Core Viewpoint - Bridger Aerospace Group Holdings, Inc. (BAER) reported a strong second quarter with significant revenue growth, but its stock has underperformed compared to the broader market since the earnings announcement Financial Performance - BAER achieved record second-quarter revenue of $30.8 million, a 136.3% increase from $13 million year-over-year [2] - The company reported a net income of $0.3 million, a significant improvement from a net loss of $9.9 million a year earlier [2] - Adjusted EBITDA surged to $10.8 million from $0.2 million, and loss per diluted share improved to $0.12 from $0.33 [2] Operational Highlights - Excluding $5.1 million in revenues from return-to-service work, operational revenue more than doubled to $25.7 million [3] - The company achieved 100% fleet deployment, marking the earliest call-outs in its history, and secured two 120-day task orders from the U.S. Forest Service [5] - BAER dropped 4 million gallons of water across multiple states during the season to date [5] Cost Management - Selling, general and administrative (SG&A) expenses decreased by 17.4% to $6.5 million from $7.9 million due to lower non-cash stock-based compensation [4] - Cost of revenues increased by 89.5% to $18.7 million, partly due to $3.9 million in expenses for the Spanish aircraft program [4] Cash Position - Cash and cash equivalents were $17 million at quarter-end, down from $39.3 million at the end of 2024, primarily due to winter maintenance and training expenses [6] - An expected $18.3 million in receivables from early fire season activity is anticipated to improve cash flow in the coming months [6] Management Insights - CEO Sam Davis attributed the strong performance to early deployments and expanded contracts, highlighting the effectiveness of the Super Scooper in firefighting operations [7] - The integration of the Ignis Technologies platform aims to enhance situational awareness for firefighters [7] Revenue Drivers - Revenue growth was driven by higher activity levels, favorable wildfire conditions, and earlier deployments [8] - Increased fleet utilization and operational leverage contributed to the shift to net profitability [8] Future Guidance - BAER reaffirmed its guidance for 2025, expecting adjusted EBITDA between $42 million and $48 million on revenue of $105 million to $111 million [9] - Management anticipates continued improvement in cash flow from operating activities and plans to revisit forecasts after third-quarter results [10] Other Developments - BAER signed a $46 million sale-leaseback agreement for its Bozeman, MT campus, with proceeds aimed at reducing debt and interest expenses [11] - The return-to-service work on the Spanish Scoopers is on schedule, with two already certified and potential deployment in Europe being considered [12]