Bridger Aerospace Group Holdings, Inc. Common Stock Q1 FY2026 earnings call

• Began multi-mission aircraft contract on February 1st and dispatched to support fire activity in Oklahoma. - Earliest dispatch of air attack aircraft to Texas in February for command and control missions. - Continued progress expanding and enhancing fleet, including modification of additional surveillance aircraft with unique configurations introducing new intelligence capabilities. - Sensor-enhanced aircraft flown millions of acres in early 2026 supporting real-time mapping, etc. - Invested in fleet readiness including winter maintenance and flight training. - Qualified two new scooper captains and two initial attack captains. - Added chief operating officer and general counsel to leadership team. - Secretary of Agriculture issued memo directing U.S. Forest Service to heighten wildfire readiness. - Administration's budget advocates for consolidation of wildfire programs and creation of Wildfire Intelligence Center. - IGNIS platform to launch in Q2 2026 as part of aviation capabilities. - FMS Aerospace continues to contribute to fleet modifications and defense/commercial contract work.

Revenue for the first quarter of 2026 was $8.5 million, down from $15.6 million in the first quarter of 2025. The decline was mainly due to non-recurring return-to-service work on Spanish scoopers in 2025 and early deployment activity related to the Palisades Fire in 2025. Cost of revenues was $17 million in Q1 2026 compared to $17.2 million in Q1 2025. Selling general and administrative expenses were $16.7 million in Q1 2026 vs. $8.6 million in the prior period. Interest expense was $6.2 million in Q1 2026 vs. $5.7 million in the prior year. Net loss was $31.3 million in Q1 2026 vs. $15.5 million in Q1 2025. Adjusted EBITDA was negative $14.5 million in Q1 2026 vs. negative $5.1 million in the prior year. Cash and cash equivalents ended the first quarter at $9 million compared to $31.4 million at year-end 2025.

• Reiterating full year 2026 guidance of $135 million to $145 million in revenue and $55 million to $60 million in adjusted EBITDA. - Reflects strong growth excluding non-recurring return-to-service work. - Discussed potential contribution from Europe's summer fire season with handicaps. - Expect improved operating cash flow generation due to increased fleet utilization and higher fire activity in peak season. - Sensor-enabled air attack program expected to contribute to growth in 2026 and margin expansion over time.

Q: I know that IGNIS has been demoed by a couple of different government agencies. But is there a timeline on when that might start to be included in some contracts? And would there be like a pricing premium associated with bundling Ignis with air attack and surveillance services?

A: We have a very small amount of revenue budgeted this year intentionally for Ignis. More about aviation contract bundling opportunity. Likely to see more fruition next year as can sell on standalone basis and price in at a premium.

Q: If we think about the FMS upgrade and maintenance business in Huntsville, Just given the record defense budget, possibly up to 50% increase year over year in fiscal year 27, how should we think about the top line growth profile of that business just as you get more orders from the Air Force and other service branches?

A: We're on track to hit revenue this year. Noted lag in commitment last year but now seeing orders come back. Will put concerted effort in BD opportunities.

Q: The earlier comments, I appreciate the earlier commentary on some of the moving parts in the federal policy. Just for outsiders, what are some things that we should be looking for and any benefit of consolidating this funding? Could this benefit this year, this fire season, or is this kind of more a longer-term benefit of any changes?

A: We support consolidation. Movements like more streamlined organization, dispatching, pre-positioning are important. Think will come more to fruition next year but already benefiting from some moves.

Q: Can you just talk a little bit about how that $18.6 million Alaska contract works? Is an aircraft dedicated exclusively to that region?

A: Have two aircraft in Alaska on an exclusive use multi-year contract. Call when needed contract gives opportunity to retain aviation assets. It's a great contract as it aligns with state trends of committing to aviation contracts.