Bridger Aerospace(BAER) - 2025 Q2 - Quarterly Results

Press Release Overview Bridger Aerospace reports record second-quarter performance driven by expanded contracts, increased fire activity, and strategic fleet deployment Second Quarter Highlights Bridger Aerospace reported its strongest second quarter in company history, driven by expanded contracts and increased fire activity, achieving record revenue, positive net income, and substantial Adjusted EBITDA growth Second Quarter Financial Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------ | :------ | :------ | :--------- | | Revenues | $30,751 | $13,014 | +136% | | Operating income (loss) | $5,527 | $(4,755) | Swing to profit | | Net income (loss) | $308 | $(9,981) | Swing to profit | | Adjusted EBITDA | $10,819 | $191 | +5564% | - Achieved 100% deployment of the fleet with earliest call-outs in Company history[6] - Secured historic 120-day Super Scooper task orders, ensuring deployment through at least October, underscoring year-round wildfire activity[6] - Signed a $46 million sale leaseback deal for hangar and campus HQ, expected to close in Q3 2025, with proceeds aimed at reducing interest expense and fortifying the balance sheet[6] CEO Commentary CEO Sam Davis highlighted the team's dedication during an active wildfire year, emphasizing early Super Scooper deployment and 120-day task orders guaranteeing fleet utilization and anticipating increased year-round revenue - Early deployment of Super Scoopers and record 120-day task orders guarantee utilization and fleet dedication to critical wildfire response efforts[5] - Expects more year-round revenue by focusing on maximizing daily availability and flight hours[5] - Positioned for another record year due to continued high wildfire activity early in Q3, actively supporting state and federal customers[5] Financial Results - Detailed Analysis This section details Bridger Aerospace's strong Q2 and year-to-date financial performance, highlighting growth and profitability Second Quarter 2025 Results Bridger Aerospace achieved record financial performance in Q2 2025, with significant revenue growth, a positive swing in net income, and a substantial increase in Adjusted EBITDA, primarily driven by higher activity and earlier aircraft deployment Revenue (Q2 2025) Q2 2025 revenue saw a substantial increase, primarily driven by significantly higher operational activity and earlier deployment of multiple Super Scoopers and surveillance aircraft Q2 Revenue (in millions) | Metric | 2025 | 2024 | YoY Change | | :------------------------------------------------ | :--- | :--- | :--------- | | Total Revenue | $30.8 | $13.0 | +136% | | Revenue (excluding MAB return-to-service work) | $25.7 | $11.2 | +129% | - Revenue increase driven by significantly higher activity with multiple Super Scoopers and surveillance aircraft deployed earlier in Q2 2025[7] Cost of Revenues (Q2 2025) Cost of revenues increased in Q2 2025, primarily due to expenses associated with return-to-service work for the Spanish Super Scoopers Q2 Cost of Revenues (in millions) | Metric | 2025 | 2024 | YoY Change | | :---------------- | :--- | :--- | :--------- | | Cost of Revenues | $18.7 | $9.9 | +89% | - Increase includes $3.9 million of expenses associated with return-to-service work for the Spanish Super Scoopers[8] Operating Expenses (Q2 2025) Operating expenses in Q2 2025 decreased, mainly reflecting lower non-cash stock-based compensation and a reduction in earnout consideration Q2 Operating Expenses (in millions) | Metric | 2025 | 2024 | YoY Change | | :-------------------------------- | :--- | :--- | :--------- | | Selling, General & Administrative | $6.5 | $7.9 | -17.7% | | Interest Expense | $5.7 | $5.9 | -3.4% | - SG&A decrease reflects lower non-cash stock-based compensation and a decrease in earnout consideration, partially offset by an increase in the market value of warrants[9] Net Income (Loss) and EPS (Q2 2025) Q2 2025 saw a significant swing to positive net income and improved loss per diluted share, reflecting enhanced profitability Q2 Net Income (Loss) and EPS (in millions, except per share) | Metric | 2025 | 2024 | YoY Change | | :-------------------- | :--- | :--- | :--------- | | Net Income (Loss) | $0.3 | $(10.0) | Swing to profit | | Loss per Diluted Share | $(0.12) | $(0.33) | Improved | Adjusted EBITDA (Q2 2025) Adjusted EBITDA for Q2 2025 experienced a substantial increase, indicating strong operational profitability Q2 Adjusted EBITDA (in millions) | Metric | 2025 | 2024 | YoY Change | | :-------------- | :--- | :--- | :--------- | | Adjusted EBITDA | $10.8 | $0.2 | +5300% | Cash and Cash Equivalents (Q2 2025) Cash and cash equivalents declined from year-end due to winter maintenance and training, with future increases expected from early fire season receivables Cash and Cash Equivalents (in millions) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change | | :------------------------ | :------------------ | :----------------- | :----- | | Cash and Cash Equivalents | $17.0 | $39.3 | -56.7% | - The decline in cash from year-end is due to expenses related to the bulk of winter maintenance and training activities that occurred in the first half of the year[11] - Incoming receivables of $18.3 million from early fire season activity are expected to further increase the cash balance in the coming months[11] Year to Date Results For the first six months of 2025, Bridger Aerospace demonstrated strong revenue growth and a significant reduction in net loss, alongside a positive swing in Adjusted EBITDA, driven by increased operational activity and effective cost management Revenue (YTD 2025) Year-to-date revenue significantly increased, driven by higher activity and earlier deployment of Super Scoopers and surveillance aircraft YTD Revenue (in millions) | Metric | 2025 | 2024 | YoY Change | | :------------------------------------------------ | :--- | :--- | :--------- | | Total Revenue | $46.4 | $18.5 | +150% | | Revenue (excluding MAB return-to-service work) | $35.4 | $15.7 | +125% | - Revenue increase driven by significantly higher activity with multiple Super Scoopers and surveillance aircraft deployed earlier in the first six months of 2025[12] Cost of Revenues (YTD 2025) Year-to-date cost of revenues increased, primarily due to expenses associated with the return-to-service work for the Spanish Super Scoopers YTD Cost of Revenues (in millions) | Metric | 2025 | 2024 | YoY Change | | :---------------- | :--- | :--- | :--------- | | Cost of Revenues | $35.9 | $19.1 | +88% | - Increase includes $9.5 million of expenses associated with the return-to-service work for the Spanish Super Scoopers[13] Operating Expenses (YTD 2025) Year-to-date operating expenses decreased, reflecting lower non-cash stock-based compensation and reduced earnout consideration YTD Operating Expenses (in millions) | Metric | 2025 | 2024 | YoY Change | | :-------------------------------- | :--- | :--- | :--------- | | Selling, General & Administrative | $15.1 | $19.5 | -22.6% | | Interest Expense | $11.5 | $11.8 | -2.5% | - SG&A decrease reflects lower non-cash stock-based compensation expense and a decrease in earnout consideration, partially offset by an increase in the market value of warrants[14] Net Loss and Adjusted EBITDA (YTD 2025) Year-to-date net loss significantly reduced, and Adjusted EBITDA swung to positive, indicating improved financial performance YTD Net Loss and Adjusted EBITDA (in millions) | Metric | 2025 | 2024 | YoY Change | | :-------------- | :---- | :---- | :--------- | | Net Loss | $(15.2) | $(30.1) | Reduced by 49.5% | | Adjusted EBITDA | $5.7 | $(6.7) | Swing to positive | Business Outlook Bridger Aerospace expects to achieve the higher end of its 2025 guidance for Adjusted EBITDA and revenue, driven by strong fleet utilization Business Outlook Bridger Aerospace expects to achieve the higher end of its 2025 guidance for Adjusted EBITDA and revenue, driven by strong fleet utilization in Q2 and Q3, and record Super Scooper task orders - Expects to end 2025 at the higher end of previously issued guidance due to strong fleet utilization in Q2 and Q3, as well as record task orders for Super Scoopers[17][18] 2025 Guidance (Higher End) | Metric | Amount | | :-------------- | :----------- | | Adjusted EBITDA | $48 million | | Revenue | $111 million | - Expects continued improvement in cash provided by operating activities in 2025[18] - This guidance excludes any potential impact from the Spanish Super Scoopers acquired by the joint venture partnership between the Company and MAB[18] Corporate Information This section outlines Bridger Aerospace's mission, services, investor contacts, and forward-looking statement disclaimers About Bridger Aerospace Bridger Aerospace Group Holdings, Inc. is a leading aerial firefighting company based in Belgrade, Montana, providing essential services to federal and state government agencies - One of the nation's largest aerial firefighting companies, based in Belgrade, Montana[21] - Provides aerial firefighting and wildfire management services to federal and state government agencies (e.g., U.S. Forest Service) across the nation and internationally[21] Conference Call & Investor Contacts Bridger Aerospace will host an investor conference call on August 7, 2025, to discuss its Q2 results and business outlook, with details provided for access and investor relations - Investor conference call scheduled for Thursday, August 7, 2025, at 5:00 p.m. Eastern Time[20] - Access details for the conference call and audio replay are available via phone and the Investor Relations section of the company website[20] - Investor contact: Alison Ziegler of Darrow Associates[22] Forward Looking Statements This press release contains forward-looking statements, subject to various risks and uncertainties, including wildfire season severity, operational expansion, and financial performance - Statements regarding future events, such as operational expansion, financial performance, demand for aerial firefighting services, and cost reduction actions, are forward-looking[22] - Subject to risks and uncertainties including the duration or severity of wildfire seasons, changes in market conditions, failure to realize anticipated benefits of acquisitions, increased competition, and difficulties managing growth[22][23] - Actual events and circumstances are difficult or impossible to predict and will differ from assumptions; undue reliance should not be placed upon these statements[22][23] Consolidated Financial Statements This section presents Bridger Aerospace's consolidated statements of operations, balance sheets, and cash flows CONSOLIDATED STATEMENTS OF OPERATIONS The Consolidated Statements of Operations present Bridger Aerospace's revenues, costs, and expenses, leading to net income or loss for the three and six months ended June 30, 2025, and 2024 For the three months ended June 30 (in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Revenues | $30,751 | $13,014 | | Total cost of revenues | $18,700 | $9,867 | | Gross profit (loss) | $12,051 | $3,147 | | Operating income (loss) | $5,527 | $(4,755) | | Net income (loss) | $308 | $(9,981) | | Loss per share - basic | $(0.12) | $(0.33) | For the six months ended June 30 (in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Revenues | $46,397 | $18,521 | | Total cost of revenues | $35,907 | $19,073 | | Gross profit (loss) | $10,490 | $(552) | | Operating income (loss) | $(4,624) | $(20,064) | | Net income (loss) | $(15,230) | $(30,068) | | Loss per share - basic | $(0.53) | $(0.89) | CONSOLIDATED BALANCE SHEETS The Consolidated Balance Sheets provide a snapshot of Bridger Aerospace's financial position as of June 30, 2025, compared to December 31, 2024, highlighting changes in assets and liabilities As of (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total assets | $279,038 | $290,809 | | Cash and cash equivalents | $17,036 | $39,336 | | Accounts and note receivable | $18,325 | $5,945 | | Total current assets | $53,578 | $63,809 | | Total liabilities | $236,652 | $237,332 | | Total stockholders' deficit | $(350,990) | $(326,702) | CONSOLIDATED STATEMENTS OF CASH FLOWS The Consolidated Statements of Cash Flows detail cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 For the six months ended June 30 (in thousands) | Metric | 2025 | 2024 | | :------------------------------------------ | :------- | :------- | | Net cash used in operating activities | $(16,215) | $(25,558) | | Net cash (used in) provided by investing activities | $(3,890) | $4,448 | | Net cash (used in) provided by financing activities | $(2,010) | $6,718 | | Net change in cash, cash equivalents and restricted cash | $(22,210) | $(14,392) | | Cash and cash equivalents – end of the period | $17,036 | $8,526 | Non-GAAP Results and Reconciliations This section defines and reconciles non-GAAP measures like EBITDA and Adjusted EBITDA, offering insights into business performance Non-GAAP Definitions and Rationale Bridger Aerospace utilizes non-GAAP measures like EBITDA and Adjusted EBITDA to assess business performance and supplement GAAP results, providing a more comprehensive understanding of underlying trends - EBITDA and Adjusted EBITDA are used as key profitability measures to assess business performance and illustrate underlying trends[34] - These non-GAAP measures are not recognized under GAAP, have limitations as analytical tools, and should not be considered in isolation or as substitutes for GAAP results[35] - Bridger does not provide a reconciliation of forward-looking measures where such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts[36] EBITDA Definition EBITDA is a non-GAAP profitability measure representing net income or loss before interest, taxes, depreciation, and amortization, used to compare performance across different capital structures - EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of interest expense, income tax expense (benefit), and depreciation and amortization of property, plant and equipment and intangible assets[37] - It eliminates potential differences in performance caused by variations in capital structures, the cost and age of tangible assets, and the extent to which intangible assets are identifiable[37] Adjusted EBITDA Definition Adjusted EBITDA is a non-GAAP profitability measure that further adjusts EBITDA for specific items to facilitate period-over-period and peer-to-peer performance comparisons - Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before certain items considered to hinder comparison of business performance on a period-over-period basis or with other businesses[38] - Exclusions include offering costs related to financing and other transactions, non-cash stock-based compensation, business development and integration expenses, and changes in the fair value of earnout consideration and warrants[38][39] EBITDA and Adjusted EBITDA Reconciliation This section provides a detailed reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024 EBITDA and Adjusted EBITDA Reconciliation (in thousands) For the three months ended June 30 | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net income (loss) | $308 | $(9,981) | | Income tax expense (benefit) | $182 | $(484) | | Depreciation and amortization | $4,019 | $1,998 | | Interest expense | $5,737 | $5,854 | | EBITDA | $10,246 | $(2,613) | | Stock-based compensation | $1,737 | $4,477 | | Business development & integration expenses | $355 | $149 | | Offering costs | $279 | $(149) | | Change in fair value of earnout consideration | $(2,597) | $192 | | Change in fair value of Warrants | $799 | $(1,865) | | Adjusted EBITDA | $10,819 | $191 | For the six months ended June 30 | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net income (loss) | $(15,230) | $(30,068) | | Income tax expense (benefit) | $433 | $(470) | | Depreciation and amortization | $5,999 | $3,288 | | Interest expense | $11,472 | $11,777 | | EBITDA | $2,674 | $(15,473) | | Stock-based compensation | $3,728 | $10,350 | | Business development & integration expenses | $587 | $460 | | Offering costs | $437 | $(149) | | Change in fair value of earnout consideration | $(2,748) | $207 | | Change in fair value of Warrants | $1,066 | $(2,132) | | Adjusted EBITDA | $5,744 | $(6,737) |