Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $67.1 million in Q3 2025, reflecting strong financial performance despite ongoing supply chain challenges [3] - Total revenues increased by $9.9 million and adjusted EBITDA increased by $6.4 million on a consolidated sequential basis, primarily driven by government services and other services segments [6][10] - The midpoint of the 2026 adjusted EBITDA guidance represents a 27% increase over the midpoint in 2025, indicating robust growth expectations [5][11] Business Line Data and Key Metrics Changes - Offshore energy services (OES) segment revenues and adjusted operating income decreased by $2.4 million this quarter, with lower revenues in Europe and Africa due to lower utilization [6][7] - Government services segment revenues increased by $8.4 million, primarily due to the ongoing transition of the Irish Coast Guard contract [8] - Other services revenues increased by $3.8 million, driven by higher activity in Australia [10] Market Data and Key Metrics Changes - The fleet status for offshore-configured helicopters remains near full effective utilization levels, with constrained new capacity due to shared production lines with military aircraft orders [4] - The company sees positive long-term demand for offshore projects, particularly in deep-water projects, which are expected to receive an increasing share of upstream capital investment [3][56] Company Strategy and Development Direction - The company is focused on operational excellence and delivering reliable services while navigating supply chain challenges [3] - The government services business is expected to reach full operational run rate under the Irish Coast Guard contract in 2026, with adjusted operating income nearly doubling year over year [4][11] - The company is also exploring advanced air mobility opportunities, with ongoing trials for all-electric aircraft [62] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for offshore energy services activity, despite tightening guidance due to supply chain challenges and lower utilization [3][23] - The company anticipates strong performance in the OES segment in 2026, with updated adjusted operating income guidance reflecting a 15% year-over-year increase [11][13] - Management highlighted the importance of maintaining a strong balance sheet and liquidity position while executing capital allocation strategies [14][15] Other Important Information - The company generated approximately $122 million in operating cash flows year-to-date 2025, with unrestricted cash balance at approximately $246 million [13][14] - The company made an additional $25 million of accelerated principal payments on the UKSR debt facility in the current quarter [14] Q&A Session Summary Question: Guidance on OES and market implications - Management acknowledged tightening guidance due to persistent supply chain challenges impacting aircraft availability and fewer aircraft on contract in the North Sea and the US [21][23] Question: Outlook for main OES markets and regions - Management highlighted Brazil, Africa, and the Caribbean as markets with strong growth prospects, while the US market remains stable and the North Sea shows softer activity [25][26][27] Question: Vendor credits and their impact - Management explained that higher vendor credits this quarter were due to increased activity levels and various factors such as aircraft purchases and maintenance contracts [28][29] Question: Aircraft delivery plans and supply chain bottlenecks - Management detailed pending deliveries of aircraft, with five already received for government services and seven under construction for offshore services, while noting ongoing supply chain issues affecting both aftermarket and new deliveries [36][39][40] Question: Capital expenditures outlook for 2026 - Management projected total CapEx of about $100 million for 2026, with expectations of approximately $140 million in free cash flow at the midpoint of guidance [41][42] Question: Advanced mobility trials and developments - Management reported positive progress in advanced mobility trials, including a sandbox project in Norway using all-electric aircraft [43][44] Question: Asset sales and future activity - Management indicated that asset sales are opportunistic, typically involving older assets, and mentioned a recent sale-leaseback transaction [48][51] Question: Future tax outlook - Management discussed a one-time tax benefit related to the release of a valuation allowance on Australian operations, with expectations of a normalized tax rate moving forward [53][54] Question: Focus on exploratory drilling by customers - Management confirmed that there is a focus on exploratory drilling, particularly in deep-water projects, which are expected to attract more capital investment [56][57]

Financial Data and Key Metrics Changes - The company reported Adjusted EBITDA of $67.1 million in Q3 2025, reflecting strong financial performance [5] - Total revenues increased by $9.9 million, and Adjusted EBITDA increased by $6.4 million on a consolidated sequential basis [9] - The midpoint of the 2026 Adjusted EBITDA guidance represents a 27% increase over the midpoint in 2025 [8] Business Line Data and Key Metrics Changes - Offshore Energy Services (OES) segment revenues and adjusted operating income decreased by $2.4 million this quarter, with lower revenues in Europe and Africa [10] - Government services revenues increased by $8.4 million, primarily due to the transition of the Irish Coast Guard contract [12] - Other services revenues increased by $3.8 million, driven by higher activity in Australia [16] Market Data and Key Metrics Changes - The fleet status for offshore-configured helicopters remains near full effective utilization levels, with constrained new capacity due to supply chain issues [6] - The U.S. market is stable, while the North Sea market is experiencing softer activity [36][72] - Brazil and Africa are identified as markets with strong growth prospects [34] Company Strategy and Development Direction - The company maintains a positive outlook for offshore energy services, expecting increasing capital investment in offshore projects [5] - 2026 is seen as an important inflection point for the government services business, with expected nearly doubling of adjusted operating income year-over-year [7] - The company is focused on advanced air mobility, with ongoing trials and partnerships with OEMs [56][78] Management Comments on Operating Environment and Future Outlook - Management highlighted persistent supply chain challenges impacting aircraft availability and potential revenue opportunities [31] - The company expects strong performance from the OES segment despite current market conditions in the energy sector [18] - Management anticipates improved margins and earning potential in the government services segment as operations ramp up [19] Other Important Information - The unrestricted cash balance was approximately $246 million, with total available liquidity of $313 million [22] - The company made an additional $25 million of accelerated principal payments on the UKSR debt facility [22] - The company expects total CapEx in 2026 to be about $100 million, with a projected free cash flow of approximately $140 million [53] Q&A Session Summary Question: Guidance in OES and market implications - Management acknowledged tightening guidance due to supply chain challenges impacting aircraft availability and fewer aircraft on contract in certain regions [30][31] Question: Current outlook for main OES markets - Management indicated Brazil and Africa have strong growth prospects, while the North Sea is softer in activity [34][36] Question: Vendor credits and their increase - Management explained that increased activity levels led to a heightened level of vendor credits this quarter [38][39] Question: Aircraft delivery and deployment - Management detailed pending deliveries, including five aircraft for government services and seven offshore-configured AW189s [46][48] Question: Supply chain bottlenecks - Management noted significant supply chain issues affecting both aftermarket support and new deliveries across various helicopter models [49][50] Question: CapEx outlook for 2026 - Management projected total CapEx of about $100 million for 2026, with a healthy free cash flow yield expected [53] Question: Advanced mobility trials updates - Management reported positive progress in advanced mobility trials, including a sandbox project in Norway [54][56] Question: Asset sales and future activity - Management explained opportunistic asset sales and potential for future sale-leaseback transactions [61][64] Question: Future tax outlook - Management discussed a one-time tax benefit and indicated that the effective tax rate will normalize as profitability improves [66]

Financial Data and Key Metrics Changes - Bristow reported adjusted EBITDA of $67.1 million in Q3 2025, reflecting a strong financial performance despite ongoing supply chain challenges [3][5] - Total revenues increased by $9.9 million, and adjusted EBITDA increased by $6.4 million on a consolidated sequential basis, primarily driven by government services and other services segments [6][10] - The midpoint of Bristow's 2026 adjusted EBITDA guidance represents a 27% increase over the midpoint in 2025, indicating robust growth expectations [5][16] Business Line Data and Key Metrics Changes - Offshore Energy Services (OES) segment revenues and adjusted operating income decreased by $2.4 million this quarter, with lower revenues in Europe and Africa due to reduced utilization [6][7] - Government services revenues increased by $8.4 million, primarily due to the transition of the Irish Coast Guard contract [8][10] - Other services revenues rose by $3.8 million, mainly due to higher activity in Australia [9][10] Market Data and Key Metrics Changes - The fleet status for offshore-configured helicopters remains near full effective utilization levels, with tight supply dynamics supporting a positive outlook for the sector [4][16] - The U.S. market is stable with less ad hoc work, while Brazil, Africa, and the Caribbean are experiencing growth [26][27] Company Strategy and Development Direction - Bristow is focused on enhancing its government services business and transitioning to new contracts, with expectations of improved profitability in 2026 [4][12] - The company is also investing in advanced air mobility, with ongoing trials and partnerships aimed at commercializing all-electric and hybrid aircraft [39][52] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for offshore energy services activity, anticipating increased capital investment in deep-water projects [3][47] - Supply chain challenges are impacting aircraft availability, but the company expects working capital to improve as these constraints subside [13][37] Other Important Information - Bristow's unrestricted cash balance was approximately $246 million, with total available liquidity of $313 million [13][14] - The company made an additional $25 million of accelerated principal payments on the UKSR debt facility, totaling $40 million for the year [14][15] Q&A Session Summary Question: Guidance on OES and market implications - Management acknowledged tightening guidance due to persistent supply chain challenges affecting aircraft availability and fewer contracts in the North Sea and U.S. [21][22] Question: Outlook for main OES markets - Management highlighted Brazil, Africa, and the Caribbean as growth markets, while the North Sea is experiencing softer activity [25][26] Question: Vendor credits and their impact - Management explained that higher vendor credits this quarter were due to increased activity and various factors related to aircraft purchases and maintenance contracts [28][29] Question: Aircraft delivery and deployment - Management detailed pending deliveries, including five aircraft for government services and seven offshore-configured AW189s, with expected deployment in Brazil, Africa, and the North Sea [33][36] Question: CapEx outlook for 2026 - Total CapEx for 2026 is projected at $100 million, with expectations of approximately $140 million in free cash flow at the midpoint of guidance [38] Question: Advanced mobility trials progress - Management reported positive progress in advanced mobility trials, including a sandbox project in Norway with Beta Technologies [39][52] Question: Asset sales and future activity - Management discussed opportunistic asset sales and potential sale-leaseback transactions for older assets [42][44] Question: Future tax outlook - Management indicated that a one-time tax benefit was realized this quarter, with expectations of a normalized tax rate as profitability improves [45][46] Question: Focus on exploratory drilling by customers - Management confirmed that while their business is primarily focused on production support, there is an increasing share of capital investment in deep-water projects [47][48]