Bridger Aerospace Group Holdings, Inc. Common Stock Q4 FY2025 earnings call

Sam Davis was proud of the team's growth and record operational and financial performance in 2025, with revenue and adjusted EBITDA growing over 20%. Utilization was up almost 10% year over year, multi-mission aircraft flight hours almost doubled. Bridger has aircraft suited for initial and direct attack. There was unmet demand for super scoopers. They are targeting multi-year and exclusive use contracts, announced a five-year contract in Alaska. FMS contributed $7.9 million in revenue in 2025, with momentum in federal funding. IGNIS Technologies platform links real-time sensory image with the app for better situational awareness. Bill Andrews joined as COO, bringing experience from Lockheed Martin. 2025 saw flying in 21 states, support for 380 fires, 7.3 million gallons dropped, early deployment, record hours, 96% uptime on contract, all employees safe. Three scoopers completed winter maintenance, two responding to early fires, etc.

For 2025, revenue was $122.8 million compared to $98.6 million in 2024, a 25% increase. Excluding return to service work on the Spanish Super Scoopers, revenue was $108.8 million compared to $88.5 million in 2024, up 23%. Cost of revenues was $71.1 million in 2025, comprised of flight operation expenses of $31.9 million and maintenance expenses of $39.2 million. SG&A expenses were $36.3 million compared to $35.8 million in 2024. Net income was $4.1 million in 2025 compared to a net loss of $15.6 million in 2024. Adjusted EBITDA was $45.3 million in 2025 compared to $37.3 million in 2024. For the fourth quarter of 2025, revenue was $8.5 million compared to $15.6 million in the fourth quarter of 2024. Cost of revenues was $14.1 million in the fourth quarter of 2025. Selling general and administrative expenses were $13.4 million in the fourth quarter of 2025 compared to $7.7 million in the fourth quarter of 2024. Interest expense for the fourth quarter was $6 million compared to $5.9 million in the fourth quarter last year. Other income was $10 million in the fourth quarter of 2025 compared to $0.3 million in the fourth quarter of 2024. Adjusted EBITDA was negative $9.5 million in the fourth quarter compared to negative $2.9 million in the fourth quarter of 2024.

2026 guidance ranges of 135 to $145 million for total revenues and 55 to $60 million for adjusted EBITDA. Starting 2026 with six new aircraft, expecting over 25% growth excluding 2025 return to service work. Contribution from scoopers and new MMA aircraft expected to be roughly 10 to 15% of 2026 revenue at approx 40% EBITDA margin. Expect to report net loss in first quarter due to winter maintenance.

Q: Is the intent of Bill Andrews to help build out the FMS business or signal buying C-130s or other government aircraft?

A: Primarily Bill's focus is on fleet deployment and operational excellence, but he can bring context for defense work adjacent to firefighting missions and FMS is a key part.

Q: Update on return to service work for second two super scoopers?

A: Third aircraft near certification, first two to get firefighting work in Europe this year, third near completion, fourth further out.

Q: Potential contract opportunities in Europe?

A: Leading countries are Portugal and Turkey, working with Avinci, hoping for something defined by March or end of April.

Q: How to think about normalized EBITDA margins across core missions and what's driving expansion?

A: Focus on expanded fleet capacity, utilization, addition of scoopers and sensor-enhanced planes, with higher margins from core fleet.

Q: How should maintenance expenses scale with new aircraft?

A: Excluding return to service, cost of revenue increase at less rate than revenue, seeing economies of scale, maintenance expenses decrease in 2026 with high margin aircraft.

Q: Need for additional funding throughout next year or two?

A: DDTL of $100 million built around next couple years' aircraft opportunity, including added aircraft factored in, no immediate need for additional funding