Executive Summary

Q1 2025 revenue was $350.5M, down 0.8% sequentially; diluted EPS was $0.92 and Adjusted EBITDA was $57.7M, essentially flat versus Q4 2024, while operating income improved to $33.5M .
Offshore Energy Services (OES) margins expanded (Adjusted Operating Income +$3.1M QoQ) on $7.1M lower repairs and maintenance, offset by higher training costs; Government Services revenue rose $3.4M on the Irish Coast Guard ramp; Other Services declined seasonally by $6.0M .
Management affirmed 2025 and 2026 guidance (total revenue $1.42–$1.615B and $1.525–$1.775B; Adjusted EBITDA $230–$260M and $275–$335M) and highlighted FX sensitivity of ~±$1.2M to Adjusted EBITDA per £0.01 move in GBP/USD .
Call commentary flagged tariffs and macro risks but reiterated confidence given OES production weighting (~80%) and long-term SAR contracts; catalysts include the Sikorsky S‑92 long-term support agreement and Norway advanced air mobility (AAM) demonstrations beginning in Q3 2025 .

What Went Well and What Went Wrong

What Went Well

OES profitability: Adjusted Operating Income rose to $47.1M (+$3.1M QoQ) as repairs and maintenance fell by $7.1M; management noted continued constructive market conditions and tight equipment supply supporting rates .
Government Services ramp: Revenue +$3.4M QoQ primarily from the Irish Coast Guard transition; segment Adjusted Operating Income +$3.9M QoQ .
Strategic positioning and guidance: “We continue to have a positive outlook… supported by the stability of Government Services, weighting of OES to production support, and geographic breadth” — CEO Chris Bradshaw; 2025/2026 guidance affirmed .
S‑92 support agreement: Long-term Sikorsky TAP contract provides price visibility/stability and >90% parts coverage for Bristow’s >60 S‑92 aircraft, a meaningful cost/availability mitigant .

What Went Wrong

Seasonal softness in Other Services: Revenue fell $6.0M QoQ with Adjusted Operating Income down $4.5M, driven by Australia seasonality, FX headwinds, and lower dry-leasing .
Working capital drag on cash flow: Operating cash flow was $(0.6)M as working capital used $56.4M, tied to receivables timing, government contract start-up costs, and inventory builds to mitigate supply chain risks .
Higher tax expense: Income tax expense was $10.2M versus a Q4 benefit, reflecting earnings mix and deductible interest expense, partially offset by deferred tax assets recognition .

Financial Results

Consolidated performance versus prior periods and prior year

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$337.1	$353.5	$350.5
Net Income ($USD Millions)	$6.6	$31.8	$27.4
Diluted EPS ($USD)	—	$1.07	$0.92
Adjusted EBITDA ($USD Millions)	$47.5	$57.8	$57.7
Operating Income ($USD Millions)	—	$31.8	$33.5

Note: “—” indicates data not disclosed in the referenced document for that specific measure/period.

Segment revenue and profitability (sequential comparison)

Segment	Q4 2024 Revenue ($USD Millions)	Q1 2025 Revenue ($USD Millions)	Q4 2024 Adjusted Operating Income ($USD Millions)	Q1 2025 Adjusted Operating Income ($USD Millions)
Offshore Energy Services	$240.2	$239.8	$44.2	$47.1
Government Services	$82.6	$85.9	$9.8	$13.7
Other Services	$30.8	$24.8	$6.6	$2.0
Total	$353.5	$350.5	$52.3	$54.4

KPIs: Flight hours by segment (sequential comparison)

Segment	Q4 2024 Flight Hours	Q1 2025 Flight Hours
Offshore Energy Services (Europe)	9,395	8,749
Offshore Energy Services (Americas)	10,505	10,002
Offshore Energy Services (Africa)	4,239	4,680
Government Services	4,242	3,941
Other Services	3,585	3,400
Total	31,966	30,772

Actual vs Wall Street consensus (S&P Global)

Metric	Q1 2025 Actual	Q1 2025 Consensus	Surprise
Revenue ($USD Millions)	$350.5	$353.0*	Miss of $2.5M (~0.7%)*
Adjusted EBITDA ($USD Millions)	$57.7	$52.2*	Beat of $5.5M (~10.5%)*
EPS ($USD)	$0.92 (Diluted)	$0.58 (Primary EPS)*	Beat of $0.34*

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues ($USD Billions)	2025	$1.420 – $1.615	$1.420 – $1.615	Maintained
Total Revenues ($USD Billions)	2026	$1.525 – $1.775	$1.525 – $1.775	Maintained
Adjusted EBITDA ($USD Millions)	2025	$230 – $260	$230 – $260	Maintained
Adjusted EBITDA ($USD Millions)	2026	$275 – $335	$275 – $335	Maintained
OES Revenues ($USD Millions)	2025	$950 – $1,060	$950 – $1,060	Maintained
Government Services Revenues ($USD Millions)	2025	$350 – $425	$350 – $425	Maintained
Other Services Revenues ($USD Millions)	2025	$120 – $130	$120 – $130	Maintained
Cash Interest ($USD Millions)	2025	~$45	~$45	Maintained
Cash Taxes ($USD Millions)	2025	$25 – $30	$25 – $30	Maintained
Maintenance Capex ($USD Millions)	2025	$15 – $20	$15 – $20	Maintained
Dividend policy	Starting Q1 2026	Initiate $0.125/share quarterly	Reiterated capital allocation framework (dividend Q1 2026)	Maintained

FX sensitivity: ±~$1.2M Adjusted EBITDA per £0.01 GBP/USD move (context to guidance) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Tariffs/macro risk	Monitoring tariff uncertainty; fixed/firm prices on near-term aircraft deliveries	New U.S. tariffs on aircraft parts add complexity; not expected to be material; bigger risk is oil demand and OPEC+ supply	Rising concern but manageable
Supply chain	Significant challenges, esp. S‑92 parts; penalties impacted UK SAR; expected to persist in 2025	Some improvement on S‑92; delays remain across fleets	Gradual improvement
Regional OES trends	Strength in Nigeria, Brazil, Suriname; tight supply and strong pricing	Americas and Africa growth; Europe stable with U.K. utilization lower	Continued strength outside Europe
AAM initiatives	Plan to operate BETA eCTOL in Norway later in 2025	Norway regulatory sandbox formalized; cargo demos start Q3	Progressing toward execution
Capital allocation	Debt paydown to ~$500M gross by end-2026; share buybacks; dividend starting Q1 2026	Framework reiterated; execution beginning	Ongoing execution
Oil price sensitivity	—	No tangible impact at current activity; activity resilient ≥ ~$60 Brent	Resilient at current prices

Management Commentary

“We continue to have a positive outlook… supported by the stability of our Government Services business, the preponderant weighting of our Offshore Energy Services business to production support activities, and the breadth and diversity of the geographic markets we serve.” — Chris Bradshaw, CEO .
“Adjusted EBITDA was $58 million this quarter, consistent with last quarter… lower operating and administrative expenses offsetting the lower revenues.” — Jennifer Whalen, CFO .
“Recently implemented U.S. tariffs… introduce incremental costs and additional complexity… we do not expect the direct impact… to have a material impact.” — Chris Bradshaw, CEO .
“We were very pleased to reach [a] long-term agreement with Sikorsky for S‑92 support… providing price visibility and stability… well into the next decade.” — Chris Bradshaw, CEO .

Q&A Highlights

Guidance confidence: Management reaffirmed 2025/2026 outlook despite macro/tariff uncertainties, citing stable Government Services cash flows, OES production weighting (~80%), and global diversification .
Supply chain: Incremental improvements on S‑92 components; delays persist across fleets; mitigation via inventory and long-term OEM agreements .
Working capital: Q1 outflow driven by timing of government receivables, pre-operation costs, and inventory builds; expected to normalize in subsequent quarters .
Oil price threshold: No tangible impact on offshore activity currently; activity resilient at or above ~$60 Brent .
AAM Norway: Cargo demos with BETA’s ALIA CX300 in Q3 on a regulatory sandbox basis; potential for scope expansion if results are positive .

Estimates Context

Q1 2025 results versus S&P Global consensus: Revenue missed modestly ($350.5M vs $353.0M*), Adjusted EBITDA beat ($57.7M vs $52.2M*), and EPS (company diluted) beat S&P Primary EPS consensus ($0.92 vs $0.58*). Limited estimate count (n≈1–2) suggests potential for revisions. Values retrieved from S&P Global.* .
Implications: Strong EBITDA/margin performance and affirmed guidance likely bias consensus EBITDA upward; FX and OES cadence/renewals may temper near-term revenue expectations.

Key Takeaways for Investors

OES margin resilience and constructive rates: Sequential margin expansion on lower maintenance costs underscores pricing power amid tight supply; watch U.S./Suriname/Brazil project timing and Africa demand .
Government Services ramp in 2025: IRCG and UKSAR2G transitions continue; earnings power and quality margins expected to be more fully evident in 2026 and beyond .
Cash flow timing: Q1 working capital use tied to contract ramp and inventory builds; management expects normalization, with liquidity of $254.3M at quarter-end .
FX sensitivity: GBP/USD is a key driver (~±$1.2M Adjusted EBITDA per £0.01); FY guidance assumes average GBP/USD 1.33 (2025) .
Strategic de-risking: Long-term S‑92 support agreement improves parts coverage/cost visibility, mitigating maintenance volatility through the next decade .
AAM optionality: Norway eCTOL cargo demo in Q3 positions Bristow at the forefront of zero/low-emission aviation; early learnings could inform future commercial opportunities .
Capital returns roadmap intact: Debt paydown, opportunistic buybacks, and dividend initiation in Q1 2026 reaffirmed; see framework execution through 2025–2026 .

Bristow Group Inc. (VTOL)·Q1 2025 Earnings Summary