Bristow Group (VTOL) Q1 2025 earnings summary

Executive summary

• Q1 2025 total revenues were $350.5 million, down $3 million sequentially but up 4% year-over-year, with net income of $27.4 million, a significant increase from $6.6 million in Q1 2024.

• Adjusted EBITDA was $58 million, consistent with the previous quarter, as lower revenues were offset by reduced operating and G&A expenses.

• Offshore Energy Services and Government Services segments drove revenue growth, while Other Services saw a decline due to seasonality and FX impacts.

• Government Services saw a $3.4 million revenue increase, mainly from the Irish Coast Guard contract transition.

• Management maintains a positive outlook, citing stability in Government Services, strong production support in Offshore Energy, and geographic diversity.

Financial highlights

• Q1 2025 total revenues: $350.5 million, down from $354 million in Q4 2024; net income: $27.4 million; diluted EPS: $0.92.

• Adjusted EBITDA: $58 million, unchanged sequentially; Adjusted Operating Income: $54.4 million, up from $52.3 million.

• Cash and cash equivalents at quarter-end were $191.1 million, with total liquidity of $254.3 million.

• Operating cash flow was negative $0.6 million, mainly due to working capital changes for new contracts and inventory build.

• Capital expenditures totaled $52.1 million, primarily for aircraft and equipment.

Outlook and guidance

• 2025 revenue guidance affirmed at $1.42–$1.62 billion; 2026 at $1.53–$1.78 billion.

• Adjusted EBITDA guidance: $230–$260 million for 2025, $275–$335 million for 2026.

• OES segment expected to generate $190–$210 million in adjusted operating income on $950 million–$1 billion in revenues for 2025.

• Government Services transitioning major contracts (IRCG, UKSAR2G) through 2026, with full earnings impact expected in 2026 and beyond.

• Sensitivity to GBP/USD: each £0.01 movement impacts Adjusted EBITDA by ~$1.2 million.