Bristow Group Reports Second Quarter 2025 Results, Raises 2025 and 2026 Outlook Ranges
HOUSTON, Aug. 5, 2025 /PRNewswire/ --
Second Quarter Highlights
Total revenues of $376.4 million in Q2 2025 compared to $350.5 million in Q1 2025
Net income of $31.7 million, or $1.07 per diluted share, in Q2 2025 compared to net income of $27.4 million, or $0.92 per diluted share, in Q1 2025
Adjusted EBITDA (as defined herein)(1) in Q2 2025 was $60.7 million compared to $57.7 million in Q1 2025
Raises 2025 Adjusted EBITDA outlook range to $240 - $260 million and raises 2026 Adjusted EBITDA outlook range to $300 - $335 million
Initiates accelerated debt payments and share repurchases
Bristow Group Inc. (NYSE:VTOL) ("Bristow" or the "Company") today reported net income attributable to the Company of $31.7 million, or $1.07 per diluted share, for the quarter ended June 30, 2025 (the "Current Quarter") on total revenues of $376.4 million compared to net income attributable to the Company of $27.4 million, or $0.92 per diluted share, for the quarter ended March 31, 2025 (the "Preceding Quarter") on total revenues of $350.5 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
June 30,2025
March 31, 2025
Total revenues
$ 376,429
$ 350,530
Operating income
42,640
33,548
Net income attributable to Bristow Group Inc.
31,748
27,359
Basic earnings per common share
1.10
0.95
Diluted earnings per common share
1.07
0.92
Net cash provided by (used in) operating activities
99,039
(603)
Non-GAAP(1):
Adjusted Operating Income
$ 57,330
$ 54,353
EBITDA
79,568
63,895
Adjusted EBITDA
60,700
57,710
Free Cash Flow
94,507
(2,489)
Adjusted Free Cash Flow
95,293
(1,749)
____________________
(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.
"We are pleased to report another quarter of strong financial results and to raise 2025 Adjusted EBITDA guidance to $240-$260 million and 2026 Adjusted EBITDA guidance to $300-$335 million," said Chris Bradshaw, President and CEO of Bristow Group. "Consistent with our capital allocation framework, Bristow commenced accelerated debt payments and share repurchases in the current quarter."
Sequential Quarter Results
Offshore Energy Services
Three Months Ended
($ in thousands)
June 30,2025
March 31,2025
Favorable (Unfavorable)
Revenues
$ 252,810
$ 239,785
$ 13,025
5.4 %
Operating income
43,595
37,365
6,230
16.7 %
Adjusted Operating Income
53,588
47,114
6,474
13.7 %
Operating income margin
17 %
16 %
Adjusted Operating Income margin
21 %
20 %
Revenues from Offshore Energy Services were $13.0 million higher in the Current Quarter. Revenues in Europe were $6.4 million higher primarily due to higher utilization and favorable foreign exchange rate impacts in Norway. Revenues in the Americas were $3.7 million higher primarily due to higher utilization in the U.S. Revenues in Africa were $3.0 million higher primarily due to higher utilization and additional aircraft capacity introduced into the region. Operating income was $6.2 million higher in the Current Quarter primarily due to these higher revenues, partially offset by higher operating expenses of $5.7 million. The increase in operating expenses was primarily due to higher reimbursable expenses of $2.5 million, higher training and travel costs of $1.2 million due to an increase in pilot training for Africa and Brazil, higher subcontractor costs of $1.2 million, and higher repairs and maintenance costs of $1.2 million. The higher repairs and maintenance costs related to an increase in power-by-the-hour ("PBH") rates, increased flight hours and the timing of repairs totaling $5.6 million, partially offset by higher vendor credits of $4.4 million. Personnel costs were $1.7 million lower due to seasonal personnel cost variations in Norway of $4.2 million and a favorable change in benefit estimates in the U.S. of $0.4 million, which were partially offset by unfavorable foreign exchange rate impacts of $2.2 million and higher headcount of $1.0 million, primarily in Brazil and Africa.
Government Services
Three Months Ended
($ in thousands)
June 30,2025
March 31,2025
Favorable (Unfavorable)
Revenues
$ 92,499
$ 85,943
$ 6,556
7.6 %
Operating income (loss)
(1,912)
6,011
(7,923)
nm
Adjusted Operating Income
6,036
13,719
(7,683)
(56.0) %
Operating income (loss) margin
(2) %
7 %
Adjusted Operating Income margin
7 %
16 %
____________________
nm = Not Meaningful
Revenues from Government Services were $6.6 million higher in the Current Quarter primarily due to the ongoing transition of the Irish Coast Guard ("IRCG") search and rescue contract and higher utilization in the United Kingdom Search and Rescue ("UKSAR") contract. Operating loss was $1.9 million in Current Quarter compared to operating income of $6.0 million in the Preceding Quarter primarily due to higher subcontractor costs of $5.1 million and higher personnel costs of $2.8 million related to the new Government Services contracts, unfavorable foreign exchange rate impacts of $3.0 million, higher repairs and maintenance costs of $2.0 million, and higher fuel costs of $0.6 million, offsetting the increased revenues.
Other Services
Three Months Ended
($ in thousands)
June 30, 2025
March 31, 2025
Favorable (Unfavorable)
Revenues
$ 31,120
$ 24,802
$ 6,318
25.5 %
Operating income (loss)
3,443
(622)
4,065
nm
Adjusted Operating Income
6,188
2,037
4,151
nm
Operating income (loss) margin
11 %
(3) %
Adjusted Operating Income margin
20 %
8 %
Revenues from Other Services were $6.3 million higher in the Current Quarter primarily due to seasonally higher utilization in Australia of $6.0 million. Operating income was $4.1 million higher in the Current Quarter primarily due to these higher revenues, partially offset by higher operating expenses of $1.9 million due to increased activity.
Corporate
Three Months Ended
($ in thousands)
June 30, 2025
March 31, 2025
Favorable (Unfavorable)
Corporate:
Total expenses
$ 8,695
$ 8,648
$ (47)
(0.5) %
Gains (losses) on disposal of assets
6,209
(558)
6,767
nm
Operating loss
(2,486)
(9,206)
6,720
73.0 %
Consolidated:
Interest income
$ 2,039
$ 2,118
$ (79)
(3.7) %
Interest expense, net
(10,034)
(9,490)
(544)
(5.7) %
Other, net
17,577
11,388
6,189
54.3 %
Income tax expense
(20,443)
(10,183)
(10,260)
nm
Total operating losses for Corporate were $6.7 million less than the Preceding Quarter primarily due to increased gains on disposal of assets.
Interest expense, net was $0.5 million higher in the Current Quarter primarily due to the acceleration of the amortization of deferred financing costs resulting from the prepayment of principal on the UKSAR secured equipment financings ("UKSAR Debt").
Other income, net of $17.6 million in the Current Quarter and $11.4 million in the Preceding Quarter primarily resulted from higher foreign exchange gains.
Income tax expense was $20.4 million in the Current Quarter compared to $10.2 million in the Preceding Quarter. The increase in income tax expense was primarily due to the earnings mix of the Company's global operations and lower deductible business interest expenses, partially offset by the recognition of certain deferred tax assets.
Raises 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
$980 - $1,030
$1,050 - $1,130
Government Services
$360 - $400
$440 - $460
Other Services
$120 - $130
$130 - $150
Total Revenues
$1,460 - $1,560
$1,620 - $1,740
Adjusted Operating Income:
Offshore Energy Services
$200 - $205
$235 - $250
Government Services
$40 - $50
$75 - $85
Other Services
$20 - $25
$20 - $25
Corporate
($35 - $30)
($35 - $30)
$225 - $250
$295 - $330
Adjusted EBITDA
$240 - $260
$300 - $335
Cash interest
~$45
~$40
Cash taxes
$25 - $30
$25 - $30
Maintenance capital expenditures
$15 - $20
$20 - $25
Capital Allocation and Liquidity
In support of its capital allocation framework, the Company made $15.3 million (£11.2 million) of accelerated principal payments on its UKSAR Debt facility and repurchased 119,841 shares of common stock in open market transactions for gross consideration of $3.9 million, representing an average cost per share of $32.41, during the Current Quarter. As of June 30, 2025, $121.1 million remained available under the $125.0 million stock repurchase program.
In the Current Quarter, purchases of property and equipment were $31.6 million, of which $4.5 million were maintenance capital expenditures, and cash proceeds from the sale of assets were $24.1 million. In the Preceding 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.
As of June 30, 2025, the Company had $251.8 million of unrestricted cash and $64.7 million of remaining availability under its asset-based revolving credit facility (the "ABL Facility") for total liquidity of $316.5 million. Borrowings under the ABL Facility are subject to certain conditions and requirements.
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, August 6, 2025, to review results for the second quarter ended June 30, 2025. The conference call can be accessed using the following link:
Link to Access Earnings Call: https://www.veracast.com/webcasts/bristow/webcasts/VTOL2Q25.cfm
A replay will be available through August 27, 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 August 27, 2025. The accompanying investor presentation will be available on August 6, 2025, on Bristow's website at www.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 in Australia 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 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 the 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 the Company's 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
Favorable/(Unfavorable)
June 30,2025
March 31, 2025
Total revenues
$ 376,429
$ 350,530
$ 25,899
Costs and expenses:
Operating expenses
Personnel
88,729
87,311
(1,418)
Repairs and maintenance
64,788
61,315
(3,473)
Insurance
6,149
6,834
685
Fuel
20,399
18,875
(1,524)
Leased-in equipment
26,515
26,049
(466)
Other
71,911
56,801
(15,110)
Total operating expenses
278,491
257,185
(21,306)
General and administrative expenses
44,375
43,100
(1,275)
Depreciation and amortization expense
17,312
16,841
(471)
Total costs and expenses
340,178
317,126
