Bristow Group (VTOL) Q3 2024 earnings summary

Executive summary

• Q3 2024 total revenues reached $365.1M, up 8% year-over-year and $5.4M sequentially, with net income of $28.2M, a significant increase from $4.3M in Q3 2023.

• Adjusted EBITDA excluding asset sales and FX was $60.2M, down from $71.3M in Q2, reflecting higher operating expenses, especially $10M in seasonal and non-recurring personnel costs.

• Business performance is robust, with growth expected to accelerate over the next two years, driven by investments in government services and offshore energy markets.

• The company continues to invest in fleet expansion and modernization to support new long-term contracts and growth opportunities.

• Safety remains the top operational priority, with continued focus across global operations.

Financial highlights

• Q3 2024 operating revenues were $356.4M, up 7.9% year-over-year and $3.9M sequentially, driven by higher utilization and favorable FX in government and fixed wing services.

• Net income attributable to Bristow Group Inc. was $28.2M in Q3 2024 ($0.99 basic EPS), compared to $4.3M in Q3 2023.

• Operating expenses rose by $16.3M, mainly from higher personnel costs, repairs, and new contract-related expenses.

• Operating cash flows reached $66.0M in Q3, up 96% from the prior quarter; Free Cash Flow was $58.0M.

• Total liquidity as of September 30, 2024, was $259.9M, including $200.3M in cash.

Outlook and guidance

• 2024 Adjusted EBITDA guidance raised to $220–$230M, with operating revenue expected at $1,355–$1,410M; 2025 and 2026 targets indicate continued growth.

• Offshore energy and government services expected to drive growth, with higher utilization and improved contract rates.

• Americas region expected to see stable or improving utilization, with growth in Suriname and Brazil, and positive demand in mature markets.

• 2025 will focus on operationalizing major government contracts, with a more significant EBITDA increase expected in 2026.

• Positive net cash flows anticipated in the latter half of 2025 and beyond.