Core Insights - Bristow Group Inc. reported a net income of $31.7 million, or $1.07 per diluted share, for Q2 2025, an increase from $27.4 million, or $0.92 per diluted share, in Q1 2025, with total revenues rising to $376.4 million from $350.5 million [1][6][25]. Financial Performance - Total revenues for Q2 2025 were $376.4 million, up 7.4% from $350.5 million in Q1 2025 [6][25]. - Operating income increased to $42.6 million in Q2 2025 from $33.5 million in Q1 2025 [3][25]. - Adjusted EBITDA for Q2 2025 was $60.7 million, compared to $57.7 million in Q1 2025 [6][25]. Segment Performance - Offshore Energy Services revenues rose to $252.8 million in Q2 2025, a 5.4% increase from $239.8 million in Q1 2025, with operating income up 16.7% to $43.6 million [4][28]. - Government Services revenues increased to $92.5 million, a 7.6% rise from $85.9 million in Q1 2025, but the segment reported an operating loss of $1.9 million [8][28]. - Other Services saw revenues grow by 25.5% to $31.1 million, with operating income improving significantly to $3.4 million from a loss of $0.6 million in Q1 2025 [9][28]. Guidance and Capital Allocation - The company raised its 2025 Adjusted EBITDA guidance to a range of $240-$260 million and for 2026 to $300-$335 million [4][6]. - Bristow initiated accelerated debt payments of $15.3 million and repurchased 119,841 shares for $3.9 million during the quarter [15][6]. Liquidity and Cash Flow - As of June 30, 2025, Bristow had $251.8 million in unrestricted cash and $64.7 million available under its asset-based revolving credit facility, totaling $316.5 million in liquidity [17][30]. - The company reported net cash provided by operating activities of $99.0 million in Q2 2025, compared to a cash outflow of $0.6 million in Q1 2025 [3][6].

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) Bristow Group reported strong Q2 2025 financial results, including increased revenues and net income, and raised its 2025 and 2026 Adjusted EBITDA outlook [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Bristow Group reported strong financial results for Q2 2025, with significant sequential increases in total revenues, net income, and Adjusted EBITDA compared to Q1 2025. The company also raised its Adjusted EBITDA outlook ranges for both 2025 and 2026 Q2 2025 Financial Performance (millions USD) | Metric | Q2 2025 (June 30, 2025) | Q1 2025 (March 31, 2025) | Change | Change (%) | | :-------------------------------- | :----------------------- | :---------------------- | :----- | :--------- | | Total revenues | $376.4 | $350.5 | +$25.9 | +7.4% | | Net income attributable to Bristow Group Inc. | $31.7 | $27.4 | +$4.3 | +15.7% | | Diluted earnings per common share | $1.07 | $0.92 | +$0.15 | +16.3% | | Adjusted EBITDA | $60.7 | $57.7 | +$3.0 | +5.2% | | Net cash provided by (used in) operating activities | $99.0 | $(0.6) | +$99.6 | nm | | Free Cash Flow | $94.5 | $(2.5) | +$97.0 | nm | | Adjusted Free Cash Flow | $95.3 | $(1.7) | +$97.0 | nm | - Bristow Group raised its 2025 Adjusted EBITDA outlook range to **$240 - $260 million** and its 2026 Adjusted EBITDA outlook range to **$300 - $335 million**[5](index=5&type=chunk) - The company initiated accelerated debt payments and share repurchases during the quarter[5](index=5&type=chunk) [Management's Strategic Commentary](index=1&type=section&id=Management's%20Strategic%20Commentary) Chris Bradshaw, President and CEO, expressed satisfaction with the strong financial results and the ability to raise guidance for 2025 and 2026. He highlighted the company's adherence to its capital allocation framework by commencing accelerated debt payments and share repurchases - CEO Chris Bradshaw stated, "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**"[6](index=6&type=chunk) - Bristow commenced accelerated debt payments and share repurchases in the current quarter, consistent with its capital allocation framework[6](index=6&type=chunk) [Sequential Quarter Financial Results by Segment](index=2&type=section&id=Sequential%20Quarter%20Financial%20Results%20by%20Segment) This section details Bristow Group's Q2 2025 financial performance across its Offshore Energy, Government, and Other Services segments, highlighting key revenue and operating income drivers [Offshore Energy Services](index=2&type=section&id=Offshore%20Energy%20Services) The Offshore Energy Services segment experienced a significant increase in revenues and operating income, driven by higher utilization and favorable foreign exchange rates across Europe, the Americas, and Africa. This growth was partially offset by increased operating expenses Offshore Energy Services Performance (thousands USD) | Metric | Q2 2025 | Q1 2025 | Favorable (Unfavorable) | Change (%) | | :------------------------ | :-------- | :-------- | :---------------------- | :--------- | | 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% | +1% | | | Adjusted Operating Income margin | 21% | 20% | +1% | | - Revenue increase of **$13.0 million** was primarily due to higher utilization and favorable foreign exchange rates in Norway (**$6.4 million**), higher utilization in the U.S. (**$3.7 million**), and higher utilization and additional aircraft capacity in Africa (**$3.0 million**)[6](index=6&type=chunk) - Operating income increased by **$6.2 million**, mainly due to higher revenues, partially offset by a **$5.7 million** increase in operating expenses, including higher reimbursable expenses, training/travel costs, subcontractor costs, and repairs/maintenance[6](index=6&type=chunk) [Government Services](index=2&type=section&id=Government%20Services) Government Services revenues increased due to new contracts and higher utilization, but the segment reported an operating loss primarily due to significantly higher operating expenses associated with new contracts and unfavorable foreign exchange impacts Government Services Performance (thousands USD) | Metric | Q2 2025 | Q1 2025 | Favorable (Unfavorable) | Change (%) | | :------------------------ | :-------- | :-------- | :---------------------- | :--------- | | 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% | -9% | | | Adjusted Operating Income margin | 7% | 16% | -9% | | - Revenues increased by **$6.6 million**, mainly from the ongoing transition of the Irish Coast Guard (IRCG) contract and higher utilization in the United Kingdom Search and Rescue (UKSAR) contract[7](index=7&type=chunk) - The segment shifted from an operating income of **$6.0 million** in Q1 to an operating loss of **$1.9 million** in Q2, primarily due to higher subcontractor costs (**$5.1 million**), personnel costs (**$2.8 million**) for new contracts, unfavorable foreign exchange impacts (**$3.0 million**), and increased repairs/maintenance (**$2.0 million**) and fuel costs (**$0.6 million**)[7](index=7&type=chunk) [Other Services](index=3&type=section&id=Other%20Services) The Other Services segment demonstrated strong growth in both revenues and operating income, primarily driven by seasonally higher utilization in Australia Other Services Performance (thousands USD) | Metric | Q2 2025 | Q1 2025 | Favorable (Unfavorable) | Change (%) | | :------------------------ | :-------- | :-------- | :---------------------- | :--------- | | 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)% | +14% | | | Adjusted Operating Income margin | 20% | 8% | +12% | | - Revenues increased by **$6.3 million**, mainly due to seasonally higher utilization in Australia (**$6.0 million**)[8](index=8&type=chunk) - Operating income improved by **$4.1 million**, primarily due to higher revenues, partially offset by a **$1.9 million** increase in operating expenses due to increased activity[8](index=8&type=chunk) [Corporate and Consolidated Financial Items](index=3&type=section&id=Corporate%20and%20Consolidated%20Financial%20Items) Corporate operating losses decreased significantly due to increased gains on asset disposals. Interest expense rose due to accelerated amortization of deferred financing costs, while other income increased from higher foreign exchange gains. Income tax expense more than doubled due to earnings mix and lower deductible interest expenses Corporate and Consolidated Financial Items (thousands USD) | Metric | Q2 2025 | Q1 2025 | Favorable (Unfavorable) | Change (%) | | :------------------------ | :-------- | :-------- | :---------------------- | :--------- | | Corporate Operating loss | $(2,486) | $(9,206) | $6,720 | 73.0% | | Gains (losses) on disposal of assets | $6,209 | $(558) | $6,767 | nm | | 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 | - Corporate operating losses decreased by **$6.7 million** primarily due to increased gains on disposal of assets[9](index=9&type=chunk) - Interest expense, net, increased by **$0.5 million** due to accelerated amortization of deferred financing costs from prepayment of principal on UKSAR Debt[10](index=10&type=chunk) - Other income, net, increased by **$6.2 million**, primarily driven by higher foreign exchange gains[10](index=10&type=chunk) - Income tax expense increased by **$10.3 million**, mainly due to the earnings mix of global operations and lower deductible business interest expenses, partially offset by deferred tax asset recognition[11](index=11&type=chunk) [Financial Outlook and Capital Management](index=4&type=section&id=Financial%20Outlook%20and%20Capital%20Management) Bristow Group updated its financial outlook for 2025 and 2026, projecting increased revenues and Adjusted EBITDA, alongside details on capital allocation and liquidity [2025 and 2026 Financial Outlook](index=4&type=section&id=2025%20and%202026%20Financial%20Outlook) Bristow Group has raised its financial outlook for both 2025 and 2026, projecting increased total revenues, Adjusted Operating Income, and Adjusted EBITDA across all segments, reflecting confidence in future performance Financial Outlook (USD, millions) | Metric | 2025E (USD, millions) | 2026E (USD, millions) | | :-------------------------- | :-------------------- | :-------------------- | | **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) | | **Consolidated Adjusted Operating Income** | **$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](index=4&type=section&id=Capital%20Allocation%20and%20Liquidity) Bristow Group actively managed its capital during the quarter, making accelerated debt payments and repurchasing shares. The company maintained a strong liquidity position with substantial unrestricted cash and available credit - The Company made **$15.3 million** (£11.2 million) of accelerated principal payments on its UKSAR Debt facility[14](index=14&type=chunk) - Bristow repurchased **119,841 shares** of common stock for **$3.9 million** at an average cost of **$32.41 per share**, with **$121.1 million** remaining under the **$125.0 million** stock repurchase program[14](index=14&type=chunk) Capital Activity (millions USD) | Capital Activity | Q2 2025 | Q1 2025 | | :-------------------------------- | :-------- | :-------- | | Purchases of property and equipment | $31.6 | $52.1 | | Maintenance capital expenditures | $4.5 | $1.9 | | Cash proceeds from sale of assets | $24.1 | < $0.1 | - As of June 30, 2025, total liquidity was **$316.5 million**, comprising **$251.8 million** of unrestricted cash and **$64.7 million** remaining availability under its asset-based revolving credit facility[16](index=16&type=chunk) [Company Profile and Disclosures](index=5&type=section&id=Company%20Profile%20and%20Disclosures) This section provides an overview of Bristow Group's business as a global vertical flight solutions provider and includes important forward-looking statement disclosures [About Bristow Group](index=5&type=section&id=About%20Bristow%20Group) Bristow Group Inc. is a leading global provider of vertical flight solutions, primarily serving offshore energy companies and government entities with a range of aviation services across three operating segments and a broad international presence - Bristow Group Inc. is the leading global provider of innovative and sustainable vertical flight solutions[19](index=19&type=chunk) - The company primarily provides aviation services to offshore energy companies and government entities, including personnel transportation, search and rescue (SAR), medevac, fixed-wing transportation, unmanned systems, and ad-hoc helicopter services[19](index=19&type=chunk) - Bristow's business is comprised of three operating segments: Offshore Energy Services, Government Services, and Other Services[19](index=19&type=chunk) - The company has customers in numerous countries, including Australia, Brazil, Canada, Chile, India, Ireland, the Netherlands, Nigeria, Norway, Spain, the UK, and the U.S[20](index=20&type=chunk) [Forward-Looking Statements Disclosure](index=6&type=section&id=Forward-Looking%20Statements%20Disclosure) This section provides a cautionary disclosure regarding forward-looking statements, emphasizing that future results may differ materially from projections due to significant known and unknown risks, uncertainties, and assumptions. Investors are advised not to place undue reliance on these statements and to consider various risk factors detailed in SEC filings - The press release includes forward-looking statements about future business, strategy, operations, financial projections, and management plans[22](index=22&type=chunk) - These statements involve significant known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to differ materially from any future results expressed or implied[22](index=22&type=chunk) - Key factors to consider include supply chain disruptions, inflation, reliance on limited manufacturers/customers, cyberattacks, compliance with financing agreements, fluctuations in oil and gas demand, foreign exchange rates, competition, political instability, and changes in laws and regulations[23](index=23&type=chunk) [Detailed Financial Statements](index=7&type=section&id=Detailed%20Financial%20Statements) This section presents the condensed consolidated statements of operations, revenues and flight hours by segment, segment statements of operations, and balance sheets for Bristow Group [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations provide a detailed breakdown of revenues, costs, and expenses, leading to net income for Q2 2025 compared to Q1 2025, highlighting the drivers of the sequential financial performance Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | Favorable/(Unfavorable) | | :------------------------------------ | :------------ | :------------- | :---------------------- | | Total revenues | $376,429 | $350,530 | $25,899 | | 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 | $(23,052) | | Gains (losses) on disposal of assets | $6,209 | $(558) | $6,767 | | Operating income | $42,640 | $33,548 | $9,092 | | Interest income | $2,039 | $2,118 | $(79) | | Interest expense, net | $(10,034) | $(9,490) | $(544) | | Other, net | $17,577 | $11,388 | $6,189 | | Income before income taxes | $52,222 | $37,564 | $14,658 | | Income tax expense | $(20,443) | $(10,183) | $(10,260) | | Net income attributable to Bristow Group Inc. | $31,748 | $27,359 | $4,389 | | Diluted earnings per common share | $1.07 | $0.92 | | | Adjusted EBITDA | $60,700 | $57,710 | $2,990 | [Revenues and Flight Hours by Segment](index=8&type=section&id=Revenues%20and%20Flight%20Hours%20by%20Segment) This section provides a detailed breakdown of revenues and flight hours for each operating segment, highlighting the growth drivers and operational activity across different regions Revenues by Segment (in thousands) | Segment (in thousands) | June 30, 2025 | March 31, 2025 | Favorable/(Unfavorable) | Change (%) | | :----------------------- | :------------ | :------------- | :---------------------- | :--------- | | **Offshore Energy Services:** | | | | | | Europe | $107,625 | $101,218 | $6,407 | 6.3% | | Americas | $95,230 | $91,569 | $3,661 | 4.0% | | Africa | $49,955 | $46,998 | $2,957 | 6.3% | | Total Offshore Energy Services | $252,810 | $239,785 | $13,025 | 5.4% | | Government Services | $92,499 | $85,943 | $6,556 | 7.6% | | Other Services | $31,120 | $24,802 | $6,318 | 25.5% | | **Total Revenues** | **$376,429** | **$350,530** | **$25,899** | **7.4%** | Flight Hours by Segment (hours) | Segment Flight Hours | June 30, 2025 | March 31, 2025 | Favorable/(Unfavorable) | Change (%) | | :--------------------- | :------------ | :------------- | :---------------------- | :--------- | | **Offshore Energy Services:** | | | | | | Europe | 8,838 | 8,749 | 89 | 1.0% | | Americas | 10,700 | 10,002 | 698 | 7.0% | | Africa | 4,931 | 4,680 | 251 | 5.4% | | Total Offshore Energy Services | 24,469 | 23,431 | 1,038 | 4.4% | | Government Services | 4,868 | 3,941 | 927 | 23.5% | | Other Services | 3,684 | 3,400 | 284 | 8.4% | | **Total Flight Hours** | **33,021** | **30,772** | **2,249** | **7.3%** | [Second Quarter Segment Statements of Operations](index=9&type=section&id=Second%20Quarter%20Segment%20Statements%20of%20Operations) This section provides a detailed breakdown of revenues, operating expenses, and operating income (loss) for each segment and corporate, both on a GAAP and Adjusted Operating Income basis, for Q2 2025 and Q1 2025 Q2 2025 Segment Statements of Operations (in thousands) | Segment (in thousands) | Q2 2025 Revenues | Q2 2025 Operating Income (Loss) | Q2 2025 Adjusted Operating Income (Loss) | | :----------------------- | :--------------- | :------------------------------ | :--------------------------------------- | | Offshore Energy Services | $252,810 | $43,595 | $53,588 | | Government Services | $92,499 | $(1,912) | $6,036 | | Other Services | $31,120 | $3,443 | $6,188 | | Corporate | — | $(2,486) | $(8,482) | | **Consolidated** | **$376,429** | **$42,640** | **$57,330** | Q1 2025 Segment Statements of Operations (in thousands) | Segment (in thousands) | Q1 2025 Revenues | Q1 2025 Operating Income (Loss) | Q1 2025 Adjusted Operating Income (Loss) | | :----------------------- | :--------------- | :------------------------------ | :--------------------------------------- | | Offshore Energy Services | $239,785 | $37,365 | $47,114 | | Government Services | $85,943 | $6,011 | $13,719 | | Other Services | $24,802 | $(622) | $2,037 | | Corporate | — | $(9,206) | $(8,517) | | **Consolidated** | **$350,530** | **$33,548** | **$54,353** | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present the company's financial position as of June 30, 2025, compared to December 31, 2024, showing changes in assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **ASSETS:** | | | | Total current assets | $670,173 | $619,458 | | Property and equipment, net | $1,163,152 | $1,076,221 | | Total assets | $2,288,026 | $2,125,246 | | **LIABILITIES AND STOCKHOLDERS' EQUITY:** | | | | Total current liabilities | $371,132 | $325,900 | | Long-term debt, less current maturities | $680,412 | $671,169 | | Total liabilities | $1,304,038 | $1,233,974 | | Total Bristow Group Inc. stockholders' equity | $984,370 | $891,707 | | Total liabilities and stockholders' equity | $2,288,026 | $2,125,246 | [Non-GAAP Financial Measures Reconciliations](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section provides reconciliations for non-GAAP financial measures including EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Operating Income by segment [EBITDA and Adjusted EBITDA](index=11&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) This section defines EBITDA and Adjusted EBITDA as non-GAAP measures used by management to assess operating performance, providing a reconciliation from net income. Adjusted EBITDA excludes non-cash gains/losses, foreign exchange impacts, and certain special items to offer a clearer view of core business activities - EBITDA is defined as Earnings before Interest expense, Taxes, Depreciation and Amortization[32](index=32&type=chunk) - Adjusted EBITDA further adjusts EBITDA for non-cash gains/losses on asset sales, non-cash foreign exchange gains/losses, and special items like PBH maintenance amortization, insurance gains, and nonrecurring professional service fees or strategic activity costs[32](index=32&type=chunk) EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | LTM | | :-------------------------- | :------------ | :------------- | :---------------- | :----------------- | :-------- | | Net income | $31,779 | $27,381 | $31,768 | $28,279 | $119,207 | | Depreciation and amortization expense | $17,312 | $16,841 | $16,701 | $17,569 | $68,423 | | Interest expense, net | $10,034 | $9,490 | $9,064 | $9,660 | $38,248 | | Income tax expense (benefit) | $20,443 | $10,183 | $(12,952) | $8,392 | $26,066 | | **EBITDA** | **$79,568** | **$63,895** | **$44,581** | **$63,900** | **$251,944** | | (Gains) losses on disposal of assets | $(6,209) | $558 | $82 | $626 | $(4,943) | | Foreign exchange (gains) losses | $(17,435) | $(11,045) | $12,581 | $(10,904) | $(26,803) | | Special items | $4,776 | $4,302 | $596 | $6,558 | $16,232 | | **Adjusted EBITDA** | **$60,700** | **$57,710** | **$57,840** | **$60,180** | **$236,430** | [Free Cash Flow and Adjusted Free Cash Flow](index=12&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow) This section defines Free Cash Flow and Adjusted Free Cash Flow as non-GAAP measures, providing insight into the company's ability to generate cash from its business. Adjusted Free Cash Flow further excludes costs related to certain special items - Free Cash Flow represents net cash provided by (used in) operating activities less maintenance capital expenditures[36](index=36&type=chunk) - Adjusted Free Cash Flow is Free Cash Flow adjusted to exclude costs paid in relation to certain special items, such as professional service fees for unusual litigation and other nonrecurring strategic activity costs[36](index=36&type=chunk) Free Cash Flow and Adjusted Free Cash Flow Reconciliation (in thousands) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | LTM | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :-------- | | Net cash provided by (used in) operating activities | $99,039 | $(603) | $51,054 | $66,022 | $215,512 | | Less: Maintenance capital expenditures | $(4,532) | $(1,886) | $(2,739) | $(8,041) | $(17,198) | | **Free Cash Flow** | **$94,507** | **$(2,489)** | **$48,315** | **$57,981** | **$198,314** | | Plus: Special items | $786 | $740 | $(2,580) | $1,539 | $485 | | **Adjusted Free Cash Flow** | **$95,293** | **$(1,749)** | **$45,735** | **$59,520** | **$198,799** | [Adjusted Operating Income by Segment](index=13&type=section&id=Adjusted%20Operating%20Income%20by%20Segment) This section defines Adjusted Operating Income (Loss) by segment as a non-GAAP measure, providing a supplemental view of each segment's operating performance by excluding depreciation, amortization, and gains/losses on asset dispositions - Adjusted Operating Income (Loss) is defined as operating income (loss) before depreciation and amortization (including PBH amortization) and gains or losses on asset dispositions[38](index=38&type=chunk) Q2 2025 Adjusted Operating Income by Segment (in thousands) | Segment (in thousands) | Q2 2025 Operating Income (Loss) | Q2 2025 Adjusted Operating Income | | :----------------------- | :------------------------------ | :-------------------------------- | | Offshore Energy Services | $43,595 | $53,588 | | Government Services | $(1,912) | $6,036 | | Other Services | $3,443 | $6,188 | | Corporate | $(2,486) | $(8,482) | | **Consolidated Adjusted Operating Income** | **$42,640** | **$57,330** | Q1 2025 Adjusted Operating Income by Segment (in thousands) | Segment (in thousands) | Q1 2025 Operating Income (Loss) | Q1 2025 Adjusted Operating Income | | :----------------------- | :------------------------------ | :-------------------------------- | | Offshore Energy Services | $37,365 | $47,114 | | Government Services | $6,011 | $13,719 | | Other Services | $(622) | $2,037 | | Corporate | $(9,206) | $(8,517) | | **Consolidated Adjusted Operating Income** | **$33,548** | **$54,353** | [Fleet Information](index=14&type=section&id=Fleet%20Information) This section details Bristow Group's fleet composition, including aircraft types, ownership, average age, and deployment across its operating segments [Fleet Composition and Deployment](index=14&type=section&id=Fleet%20Composition%20and%20Deployment) Bristow Group's fleet consists of 211 aircraft, predominantly helicopters, with a significant portion owned by the company. The fleet is strategically distributed across its three operating segments, with additional aircraft under construction and options for future expansion Fleet Composition | Aircraft Type | Owned Aircraft | Leased Aircraft | Total Aircraft | Average Age (years) | | :-------------------------- | :------------- | :-------------- | :------------- | :------------------ | | Heavy Helicopters | 53 | 33 | 86 | 15 | | Medium Helicopters | 63 | 5 | 68 | 14 | | Light—Twin Engine Helicopters | 14 | — | 14 | 13.5 (avg of 18 and 9) | | Light—Single Engine Helicopters | 25 | — | 25 | 22.5 (avg of 26 and 19) | | **Total Helicopters** | **155** | **38** | **193** | **15** | | Fixed Wing | 9 | 5 | 14 | | | Unmanned Aerial Systems ("UAS") | 4 | — | 4 | | | **Total Fleet** | **168** | **43** | **211** | | Fleet Deployment by Segment | Segment | Percentage of Total Revenues | Heavy Helicopters | Medium Helicopters | Light Twin Helicopters | Light Single Helicopters | Fixed Wing | UAS | Total Aircraft | | :----------------------- | :--------------------------- | :---------------- | :----------------- | :--------------------- | :----------------------- | :--------- | :-- | :------------- | | Offshore Energy Services | 68% | 57 | 60 | 11 | — | 1 | — | 129 | | Government Services | 25% | 29 | 7 | 3 | 20 | — | 4 | 63 | | Other Services | 7% | — | 1 | — | 5 | 13 | — | 19 | | **Total** | **100%** | **86** | **68** | **14** | **25** | **14** | **4** | **211** | - The company has **15 new aircraft** under construction (**10 AW189 heavy, 4 AW139 medium, 1 H135 light-twin**) and options for an additional **20 helicopters** (**10 AW189 heavy, 10 H135 light-twin**)[43](index=43&type=chunk)[44](index=44&type=chunk)

Core Insights - New dividends are often indicative of a company's commitment to returning value to shareholders, suggesting potential for future increases in payouts [2][3] Group 1: New Dividends Overview - Millrose Properties (MRP) launched with an 8% yield, focusing on residential land development and selling homesites back to homebuilders like Lennar [4][5] - Bristow Group (VTOL) is a global helicopter transportation provider, primarily serving the offshore energy sector, and plans to initiate a dividend of 12.5 cents quarterly starting in February 2026 [10][11][14] - WillScot Holdings (WSC) announced a 7-cent quarterly dividend, despite potential revenue contraction in 2025, indicating room for future dividend growth [15][16][17] - Western Digital (WDC) initiated a 10-cent quarterly dividend after spinning off its NAND flash memory business, despite a history of cyclical losses [18][21][23] - Regeneron Pharmaceuticals (REGN) announced an 88-cent quarterly dividend amid concerns over declining sales of its key drug Eylea, with expectations for stabilization in revenues and profits by 2026 [24][30]

Core Viewpoint - Joby Aviation, Inc. is positioned as a potential leader in the eVTOL industry, likened to the "Uber" of air taxis, due to its first-mover advantage [1] Company Analysis - Joby Aviation was initiated with a buy rating, highlighting its strategic advantage in the emerging air taxi market [1] - The company is viewed as undervalued, presenting investment opportunities based on thorough research and analysis of financial statements and market trends [1] Industry Insights - The eVTOL industry is expected to grow significantly, with Joby Aviation at the forefront of this transformation in urban mobility [1]

Financial Performance and Outlook - Bristow reported LTM operating revenues of $1.2 billion as of June 30, 2023 [14] - The company projects operating revenues between $1.30 billion and $1.47 billion for 2024, representing an approximate 10% increase compared to 2023 guidance [31] - Adjusted EBITDA is projected to be in the range of $190 million to $220 million in 2024, which is more than a 25% increase compared to 2023 guidance [31] - Bristow's unrestricted cash balance was $212 million as of June 30, 2023, with total liquidity of $285.3 million [76] - Total debt was $568 million, resulting in net debt of $356 million as of June 30, 2023 [77] Business Segments and Contracts - Offshore energy services accounted for 64% of operating revenues [34] - Government services represented 26% of operating revenues [48] - Bristow was awarded a 10-year Irish Coast Guard contract worth approximately €670 million, expected to commence in October 2024 [25, 54] - The company is investing between $155 million and $165 million in the UKSAR2G contract and between $135 million and $145 million in the Irish Coast Guard contract [53, 54] Fleet and Operations - Bristow has a diverse fleet of 221 aircraft, including rotary-wing, fixed-wing, and UAS [14] - The company operates in 17 countries across 6 continents [14] - The fleet includes 67 S92 heavy helicopters and 53 AW139 medium helicopters [74]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing with PricewaterhouseCoopers before transitioning to day trading nearly 20 years ago [2] - Successfully navigated significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Core Insights - Bristow Group Inc. released its 2024 Sustainability Report, emphasizing its commitment to responsible growth and sustainable practices [1][2] Group 1: Safety and Community Impact - The company achieved a 32% reduction in lost workdays in 2024, highlighting its focus on safety as a core value [2] - The UK Search and Rescue (SAR) team rescued 470 individuals during 2,870 missions, showcasing Bristow's role in community safety [2][8] Group 2: Sustainable Aviation Initiatives - Bristow secured an agreement to acquire 10 Leonardo AW189 helicopters, with options for 10 more, aimed at reducing CO₂ emissions and supporting sustainable aviation fuel (SAF) [3][8] - The company signed a letter of intent to participate in Norway's international test arena for zero- and low-emission aviation, indicating a commitment to future aviation innovation [3][8] Group 3: Ethical Leadership and Community Support - A new human rights supplier commitment process was implemented in Norway, with plans for global expansion in 2025, enhancing transparency and ethical standards [4] - Through the Bristow Uplift initiative, the company donated over $600,000 in 2024 to support local communities, reinforcing its corporate social responsibility [5]

Financial Data and Key Metrics Changes - Revenues decreased by $3 million primarily due to lower utilization in the Other Services segment, partially offset by higher revenues from new contracts [9] - Adjusted EBITDA remained consistent at $58 million, reflecting lower operating and administrative expenses that offset the seasonal revenue decline [10] - Available liquidity as of March 31 was approximately $254 million, with 86% of capital investments for new government services contracts funded [12] Business Line Data and Key Metrics Changes - Offshore Energy Services (OES) revenues in Europe decreased by $4.5 million due to lower utilization in the UK, while revenues in Africa increased by $2.2 million and in the Americas by $1.9 million [10] - Government Services revenues increased by $3.4 million, primarily due to the Irish Coast Guard contract [11] - Other Services revenues decreased by $6 million due to lower seasonal activity in Australia and unfavorable foreign exchange impacts [11] Market Data and Key Metrics Changes - The company noted macroeconomic risks and uncertainty have increased, particularly due to U.S. tariffs on steel and aluminum imports affecting repair and maintenance costs [6][7] - Despite these challenges, the company maintains a positive outlook for its offshore Energy Services business, particularly for deepwater projects [8] Company Strategy and Development Direction - The company aims to lead in vertical flight solutions, focusing on the ongoing launch of search and rescue services and transitioning operations for government contracts [16][18] - The company is committed to sustainability and minimizing its environmental footprint while maintaining operational resilience [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in affirming financial guidance for 2025 and 2026, supported by stable cash flows from Government Services and the nature of offshore energy revenues [9][19] - The company anticipates continued investment in offshore activities, particularly in deepwater projects, despite current oil price fluctuations [52] Other Important Information - The company is involved in a project in Norway for zero and low emission aircraft, with demonstration flights expected to begin soon [32][46] - Incremental improvements in supply chain challenges have been noted, particularly for the S-92 fleet [44] Q&A Session Summary Question: Why is the company reaffirming guidance amid market uncertainty? - Management conducted a thorough review of the macro environment and customer conversations, leading to confidence in the guidance due to stable cash flows from Government Services and the nature of offshore energy revenues [25][26] Question: What are the benefits of the new long-term agreement with Sikorsky? - The agreement provides price visibility and stability for a significant portion of the S-92 fleet, enhancing business management capabilities [27] Question: What is the status of helicopter deliveries related to the Irish contract? - There have been supply chain challenges, but the company is confident in receiving the remaining helicopters needed for the contract [28][29] Question: Are there any updates on the EVTOR test arena in Norway? - The project is progressing well, with expectations for positive results leading to potential expansion of operations [46] Question: How is the company managing cost exposure in a higher tariff environment? - The majority of revenues are generated outside the U.S., and while there is some exposure to tariffs, it is not expected to materially impact financial performance [38] Question: What is the outlook for offshore activity given softening oil prices? - Currently, there are no tangible impacts on offshore activity, with deepwater projects well-positioned for continued investment [51][52]

Financial Data and Key Metrics Changes - Revenues decreased by $3 million primarily due to lower utilization in the Other Services segment, partially offset by higher revenues from new contracts [9] - Adjusted EBITDA remained consistent at $58 million, with lower operating and administrative expenses offsetting the decrease in revenues [10] - Available liquidity as of March 31 was approximately $254 million, with 86% of capital investments for new government services contracts funded [12] Business Line Data and Key Metrics Changes - Offshore Energy Services (OES) revenues in Europe decreased by $4.5 million due to lower utilization in the UK, while revenues in Africa increased by $2.2 million and in the Americas by $1.9 million [10] - Government Services revenues increased by $3.4 million, primarily due to the Irish Coast Guard contract [11] - Other Services revenues decreased by $6 million due to lower seasonal activity in Australia and unfavorable foreign exchange impacts [11] Market Data and Key Metrics Changes - The company noted that macroeconomic risks and uncertainties have increased, particularly due to U.S. tariffs on steel and aluminum imports affecting repair and maintenance costs [6] - Concerns about slowing economic activity could lead to decreased demand for crude oil and natural gas, impacting customer spending plans [7] - Despite these challenges, the company maintains a positive outlook for its offshore Energy Services business, particularly for deepwater projects [7] Company Strategy and Development Direction - The company aims to lead in vertical flight solutions, focusing on the ongoing launch of search and rescue services and transitioning operations for new contracts [15][16] - The company is committed to sustainability and minimizing its environmental footprint while maintaining operational resilience [18] - The strategic focus includes leveraging stable cash flows from Government Services and the diversity of geographic markets served [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in affirming financial guidance for 2025 and 2026, supported by stable cash flows from Government Services and the nature of offshore energy revenues [8][18] - The company anticipates that deepwater projects will continue to attract investment due to their favorable economic returns [15] - Management acknowledged supply chain challenges but noted incremental improvements in component deliveries [37] Other Important Information - The company is involved in a project in Norway for zero and low emission aircraft, with demonstration flights expected to begin soon [29] - A long-term agreement with Sikorsky for S-92 support provides price visibility and stability for a significant portion of the fleet [25] Q&A Session Summary Question: Why is the company reaffirming guidance amid market uncertainty? - Management conducted a thorough review of the macro environment and customer plans, leading to confidence in reaffirming guidance due to stable cash flows from Government Services and the nature of offshore energy revenues [22][24] Question: What are the benefits of the new S-92 agreement with Sikorsky? - The agreement provides price visibility and stability for a large portion of the fleet, enhancing business management capabilities [25] Question: How confident is the company in the remaining CapEx related to the Irish contract? - Management expressed confidence in the remaining CapEx, which is primarily related to infrastructure and modifications rather than airframe deliveries [26][28] Question: Have there been improvements in supply chain challenges? - Management noted incremental improvements in component deliveries for the S-92 fleet, although challenges persist across the broader aviation industry [37][38] Question: What impact have oil prices had on offshore activity? - Currently, there has been no tangible impact on offshore activity, with deepwater projects well-positioned within oil and gas portfolios [43][44]

[Part I. Financial Information](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides Bristow Group's financial statements, management's discussion and analysis, and disclosures on market risk and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) For the quarter ended March 31, 2025, Bristow Group reported total revenues of **$350.5 million**, a **4.0% increase** year-over-year, with net income surging to **$27.4 million** | Financial Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $350,530 | $337,094 | +4.0% | | **Operating Income** | $33,548 | $22,829 | +47.0% | | **Net Income Attributable to Bristow** | $27,359 | $6,605 | +314.2% | | **Diluted EPS** | $0.92 | $0.23 | +300.0% | | Balance Sheet Item | March 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $191,127 | $247,503 | -22.8% | | Total Assets | $2,172,192 | $2,125,246 | +2.2% | | Total Liabilities | $1,240,889 | $1,233,974 | +0.6% | | Total Stockholders' Equity | $931,303 | $891,272 | +4.5% | | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash from operating activities | $(603) | $26,679 | | Net cash used in investing activities | $(52,023) | $(64,557) | | Net cash used in financing activities | $(1,695) | $(5,108) | | **Net decrease in cash** | **$(57,352)** | **$(40,744)** | [Note 2: Revenues](index=9&type=section&id=Note%202.%20REVENUES) Revenues are primarily generated from Offshore Energy Services and Government Services, both showing year-over-year growth in Q1 2025 | Revenue by Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Offshore energy services | $239,785 | $229,895 | +4.3% | | Government services | $85,943 | $82,172 | +4.6% | | Other services | $24,802 | $25,027 | -0.9% | | **Total revenues** | **$350,530** | **$337,094** | **+4.0%** | [Note 4: Debt](index=10&type=section&id=Note%204.%20DEBT) As of March 31, 2025, total debt stood at **$701.9 million**, primarily composed of Senior Notes, UKSAR Debt, and IRCG Debt | Debt Component | March 31, 2025 (in thousands) | | :--- | :--- | | 6.875% Senior Notes | $395,960 | | UKSAR Debt | $201,988 | | IRCG Debt | $104,000 | | **Total debt** | **$701,948** | - As of March 31, 2025, there were **no outstanding borrowings** under the ABL Facility, though letters of credit totaling **$8.8 million** were outstanding[33](index=33&type=chunk) [Note 7: Commitments and Contingencies](index=12&type=section&id=Note%207.%20COMMITMENTS%20AND%20CONTINGENCIES) The company has significant capital commitments totaling **$169.2 million** for the purchase of 14 new helicopters scheduled for delivery in 2025 and 2026 - Unfunded capital commitments for helicopter purchases totaled **$169.2 million** as of March 31, 2025[41](index=41&type=chunk) - Commitments include seven AW189, two AW139, and five AW169 helicopters, with options to purchase ten additional AW189 and ten H135 helicopters[42](index=42&type=chunk) [Note 11: Segment Performance](index=14&type=section&id=Note%2011.%20SEGMENTS) In Q1 2025, the Offshore Energy Services segment significantly drove profitability, with operating income increasing by **76%** year-over-year to **$37.4 million** | Operating Income (Loss) by Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Offshore Energy Services | $37,365 | $21,199 | +76.3% | | Government Services | $6,011 | $9,290 | -35.3% | | Other Services | $(622) | $878 | -170.8% | | Corporate | $(9,206) | $(8,538) | -7.8% | | **Total Operating Income** | **$33,548** | **$22,829** | **+47.0%** | [Management's Discussion and Analysis (MD&A)](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **5.5% sequential increase** in operating income to **$33.5 million** to improved performance in the Offshore Energy and Government Services segments, maintaining strong liquidity of **$254.3 million** [Fleet Information](index=19&type=section&id=Fleet%20Information) As of March 31, 2025, Bristow's fleet comprised **211 aircraft**, including **194 helicopters** and **13 fixed-wing aircraft**, with active expansion plans | Aircraft Type | Owned | Leased | Total | | :--- | :--- | :--- | :--- | | Total Helicopters | 156 | 38 | 194 | | Fixed Wing | 9 | 4 | 13 | | Unmanned Aerial Systems | 4 | 0 | 4 | | **Total Fleet** | **169** | **42** | **211** | - The company has **17 aircraft under construction** (10 heavy, 5 medium, 2 light-twin) and **5 light-twin helicopters on order**, with options for **20 additional helicopters**[70](index=70&type=chunk) [Results of Operations (QoQ)](index=21&type=section&id=Results%20of%20Operations) Comparing Q1 2025 to Q4 2024, total operating income increased by **5.5%** to **$33.5 million**, driven by gains in Offshore Energy and Government Services segments | Metric by Segment | Q1 2025 (in thousands) | Q4 2024 (in thousands) | QoQ Change | | :--- | :--- | :--- | :--- | | **Revenues** | | | | | Offshore Energy | $239,785 | $240,164 | -0.2% | | Government Services | $85,943 | $82,558 | +4.1% | | Other Services | $24,802 | $30,804 | -19.5% | | **Operating Income** | | | | | Offshore Energy | $37,365 | $34,346 | +8.8% | | Government Services | $6,011 | $2,266 | +165.3% | | Other Services | $(622) | $3,623 | nm | - The increase in Government Services revenue and operating income was primarily due to the commencement of the Irish Coast Guard (IRCG) contract in late 2024[79](index=79&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company reported total liquidity of **$254.3 million** as of March 31, 2025, with plans to fund **$169.2 million** in capital commitments through cash, operating cash flow, and financing - Total liquidity as of March 31, 2025, was **$254.3 million**[92](index=92&type=chunk) - The company has unfunded capital commitments of **$169.2 million** for new helicopters, with deliveries scheduled for 2025 and 2026[96](index=96&type=chunk) - Total debt was **$701.9 million** with no significant near-term maturities, other than the current portion of **$19.2 million**[92](index=92&type=chunk)[93](index=93&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that its exposure to market risks has not materially changed since its 2024 year-end report - There have been **no material changes** to the company's market risk exposure since December 31, 2024[106](index=106&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of March 31, 2025[107](index=107&type=chunk) - No material changes were made to internal controls over financial reporting during the quarter[108](index=108&type=chunk) [Part II. Other Information](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers other important disclosures, including risk factors and details on share repurchase programs [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) The company indicates no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - The report refers to the detailed risk factors in the Annual Report on Form 10-K, noting **no significant updates**[110](index=110&type=chunk) [Share Repurchases](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company repurchased **77,466 shares** for employee tax withholding, and the Board approved a new **$125.0 million** stock repurchase program - A new **$125.0 million** stock repurchase program was approved by the Board of Directors on February 26, 2025[111](index=111&type=chunk) - The company repurchased **77,466 shares** in connection with employee tax withholding obligations, which are separate from the publicly announced repurchase program[111](index=111&type=chunk)