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Bristow Group Inc. (VTOL)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $386.3m and diluted EPS was $1.72; Adjusted EBITDA rose to $67.1m, continuing sequential improvement from Q2 and Q1. Management tightened FY25/FY26 guidance ranges and reiterated a 2026 adjusted EBITDA midpoint implying roughly 27% YoY growth versus 2025 midpoint .
  • Offshore Energy Services (OES) softened sequentially on lower Europe/Africa utilization, partly offset by Americas; Government Services and Other Services strengthened, aided by Irish Coast Guard ramp and Australia activity. Vendor credits materially helped repairs and maintenance costs this quarter .
  • Revenue modestly missed Wall Street consensus by ~$13.7m (estimate $400.0m vs actual $386.3m); EPS consensus was not available. The miss was driven by supply-chain constraints impacting aircraft availability and utilization, and fewer aircraft on contract in the North Sea and U.S. [functions.GetEstimates]* .
  • Guidance was tightened: FY25 adjusted EBITDA to $240–$250m and FY26 to $295–$325m; OES adjusted operating income expected ~$200m in FY25 and $225–$235m in FY26. Management framed 2026 as an inflection year as government contracts reach full run-rate; free cash flow in 2026 is guided at ~$140m midpoint (after ~$100m capex) .
  • Key potential stock catalysts: continued government contract ramp, confirmation of vendor credits cadence and supply-chain normalization, 2026 FCF realization, and clarity on North Sea fleet replacements and Brazil/Africa aircraft deployments .

What Went Well and What Went Wrong

What Went Well

  • Government Services improved: revenues +$8.4m QoQ; adjusted operating income +$4.8m QoQ as an additional Irish Coast Guard base commenced operations .
  • Adjusted EBITDA up $6.4m QoQ to $67.1m, supported by revenue growth and lower G&A; management reaffirmed strong 2026 growth outlook (~27% YoY adj. EBITDA midpoint) .
  • Management highlighted vendor credits as a positive offset on maintenance costs this quarter, citing credits tied to asset purchases, OEM performance/delays, and long-term maintenance contract incentives. Quote: “We benefited more materially from such credits this quarter… and continue to value our strong relationships with our OEM” .

What Went Wrong

  • OES revenues and adjusted operating income fell $2.4m QoQ on lower utilization in Europe and Africa, only partially offset by higher Americas utilization .
  • Supply-chain challenges persisted across models (S-92 improvement but AW189 now impacted), affecting aftermarket parts and new delivery timing; fewer aircraft were on contract in the North Sea and U.S. .
  • Revenue missed consensus (~$400.0m) by ~$13.7m; management attributed pressure to aircraft availability constraints and pockets of softer activity (North Sea); EPS consensus was unavailable [functions.GetEstimates]* .

Financial Results

Consolidated P&L vs Prior Quarters and Estimates

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$350.5 $376.4 $386.3
Diluted EPS ($USD)$0.92 $1.07 $1.72
Operating Income ($USD Millions)$33.5 $42.6 $50.5
Adjusted EBITDA ($USD Millions)$57.7 $60.7 $67.1
Net Income ($USD Millions)$27.4 $31.8 $51.5
Revenue vs S&P Consensus ($USD Millions)——Actual $386.3 vs Estimate $400.0 (MISS) [functions.GetEstimates]*

Note: Prior-year revenue for Q3 2024 was $365.1m (YoY +5.8%). EPS YoY not available in the current documents reviewed .

Segment Breakdown (Sequential)

SegmentQ2 2025 Revenue ($USD Millions)Q3 2025 Revenue ($USD Millions)Change
Offshore Energy Services (Total)$252.8 $250.4 $(2.4)m
- Europe$107.6 $101.0 $(6.6)m
- Americas$95.2 $100.9 +$5.7m
- Africa$50.0 $48.5 $(1.5)m
Government Services$92.5 $100.9 +$8.4m
Other Services$31.1 $35.0 +$3.8m

KPIs (Flight Hours by Segment)

SegmentQ2 2025 Flight HoursQ3 2025 Flight HoursChange
OES Europe8,838 8,471 (367)
OES Americas10,700 11,104 +404
OES Africa4,931 4,415 (516)
Government Services4,868 5,016 +148
Other Services3,684 3,942 +258
Total33,021 32,948 (73)

Guidance Changes

MetricPeriodPrevious Guidance (Q2 2025)Current Guidance (Q3 2025)Change
Total Revenues ($USD mm)2025E$1,460–$1,560 $1,455–$1,525 Tightened/lowered midpoint
Total Revenues ($USD mm)2026E$1,620–$1,740 $1,580–$1,690 Tightened/lowered midpoint
Adjusted EBITDA ($USD mm)2025E$240–$260 $240–$250 Tightened (lower top end)
Adjusted EBITDA ($USD mm)2026E$300–$335 $295–$325 Tightened (lower top end)
OES Adj. Operating Income ($USD mm)2025E$200–$205 ~ $200 Maintained/Tightened
OES Adj. Operating Income ($USD mm)2026E$235–$250 $225–$235 Tightened/lowered
Government Services Adj. Operating Income ($USD mm)2025E$40–$50 $40–$45 Tightened
Government Services Adj. Operating Income ($USD mm)2026E$75–$85 $70–$80 Tightened
Other Services Adj. Operating Income ($USD mm)2025E$20–$25 $20–$25 Maintained
Other Services Adj. Operating Income ($USD mm)2026E$20–$25 $20–$25 Maintained
Corporate (Adj. Op. Loss) ($USD mm)2025E($35)–($30) ($35)–($30) Maintained
Cash interest ($USD mm)2025E~ $45 ~ $45 Maintained
Cash interest ($USD mm)2026E~ $40 ~ $40 Maintained
Cash taxes ($USD mm)2025E$25–$30 $25–$30 Maintained
Cash taxes ($USD mm)2026E$25–$30 $25–$30 Maintained
Maintenance CapEx ($USD mm)2025E$15–$20 $12–$15 Lowered
Maintenance CapEx ($USD mm)2026E$20–$25 $20–$25 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Supply chain/aircraft availabilityAffirmed outlook but highlighted macro risks; OES repairs & maintenance and PBH rates increased; vendor credits partially offset; working capital built to mitigate constraints Persistent constraints across models (AW189 delays; aftermarket parts delays), impacting utilization and deliveries Continued constraint; timing/delivery risk elevated
Regional OES trendsQ1: Europe softer; Americas/Africa higher utilization Q3: Brazil/Africa/Caribbean growing; U.S. stable with less ad hoc; North Sea softer; net aircraft inflows to growth markets Mixed: growth in Brazil/Africa; North Sea softness
Vendor creditsNoted in Q2 as partial offset to maintenance Materially higher credits this quarter from OEM performance and long-term contracts Positive tailwind to costs
Government Services rampIRCG/UKSAR2G transitions underway; capex largely completed; Q2 AOI pressured by transition costs Margins improved; additional IRCG base started; 2026 AOI midpoint up ~76% YoY as contracts reach full run-rate Improving trajectory into 2026
Capex/FCF outlookMaintenance $15–$20m FY25; 2026 $20–$25m 2026 total capex $100m ($80m growth, ~$20m maintenance); FCF ~ $140m at guidance midpoint FCF accretive in 2026
AAM/technologyLaunched Norway sandbox; partnership with BETA; test arena flights Continuing Norway test arena; Beta IPO noted; commercialization steps, but no 2026 contribution in guidance; earliest deliveries likely 2027–2028 Advancing trials; commercialization later

Management Commentary

  • CEO on outlook and capacity: “Adjusted EBITDA of $67.1 million in Q3 2025… deep water projects are favorably positioned… supply remains tight with ~24-month manufacturing lead times” .
  • CFO on guidance and drivers: “We are tightening our 2025 adjusted EBITDA range to $240–$250m… and 2026 to $295–$325m… OES adjusted operating income approximately $200m in 2025, and $225–$235m in 2026” .
  • CFO on vendor credits: “We benefited more materially from such credits this quarter… credits tied to asset purchases… OEM performance and delays… incentives on long-term maintenance contracts” .
  • CEO on regional trends: “Brazil… continues to have some of the best growth prospects… Africa… continued demand… Caribbean still growing… U.S. mostly stable… North Sea softer” .
  • CEO on capex/FCF: “Total CapEx in 2026 about $100 million… approximately $140 million of free cash flow in 2026 at the midpoint of guidance” .

Q&A Highlights

  • OES guidance/utilization: Tightening impacted midpoint by ~2%; drivers included persistent supply-chain impacts on availability and fewer aircraft on contract in North Sea/U.S. near-term; longer-term OES outlook remains constructive .
  • Deliveries/supply-chain bottlenecks: 5 government aircraft delivered (2 AW189 to IRCG; 3 AW139 to UKSAR2G) undergoing final mods; 7 OES AW189 on order for Brazil/Africa/North Sea; aftermarket delays and OEM component sourcing challenges persist .
  • Capex/FCF: 2026 capex ~$100m (growth ~$80m, maintenance ~$20m); FCF ~$140m at guidance midpoint .
  • AAM timelines: Norway test arena progressing; first certifications expected in 2026, but no contribution assumed; earliest deliveries likely 2027–2028 .
  • Asset transactions/tax: Sale-leaseback on a new UKSAR aircraft drove proceeds; one older asset sold; one-time tax benefit from releasing valuation allowance in Australia; go-forward tax rate to normalize and be somewhat north of U.S. rate .

Estimates Context

  • Q3 2025 revenue missed Wall Street consensus: Actual $386.3m vs S&P Global consensus $400.0m (miss ~$13.7m). EPS consensus was not provided via S&P Global for Q3 2025; diluted EPS actual was $1.72 [functions.GetEstimates]* .
  • Implications: Consensus models may need to reflect lingering supply-chain constraints and utilization softness in Europe/Africa/North Sea, partially offset by Americas strength and Government Services ramp; cost tailwinds from vendor credits could temper margin headwinds .

Values retrieved from S&P Global*

Key Takeaways for Investors

  • Sequential momentum intact despite a revenue miss: Government and Other Services offset OES softness; adjusted EBITDA improved and guidance was tightened rather than reduced materially—signal of control over costs and visibility .
  • 2026 is the pivot year: Government contracts reaching full run-rate, ~$140m FCF at guidance midpoint, and tightened adj. EBITDA range support a capital return/deleveraging narrative (accelerated UKSAR debt prepayments already underway) .
  • Watch supply-chain normalization and vendor credits: Credits provided meaningful R&M relief; sustainability of credits and parts availability are key to margin trajectory and aircraft utilization .
  • OES mix shifts matter: Growth markets (Brazil/Africa/Caribbean) are seeing net aircraft inflows, while North Sea remains mature; replacement of S-92 with AW189 on long-term contracts can be value accretive even without market growth .
  • Near-term modeling: Expect conservative utilization in Europe/Africa/North Sea; incorporate Government Services ramp and continued Australia strength in Other Services; maintain cautious FX assumptions (GBP/USD sensitivity highlighted historically) .
  • Optionality in AAM: Norway test arena advances operational learnings; earliest potential commercial deliveries likely 2027–2028—no impact to 2026 guidance, limiting near-term execution risk .
  • Balance sheet/liquidity supportive: $245.5m unrestricted cash and $313.4m total liquidity as of Q3; continued deleveraging and capex discipline underpin 2026 FCF conversion .

Additional Data and Notes

  • One-time tax benefit in Q3 from releasing Australian valuation allowance boosted net income; management guided toward a normalized, multi-jurisdiction tax rate going forward .
  • Disposals: Net gains of $8.2m from sale/disposition of two AW139 medium helicopters in Q3; continued active portfolio management including sale-leasebacks .

Source Documents

  • Q3 2025 8-K/press release: consolidated financials, segment details, guidance .
  • Q3 2025 earnings call transcript: outlook, supply-chain, deliveries, capex/FCF, regional trends, vendor credits .
  • Prior quarters: Q2 2025 press release/8-K and Q1 2025 press release for trend analysis .
  • AAM Norway Test Arena press release (Aug 8, 2025) .