Bristow Group Inc. Q2 FY2025 earnings call

• Safety: One air accident in Q2 2025 with no injuries, but aircraft damage; strong workplace safety with declines in recordable injuries. - Financial Performance: Strong Q2 results, raised 2025 and 2026 adjusted EBITDA guidance; midpoint of 2026 adjusted EBITDA up 27% from 2025. Robust cash flow generation, capital allocation including $15.3 million accelerated debt paydown and share repurchases. - Segment Details: OES revenues up from Europe, Americas, and Africa; Government Services revenues up but adjusted income down due to contract transitions; Other Services up due to seasonal activity in Australia.

Offshore Energy Services (OES): Revenues were $13 million higher, primarily due to increased utilization and favorable foreign exchange in Europe, higher utilization in Americas, and higher utilization with additional aircraft in Africa. Adjusted operating income from OES increased by $6.5 million, driven by higher revenues but partially offset by higher operating expenses. Government Services: Revenues were $6.6 million higher, but adjusted operating income was $7.7 million lower due to higher subcontractor, personnel, foreign exchange, repairs, and fuel costs related to contract transitions. Other Services: Revenues were $6.3 million higher due to seasonally higher utilization in Australia, and adjusted operating income was $4.1 million higher.

• Raised 2025 adjusted EBITDA range to $240 million to $260 million and 2026 range to $300 million to $335 million. - OES expects adjusted operating income of approximately $200 million to $205 million on revenues of $980 million to $1 billion in 2025. - Government Services expects adjusted operating income of approximately $40 million to $50 million on revenues of $360 million to $400 million. - Other Services expects adjusted operating income of approximately $20 million to $25 million on revenues of $120 million to $130 million.

• Supply chain dynamics impacting aircraft availability. - Uncertainty in the global economy affecting customer activity. - Foreign exchange rate impacts. - Challenges related to contract transitions affecting costs.

Q: Given headwinds in Offshore Energy Services, what gives confidence to raise guidance?

A: Greater visibility to overall costs and customer activity.

Q: Are increased subcontractor costs related to ongoing contractor transitions?

A: Subcontractor costs are elevated during Government Services contract transition, with some continuing post-transition.

Q: Any updates on advanced mobility market?

A: First flight for Norway Test Arena project scheduled for August 8.

Q: Color on capital allocation strategy given modest share repurchase use?

A: Still have capacity under share repurchase program, priorities include completing government project investments and debt paydown.

Q: How contracting model insulates from activity drops?

A: Business mix includes stable Government Services and fixed wing, heavy weighting to production with monthly standing charges in OES contracts.

Q: Impact of floating rig count softness?

A: Doesn't anticipate impact on 2025 guidance, with new projects materializing.

Q: Impact of tariffs on component deliveries?

A: No impact to Bristow, delays likely due to other factors.

Q: Growth areas in Energy business?

A: Brazil, U.S. Gulf, and Africa, with Africa having high demand and capacity needs.