Strata Critical Medical (SRTA) Q4 2024 earnings summary

Executive summary

• Achieved first full year of Adjusted EBITDA profitability, improving by $17.8M year-over-year to $1.2M in FY2024, with net loss narrowing by $28.8M to $(27.3)M.

• FY2024 revenue reached $249M, up 10% year-over-year, with Medical segment revenue at $147M (+16% YoY) and Passenger segment revenue at $102M (+3% YoY).

• Medical segment remains the largest revenue contributor (59%), driven by organ transport and new service lines.

• Passenger segment achieved adjusted EBITDA profitability a year ahead of guidance, with further gains expected from European operations and cost discipline.

• Exited Canadian market and restructured European operations, leading to cost savings and improved profitability.

Financial highlights

• Q4 2024 revenue was $54.4M (+14% YoY), with Medical revenue at $36.4M (+14% YoY) and Passenger revenue at $18.0M (+16% YoY).

• FY2024 Medical flight profit grew 46% YoY to $33.0M; Passenger flight profit grew 33% YoY to $25.9M.

• Total flight margin for FY2024 was 23.7%, up from 18.7% in FY2023.

• Adjusted EBITDA margin improved to 0.5% in FY2024 from -7.4% in FY2023.

• Ended 2024 with $127.1M in cash and short-term investments and no debt.

Outlook and guidance

• 2025 revenue expected in the range of $245M–$265M, with double-digit Adjusted EBITDA.

• Passenger revenue guidance for 2025 raised to $90M–$100M; low single-digit growth in short distance, 5–10% decline in jet and other.

• Medical revenue expected to be flat to up year-over-year in H1 2025, returning to double-digit growth in H2 2025.

• Medical segment Adjusted EBITDA margin expected to average above 15% in H2 2025, with full-year margin around 15% but could slip below target due to maintenance timing.

• Capital expenditures before aircraft acquisitions projected at $8M in 2025, with $5M for aircraft maintenance weighted to H1.