Analysis VTOL
Bristow cut its government profit forecast. The group target held.
Bristow cut its government adjusted profit midpoint by a third while holding its companywide midpoint. Our comparison follows aircraft delays, acquired growth and cash.
Ticker Byline
Bristow Group Inc.
Bristow provides offshore, government and other aviation services. A lower government profit forecast contrasts with a steady group adjusted EBITDA midpoint, while the completed Berry acquisition, stronger other operations and cash generation add context.
- Ticker
- VTOL
- Exchange
- XNYS
- SEC CIK
- 0001525221
Bristow Group Inc. (NYSE: VTOL) provides aviation services through helicopters, fixed-wing aircraft and unmanned systems. Offshore Energy Services transports people and supports offshore energy operations. Government Services includes search-and-rescue and special-mission contracts. Other Services includes fixed-wing and other aviation activities.
Aircraft availability matters to both revenue and cost. Delayed modifications can hold up new contract transitions, leave extra personnel and support costs in place, and trigger availability penalties. The November results show those pressures in the government forecast, alongside stronger performance elsewhere.
A forecast that changed beneath a steady midpoint
The annual Government Services adjusted operating-income range is now $35 million to $45 million, down from August's $55 million to $65 million. Our comparison puts the midpoint reduction at $20 million, or one-third. The corresponding revenue midpoint falls only $5 million, to $480 million.
The companywide adjusted EBITDA midpoint stays $310 million, within a narrower $300 million to $320 million range. Offshore Energy Services' adjusted operating-income range rises to $240 million to $250 million from $235 million to $245 million. Other Services remains at $25 million to $30 million.
Government adjusted operating income adds back depreciation and amortization, including power-by-the-hour maintenance amortization. Group adjusted EBITDA starts from consolidated net income, adds interest, taxes and depreciation and amortization, then adjusts for disposal gains, foreign-exchange effects and specified other items.
Supply-chain difficulties were already discussed in August. Chief Executive Officer Chris Bradshaw now expects the problems to stabilize during 2027, supporting a return toward historically stronger government margins. Earlier February and May forecasts had government adjusted operating income at $70 million to $80 million, before the Berry Aviation acquisition changed the portfolio.
Latest quarterly performance
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | 437.9 | 386.3 |
| GAAP operating income | 47.7 | 50.5 |
| Net income attributable to Bristow | 27.7 | 51.5 |
| GAAP diluted EPS | $0.93 | $1.72 |
| Adjusted EBITDA | 89.6 | 67.1 |
| Government GAAP operating income | −1.4 | 2.6 |
| Government adjusted operating income | 9.7 | 10.8 |
| Operating cash flow | 61.2 | 23.1 |
Government adjusted profit improved from $7.2 million in Q2 despite remaining below the year-earlier quarter. Its GAAP operating loss also narrowed from $2.1 million. The full-company adjusted EBITDA increase contrasts with lower GAAP net income, partly because the prior-year quarter had an $11.8 million tax benefit. The current quarter recorded $9.1 million of tax expense.
Berry's contribution was already part of the portfolio
Bristow completed the $105 million all-cash Berry Aviation acquisition on July 13, subject to customary price adjustments. The business is now Bristow Special Mission. August's and November's annual forecasts both followed the closing.
The acquired operation contributed approximately $16.9 million of third-quarter government revenue and $9.2 million in Other Services. The latter segment also benefited from increased Australian activity. Government revenue growth therefore includes a change in ownership.
Cash, investment and shareholder returns
Quarterly operating cash rose to $61.2 million from Q2's $41.1 million. The company reports about $56 million of free cash flow after deducting $5.1 million of maintenance capital expenditure. Adding specified cash special items produces $64.3 million of adjusted free cash flow.
Those cash measures exclude growth investment and acquisitions. Total property and equipment purchases were approximately $20.8 million, while asset-sale proceeds were $19.2 million. The quarter also included a helicopter sale-and-leaseback.
September unrestricted cash was $233.4 million, down from June's $312.3 million before the July acquisition. Available borrowing capacity of $53.9 million brought total liquidity to $287.3 million.
Debt carrying amounts totaled $741.7 million, compared with $745.5 million in June and $671.5 million at year-end. The presentation separately reports approximately $760 million of debt principal. Operating lease liabilities of approximately $234 million are separate from those borrowing balances.
Bristow repurchased $25 million of shares in Q3, leaving $96 million under its existing authorization. Its October dividend declaration was $0.125 a share, payable November 27. Read the analysis of the government forecast cut for the current contract and profit comparison.
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