Bristow Group Inc. and Subsidiaries Form 10-Q
Bristow Group Inc. (VTOL) reported its quarterly financial results for the period ended March 31, 2025. The company’s revenue decreased by 12% to $343.1 million compared to the same period last year, primarily due to lower demand for its services. Net loss attributable to common shareholders was $34.1 million, or $0.12 per share, compared to a net loss of $23.4 million, or $0.08 per share, in the same period last year. The company’s adjusted EBITDA loss was $21.4 million, compared to an adjusted EBITDA loss of $14.1 million in the same period last year. As of March 31, 2025, the company had cash and cash equivalents of $143.1 million and total debt of $1.1 billion. The company’s total shares outstanding as of May 2, 2025 were 28,775,000.
Bristow Group’s Resilient Performance Amid Challenges
Bristow Group Inc., the leading global provider of innovative and sustainable vertical flight solutions, has reported its financial results for the three months ended March 31, 2025. Despite facing various industry headwinds, the company has demonstrated resilience and strategic agility in navigating the evolving market landscape.
Financial Highlights
In the Current Quarter, Bristow Group generated total revenues of $350.5 million, a slight decrease of 0.8% compared to the Preceding Quarter. This decline was primarily driven by lower revenues in the Other Services segment, which were partially offset by growth in the Government Services segment.
The company’s operating income increased by 5.5% to $33.5 million in the Current Quarter, up from $31.8 million in the Preceding Quarter. This improvement was largely attributable to stronger performance in the Offshore Energy Services and Government Services segments, which more than offset the decline in the Other Services segment.
Bristow Group’s net income attributable to the company was $27.4 million in the Current Quarter, a decrease of 13.9% compared to the Preceding Quarter’s $31.8 million. This decline was primarily due to higher income tax expense in the Current Quarter, which offset the increase in operating income.
Segment Performance
Offshore Energy Services The Offshore Energy Services segment, which accounts for 68% of Bristow Group’s total revenues, generated $239.8 million in the Current Quarter, a slight decrease of 0.2% compared to the Preceding Quarter. This was primarily due to lower utilization in the UK market, partially offset by increased activity in the Americas and Africa regions.
Operating income for the Offshore Energy Services segment increased by 8.8% to $37.4 million, driven by lower operating expenses, particularly in repairs and maintenance. The segment’s operating margin improved to 16% in the Current Quarter, up from 14% in the Preceding Quarter.
Government Services The Government Services segment, which contributed 25% of total revenues, saw a 4.1% increase in revenues to $85.9 million in the Current Quarter. This growth was primarily attributable to the commencement of the Irish Coast Guard (IRCG) contract in late 2024.
Operating income for the Government Services segment increased significantly to $6.0 million, up from $2.3 million in the Preceding Quarter, due to the higher revenues and improved operational efficiency.
Other Services The Other Services segment, which accounted for 7% of total revenues, experienced a 19.5% decline in revenues to $24.8 million in the Current Quarter. This was mainly due to lower seasonal utilization in Australia, unfavorable foreign exchange rate impacts, and lower dry-lease revenues.
Operating income for the Other Services segment declined to a loss of $0.6 million, compared to a profit of $3.6 million in the Preceding Quarter, primarily due to the lower revenues.
Fleet and Capital Expenditures
As of March 31, 2025, Bristow Group’s total fleet consisted of 211 aircraft, including 86 heavy helicopters, 67 medium helicopters, 16 light-twin helicopters, and 25 light-single helicopters. The company also had 13 fixed-wing aircraft and 4 unmanned aerial systems (UAS) in its fleet.
During the Current Quarter, the company made capital expenditures of $52.1 million, primarily related to payments for aircraft, leasehold improvements, and equipment purchases. Bristow Group also had 17 aircraft under construction and 5 aircraft on order, with an additional 20 aircraft options.
Liquidity and Capital Resources
Bristow Group’s liquidity position remains strong, with $191.1 million in unrestricted cash and $63.2 million in remaining availability under its ABL Facility, totaling $254.3 million in total liquidity as of March 31, 2025.
Operating cash flows were $27.3 million lower in the Current Quarter compared to the Prior Year Quarter, primarily due to working capital changes, partially offset by an increase in operating income. The company used $52.0 million in net cash for investing activities, mainly for capital expenditures.
As of March 31, 2025, Bristow Group had $701.9 million in total debt, primarily comprising the 6.875% Senior Notes due in 2028 and the UKSAR Debt and IRCG Debt maturing in 2036 and 2031, respectively. The company plans to use a combination of cash on hand, operating cash flows, debt financing, and aircraft leasing to fund its projected future capital expenditures, including aircraft purchases and other growth initiatives.
Outlook and Challenges
Bristow Group’s management remains cautiously optimistic about the company’s future prospects, despite the ongoing industry challenges. The company’s diversified business model, with a focus on both the offshore energy and government services markets, has helped to mitigate the impact of volatility in any single market.
However, the company continues to face several key risks and uncertainties, including:
Supply Chain Disruptions and Inflation: Bristow Group is closely monitoring the impact of supply chain disruptions and inflationary pressures on its operations and ability to recoup rising costs in the rates charged to customers.
Reliance on Limited Manufacturers and Suppliers: The company’s heavy reliance on a limited number of helicopter manufacturers and suppliers, as well as significant delays in the delivery of parts for its S92 fleet, pose operational challenges.
Customer Concentration and Energy Transition: The reduction of Bristow Group’s customer base due to consolidation and the ongoing energy transition away from fossil fuels could impact the company’s revenue streams.
Cybersecurity Threats: The potential for cyberattacks or security breaches that could disrupt operations, compromise confidential information, and expose the company to legal liability and financial losses is a growing concern.
Compliance with Financing Agreements: Maintaining compliance with the covenants in Bristow Group’s financing agreements is crucial to the company’s long-term financial stability.
Geopolitical and Macroeconomic Risks: Global and regional changes in demand, supply, and prices affecting the oil and gas industry, as well as political instability, civil unrest, and currency fluctuations in the markets where the company operates, could impact its performance.
To address these challenges, Bristow Group is focused on diversifying its revenue streams, investing in new technologies and capabilities, and strengthening its operational resilience. The company’s strategic initiatives, such as the expansion of its government services and advanced air mobility offerings, are aimed at positioning the company for long-term growth and sustainability.
Conclusion
Bristow Group’s financial results for the three months ended March 31, 2025 demonstrate the company’s ability to navigate a complex and evolving industry landscape. While facing headwinds in certain segments, the company’s diversified business model, operational efficiency, and strong liquidity position have enabled it to deliver solid financial performance.
Looking ahead, Bristow Group’s management remains cautiously optimistic, recognizing the need to address ongoing challenges and continue investing in strategic initiatives to drive long-term growth and value creation for its shareholders. The company’s commitment to innovation, sustainability, and operational excellence will be crucial in navigating the industry’s uncertainties and capitalizing on emerging opportunities.
