249 (131)
Interest expense,
net (9,490) (9,064) (426)
Other, net 11,388 (6,173) 17,561
----------------- ----------------- ------------------
Total other
income
(expense),
net 4,016 (12,988) 17,004
----------------- ----------------- ------------------
Income before
income taxes 37,564 18,816 18,748
Income tax benefit
(expense) (10,183) 12,952 (23,135)
----------------- ----------------- ------------------
Net income 27,381 31,768 (4,387)
Net loss
(income)
attributable
to
noncontrolling
interests (22) 25 (47)
----------------- ----------------- ------------------
Net income
attributable
to Bristow
Group Inc. $ 27,359 $ 31,793 $ (4,434)
================= ================= ==================
Basic earnings per
common share $ 0.95 $ 1.11
Diluted earnings
per common share $ 0.92 $ 1.07
Weighted average
common shares
outstanding,
basic 28,667 28,628
Weighted average
common shares
outstanding,
diluted 29,867 29,796
Adjusted Operating
Income $ 54,353 $ 52,314 $ 2,039
EBITDA $ 63,895 $ 44,581 $ 19,314
Adjusted EBITDA $ 57,710 $ 57,840 $ (130)
BRISTOW GROUP INC.
REVENUES BY SEGMENT
(unaudited, in thousands)
Three Months Ended
---------------------------------------------------
March 31, December 31, Favorable
2025 2024 (Unfavorable)
-------------- -------------- -------------------
Offshore Energy
Services:
Europe $ 101,218 $ 105,686 $ (4,468) (4.2) %
Americas 91,569 89,651 1,918 2.1 %
Africa 46,998 44,827 2,171 4.8 %
-------------- -------------- ---------
Total Offshore
Energy Services $ 239,785 $ 240,164 $ (379) (0.2) %
Government Services 85,943 82,558 3,385 4.1 %
Other Services 24,802 30,804 (6,002) (19.5) %
-------------- -------------- ---------
$ 350,530 $ 353,526 $ (2,996) (0.8) %
============== ============== =========
FLIGHT HOURS BY SEGMENT
(unaudited)
Three Months Ended
March 31, December 31, Favorable
2025 2024 (Unfavorable)
-------------- -------------- -------------------
Offshore Energy
Services:
Europe 8,749 9,395 (646) (6.9) %
Americas 10,002 10,505 (503) (4.8) %
Africa 4,680 4,239 441 10.4 %
-------------- -------------- ---------
Total Offshore
Energy Services 23,431 24,139 (708) (2.9) %
Government Services 3,941 4,242 (301) (7.1) %
Other Services 3,400 3,585 (185) (5.2) %
-------------- -------------- ---------
30,772 31,966 (1,194) (3.7) %
============== ============== =========
BRISTOW GROUP INC.
First Quarter Segment Statements of Operations
(unaudited, in thousands)
Offshore
Energy Government Other
Services Services Services Corporate Consolidated
-------------- --------------- ---------------- ----------------- --------------
Three Months
Ended March 31,
2025
Revenues $ 239,785 $ 85,943 $ 24,802 $ -- $ 350,530
Less:
Personnel 56,766 24,473 6,072 -- 87,311
Repairs and
maintenance 46,907 11,361 3,047 -- 61,315
Insurance 4,029 2,437 368 -- 6,834
Fuel 12,702 2,082 4,091 -- 18,875
Leased-in
equipment 14,933 9,693 1,423 -- 26,049
Other segment
costs 37,656 12,871 6,274 -- 56,801
-------------- --------------- ---------------- ----------------- --------------
Total
operating
expenses 172,993 62,917 21,275 -- 257,185
General and
administrative
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