Bristow Group (VTOL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues rose to $359.7 million, up 12.6% year-over-year and $22.6 million sequentially, with net income of $28.2 million, driven by strong growth in offshore energy and fixed wing services.

• Adjusted EBITDA for Q2 2024 was $71.3 million, up 50% sequentially, reflecting improved margin and operational performance.

• Raised 2024 and 2025 Adjusted EBITDA guidance, citing confidence in a multi-year growth cycle and improved safety performance.

• Bristow operates globally with a fleet of 214 aircraft, serving customers in 18 countries across 6 continents, with 81% of its fleet owned.

• Released 2023 Sustainability Report, highlighting a 50% reduction in Lost Work Cases and a 39% decrease in Total Recordable Incident Rate.

Financial highlights

• Q2 2024 Adjusted EBITDA was $71.3 million, up from $47.5 million in Q1; net income was $28.2 million, up from $6.6 million in Q1.

• Operating revenues for Q2 2024 were $359.7 million, with offshore energy services contributing $238.5 million, government services $79.5 million, and fixed wing services $32.0 million.

• Adjusted free cash flow for Q2 2024 was $33.3 million; available liquidity stood at $246.4 million as of June 30, 2024.

• Operating expenses for Q2 2024 were $246.4 million, with a sequential decrease of $0.9 million.

• Effective tax rate for Q2 2024 was 24.7%, down from 86% year-over-year, aided by global earnings mix and one-time items.

Outlook and guidance

• 2024 Adjusted EBITDA guidance raised to $210–$230 million; 2025 guidance increased to $230–$260 million; 2026 target $275–$335 million.

• 2024 operating revenue guidance raised to $1,355–$1,415 million; 2025 to $1,440–$1,615 million.

• Most of 2025 EBITDA is contracted, with some exposure to spot/short-term work.

• Growth in Africa expected to continue; UK OES and Americas OES to see reduced activity in H2 2024.

• Maintenance capex expected at $15–$20 million for 2024 and 2025.