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Bristow Group Inc. (VTOL)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $376.4M, diluted EPS $1.07, and Adjusted EBITDA $60.7M; Bristow raised FY2025 Adjusted EBITDA guidance to $240–$260M and FY2026 to $300–$335M .
  • Against S&P Global consensus, Q2 revenue missed ($376.4M vs $387.0M), EPS missed ($1.07 reported GAAP diluted EPS vs $0.76 Primary EPS consensus; note metric definitions differ), and EBITDA was near consensus (company Adjusted EBITDA $60.7M vs S&P EBITDA consensus $57.9M; definitions differ) .*
  • Offshore Energy Services drove sequential strength (+$13.0M QoQ), while Government Services saw an operating loss due to transition costs and FX headwinds despite higher revenue .
  • Capital allocation accelerated: $15.3M UKSAR debt prepay and $3.9M share repurchases; total liquidity was $316.5M at quarter-end .
  • Strategic catalysts: raised 2025–2026 guidance, ongoing UKSAR2G and IRCG transitions, and AAM progress via Norway Test Arena flights of BETA’s ALIA CX300 .

What Went Well and What Went Wrong

What Went Well

  • Offshore Energy Services revenue up $13.0M QoQ, with utilization gains in Europe (+$6.4M), Americas (+$3.7M), and Africa (+$3.0M); Adjusted Operating Income up $6.5M .
  • Strong free cash generation: Free Cash Flow $94.5M and Adjusted Free Cash Flow $95.3M in Q2 .
  • Management tone and guidance: “We are pleased to report another quarter of strong financial results and to raise 2025 Adjusted EBITDA guidance to $240-$260 million and 2026 Adjusted EBITDA guidance to $300-$335 million,” — Chris Bradshaw, President & CEO .

What Went Wrong

  • Government Services posted an operating loss of $1.9M (vs $6.0M income in Q1) despite +$6.6M revenue, driven by higher subcontractor and personnel costs, FX headwinds (~$3.0M), repairs & maintenance, and fuel .
  • FX and non-operational impacts: income tax expense rose to $20.4M (vs $10.2M in Q1) due to mix and lower deductible interest; net interest expense increased on UKSAR prepayment amortization .
  • Other operating expense categories increased QoQ: “Other” operating expenses rose by $15.1M sequentially, reflecting activity-related costs and transition investments .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Total Revenues ($USD Millions)$353.5 $350.5 $376.4
Operating Income ($USD Millions)$31.8 $33.5 $42.6
Net Income Attributable to Bristow ($USD Millions)$31.8 $27.4 $31.7
Diluted EPS ($USD)$1.07 $0.92 $1.07
EBITDA ($USD Millions)$44.6 $63.9 $79.6
Adjusted EBITDA ($USD Millions)$57.8 $57.7 $60.7
Free Cash Flow ($USD Millions)$48.3 $(2.5) $94.5
Adjusted Free Cash Flow ($USD Millions)$45.7 $(1.7) $95.3

Segment revenue breakdown:

Segment Revenues ($USD Millions)Q4 2024Q1 2025Q2 2025
Offshore Energy Services – Europe$105.7 $101.2 $107.6
Offshore Energy Services – Americas$89.7 $91.6 $95.2
Offshore Energy Services – Africa$44.8 $47.0 $50.0
Total Offshore Energy Services$240.2 $239.8 $252.8
Government Services$82.6 $85.9 $92.5
Other Services$30.8 $24.8 $31.1
Total Revenues$353.5 $350.5 $376.4

Key KPIs:

KPIQ4 2024Q1 2025Q2 2025
Flight Hours – Offshore Energy Services24,139 23,431 24,469
Flight Hours – Government Services4,242 3,941 4,868
Flight Hours – Other Services3,585 3,400 3,684
Total Flight Hours31,966 30,772 33,021
Unrestricted Cash ($USD Millions)$247.5 (YE24) $191.1 (Q1) $251.8 (Q2)
Total Liquidity ($USD Millions)$311.5 (YE24) $254.3 (Q1) $316.5 (Q2)
Net Debt ($USD Millions)N/AN/A$468 (as of 6/30/25)

Estimates comparison (S&P Global):

Metric (S&P Global)Q2 2025 ConsensusQ2 2025 Actual
Primary EPS$0.76*$0.6803*
Revenue ($USD Millions)$387.0*$376.429*
EBITDA ($USD Millions)$57.9*$57.15*
EPS – # of Estimates1*—
Revenue – # of Estimates1*—

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious Guidance (Q1 2025)Current Guidance (Q2 2025)Change
Offshore Energy Services Revenues ($USD Millions)2025E$950–$1,060 $980–$1,030 Mixed (midpoint slightly up; narrowed)
Government Services Revenues ($USD Millions)2025E$350–$425 $360–$400 Narrowed; midpoint down vs prior band top, but raised lower bound
Other Services Revenues ($USD Millions)2025E$120–$130 $120–$130 Maintained
Total Revenues ($USD Millions)2025E$1,420–$1,615 $1,460–$1,560 Raised lower bound; narrowed
Adjusted Operating Income ($USD Millions)2025E$220–$245 $225–$250 Raised
Adjusted EBITDA ($USD Millions)2025E$230–$260 $240–$260 Raised lower bound
Cash Interest ($USD Millions)2025E~$45 ~$45 Maintained
Cash Taxes ($USD Millions)2025E$25–$30 $25–$30 Maintained
Maintenance Capex ($USD Millions)2025E$15–$20 $15–$20 Maintained
Adjusted EBITDA ($USD Millions)2026E$275–$335 $300–$335 Raised lower bound

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Supply chain (S92 parts)Persisting S92 supply chain challenges; availability penalties impacted UKSAR; expected to persist in near term .Repairs & maintenance up; PBH rate increases and timing of repairs; FX headwinds; Government segment pressured during transitions .Headwind persists; operational impacts visible in margins.
FX sensitivityGBP/USD sensitivity: every £0.01 ≈ ±$1.2M on Adj. EBITDA (FY guidance context) .Unfavorable FX impacted Government Services (~$3.0M); Other income benefited from FX gains .Elevated FX volatility continues to affect results.
Government SAR transitions (UKSAR2G, IRCG)2025 is a transition year; investments early, earnings power more visible in 2026+ .Revenues up in Government Services due to transitions; operating loss due to higher subcontractor/personnel costs and FX .Execution progressing; near-term margin dilution expected.
Capital allocationNew framework: pay down debt to ~$500M gross by end-2026; initiate $125M buyback; start dividends Q1 2026 ($0.125/qtr) .$15.3M accelerated UKSAR debt prepayment; $3.9M repurchases; $121.1M buyback capacity remaining .Active execution of framework; liquidity strong.
Advanced Air Mobility (AAM)Strategic initiatives highlighted in broader narrative .Test Arena in Norway with BETA’s ALIA CX300 flights commence; months-long series of market surveys .Operational pilots underway; early-stage validation.

Management Commentary

  • “We are pleased to report another quarter of strong financial results and to raise 2025 Adjusted EBITDA guidance to $240-$260 million and 2026 Adjusted EBITDA guidance to $300-$335 million,” — Chris Bradshaw, President & CEO .
  • Capital framework execution: “Bristow commenced accelerated debt payments and share repurchases in the current quarter.” — Chris Bradshaw .
  • Strategic priorities (Q4 framing): protect balance sheet; pursue high return growth; return capital (buybacks and planned quarterly dividends beginning Q1 2026) .

Q&A Highlights

  • Transcript sources available externally (Seeking Alpha, MarketScreener, MLQ.ai) indicate the call focused on Government Services transition cost headwinds, FX impacts, and sequential Adjusted EBITDA progress, alongside guidance raises and capital allocation execution .
  • Company webcast and investor materials (presentation and 10-Q) were posted contemporaneously with the call .

Note: Internal transcript retrieval encountered a document inconsistency; the above references provide the public transcript sources.

Estimates Context

  • Q2 2025: Revenue $376.4M vs S&P consensus $387.0M (miss); Primary EPS $1.07 GAAP diluted EPS vs S&P Primary EPS consensus $0.76 (miss vs consensus metric; note definition differences); EBITDA was near consensus — S&P EBITDA consensus $57.9M vs S&P-recorded actual $57.15M, while company-reported Adjusted EBITDA was $60.7M (non-GAAP) .*
  • With only one covering estimate in S&P for revenue and EPS this quarter, estimate dispersion was minimal; guidance raise implies upward revisions likely for FY revenue and Adjusted EBITDA bands .*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Sequential improvement and guidance raise: OES strength and overall Adjusted EBITDA trajectory support FY 2025 guidance tightening to $240–$260M; near-term headwinds largely in Government Services due to transition costs and FX .
  • Watch Government Services margin normalization: despite revenue growth, transition costs and FX drove operating loss; margins should improve as transitions complete into 2026 .
  • Strong cash generation and liquidity enable capital allocation: $95.3M Adjusted FCF, $316.5M liquidity, debt prepayment, and ongoing buybacks with $121.1M capacity remaining .
  • FX matters: GBP/USD moves materially affect Adjusted EBITDA; monitor currency trends given UK and Euro-area exposure .
  • AAM optionality: Norway Test Arena flights of BETA’s ALIA CX300 signal credible operational progress toward zero-/low-emission aviation; early but strategically aligned with diversification .
  • Short-term trading: Narrative likely sensitive to (i) Government Services margin trajectory each quarter, (ii) FX prints, and (iii) contract availability metrics; any improvement could catalyze re-rating given guidance raise .
  • Medium-term thesis: OES capacity tightness and contract renewals, plus UKSAR2G/IRCG stability post-transition, underpin multi-year cash flow and capital returns (buybacks and planned dividends starting 2026) .