Bridger Aerospace Group Holdings, Inc. Common Stock Q3 FY2025 earnings call

• Operationally, Bridger had record task orders through October, utilization up nearly 10% year-over-year, multi-mission aircraft flight hours nearly doubled, and Super Scoopers were effective. Wildfires were above average in count but below in acres burned.
• Financially, surpassed annual revenue guidance in the first 9 months and on track for high end of adjusted EBITDA guidance. Completed $49 million sale-leaseback and $331 million debt facility, refinanced debt.
• FMS contributed $2.4 million in Q3, with ongoing contracting opportunities with DoD and repurposing business development team.
• Ignis Technologies linked real-time sensor imagery with app, live streamed video during Dragon Bravo Fire, critical for sensor-enhanced contracts.
• Spanish Scoopers: First 2 aircraft flying in Portugal, third and fourth scheduled for early 2026, potential acquisition.
• Federal initiatives to restructure wildland firefighting system, $3.7 billion budget increase for 2026 U.S. Wildland Fire Service.

In the third quarter of 2025, revenue reached a record $67.9 million, up 5% from $64.5 million in the third quarter of 2024. Excluding revenue from the return to service work on Spanish Scoopers, ongoing operations revenue (including FMS) grew 5% to approximately $65.7 million compared to $62.4 million in the third quarter of 2024. For the first 9 months of 2025, revenue was $114.3 million, a 38% increase from $83 million in the first 9 months of 2024; excluding return to service work, it was $101.1 million, up 30%. Adjusted EBITDA in the third quarter of 2025 was $49.1 million compared to $47 million in the third quarter of 2024. For the first 9 months of 2025, adjusted EBITDA was $54.8 million compared to $40.2 million in the same period last year.

• On track to end 2025 at higher end of adjusted EBITDA range ($42M-$48M).
• Revenue expected between $118M-$123M, exceeding previous top end of $105M-$111M.
• Continued improvement in cash provided by operating activities in 2025.

• Forward-looking statements subject to uncertainties; factors in SEC filings could affect results.
• Federal budgeting uncertainties impacting FMS revenue in short term.

Q: Nice quarter. So you have about $14 million free cash flow year-to-date. How much are you tracking towards by end of year? And what do you plan to use the cash for?

A: Austin, I think we'll end the year around that same amount or maybe a little north of that. As you know, fourth quarter, we go into the maintenance cycle. And typically, in the fourth quarter, we don't see as much revenue certainly as we saw in the third quarter or even the second quarter. So I expect it to remain at about that level. And what we'll be doing with that free cash flow is, again, we'll be looking at our fleet expansion opportunities in conjunction with the new credit facility and how best to deploy that capital.

Q: And now that the credit facility is in place and the sale leaseback is complete, do you expect the Spanish scoopers to be staying in Europe or coming to the U.S.A.?

A: That's a great question, Austin. We're exploring all avenues there. I can say that with that now being a reality, and us having those discussions right now to see how quickly we can move on that. We're going to go with kind of the best both strategic and economic benefit for us, and we'll run all those paths. It's hard for me to predict with a crystal ball what that's going to be. But I will say that the beauty of it is they're a very scarce asset and in high demand. So that gives us a lot of optionality to have those aircraft, especially with those two being airworthy and flying a partial season already, Bridger sees a lot of opportunity to put those to work. And we'll know a lot more through the winter months as we nail down the best opportunity. And the beauty of it is we have optionality of where we place them.