Bristow Group Inc. (VTOL) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call provides a mixed outlook. Financial performance shows stable revenues and EBITDA, but no growth. Guidance remains unchanged, indicating no immediate positive catalysts. The absence of share repurchase announcements and unclear responses about cost exposure in a tariff environment add uncertainty. However, the introduction of new helicopters and stable government services offer some optimism. Overall, the lack of strong positive or negative indicators suggests a neutral sentiment, likely resulting in minimal stock price movement.
Key Financial Performance
Revenues $1.4 billion to $1.6 billion (no year-over-year change mentioned) - Decreased $3 million primarily due to lower utilization in Other Services segment, partially offset by higher revenues from new contracts in Government Services.
Adjusted EBITDA $230 million to $260 million (no year-over-year change mentioned) - Consistent with last quarter at $58 million, with lower operating and administrative expenses offsetting lower revenues.
Adjusted Operating Income (OES) $190 million to $210 million (no year-over-year change mentioned) - Increased by $3.1 million primarily due to lower repairs and maintenance expenses of $7.1 million, partially offset by higher training costs and absence of a property tax benefit.
Revenues (Government Services) $3.4 million higher (no year-over-year change mentioned) - Primarily due to the Irish Coast Guard contract that began its transition in late 2024.
Revenues (Other Services) $6 million lower (no year-over-year change mentioned) - Due to lower seasonal activity in Australia, unfavorable foreign exchange impacts, and lower dry leasing revenues.
Cash Used in Operating Activities $0.6 million (no year-over-year change mentioned) - Resulted from working capital uses of $56.4 million due to increased accounts receivables, costs related to new contracts, and increased inventory.
Available Liquidity $254 million (no year-over-year change mentioned) - Reflects a strong balance sheet and liquidity position.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New Contracts in Government Services: Revenues from Government Services increased by $3.4 million, primarily due to the Irish Coast Guard contract that began its transition in late 2024.
Safety Performance: Achieved target of 0 air accidents in Q1 2025 and experienced fewer recordable injuries and lost workdays compared to Q1 2024.
Cost Management: Lower operating and administrative expenses helped offset lower revenues, resulting in consistent adjusted EBITDA of $58 million.
Cash Flow Management: Cash used in operating activities was $0.6 million due to working capital changes, with available liquidity at approximately $254 million.
Market Positioning: Bristow is positioned as the global leader in vertical flight solutions with a fleet of 211 aircraft across 18 countries.
Outlook for Offshore Energy Services: Positive outlook for long-duration up cycle in Offshore Energy Services, with full effective utilization levels of heavy and super medium helicopters.
Government Services Transition: Focus on launching SAR services for the Irish Coast Guard and transitioning operations to the UKSAR2G contract, with completion expected by the end of 2026.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Macroeconomic Risks: Increased uncertainty in the macroeconomic environment since the beginning of the year, potentially impacting demand for crude oil and natural gas.
Tariffs and Supply Chain Challenges: Recently implemented U.S. tariffs on steel and aluminum imports, including aircraft parts, leading to increased costs and complexity in the supply chain, particularly affecting repairs and maintenance costs.
Oil Price Volatility: Concerns about slowing economic activity resulting in decreased demand for crude oil and natural gas, compounded by OPEC+ supply increases, leading to significant reductions in oil prices and adverse implications for customer spending.
Regulatory Delays: Unexpected regulatory and supply chain delays affecting the transition of operations for government contracts, particularly the UKSAR2G contract and Irish Coast Guard services.
Currency Exchange Risks: Fluctuations in foreign currency exchange rates, particularly the British pound sterling and the euro, which could impact financial results.
Seasonality in Revenue: Seasonal lower revenue periods affecting financial performance, particularly in the Other Services segment.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Safety Performance: Achieved target of 0 air accidents in Q1 2025 and fewer recordable injuries compared to Q1 2024.
Government Services Transition: Ongoing launch of SAR services for the Irish Coast Guard and transition to UKSAR2G contract, expected to run through 2026.
Sustainability Commitment: Publishing fourth annual sustainability report reaffirming dedication to responsible growth and environmental protection.
2025 Revenue Guidance: Affirmed revenue guidance of $1.4 billion to $1.6 billion.
2025 Adjusted EBITDA Guidance: Affirmed adjusted EBITDA guidance of $230 million to $260 million.
2026 Revenue Guidance: Affirmed revenue guidance of $1.5 billion to $1.8 billion.
2026 Adjusted EBITDA Guidance: Affirmed adjusted EBITDA guidance of $275 million to $335 million.
OES Segment Outlook: Expected adjusted operating income of approximately $190 million to $210 million on revenues of $950 million to $1 billion.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Repurchase Program: Bristow Group has not announced any share repurchase program during the earnings call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Is this a wait and see approach to tariffs, or what gives you confidence to continue with the outlook here?
A:We did take a hard look at our outlook, focusing on the macro and oil and gas industry, particularly offshore activity. We have regular customer conversations to understand their plans and expectations. Factors supporting our confidence include stability in cash flows from Government Services, 80% of offshore energy revenues coming from stable production support activities, and the diversity of geographic markets.
Q:Can you just expand on the benefits of the new agreement with Sikorsky?
A:The agreement provides price visibility and stability for a large portion of our S-92 fleet, enhancing our ability to manage the business globally.
Q:How have helicopter OEMs been with deliveries at this point? Are you confident in the remaining CapEx?
A:There have been supply chain challenges, but we are receiving helicopters and are confident in the remaining CapEx, which is more related to infrastructure and modifications.
Q:Any updates on the advanced air mobility opportunity in Norway?
A:We are part of a project to establish Norway as a test arena for zero and low emission aircraft, with demonstration flights starting with cargo using BETA’s ALIA aircraft.
Q:Can you provide specifics on potential cost exposure in a higher tariff environment?
A:We have some exposure on the import of aircraft parts from Europe, but we do not expect this to materially impact our financial performance.
Q:Do you expect current levels of working capital uses throughout the rest of the year?
A:No, the current levels are due to timing issues, particularly on the government services side, and we do not expect to see the same levels going forward.
Q:Have you seen any changes or improvements in recent margins?
A:Yes, there have been incremental improvements related to the S-92 fleet, although we still face delays on other components.
Q:Are you expecting to expand the scope of the eCTOL test in Norway?
A:We hope to expand the scope based on positive results from the test flights.
Q:Could you give any indication on what price you are going to start seeing impact on the business and the outlook?
A:We are not seeing any tangible impacts on offshore activity currently, and we believe investment will continue as long as Brent prices are at or above $60 a barrel.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding the specifics of potential cost exposure in a higher tariff environment, stating only that they do not expect a material impact on financial performance without providing detailed data.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Africa aircraft
Americas Africa
Australia exchange
Australia revenue
Bank ET
Benchmark Steve
Bristow Offshore
Bristow risk
Bristow tariff
Chief Executive
Energy Services
Europe
Executive Officer
Government Services
OES segment
Officer Whalen
Offshore Energy
Services Revenues
Services segment
activity level
capital investment
concern
contract capital
customer
exchange rate
government service
implication
income revenue
month
oil gas
revenue contract
segment revenue
service contract
target
transition
VTOL Transcript
Bristow Group Inc. (VTOL) Q3 2025 Earnings Call Transcript
Positive11-5
The company has raised its EBITDA guidance for 2025 and 2026, indicating strong growth expectations. Despite supply chain challenges affecting OES guidance, the company anticipates a 27% growth in adjusted EBITDA. The Q&A reveals positive market growth in Brazil, Africa, and the Caribbean, and stable U.S. markets. The company's strategic capital allocation and shareholder return plans further support a positive outlook. Although some uncertainties exist, the overall sentiment is positive, suggesting a likely stock price increase in the coming weeks.
Bristow Group Inc. (VTOL) Q2 2025 Earnings Call Transcript
Positive8-7
The earnings call indicates a positive outlook: liquidity is strong, guidance has been raised, and there is confidence in meeting demand despite macro headwinds. The Q&A reveals management's proactive steps to address supply chain issues and expand in growth markets like Brazil and Africa. Although there are some vague responses, the overall sentiment is optimistic, with strong financial metrics and strategic initiatives likely to support a positive stock price movement.
Bristow Group Inc. (VTOL) Q1 2025 Earnings Call Transcript
Unknown5-10
The earnings call provides a mixed outlook. Financial performance shows stable revenues and EBITDA, but no growth. Guidance remains unchanged, indicating no immediate positive catalysts. The absence of share repurchase announcements and unclear responses about cost exposure in a tariff environment add uncertainty. However, the introduction of new helicopters and stable government services offer some optimism. Overall, the lack of strong positive or negative indicators suggests a neutral sentiment, likely resulting in minimal stock price movement.
Bristow Group Inc. (VTOL) Q4 2024 Earnings Call Transcript
Positive2-27
The earnings call shows strong financial performance with increased revenues and operating income, particularly in Offshore Energy Services. The Q&A highlights high utilization levels and growth opportunities in Africa and Brazil. Despite some unclear responses, the overall sentiment remains positive due to the significant increase in cash flows and liquidity, as well as planned dividends and buybacks. The optimistic guidance and strategic market expansion further support a positive outlook.
VTOL Slides
VTOL Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
