Financial Performance - Q3 2025 - Total revenues increased to $386 million from $376 million in Q2 2025[17], a rise of $9.9 million[18] - Adjusted EBITDA increased to $67 million from $61 million in Q2 2025[17], an increase of $6.4 million[18] - The company made $24.8 million in accelerated principal payments on the UKSAR Debt facility[16] Segment Performance - Offshore Energy Services revenues decreased by $2.4 million, from $253 million to $250 million[20, 21] - Government Services revenues increased by $8.4 million, from $93 million to $101 million[25, 27] - Other Services revenues increased by $3.8 million, from $31 million to $35 million[33, 36] Outlook for 2025 and 2026 - Total revenue is projected to be between $1455 million and $1525 million for 2025, and between $1580 million and $1690 million for 2026[38] - Adjusted EBITDA is projected to be between $240 million and $250 million for 2025, and between $295 million and $325 million for 2026[38] Balance Sheet and Capital Allocation - The company has $245.5 million of unrestricted cash and total liquidity of $313.4 million[41] - Net Debt is $441 million as of September 30, 2025[42] - The company plans to initiate a quarterly dividend program in Q1 2026, with an initial dividend of $0.125 per share ($0.50 annualized)[49]

Group 1: Oracle's Strong Performance - Oracle shares surged by 40%, marking the largest one-day increase since the 1990s, driven by a robust forecast for its cloud infrastructure business [5][10][27] - The company expects cloud infrastructure revenue to grow by 77% this fiscal year, reaching $18 billion, with projections of $32 billion next year and $144 billion by fiscal year 2030 [19][27] - Analysts have raised price targets for Oracle, with estimates reaching as high as $400, reflecting confidence in the company's long-term competitive position in the AI infrastructure market [47] Group 2: Market Reactions and Economic Indicators - The Dow Jones Industrial Average saw a slight decline of about 73 points, while the S&P 500 and Nasdaq Composite reached new record highs, indicating mixed market reactions [2][3] - Wholesale inflation unexpectedly declined, reinforcing expectations that the Federal Reserve may cut interest rates in the upcoming meeting [3][27] - The technology sector, particularly driven by Oracle's performance, emerged as the best-performing group, with the XLK sector index up 2.3% [4][3] Group 3: Competitive Landscape and Future Outlook - Oracle's focus on performance and speed in cloud services is seen as a competitive advantage, allowing it to potentially undercut rivals on costs [15][16] - The company is positioning itself as a disruptor in the AI and GPU market, which could lead to a larger book of business than competitors like Google in the future [17][18] - The demand for AI infrastructure is expected to remain strong, with no signs of slowdown, indicating a robust growth trajectory for Oracle and similar companies [20][22] Group 4: Tariff Developments and Market Implications - President Trump is advocating for new tariffs on China and India, with the Supreme Court agreeing to fast-track a case regarding the legality of these tariffs [51][52] - The potential for tariff refunds has raised questions among investors, with implications for Treasury markets if significant refunds are issued [54][56] - The ongoing trade dynamics between the U.S. and China are expected to remain stable in the near term, as the U.S. administration seeks to balance its trade strategies [65][66]

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 Performance - Revenues for Q1 2025 were $350.53 million, a decrease of $3 million compared to Q4 2024, primarily due to seasonality in Other Services, offset by higher revenues from new Government Services contracts[17, 77] - Adjusted EBITDA for Q1 2025 was $57.71 million, consistent with the $57.84 million in Q4 2024, as lower revenues were offset by lower operating and general & administrative expenses[18, 76] - Offshore Energy Services revenues remained consistent at $240 million in both Q4 2024 and Q1 2025, with regional variations: Europe decreased by $4.5 million, Americas increased by $1.9 million, and Africa increased by $2.2 million[21, 22] - Government Services revenues increased by $3.4 million from $82.56 million in Q4 2024 to $85.94 million in Q1 2025, driven by the Irish Coast Guard (IRCG) contract[25, 28, 77] - Other Services revenues decreased by $6 million from $30.8 million in Q4 2024 to $24.8 million in Q1 2025, due to seasonality in Australia, unfavorable foreign exchange, and lower dry-leasing revenues[33, 37, 77] Outlook and Strategy - The company affirms its 2025 revenue outlook to be between $1.42 billion and $1.615 billion, and 2026 revenue outlook to be between $1.525 billion and $1.775 billion[39] - The company anticipates completing the transitions of the new IRCG and UKSAR2G contracts and upgrading the fleet with new OES configured AW189 helicopters[69] - The company plans to initiate a quarterly dividend program beginning in Q1 2026, with an initial dividend payment of $0.125 per share ($0.50 per share annualized)[69] Balance Sheet and Liquidity - The company has $191.1 million of unrestricted cash and total liquidity of $254.3 million as of March 31, 2025[48, 50] - The company's net debt is $527 million as of March 31, 2025[50] - The company has a contractual backlog of approximately $4.2 billion as of March 31, 2025, with $3.1 billion (73%) from Government Services and $1.1 billion (27%) from Offshore Energy Services[52, 54, 55]