Bristow(VTOL) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Results Bristow Group reported Q1 2025 revenues of $350.5 million and net income of $27.4 million, affirming its financial outlook Financial & Operational Highlights Bristow Group reported Q1 2025 revenues of $350.5 million and net income of $27.4 million, affirming its financial outlook Q1 2025 Key Financial Metrics vs. Q4 2024 | Metric | Q1 2025 (Current Quarter) | Q4 2024 (Preceding Quarter) | | :--- | :--- | :--- | | Total Revenues | $350.5 million | $353.5 million | | Operating Income | $33.5 million | $31.8 million | | Net Income | $27.4 million | $31.8 million | | Diluted EPS | $0.92 | $1.07 | | Adjusted EBITDA | $57.7 million | $57.8 million | | Net Cash (used in) Operating Activities | ($0.6 million) | $51.1 million | - The company affirmed its Adjusted EBITDA outlook ranges of $230 - $260 million for 2025 and $275 - $335 million for 2026, signaling confidence in its business despite macroeconomic risks[5][6] - Working capital used $56.4 million in cash during the quarter, primarily due to an increase in accounts receivable from the timing of customer payments and higher inventory levels to support new contracts[4] Sequential Quarter Results by Segment Government Services revenue grew due to the new Irish Coast Guard contract, while Offshore Energy Services revenue was flat, and Other Services revenue decreased due to seasonality Offshore Energy Services Offshore Energy Services revenue was nearly flat at $239.8 million, with regional shifts, and operating income rose by $3.0 million due to reduced maintenance expenses Offshore Energy Services Performance (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $239.8M | $240.2M | -0.2% | | Operating Income | $34.3M | $37.4M | +8.8% | | Adjusted Operating Income | $44.2M | $47.1M | +6.6% | - Revenue changes by region: - Europe: Down $4.5 million due to lower UK utilization - Americas: Up $1.9 million from higher heavy helicopter utilization in the U.S - Africa: Up $2.2 million due to increased aircraft capacity and utilization[7] Government Services Government Services revenue increased by 4.1% to $85.9 million, primarily driven by the new Irish Coast Guard contract, leading to a $3.7 million increase in operating income Government Services Performance (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $85.9M | $82.6M | +4.1% | | Operating Income | $6.0M | $2.3M | +$3.7M | | Adjusted Operating Income | $13.7M | $9.8M | +40.7% | - The primary driver for the revenue and operating income growth was the ramp-up of the Irish Coast Guard (IRCG) contract, which began its transition in late 2024[8] Other Services Revenue from Other Services declined by 19.5% to $24.8 million due to lower seasonal utilization and unfavorable foreign exchange rates, resulting in an operating loss of $0.6 million Other Services Performance (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $24.8M | $30.8M | -19.5% | | Operating Income (Loss) | ($0.6M) | $3.6M | -$4.2M | | Adjusted Operating Income | $2.0M | $6.6M | -69.0% | Corporate and Other Financial Items Corporate operating loss widened slightly due to higher G&A and asset disposal losses, while foreign exchange gains significantly boosted "Other, net" income, and income tax shifted to an expense - Other income, net was $11.4 million in the current quarter, a significant reversal from a $6.2 million expense in the preceding quarter, primarily due to higher foreign exchange gains[10][11] - Income tax expense was $10.2 million compared to a benefit of $13.0 million in the prior quarter, reflecting changes in the geographic mix of earnings[12] Financial Outlook for 2025 and 2026 Bristow affirmed its 2025 and 2026 financial guidance, projecting total revenues of $1.42-$1.62 billion for 2025 and $1.53-$1.78 billion for 2026, with Adjusted EBITDA growth and sensitivity to GBP/USD exchange rates 2025 & 2026 Financial Outlook (in millions) | Metric | 2025E | 2026E | | :--- | :--- | :--- | | Total Revenues | $1,420 - $1,615 | $1,525 - $1,775 | | Adjusted Operating Income | $220 - $245 | $270 - $320 | | Adjusted EBITDA | $230 - $260 | $275 - $335 | | Cash Interest | ~$45 | ~$40 | | Cash Taxes | $25 - $30 | $25 - $30 | | Maintenance Capex | $15 - $20 | $20 - $25 | - The company's financial outlook is sensitive to foreign currency fluctuations, particularly the GBP/USD exchange rate, with each £0.01 movement estimated to impact Adjusted EBITDA by approximately +/- $1.2 million[13][14] Liquidity and Capital Allocation As of March 31, 2025, Bristow had total liquidity of $254.3 million, consisting of $191.1 million in unrestricted cash and $63.2 million available under its ABL facility, while investing $52.1 million in property and equipment - Total liquidity stood at $254.3 million as of March 31, 2025, composed of $191.1 million in cash and $63.2 million in ABL facility availability[16] - Purchases of property and equipment in Q1 2025 totaled $52.1 million, significantly higher than the cash proceeds from dispositions of less than $0.1 million[17] Company Overview and Events Bristow Group is a global provider of vertical flight solutions, primarily serving offshore energy companies and government entities, with a conference call scheduled for May 7, 2025, to discuss Q1 results - Bristow's business is structured into three operating segments: Offshore Energy Services, Government Services, and Other Services[20] - The company operates in numerous countries, including Australia, Brazil, Canada, Ireland, Nigeria, Norway, the UK, and the U.S[21] - A conference call to review the Q1 2025 results was scheduled for 10:00 a.m. ET on May 7, 2025[18] Financial Statements The company's financial statements provide detailed insights into its operational performance, financial position, and segment-specific contributions Condensed Consolidated Statements of Operations The company's statement of operations for Q1 2025 shows total revenues of $350.5 million and total costs and expenses of $317.1 million, leading to an operating income of $33.5 million, with net income attributable to the company at $27.4 million Q1 2025 Income Statement Highlights (vs Q4 2024) | Line Item | Q1 2025 ($ thousands) | Q4 2024 ($ thousands) | | :--- | :--- | :--- | | Total Revenues | 350,530 | 353,526 | | Total Operating Expenses | 257,185 | 261,911 | | General & Administrative | 43,100 | 44,372 | | Operating Income | 33,548 | 31,804 | | Other, net | 11,388 | (6,173) | | Income Before Taxes | 37,564 | 18,816 | | Net Income | 27,359 | 31,793 | Segment Performance Data Detailed segment data shows Offshore Energy Services revenue driven by the Americas and Africa, offsetting a decline in Europe, while Government Services revenue grew 4.1%, and Other Services fell 19.5%, with total flight hours decreasing by 3.7% sequentially Revenues by Segment (Q1 2025 vs Q4 2024, $ thousands) | Segment | Q1 2025 | Q4 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Offshore Energy Services | 239,785 | 240,164 | (0.2)% | | Government Services | 85,943 | 82,558 | 4.1% | | Other Services | 24,802 | 30,804 | (19.5)% | | Total | 350,530 | 353,526 | (0.8)% | Flight Hours by Segment (Q1 2025 vs Q4 2024) | Segment | Q1 2025 | Q4 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Offshore Energy Services | 23,431 | 24,139 | (2.9)% | | Government Services | 3,941 | 4,242 | (7.1)% | | Other Services | 3,400 | 3,585 | (5.2)% | | Total | 30,772 | 31,966 | (3.7)% | Condensed Consolidated Balance Sheets As of March 31, 2025, Bristow Group's balance sheet showed total assets of $2.17 billion, a slight increase from $2.13 billion at the end of 2024, with cash and cash equivalents decreasing while accounts receivable increased, and total liabilities remained stable at $1.24 billion Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $193,929 | $251,281 | | Total current assets | $615,001 | $619,458 | | Property and equipment, net | $1,129,679 | $1,076,221 | | Total assets | $2,172,192 | $2,125,246 | | Total current liabilities | $334,678 | $325,900 | | Long-term debt | $682,764 | $671,169 | | Total liabilities | $1,240,889 | $1,233,974 | | Total stockholders' equity | $931,303 | $891,272 | Non-GAAP Financial Measures The company provides reconciliations for non-GAAP financial measures, including EBITDA, Free Cash Flow, and Adjusted Operating Income by segment, to offer a clearer view of underlying performance EBITDA and Adjusted EBITDA Reconciliation For Q1 2025, Net Income of $27.4 million reconciled to EBITDA of $63.9 million and Adjusted EBITDA of $57.7 million, with adjustments primarily for foreign exchange gains and special items Reconciliation of Net Income to Adjusted EBITDA (Q1 2025, $ thousands) | Line Item | Amount | | :--- | :--- | | Net income | $27,381 | | Depreciation and amortization | $16,841 | | Interest expense, net | $9,490 | | Income tax expense | $10,183 | | EBITDA | $63,895 | | Losses on disposal of assets | $558 | | Foreign exchange (gains) | ($11,045) | | Special items | $4,302 | | Adjusted EBITDA | $57,710 | Free Cash Flow and Adjusted Free Cash Flow Reconciliation Bristow reported negative Free Cash Flow of ($2.5) million for Q1 2025, a significant decrease from the prior quarter, driven by a sharp drop in net cash from operating activities, resulting in Adjusted Free Cash Flow of ($1.7) million Reconciliation to Adjusted Free Cash Flow (Q1 2025, $ thousands) | Line Item | Amount | | :--- | :--- | | Net cash (used in) operating activities | ($603) | | Less: Maintenance capital expenditures | ($1,886) | | Free Cash Flow | ($2,489) | | Plus: Special items | $740 | | Adjusted Free Cash Flow | ($1,749) | Adjusted Operating Income by Segment Reconciliation Consolidated Adjusted Operating Income for Q1 2025 was $54.4 million, up from $52.3 million in the prior quarter, with growth driven by the Offshore Energy and Government Services segments after adjusting for depreciation, amortization, and PBH amortization Adjusted Operating Income by Segment (Q1 2025 vs Q4 2024, $ thousands) | Segment | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Offshore Energy Services | $47,114 | $44,183 | | Government Services | $13,719 | $9,750 | | Other Services | $2,037 | $6,573 | | Corporate (Loss) | ($8,517) | ($8,192) | | Consolidated | $54,353 | $52,314 | Fleet Information Bristow's fleet composition and distribution across segments highlight its operational capabilities and strategic asset allocation Fleet Composition As of March 31, 2025, Bristow's total fleet consisted of 211 aircraft, including 194 helicopters, 13 fixed-wing aircraft, and 4 unmanned aerial systems, with a significant pipeline of new aircraft under construction or on order Total Fleet Count by Type | Aircraft Type | Owned | Leased | Total | | :--- | :--- | :--- | :--- | | Heavy Helicopters | 53 | 33 | 86 | | Medium Helicopters | 63 | 4 | 67 | | Light-Twin Engine Helicopters | 15 | 1 | 16 | | Light-Single Engine Helicopters | 25 | 0 | 25 | | Total Helicopters | 156 | 38 | 194 | | Fixed Wing | 9 | 4 | 13 | | Unmanned Aerial Systems (UAS) | 4 | 0 | 4 | | Total Fleet | 169 | 42 | 211 | - The company has a pipeline of new aircraft, including 17 under construction, 5 on order, and options to purchase an additional 20 helicopters[43][44] Fleet Distribution by Segment The Offshore Energy Services segment operates the largest portion of the fleet with 129 aircraft, accounting for 68% of total revenue, while Government Services operates 62 aircraft (25% of revenue), and Other Services operates 20 aircraft (7% of revenue) Aircraft Distribution and Revenue by Segment (Q1 2025) | Segment | Percentage of Total Revenues | Total Aircraft | | :--- | :--- | :--- | | Offshore Energy Services | 68% | 129 | | Government Services | 25% | 62 | | Other Services | 7% | 20 | | Total | 100% | 211 |