Bristow Group (VTOL) Status Update summary

Market outlook and demand trends

• Offshore helicopter market is experiencing strong demand with near 100% fleet utilization and long lead times for new equipment, indicating a tight supply environment.

• Growth is particularly robust in Brazil, Africa, and the Caribbean, with Brazil leading due to increased FPSO deployments and drilling activity.

• There is rising interest in major gas plays, such as new deepwater gas projects in Trinidad, which is expected to drive additional helicopter demand.

• Unmet demand persists due to supply chain challenges, especially with the Sikorsky S-92, and new builds have a two-year lead time.

• Offshore wind support is a potential growth area, but cost-conscious customers currently favor lower-cost providers.

Strategic initiatives and portfolio management

• The business is focused on growing and diversifying its stable, long-term government services portfolio, recently adding contracts in the Netherlands, Dutch Caribbean, Falkland Islands, and Ireland.

• Offshore energy remains a core focus, with continued investment to maintain leadership and reliability valued by customers.

• M&A strategy is opportunistic, with potential for regional consolidation in Brazil and the UK to rationalize competition.

• Electrification and hybridization are being explored as future fleet options, with minimal capital outlay so far, and unmanned systems are already in use for government contracts.

Financial guidance and capital allocation

• Multi-year guidance now extends through 2026, supported by long-term government contracts and strong offshore visibility.

• About $300 million in capital investment is required for new government contracts, with $150 million already spent and the remainder to be deployed by early 2025.

• Capital allocation priorities include protecting the balance sheet, investing in high-return projects, and initiating both dividends and share repurchases as excess cash is generated.