Bridger Aerospace Group (BAER) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Company overview and market context

• Founded in 2014, the business leverages military-grade technology for aerial firefighting, focusing on surveillance, detection, and suppression of wildfires, especially in the Western U.S.

• Operates a fleet of purpose-built Super Scooper aircraft, with four currently in service in the U.S. and four more being refurbished in Spain for deployment in 2025.

• Recent acquisitions include Ignis Technologies (firefighter software) and FMS Aerospace (engineering and modification), supporting both organic and inorganic growth.

• The addressable market is expanding due to population growth in the wildland-urban interface and increasing wildfire severity and duration.

• Differentiates through exclusive use of water bombers and advanced sensor technology, with high barriers to entry for competitors.

Technology, operations, and strategy

• Aircraft are equipped with EO/IR sensors for early fire detection, mapping, and real-time data sharing with ground crews.

• The company’s proprietary mobile app enhances situational awareness for firefighters, enabling real-time perimeter mapping and communication even without connectivity.

• FMS Aerospace acquisition brings in-house design, modification, and testing capabilities, enabling more effective upgrades and contract bids.

• Plans to integrate thermal sensors on Scoopers to improve water drop accuracy, with FMS leading these enhancements.

• Operates year-round, with maintenance and training scheduled in the off-season to maximize aircraft availability.

Financial performance and contracts

• 2024 fire season is marked by high activity, with over 5 million acres burned and revenue exceeding $50 million, ahead of last year’s pace.

• Anticipates positive free cash flow for the year, with cost reductions and minimum revenue levels supporting financial health.

• Secured a five-year exclusive use contract with the Department of the Interior for multi-mission aircraft, ensuring stable utilization and revenue.

• Strategy focuses on increasing exclusive use contracts with states to guarantee asset utilization and improve EBITDA and free cash flow.

• Partnership funding covers the refurbishment of Spanish aircraft, with acquisition planned for 2025.