VTOL

Bristow Group’s second quarter was marked by mixed results, as revenue outperformed Wall Street’s expectations but GAAP earnings per share fell short. The market reacted negatively, reflecting concerns highlighted by management around supply chain disruptions and cost pressures, particularly within the Government Services segment. CEO Chris Bradshaw pointed to elevated transition costs and supply chain delays—most notably in aircraft deliveries and modifications—adversely impacting profitability. CFO Jennifer Whalen emphasized that higher operating expenses and delayed cost recovery on fuel expenses weighed on margins, while transition penalties and labor adjustments persisted longer than anticipated. Is now the time to buy VTOL? Find out in our full research report (it’s free). Revenue: $411.8 million vs analyst estimates of $408 million (9.4% year-on-year growth, 0.9% beat) EPS (GAAP): $0.70 vs analyst expectations of $0.85 (17.6% miss) Adjusted EBITDA: $79.81 million vs analyst estimates of $72.1 million (19.4% margin, 10.7% beat) EBITDA guidance for the full year is $310 million at the midpoint, in line with analyst expectations Operating Margin: 8.5%, down from 9.6% in the same quarter last year Market Capitalization: $1.38 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jason Bandel (Evercore ISI) asked for detail on Offshore Energy Services guidance and fleet utilization. CFO Jennifer Whalen explained that improved rates and contract extensions supported tighter revenue guidance, while CEO Chris Bradshaw noted stable utilization and limited idle capacity. Savanthi Syth (Raymond James) questioned the duration of transition costs in Government Services. Whalen clarified that most costs should subside this year, with some personnel and lease costs extending into early next year before rolling off. Alexander Rygiel (Texas Capital) probed the structure and renewal risk of Berry Aviation contracts. Bradshaw described shorter contract lengths but strong incumbent positions, with Whalen highlighting high contract coverage for the coming year. Steven Silver (Argus Research) asked about global advanced air mobility initiatives. Bradshaw cited projects in Scotland, Norway, and the U.S., explaining that milestones include aircraft certification, successful flight tests, and movement of contingent orders to firm commitments. Josh Jain (Daniel Energy Partners) inquired about the effect of geopolitical conflict on energy demand. Bradshaw responded that while near-term impacts are limited, long-term energy security concerns are expected to boost offshore activity. In upcoming quarters, the StockStory team will monitor (1) progress on integrating Berry Aviation and realizing anticipated synergies; (2) execution on the Norway business sale and redeployment of capital to higher-margin segments; and (3) improvement in supply chain reliability, particularly related to new aircraft deliveries. The pace of transition cost normalization and activity in offshore energy markets will also be critical indicators for Bristow’s performance trajectory. Bristow Group currently trades at $46.54, down from $47.74 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 10:00 a.m. ET Senior Manager of Investor Relations and Financial Reporting - Redeate Tilahun President and Chief Executive Officer - Christopher Bradshaw Senior Vice President and Chief Financial Officer - Jennifer Whalen Operator: Good day, everyone, and welcome to Bristow Group's Second Quarter of 2026 Earnings Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the call over to Red Tilahun, Senior Manager of Investor Relations and Financial Reporting. Redeate Tilahun: Thank you, Amy. Good morning, everyone, and welcome to Bristow Group's Second Quarter of 2026 Earnings Call. I am joined on the call today with our President and Chief Executive Officer, Chris Bradshaw; and Senior Vice President and Chief Financial Officer, Jennifer Whalen. Before we begin, I'd like to take this opportunity to remind everyone that during the course of this call, management may make forward-looking statements that are subject to risks and uncertainties that are described in more detail on Slide 3 of our investor presentation. You may access the investor presentation on our website. We will also reference certain non-GAAP financial measures such as EBITDA and free cash flow. A reconciliation of such measures to GAAP is included in the earnings release and the investor presentation. I will now turn the call over to our President and CEO. Chris? Christopher Bradshaw: Thank you, Red. I'll begin with a brief note on safety, which remains Bristow's #1 core value and highest operational priority. The company has delivered on our goal of 0 air accidents year-to-date 2026. With regard to occupational safety, we are pleased that the number of lost workdays is down from this time last year, and we are on track to achieve our third consecutive year of fewer lost workdays. I would like to thank everyone on the Bristow team for their continued commitment to place safety first every day. We closed on the acquisition of Berry Aviation on July 13, and we are excited to welcome the Berry team to Bristow. Headquartered in San Marcos, Texas, Berry Aviation operates a fleet of more than 20 aircraft, primarily providing military and defense aviation services across multiple countries. Through its government services offering, Berry provides a broad range of services such as special missions, ISR operations, MRO services, training and mission support and unmanned aerial systems design and development capabilities. Berry's other services consist of on-demand cargo logistics for blue-chip end customers and aftermarket supply chain aviation solutions. Berry has extensive experience supporting all branches of the U.S. military and a record of excellence in completing missions that demand precision, safety and strict compliance. Bristow and Berry share a cultural emphasis on safety, reliability and rapid response in complex environments. And through this transaction, customers will benefit from Bristow's scale, operational expertise and global platform. We now have a presence on 6 continents across 20 different countries. Berry's specialized capabilities across a range of mission-critical operations and strong customer relationships are complementary to our existing government services operations, better positioning Bristow to compete for long-duration government programs. The acquisition is expected to enhance the quality of Bristow's earnings through increased exposure to contracted government services and multi-mission aviation activities, supporting a more durable and balanced business profile. The acquisition is also expected to be immediately accretive to Bristow's earnings and free cash flow while bolstering the company's EBITDA margin profile. In a separate initiative, we announced that Bristow is pursuing the sale of our Norway Offshore Energy Services business as part of our long-standing portfolio optimization strategy. The exit is consistent with Bristow's ongoing strategy to deploy assets and resources in markets with attractive margin profiles and value-accretive returns on capital. Bristow remains focused on growing our global offshore energy services business in markets that meet our financial return parameters. We also expect to continue pursuing other opportunities in Norway, such as those in the advanced air mobility space. We should note that the timing and structure of any sale transaction remains subject to market conditions and other considerations. I would further note that the planned exit of the Norway OES business and the addition of Berry Aviation would have been neutral to Bristow's 2025 EBITDA on a pro forma basis. Turning now to our financial outlook. Bristow's second quarter financial results keep us on track for what is expected to be a transformational year for the company. We are pleased to affirm our adjusted EBITDA guidance range for full year 2026 of $295 million to $325 million, which reflects year-over-year growth of approximately 25%. The ability to confirm this outlook despite macro uncertainties and continued supply chain challenges that are adversely impacting our government search and rescue contract transitions is a testament to the complementary nature of Bristow's business segments and the benefits provided by the significant geographic and customer diversity in our business model. I'll have more comments on the strong tailwinds poised to benefit the company later in the call. But for now, I will hand it over to our CFO for a detailed discussion of Q2 results and our financial outlook. Jennifer? Jennifer Whalen: Thank you, Chris, and good morning, everyone. Before we begin, I would like to echo Chris's comments on the acquisition of Berry Aviation. We are pleased to have successfully closed the deal and welcome the Berry Aviation team to Bristow. As we begin consolidating Berry Aviation's financials, we plan to include their special missions, MRO, CRO and UAS business as part of our Government Services segment and their on-demand cargo and remaining services as part of our Other segment. Today, I will begin with a review of Bristow's sequential quarter financial results on a consolidated basis before covering the financial results and the 2026 guidance ranges for each of our segments. In Q2, Bristow's total revenues were $23.1 million higher compared to Q1, primarily due to higher utilization in our Other Services segment and higher fuel revenues and rates in our Offshore Energy Services or OES business. Adjusted EBITDA was $20.5 million higher in Q2, largely attributable to the increased revenues across our segments and lower repairs and maintenance costs. We are affirming our 2026 guidance ranges of $1.6 billion to $1.7 billion for total revenues and $295 million to $325 million for adjusted EBITDA. Turning now to our segment financial results. Revenues in our OES segment were $7.3 million higher in Q2, primarily due to higher rates and fuel revenues in Europe and across several key markets in the Americas, while revenues in Africa remained consistent with the preceding quarter. Adjusted operating income in OES was $16.4 million higher this quarter due to higher revenues, coupled with lower operating expenses of $4.3 million and higher earnings from unconsolidated affiliates of $2.2 million. In Q2, repairs and maintenance costs were $7.8 million lower, primarily due to higher vendor credits. Personnel costs were $6.3 million lower due to seasonal personnel cost variations in Norway, while increases in activity and global commodity prices contributed to higher fuel, freight and other operating costs of $9.9 million. Depreciation and amortization expense was $4 million higher as a result of accelerated depreciation of assets related to a lease facility in the U.S. and capital spare parts associated with the S-76D medium helicopter model that is in the process of being phased out, as I mentioned last quarter. Given the continued performance of our OES business, we are tightening our 2026 revenues guidance and increasing the adjusted operating income guidance range to $235 million to $245 million for this segment. Moving on to Government Services. Revenues were $4.4 million higher, largely attributable to the commencement of operations at two UKSAR2G seasonal bases and increased rates from annual rate escalations. Irish Coast Guard revenues were $1.5 million higher due to the full quarter impact of the Waterford base that commenced operations last quarter. And revenues in the U.S. were $1 million higher due to higher utilization. Penalties related to aircraft availability, which has been adversely impacted by continued supply chain challenges, have remained elevated in the current quarter, but were consistent with the preceding quarter, While fuel revenues were consistent with the preceding quarter despite increases in global fuel prices due to contractual lags in the -- in rebilling fuel costs under UKSAR2G. Adjusted operating income was $2.3 million lower, primarily due to higher operating expenses of $6.1 million, offsetting the higher revenues. The commencement of operations at certain UKSAR2G and Irish Coast Guard bases, including full quarter impact of costs that were previously deferred, increased overtime costs to support the ongoing transition and onetime salary adjustments related to a labor agreement in the U.K. resulted in personnel costs being $3.3 million higher this quarter. Additionally, increased training, travel between bases and higher base and facilities costs related to transitions were $1.8 million higher this quarter. Lastly, fuel costs were $1.5 million higher due to higher global fuel prices. While fuel is typically a pass-through, there is a delay between when the company incurs the cost of fuel at prevailing market prices and is then able to recoup the fuel expense under UKSAR2G. In summary, the lower margins in this segment are expected to be largely confined to calendar year 2026. The unprecedented pace and severity of increases in global jet fuel prices in Q2 adversely impacted profitability in our Government Services segment by $1.5 million, primarily due to a deferred price adjustment mechanism in the UKSAR2G contract. We have since tightened the adjustment mechanism via contractual amendment, and this impact should not recur in Q3 and beyond. In addition and more materially, continued supply chain challenges have resulted in delayed aircraft deliveries and modification schedules, which adversely impacted 2026 adjusted operating income by approximately $8 million. This is a function of elevated KPI penalties adversely impacting revenues as well as transition costs persisting longer than anticipated due to retained headcount and other transition costs. The net impact of these factors is included in our revised Government Services segment adjusted operating income range for 2026. While some of these transition costs will roll into early 2027, the 2027 Government Services results should track closer to the original guidance range plus the additional benefit of the incremental EBITDA from the Berry acquisition. As a reminder, these are typically 10-year base contract periods plus option years, and we still expect to generate attractive long-term cash flow yields on these important government services mandates. At this time, we are updating our 2026 Government Services segment guidance ranges to include the addition of Berry Aviation government contracts and take into the effect the transition impact I noted a moment ago. As such, our 2026 revenue guidance range is updated to $475 million to $495 million, and the adjusted operating income guidance range is updated to $55 million to $65 million for this segment, which is roughly 60% higher when compared to the midpoint to the 2025 results. And finally, revenues from Other Services were $11.4 million higher in Q2, primarily due to higher seasonal activity and higher fuel revenues. Adjusted operating income was $4.2 million higher due to the higher seasonal revenues, partially offset by higher operating expenses of $7.7 million related to the higher activity and fuel prices. We are updating our 2026 Other Services guidance ranges based on the performance to date and to include the addition of Berry's ODC and other offerings. The updated 2026 revenues and adjusted operating income guidance for this segment is between $155 million and $175 million and $25 million to $30 million, respectively. Turning now to cash flows and liquidity. As of June 2026, our unrestricted cash balance was $312 million with total available liquidity of approximately $372 million. Net cash provided by operating activities was $41.4 million this quarter compared to net cash used in operating activities of $8.3 million in Q1. The increase in operating cash flows is primarily due to higher earnings, coupled with a decrease in working capital uses during the current quarter. On a year-to-date basis, working capital uses remain elevated as a result of increases in accounts receivable due to higher activity, increases in other assets related to start-up costs for new government services contracts as the costs are incurred prior to the full commencement of revenues, and a decrease in accounts payable and accrued liabilities related to the timing of tax and OEM vendor payments at the end of the current quarter. As noted in previous calls, the company does not have material amounts of aged receivables in any of our segments and new contract transitions are set to conclude in the coming quarters. So we expect to see continued improvements in working capital as activity and timing-related items normalize. During the current quarter, Bristow paid $3.7 million in dividends. And on July 30, declared another dividend of $0.125 per share of common stock. This dividend will be paid on August 28, 2026, to shareholders of record at the close of business on August 14. We consistently evaluate the best uses of our cash flow and aim to yield the highest value and return on capital. Additionally, we will continue to execute on our capital allocation strategy, which prioritize maintaining a strong balance sheet, the conclusion of investments and other transition costs tied to growth in our various regions and a return of capital to shareholders. We believe the company will continue to generate strong free cash flow and accelerate in earnest as we near the completion of this transformative year. At this time, I'll turn the call back to Chris for further remarks. Chris? Christopher Bradshaw: Thank you. Looking forward, we continue to believe Bristow is favorably positioned to benefit from three global mega trends, namely increased defense spending, the importance of energy security and the electrification of transportation. Taking each of these in turn, number one, we expect defense spending to increase significantly over a multiyear period. With the expected scale of these defense expenditures and the continued budgetary pressures for most countries in the Western world, we anticipate the need for increased public-private partnerships to realize these government and military objectives. We see additional growth opportunities in our core government search and rescue business as well as a broader spectrum of aviation services to government and military customers, particularly in Europe and the Americas. The recent addition of Berry Aviation significantly increases our exposure and addressable opportunities in this segment. The transaction will enable cross-selling of services to government customers by leveraging the combined company's expertise, diversified fleet and global footprint. Number two, the importance of energy security. Recent geopolitical events have placed an enduring emphasis on where hydrocarbon supplies are located. And the established offshore energy basins that Bristow services represent some of the most attractive and secure sources of supply. Deepwater projects are favorably positioned, offering attractive relative returns within the asset portfolios of oil and gas companies. And we believe offshore projects will receive an increasing share of future upstream capital investment. The leading indicators for offshore activity from subsea equipment orders to rig contracting activity to expected FID approvals are positive and poised to further benefit Bristow's OES business. Number three, the electrification of transportation. We have continued to advance Bristow's position as an early leader in the development of the advanced air mobility industry, which will incorporate the operation of next-generation aircraft powered by electric, hybrid electric and other new propulsion technologies. Bristow has a unique opportunity to leverage our core competencies as an advanced proven operator to serve the needs of this new industry sector. Most recently, the Scottish Electric Aviation Network, or Project SEAN, was launched by a Bristow-led Consortium in partnership with BETA Technologies and supported by GBP 1.5 million of funding from the U.K. Department of Transport to advance electric aviation services across Scotland's Highlands and Islands. We believe Bristow has created significant option value with minimal capital commitment to date and what is expected to be a large and rapidly growing addressable market to these new generation aircraft. In conclusion, we have a very positive outlook for Bristow's business as we continue the company's evolution as a global leader in mission-critical aviation services for government entities, offshore energy companies and other customers around the world. With that, let's open the line for questions. Amy? Operator: [Operator Instructions] The first question is from Jason Bandel from Evercore ISI. Jason Bandel: I have a couple of questions this morning on OES. Can we unpack your updated guidance in OES there a little more? Can you discuss what were the primary drivers that led to the increase in the adjusted operating income while narrowing the range for revenue? Jennifer Whalen: Sure. We had -- we did have better performance in the first half of the year. This is both in rate and in activity, more aircraft being put on contracts and contracts that went longer than we had originally expected. And we expect that to continue through the rest of the year, which really informed our increase in the guidance, and we just have more certainty around the revenue. So we were able to tighten the revenue guidance. Jason Bandel: Got it. Understood. And then on the effective utilization side of things, has that changed for a portion of your fleet in recent months? And can you kind of discuss, I guess, well, first of all, what idle capacity looks like right now and your expectations for flight hours for the rest of the year? And if you can give us some color regionally as well, that would be helpful, too. Christopher Bradshaw: Yes. Happy to address that. So there has not been a material change in the effective utilization. It remains -- if we're talking about the relevant heavy super medium and medium offshore helicopter models, effective utilization remains very tight. And as we know, it's also a constrained supply picture with limited new capacity that could come into the market. In terms of flight hour activity, we would expect second half '26 to be slightly higher, but not a huge increase. We see 2027 as being a more significant inflection point for new incremental offshore projects moving forward. Regionally, I would say that the North Sea remains a more mature market. So stable, but not a lot of growth that we're seeing. We're seeing more growth and higher activity in areas like Africa as well as in South America. So Brazil, Suriname and even in the Caribbean with Trinidad, we've seen more activity regionally in those locations. Jason Bandel: Great. That's helpful color, Chris. And my last one, just around the planned Norwegian exit. I guess, first, have you experienced any impact to that business after you made that announcement? And then I guess, secondly, any sense for timing about a potential exit there would be helpful as well. Christopher Bradshaw: Sure. So take those in order. No, we have not seen a material impact on the business since the announcement. We're continuing to focus on delivering safe and reliable service to our long-term customers there. It is a very well-established business that's been around for more than 30 years, strong customer relationships, good operating footprint, a strong, very capable management team continuing to manage the business there in Norway. In terms of timing, we are at the beginning of the process. So we're still in the process of reaching out to potential buyers to gauge who has an interest. And for those that are interested, we would then move forward in earnest with a more detailed part of that sale process. So still at the early stages of that. Operator: The next question is from Savi Syth from Raymond James. Savanthi Syth: Maybe, Jennifer, you noted that most of the transition costs related to your kind of government SAR contracts in the U.K. and Ireland should subside in 2026, but maybe some continuing into early 2027. Could you provide a little bit more color on kind of which costs are expected to flow into 2027? Jennifer Whalen: Sure. There will be some additional costs related to aircraft and people as we prepare the last of the aircraft for the UKSAR2G to modifications, et cetera, on to that. So there will be people costs and some other lease costs, et cetera. And those people will roll off, and this is really very early in the part of '27. Those people would then roll off and all the rest of those costs would roll off as well. Savanthi Syth: That's helpful. And maybe, Chris, you mentioned the Project SEAN announcement with kind of advanced mobility kind of taking a lot of attention at Farnborough, particular around these kind of tactical commercial deployments, kind of what milestones should investors watch to kind of evaluate Bristow's progress in converting this segment from an investment into like true commercial opportunities? Christopher Bradshaw: I would note a couple of things there. First would be aircraft certification time lines. So in the Western world, we're still waiting on the first of these aircraft to be certified. Those companies are making progress with the relevant regulatory authorities, whether that be the FAA here in the U.S., EASA in Europe or the CAA in the U.K. And within that certification journey, another milestone that we would point to are their flight test programs. So for the relevant aircraft, have they made the transition in flight on a manned basis to vertical flight and then back again. So those are some important milestones on that journey. And then to Bristow specifically and when there might be a translation into commercial opportunities, one of the milestones I would follow is our order status. So right now, we have positions with our partners. Those are largely contingent upon things like the certification time line, also the aircraft's actual performance meeting the design specifications. So as you see some of those positions move into firm orders and start to show up in our CapEx schedule, that would be an indicator that we believe, we reached a point where there is an underwritable business case to put the aircraft to work. Savanthi Syth: That makes sense. That's helpful. And if I might, just -- following up on kind of Jason's question earlier, he asked on the OES side. Just on the government services side, just what are your kind of flight hour expectations there and how that should progress given some of the challenges that you're having with the transition? Christopher Bradshaw: I would expect flight hours to be relatively stable, should be consistent. Our variations in flight hours tend to be more seasonal. So in the summer months, when it's warmer and people are out being more active, we tend to have more call-outs for rescue missions, whereas in the months where maybe the weather is such, that people aren't as outdoors or doing more things, we tend to have less call-outs for those rescue missions. But should be noting those seasonal differences relatively stable from a flight hour standpoint otherwise. Operator: Our next question comes from Alex Rygiel with Texas Capital. Alexander Rygiel: What percentage of Berry revenues are under long-term contracts? And how does that recompete schedule look over the next few years? Christopher Bradshaw: Jennifer, I don't know if you wanted to take that or I can certainly start, and then Jennifer can add as we go. So the contracts for -- maybe I'll back up a minute. There are different contract structures in Berry business versus our existing government search and rescue business, and a lot of that really goes back to the mission itself. So in our civilian search and rescue work, we know the mission is going to be there. For better or worse, we know that there are going to be people who get in a condition where they need to be saved and for us to go conduct those rescue missions. So because of that visibility, the contracts tend to be longer term in nature. On the Berry side, which is primarily doing business with various branches of the U.S. military, those military missions tend to evolve more rapidly. There are more changes in the scope and demands of the mission. And so those tend to be shorter-term contracts, but the activity tends to be a higher cadence activity than our civilian search and rescue call-out business. So Jennifer might be can address specifically in terms of percentages, but good contract coverage for '26 and into next year. In terms of a recompete basis, the company, Berry is very well positioned on its three largest contracts, it's really held these for multiple contract cycles. And they are in pretty demanding environments in Africa, in Asia Pacific. So they're very strongly positioned as the incumbent and very much valued and trusted by the military customer. So Jennifer, I don't know if you wanted to add anything to that. Jennifer Whalen: Yes. I mean I would just say some of these contracts, they've been on for a very long time. So even though they've changed slightly the mission over time, they're highly specialized what they do as far as contract coverage, it's a pretty high percentage. But again, as Chris noted, the contracts tend to be shorter in duration. But again, they do specialize mission, so they tend to be in a very good position when the mission changes and the contract changes. Alexander Rygiel: That's helpful. And sorry if I missed this, but can you speak more to the supply chain challenges that you referenced earlier in the prepared remarks? Christopher Bradshaw: Yes. And these have really evolved over time. A few years ago, we, as an industry, were having a very acute supply chain challenge around the S-92, which is a Sikorsky manufactured helicopter. Those -- a lot of improvements have been made there, and there's been a strong recovery, not always exactly where we want it to be, of course, but a very strong recovery on that side of things. And then what we're experiencing now more is with a different OEM, Leonardo, around either, in some cases, the 139, but namely the AW189 model helicopter. And it really stems from the fact that going into the downturn in the offshore oil and gas industry, there weren't a lot of new deliveries being made. But as activity has picked up and deliveries have been placed from that end market, but also importantly, around search and rescue aircraft, which has mainly been Bristow as well as military customers because as a reminder, that production line is shared across all global military and civilian customers. It's been a challenge as they've ramped up, and that's impacted the schedule for new aircraft deliveries. So as aircraft have been late in our modifications because we're not taking delivery and putting to work a base aircraft, right? When we're putting into search and rescue configuration, it's highly bespoke to that country's mission. And it takes some time after initial delivery to complete all the aircraft modifications, including the mission management system. So it's just pushed all of that time line to the right for us, which has resulted in some KPI penalties. It's resulted in us keeping personnel, transition personnel on longer than contemplated. So higher compensation, but also all the other expenses that come along with a transition to the new aircraft model and at a new base in some cases. Just to put like one number around that, it could be a longer answer, but to put one number around that, Leonardo plans to make 40 AW189s a year going forward. That's their target for manufacturing new aircraft this year and beyond. Last year, they delivered about 15. So it shows you kind of where things have been. We are obviously in active discussions with them. We are their largest customer globally, continues to be a very strong relationship with Leonardo. And we've -- I was there last month in Italy, and we've gone through a timeline where they plan to get some of these key components back to a recovery status by either Q4 of '26 or in some cases, Q1 of '27. Operator: Our next question is from Steve Silver with Argus Research. Steven Silver: So looking at this announcement about Project SEAN in Scotland, I'm curious as to whether there are any similar opportunities that you see emerging around the world over the near term and perhaps if there are any others that may be in the current pipeline at earlier stages. Christopher Bradshaw: Yes, happy to address that. So first with Project SEAN itself, really pleased to have that opportunity in Scotland. We think the community there will benefit from it. It's certainly a landscape, a geography that is well suited to this type of aircraft and being able to enhance regional connectivity on a efficient, both from time and money standpoint. And also happy to have the funding support from the U.K. Department of Transport for that program. Also in Norway, we are moving forward with Phase 2 of the test arena. So by way of reminder, there was a Phase 1 where we worked in partnership with BETA Technologies to test out potential cargo routes using their CTOL, ALIA aircraft. This Phase 2 will be with a different aircraft and a different mission type. It's going to be with Electra.aero, really focused more on regional passenger missions and exploring those capabilities in Norway. Also here in the U.S., we're partnered with a few of the OEMs on the different state eIPP programs, which were sponsored by the administration. One of those, for example, is with our partner, Elroy, using their unmanned, hybrid aircraft, the Chaparral. We're actually going to be doing test missions later this month in Louisiana, testing the use of those aircraft to move cargo to offshore platforms and drilling rigs in the U.S., Gulf. So a few different projects underway globally as this industry continues to progress. Steven Silver: That's helpful. So while the company's liquidity remains healthy, there have been a couple of moving parts this year with the Berry acquisition, the financing earlier in the year, and you guys also have a share repurchase program in place. I'm just curious as to whether you have any updated thinking on any net debt targets either by the end of 2026 or even at the end of 2027. Jennifer Whalen: Thank you for the question. I mean we have, over time, done some debt repurchases and paid down some debt. We don't have a target per se, but we -- always in our capital allocation, we protect the balance sheet. That's our #1 priority. We do show in our guidance, you can kind of get back to where our free cash flow is that kind of gives you an idea of where we are. And as a reminder, when we did the bond deal earlier this year, we did upsize the bond from $400 million to $500 million, which gave us the flexibility to be able to do the Berry acquisition without too much friction. Steven Silver: Great. And one last one, if I may. So now that we are halfway through the year, do you have any update on your full year expectations for free cash flow? Jennifer Whalen: I mean we -- as you saw, the guidance, we don't really give -- generally give free cash flow guidance, but you have the waterfall there, so you can get to where we're at. I will say our expected growth CapEx for this year is $130 million plus the maintenance CapEx of $30 million gets you $160 million for the total CapEx for the year. And then there's going to need to be some assumptions made around working capital as it has remained elevated uses of working capital this year. But generally, you can kind of get to where we are thinking from there. Christopher Bradshaw: Yes. And I think, Jennifer, the only other note I'd add to that is on the CapEx numbers you gave for the full year, very much weighted to the first half. So we've gotten through most of that already. The second half of the year really would just see about $30 million of growth CapEx plus the proportionate share of maintenance for the year. Operator: Our final question today is from Josh Jain from Daniel Energy Partners. Josh Jain: First one, just obviously, a lot of volatility in the energy space with the Iran conflict. Could you just speak to if this persists, the impact on the near to intermediate term of -- for the business? But then also conversely, what do you see as the long-term impact of this conflict? Does it strengthen the outlook in the energy business over a multiyear period and give you more confidence in sort of your multiyear outlook? That's the first question. Christopher Bradshaw: Yes. Thank you for the question. So near term, it hasn't had a big impact on our business. I think we have been in a good position in that we are offshore oriented, but we're not in the Middle East. So we're not directly impacted. And we haven't seen a material change in customer activity levels thus far. We do expect that to change, though. Our expectation is that on the other side of this, there will be structurally higher commodity prices. And so we think the thesis, which already existed coming into the conflict that there would be a growth in offshore spend and offshore activity going forward. We think that thesis has been significantly derisked. So more confidence, more conviction in the outlook for offshore activity. And certainly, what we're seeing is an increased importance of energy security and an emphasis on that moving forward and where the source of hydrocarbons is coming from. And again, I think we are fortunate in that the basins -- the offshore basins that we serve at Bristow are some of the most well-established as well as most secure sources of offshore supply globally. Josh Jain: Understood. And then just one just on general capital allocation. So once you do have a sort of resolution or conclusion with the Norway business, would that potentially open the door to perhaps a more aggressive return of capital to shareholder stance? Or are there more things out there similar to Berry that may be a more attractive use of capital based on sort of where we are in the cycle for defense spending today? I'm just curious how you're thinking about those options or potential proceeds once you do have a resolution to the sale of that business? And then I'll turn it back. Christopher Bradshaw: Yes. Thank you. It's a great question, and I think appropriate to ask the two together. So in terms of potential share repurchases, we will deploy the program on an opportunistic basis. So we'll evaluate that in the context of other opportunities as well as, of course, where the share price is at the time and whether or not we're in a window where we're permitted to be buying back shares, and just a logistical note, for most of this calendar year, we have been restricted because of the Berry acquisition and the potential sale of Norway as well as our normal earnings-related blackout windows. But we'll continue to approach -- take an opportunistic approach to the deployment of capital under that share repurchase program. As we do weigh considerations and alternatives, other M&A will be a part of that. And to that part of your question, we do see additional opportunities for similar tuck-in acquisitions that would be in the government military space, other opportunities to add differentiated capabilities, customer relationships, things that we see as being very long-term value-added opportunities. So we do see a pretty compelling opportunity set. Now of course, each of those situations would need to meet our financial parameters, so fall within the context of deals that make sense for us financially. Operator: This concludes our question-and-answer session. I will now turn the call back over to Chris Bradshaw for closing remarks. Christopher Bradshaw: Yes. Thanks, everyone, for joining the call today. I know it's a busy time out in the market as well as summer plans, so we appreciate that. I also wish everyone stay safe and well, and we look forward to speaking again next quarter. Thank you. Operator: This concludes today's call. You may now disconnect at any time. Before you buy stock in Bristow Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bristow Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Bristow Group (VTOL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Bristow Group Inc.? Here are five stocks we like better. Bristow maintained its 2026 outlook, including adjusted EBITDA of $295 million–$325 million and revenue of $1.6 billion–$1.7 billion, after second-quarter revenue and profitability improved sequentially. The completed Berry Aviation acquisition expands Bristow’s government-services capabilities across six continents and is expected to be immediately accretive to earnings and free cash flow. Offshore energy performance improved enough for Bristow to raise the segment’s 2026 adjusted operating income guidance, while government-services margins remain pressured by aircraft delivery delays, transition costs and supply-chain constraints. Vertical’s Valo Launch: A Commercial Leap Disguised as a Dip Bristow Group (NYSE:VTOL) affirmed its full-year 2026 adjusted EBITDA outlook after reporting higher sequential revenue and profitability in the second quarter, while outlining the recently completed acquisition of Berry Aviation and plans to sell its Norway offshore energy services business. Chief Executive Officer Chris Bradshaw said the company remains on track for what management expects to be a “transformational year,” despite macroeconomic uncertainty and supply-chain issues affecting government search-and-rescue contract transitions. Bristow maintained its 2026 adjusted EBITDA guidance of $295 million to $325 million, representing anticipated year-over-year growth of about 25%, and its revenue outlook of $1.6 billion to $1.7 billion. → No Hangover: Revisiting Microsoft One Week After Earnings Why a 20-Second Flight Test Could Unlock Billions for Vertical Second-quarter revenue increased by $23.1 million from the first quarter, driven primarily by stronger utilization in other services as well as higher fuel revenue and rates in offshore energy services. Adjusted EBITDA rose $20.5 million sequentially, reflecting higher revenue across segments and lower repair and maintenance costs, Chief Financial Officer Jennifer Whalen said. Bristow closed its acquisition of Berry Aviation on July 13. Berry, based in San Marcos, Texas, operates more than 20 aircraft and provides military and defense aviation services in multiple countries. Its government offerings include special missions, intelligence, surveillance and reconnaissance operations, maintenance, repair and overhaul services, training, mission support, and unmanned aerial systems design and development. → MarketBeat Week in Review – 08/03 - 08/07 Why Vertical Aerospace Stock Could Double After This Flight Test Berry also provides on-demand cargo logistics and aftermarket aviation supply-chain services. Bradshaw said the acquisition expands Bristow’s presence to six continents and 20 countries, while adding capabilities and customer relationships that complement its existing government-services operations. Management expects the transaction to be immediately accretive to earnings and free cash flow and to strengthen Bristow’s EBITDA margin profile. Berry’s special missions, MRO, CRO and UAS operations will be reported within Bristow’s government services segment, while its cargo and other offerings will be included in the other services segment. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Bradshaw said Berry’s military contracts generally have shorter durations than Bristow’s civilian search-and-rescue agreements because military missions can evolve more quickly. However, he said Berry has strong contract coverage for 2026 and into 2027 and has held its three largest contracts through multiple cycles. Offshore energy services revenue increased $7.3 million sequentially in the second quarter, helped by higher rates and fuel revenue in Europe and several Americas markets. Adjusted operating income in the segment increased $16.4 million, benefiting from higher revenue, $4.3 million lower operating expenses and $2.2 million of higher earnings from unconsolidated affiliates. Repair and maintenance costs declined by $7.8 million, largely due to higher vendor credits, while personnel expenses declined $6.3 million because of seasonal variations in Norway. These factors were partly offset by $9.9 million of higher fuel, rate and other operating costs tied to increased activity and global commodity prices. Whalen said Bristow tightened its offshore energy revenue forecast and raised its 2026 adjusted operating income guidance for the segment to $235 million to $245 million. The improved outlook reflects stronger first-half performance in rates and activity, including more aircraft being placed on contracts and contracts lasting longer than initially expected. Bradshaw said effective utilization of Bristow’s heavy, super-medium and medium offshore helicopter fleet remains tight amid limited new aircraft capacity. He expects only a modest increase in flight hours during the second half of 2026, with 2027 representing a more meaningful inflection point for incremental offshore projects. He identified Africa, South America, Brazil, Suriname and Trinidad as areas showing stronger activity, while calling the North Sea stable but more mature. Government services revenue rose $4.4 million sequentially, primarily from the start of operations at two UKSAR2G seasonal bases and annual rate escalations. Revenue also benefited from a full-quarter contribution from the Irish Coast Guard’s Waterford base and higher U.S. utilization. However, adjusted operating income declined $2.3 million as operating expenses rose $6.1 million. Personnel costs increased $3.3 million due to base transitions, overtime and one-time U.K. labor-agreement salary adjustments. Training, inter-base travel and facilities costs rose $1.8 million, while fuel costs increased $1.5 million. Whalen said rapid jet-fuel price increases reduced second-quarter government-services profitability by $1.5 million because of a delayed price-adjustment mechanism in the UKSAR2G contract. Bristow has amended that mechanism, and she said the impact should not recur in the third quarter or later. Supply-chain constraints have also delayed aircraft deliveries and modifications, reducing 2026 adjusted operating income by approximately $8 million through aircraft-availability penalties and extended transition costs. Whalen said the challenges are largely related to Leonardo AW189 aircraft deliveries and modifications, though the company expects certain key components to return to a recovery status by the fourth quarter of 2026 or first quarter of 2027. Bristow updated 2026 government-services guidance to revenue of $475 million to $495 million and adjusted operating income of $55 million to $65 million, including Berry’s government contracts. The operating-income range is roughly 60% above the midpoint of 2025 results, Whalen said. As of June, Bristow had $312 million of unrestricted cash and approximately $372 million of total available liquidity. Operating cash flow was $41.4 million in the second quarter, compared with an $8.3 million use of cash in the first quarter. The company paid $3.7 million in dividends during the quarter and declared a quarterly dividend of $0.125 per share, payable Aug. 28 to shareholders of record on Aug. 14. The company expects total 2026 capital expenditures of about $160 million, including $130 million of growth capital expenditures and $30 million of maintenance spending. Management said most of the growth spending was weighted toward the first half of the year. Bristow is also pursuing a sale of its Norway offshore energy services operation as part of its portfolio optimization strategy. Bradshaw said the process remains in its early stages and that the company has not experienced a material business impact since announcing the planned exit. On a pro forma basis, the Norway exit and Berry acquisition would have been neutral to Bristow’s 2025 EBITDA, he said. Looking ahead, Bradshaw cited increased defense spending, energy security and transportation electrification as major long-term growth themes. He also highlighted Bristow-led advanced air mobility initiatives in Scotland, Norway and the U.S., while noting that aircraft certification, flight testing and the conversion of aircraft positions into firm orders will be important milestones for the emerging market. Bristow Group Inc is a global provider of helicopter services to the offshore energy industry and search-and-rescue (SAR) operations worldwide. The company specializes in the safe and efficient transport of personnel, equipment and supplies to offshore oil and gas platforms, as well as emergency response and medevac services. Bristow's operations support exploration, production and decommissioning activities, helping energy companies maintain continuity of production in some of the world's most challenging environments. The company maintains a diverse fleet of turbine-powered helicopters, including medium- and heavy-lift aircraft such as the Sikorsky S-92, Airbus H225 (formerly EC225) and Leonardo AW189. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bristow Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenues: $23.1 million higher sequentially in Q2 2026, driven by higher utilization in Other Services and higher fuel revenues/rates in Offshore Energy Services (OES). Adjusted EBITDA: $20.5 million higher sequentially in Q2, attributed to increased revenues and lower repairs and maintenance costs. Full-Year 2026 Revenue Guidance: Affirmed at $1.6 billion to $1.7 billion. Full-Year 2026 Adjusted EBITDA Guidance: Affirmed at $295 million to $325 million, reflecting year-over-year growth of approximately 25%. OES Segment Revenue: $7.3 million higher sequentially in Q2, due to higher rates and fuel revenues in Europe and the Americas. OES Segment Adjusted Operating Income: $16.4 million higher sequentially in Q2, with 2026 guidance raised to $235 million to $245 million. Government Services Segment Revenue: $4.4 million higher sequentially in Q2, driven by new UKSAR2G base operations and rate escalations. Government Services Segment Adjusted Operating Income: $2.3 million lower sequentially in Q2; 2026 guidance updated to $55 million to $65 million, including Berry Aviation. Other Services Segment Revenue: $11.4 million higher sequentially in Q2, due to higher seasonal activity and fuel revenues. Other Services Segment Adjusted Operating Income: $4.2 million higher sequentially in Q2; 2026 guidance set at $25 million to $30 million. Cash Flow from Operations: Net cash provided by operating activities was $41.4 million in Q2, versus net cash used of $8.3 million in Q1. Cash and Liquidity: Unrestricted cash balance of $312 million and total available liquidity of approximately $372 million as of June 2026. Dividend: Paid $3.7 million in dividends during Q2; declared another dividend of $0.125 per share, payable August 28, 2026. Warning! GuruFocus has detected 8 Warning Signs with VTOL. Is VTOL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bristow Group Inc (NYSE:VTOL) closed the acquisition of Berry Aviation, expanding its presence to six continents and 20 countries, with the deal expected to be immediately accretive to earnings and free cash flow while bolstering EBITDA margins. The company affirmed its full-year 2026 adjusted EBITDA guidance of $295 million to $325 million, reflecting year-over-year growth of approximately 25% despite macro uncertainties. Bristow Group Inc (NYSE:VTOL) achieved its goal of zero air accidents year-to-date 2026 and is on track for a third consecutive year of fewer lost workdays, highlighting a strong safety record. The Offshore Energy Services (OES) segment performed well, leading to an increased adjusted operating income guidance range of $235 million to $245 million for 2026, driven by higher rates and activity. Bristow Group Inc (NYSE:VTOL) is well-positioned to benefit from global megatrends, including increased defense spending, energy security, and the electrification of transportation, with new projects like Project SEAN advancing its advanced air mobility leadership. The company maintains a strong liquidity position with $312 million in unrestricted cash and $372 million in total available liquidity as of June 2026. Bristow Group Inc (NYSE:VTOL) continues to face significant supply chain challenges, particularly with Leonardo AW189 aircraft deliveries, which have adversely impacted 2026 adjusted operating income by approximately $8 million due to KPI penalties and prolonged transition costs. The government services segment experienced lower margins due to elevated penalties related to aircraft availability and higher operating expenses, including one-time salary adjustments and increased transition costs. Unprecedented increases in global jet fuel prices in Q2 adversely impacted profitability in the government services segment by $1.5 million due to a deferred price adjustment mechanism, although a contractual amendment has since been implemented. The planned exit of the Norway offshore energy services business introduces uncertainty, and the sale process is still in its early stages with no guaranteed timing or structure. Working capital uses remain elevated year-to-date due to increases in accounts receivable, start-up costs for new government contracts, and timing of tax and vendor payments, impacting cash flow. Bristow Group Inc (NYSE:VTOL) has been restricted from executing share repurchases for most of the calendar year due to the Berry acquisition, potential sale of Norway, and earnings-related blackout windows, limiting capital return flexibility. Q: Can we unpack your updated guidance in OES? What were the primary drivers that led to the increase in adjusted operating income while narrowing the range for revenue?A: Jennifer Whalen (CFO): We had better performance in the first half of the year, driven by both rates and activity, with more aircraft being put on contracts that went longer than originally expected. We expect this to continue through the rest of the year, which informed the increase in guidance. We have more certainty around revenues, allowing us to tighten the revenue range. Q: What percentage of Berry revenues are under long-term contracts and how does that recompete schedule look over the next few years?A: Christopher Bradshaw (CEO): Berry's contracts differ from our civilian search and rescue work. Military missions evolve more rapidly, so contracts tend to be shorter-term but with higher cadence activity. Jennifer Whalen (CFO) added that contract coverage is a high percentage, and the company is very well positioned on its three largest contracts, having held them for multiple cycles in demanding environments. Q: Can you speak more to the supply chain challenges that you referenced earlier in the prepared remarks?A: Christopher Bradshaw (CEO): The challenges have evolved from the S-92 to the Leonardo AW189 model. As activity picked up, the shared production line for military and civilian customers has struggled to ramp up, impacting delivery schedules. This has pushed timelines to the right, resulting in KPI penalties and retained transition personnel. Leonardo plans to make 40 AW189s a year going forward versus about 15 last year, with key components expected to recover by Q4 2026 or Q1 2027. Q: You noted that most of the transition costs related to government SAR contracts in the UK and Ireland should subside in 2026, but some may continue into early 2027. Could you provide more color on which costs are expected to flow into 2027?A: Jennifer Whalen (CFO): There will be additional costs related to aircraft and people as we prepare the last of the aircraft for UKSAR2G modifications. These people costs and other costs will roll off very early in 2027 once the modifications are complete. Q: Regarding the planned Norwegian exit, have you experienced any impact to that business after making the announcement, and what is the timing for a potential exit?A: Christopher Bradshaw (CEO): We have not seen a material impact on the business since the announcement. We are at the beginning of the process, still reaching out to potential buyers to gauge interest. For those interested, we would move forward with a more detailed sale process, so we are still in the early stages. Q: With the volatility in the energy space due to the Iran conflict, what is the near-term impact on the business, and does it strengthen the long-term outlook for the energy business?A: Christopher Bradshaw (CEO): Near term, it hasn't had a big impact as we are not in the Middle East. However, we expect structurally higher commodity prices on the other side of this conflict. The thesis for growth in offshore activity has been significantly de-risked, and the offshore basins we serve are some of the most well-established and secure sources of supply globally. Q: Regarding Project SEAN in Scotland, are there similar opportunities emerging around the world, and are there others in the current pipeline at earlier stages?A: Christopher Bradshaw (CEO): We are moving forward with Phase II of the test arena in Norway with Electro.Aero, focused on regional passenger missions. In the US, we are partnered with Elroy on the EIPP programs, and we will be doing test missions later this month in Louisiana moving cargo to offshore platforms using the Chaparral unmanned aircraft. Q: Once you have a resolution with the Norway business, would that open the door to a more aggressive return of capital to shareholders, or are there more things similar to Berry that may be a more attractive use of capital?A: Christopher Bradshaw (CEO): We will deploy the share repurchase program on an opportunistic basis, evaluating it in the context of other opportunities and share price. We see additional opportunities for similar tuck-in acquisitions in the government and military space that add differentiated capabilities and customer relationships, provided they meet our financial parameters. Q: Do you have any updated thinking on net debt targets either by the end of 2026 or 2027?A: Jennifer Whalen (CFO): We don't have a specific target, but protecting the balance sheet is our number one priority in capital allocation. When we did the bond deal earlier this year, we upsized it from $400 million to $500 million, which gave us the flexibility to do the Berry acquisition without too much friction. Q: Do you have any update on your full-year expectations for free cash flow?A: Jennifer Whalen (CFO): We don't generally give free cash flow guidance, but expected growth CapEx for this year is $130 million plus $30 million in maintenance CapEx, totaling $160 million. Christopher Bradshaw (CEO) added that CapEx is heavily weighted to the first half, with only about $30 million of growth CapEx expected in the second half. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The acquisition of Berry Aviation marks a strategic expansion into military and defense services, providing immediate accretion and a more durable, balanced business profile. Management is pursuing the sale of the Norway Offshore Energy Services business to reallocate capital toward markets with higher margin profiles and better returns. Second quarter EBITDA growth was driven by higher utilization in Other Services and improved rates and fuel revenues within the Offshore Energy Services segment. The company is navigating a 'transformational year' by leveraging geographic and customer diversity to offset macro uncertainties and supply chain headwinds. Offshore energy basins served by Bristow are seeing increased investment as global priorities shift toward energy security and secure hydrocarbon sources. The company maintains a leadership position in Advanced Air Mobility, viewing electric aviation as a high-potential addressable market with minimal capital commitment to date. Full-year 2026 adjusted EBITDA guidance is affirmed at $295 million to $325 million, representing approximately 25% year-over-year growth. Management expects 2027 to be a significant inflection point for offshore activity, particularly in Africa and South America, as new projects reach final investment decisions. Government Services margins are expected to remain pressured through 2026 due to transition costs but should normalize in 2027 as new contracts reach full operational status. The company anticipates increased defense spending will drive more public-private partnerships, creating a multiyear growth tailwind for the expanded government services segment. Capital expenditure for the remainder of 2026 is expected to be significantly lower, with only $30 million in growth CapEx planned for the second half. Supply chain challenges at OEM Leonardo have delayed AW189 helicopter deliveries, resulting in an $8 million adverse impact on 2026 adjusted operating income. A deferred price adjustment mechanism for fuel in the UKSAR2G contract negatively impacted profitability by $1.5 million, though contractual amendments have since mitigated this risk. The planned exit from Norway OES and the addition of Berry Aviation would have been neutral to Bristow's 2025 EBITDA on a pro forma basis. Working capital remains elevated due to startup costs for new government contracts and timing of receivables, but is expected to normalize as transitions conclude. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management cited better-than-expected performance in the first half of the year regarding both contract rates and aircraft activity levels. Increased certainty around existing contracts extending longer than originally anticipated allowed for a tightening of the revenue range while raising income expectations. Delays in the AW189 production line (delivering about 15 units last year compared to a future manufacturing target of 40 units per year) have pushed modification timelines to the right, incurring KPI penalties and extended personnel costs. Management expects key component recovery from the OEM by Q4 2026 or Q1 2027, which will allow for the conclusion of these costly transitions. Investors should monitor aircraft certification timelines from FAA/EASA and successful manned flight transitions as primary indicators of industry progress. Bristow will signal commercial readiness when current 'positions' with partners move into firm orders and appear on the capital expenditure schedule. Share repurchases will be handled opportunistically, though the company has been restricted recently due to the Berry acquisition and Norway sale process. Management is actively looking for additional 'tuck-in' acquisitions in the government and military space that offer differentiated capabilities or customer relationships.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Bristow Group stock has delivered a 67.3% return over the past 5 years, and the current valuation checks still point to it screening as cheap on several fronts. That combination of past gains and a strong value read raises the question of whether the current price around US$45.67 still reflects a discount or already embeds much of the good news. Bristow Group's 67.3% return over 5 years suggests investors who stayed invested have already been rewarded, so fresh buyers need to judge whether that performance still leaves a margin of safety. The key support for the current valuation can be the market's view on Bristow Group's ability to sustain cash generation from its operations. Any pressure on profitability or balance sheet strength may limit how much investors are willing to pay for the stock. Bristow Group screens as undervalued on a broad set of checks, with 6 of 6 valuation metrics pointing to the shares trading below what those measures imply. The issue now is whether Bristow Group's recent share price around US$45.67 still offers enough valuation upside after a 67.3% 5 year return. Find out why Bristow Group's 31.0% return over the last year is lagging behind its peers. The P/E ratio is a useful quick check for Bristow Group because it links the current share price directly to the earnings that support it. For Bristow Group, the current P/E sits around 11.8x, which is well below the Energy Services industry average of about 25.9x and also below the peer group average of roughly 93.8x. That places the stock on a relatively low earnings multiple compared with many listed rivals. A more tailored benchmark for Bristow Group that blends its growth profile, profitability, size and risk points to a fair P/E of about 18.7x. Against that yardstick, the current 11.8x suggests the market is applying a sizeable discount to the earnings that the company is generating today. For investors who place weight on earnings based valuation checks, that gap is an important part of the overall picture. On the P/E multiple, Bristow Group stock appears undervalued compared with both its customised fair ratio and broader industry benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Bristow Group valuation puzzle leaves off by spelling out what future growth, margins and earnings would need to look like for the stock to trade materially higher or lower than today's price. Rather than relying on a single multiple or model output, each narrative sets out the assumptions that sit behind its view of fair value, so you can compare those with Bristow Group's actual results as they come through. One of the top community narratives on Bristow Group: 35% undervalued Read one of the top narratives on Bristow Group Do you think there's more to the story for Bristow Group? Head over to our Community to see what others are saying! Bristow Group still screens as undervalued on earnings, with a P/E that sits well below both the industry and its tailored fair multiple. That discount only matters if you think the company can keep converting its operations into steady cash generation without eroding balance sheet resilience. For now, the gap between Bristow Group and peers reflects a judgment call on that point. The crux for investors is whether the current earnings power and risk profile justify a meaningful re rating in the P/E, or whether the discount is the market correctly pricing ongoing execution and profitability risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VTOL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Bristow Group (VTOL) came out with quarterly earnings of $0.7 per share, missing the Zacks Consensus Estimate of $0.84 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this provider of helicopter transportation services would post earnings of $1.01 per share when it actually produced earnings of $0.44, delivering a surprise of -56.44%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Bristow Group, which belongs to the Zacks Transportation - Airline industry, posted revenues of $411.76 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.74%. This compares to year-ago revenues of $376.43 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bristow Group shares have added about 24.7% since the beginning of the year versus the S&P 500's gain of 11%. While Bristow Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bristow Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.33 on $423.63 million in revenues for the coming quarter and $3.87 on $1.64 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Air Canada (ACDVF), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -79.1%. The consensus EPS estimate for the quarter has been revised 48.2% higher over the last 30 days to the current level. Air Canada's revenues are expected to be $4.39 billion, up 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bristow Group Inc. (VTOL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

COMPLETES THE ACQUISITION OF BERRY AVIATION HOUSTON, Aug. 4, 2026 /PRNewswire/ -- Second Quarter Highlights Total revenues of $411.8 million in Q2 2026 compared to $388.7 million in Q1 2026 Net income of $21.2 million, or $0.70 per diluted share, in Q2 2026 compared to net income of $13.1 million, or $0.44 per diluted share, in Q1 2026 Adjusted EBITDA(1) in Q2 2026 was $79.8 million compared to $59.3 million in Q1 2026 Completed the acquisition of Berry Aviation, expanding the Company's Government Services offering Affirmed 2026 Adjusted EBITDA outlook range of $295 - $325 million and updated 2026 segment guidance Bristow Group Inc. (NYSE: VTOL) ("Bristow" or the "Company") today reported net income attributable to the Company of $21.2 million, or $0.70 per diluted share, for the quarter ended June 30, 2026 (the "Current Quarter") on total revenues of $411.8 million compared to net income attributable to the Company of $13.1 million, or $0.44 per diluted share, for the quarter ended March 31, 2026 (the "Preceding Quarter") on total revenues of $388.7 million. The following table provides select financial highlights for the periods reflected (in thousands, except per share amounts). A reconciliation of net income to EBITDA and Adjusted EBITDA, operating income to Adjusted Operating Income and net cash provided by (used in) operating activities to Free Cash Flow and Adjusted Free Cash Flow is included in the "Non-GAAP Financial Measures" section herein. "We completed the acquisition of Berry Aviation last month, adding differentiated special mission capabilities and long-standing relationships with U.S. defense and government customers, further strengthening Bristow's Government Services offerings," said Chris Bradshaw, President and CEO of Bristow Group. "We are pleased to affirm Bristow's Adjusted EBITDA guidance range for 2026, despite macro uncertainties and continued supply chain challenges. The conviction in this outlook is a testament to the complementary nature of Bristow's business segments and the benefits provided by the significant geographic and customer diversity in our business model." Sequential Quarter Results Offshore Energy Services Revenues from Offshore Energy Services were $7.3 million higher in the Current Quarter. Revenues in Europe were $5.9 million higher primarily due to higher rates and higher fuel revenues, partially offset by lower utilization. Revenues in the Americas were $1.2 million higher primarily due to higher fuel revenues driven by higher fuel prices, partially offset by lower utilization. Revenues in Africa were consistent with the Preceding Quarter. Operating income from Offshore Energy Services was $10.3 million higher in the Current Quarter primarily due to the higher revenues, lower operating expenses of $4.3 million, higher earnings from unconsolidated affiliates of $2.2 million and lower general and administrative expenses of $0.5 million, partially offset by higher depreciation and amortization expense of $4.0 million. Repairs and maintenance costs were $7.8 million lower in the Current Quarter primarily due to higher vendor credits. Personnel costs were $6.3 million lower primarily due to seasonal personnel cost variations in Norway. Fuel costs were $6.5 million higher due to higher global fuel prices, partially offset by lower flight hours. Other operating costs were $3.4 million higher primarily due to higher freight costs, reimbursable expenses, lease costs and training costs. Earnings from unconsolidated affiliates were $2.2 million higher in the Current Quarter primarily due to the timing of dividends received. Depreciation and amortization expense was higher primarily due to accelerated depreciation of assets related to a leased facility in the U.S. and capital spare parts associated with S76D medium helicopters. The decrease in general and administrative expenses was primarily due to seasonal personnel cost variations in Norway. Government Services Revenues from Government Services were $4.4 million higher in the Current Quarter. UKSAR revenues were $1.6 million higher primarily due to the commencement of operations at two second-generation UK search and rescue ("UKSAR2G") seasonal bases and increased rates from annual rate escalations. Irish Coast Guard ("IRCG") revenues were $1.5 million higher primarily due to the full-quarter impact of the Waterford base that commenced operations in the Preceding Quarter. Revenues in the U.S. were $1.0 million higher primarily due to higher utilization. Penalties related to aircraft availability, which has been adversely impacted by continued supply chain challenges, have remained elevated in the Current Quarter but were consistent with the Preceding Quarter. Fuel revenues were consistent with the Preceding Quarter, despite increases in global fuel prices, due to contractual lags in rebilling fuel costs under UKSAR2G. Operating loss was $2.1 million in the Current Quarter compared to operating income of $0.9 million in the Preceding Quarter primarily due to higher operating expenses of $6.1 million, higher depreciation and amortization expense of $0.7 million and higher general and administrative expenses of $0.6 million, partially offset by the higher revenues. Personnel costs were $3.3 million higher due to the commencement of operations at certain UKSAR2G and IRCG bases, including full quarter impacts of costs that were previously deferred of $1.8 million, increased overtime costs to support the ongoing transitions of $1.0 million and one-time salary adjustments related to a labor agreement in the UK of $0.5 million. Other operating costs related to the ongoing contract transitions in the UK and Ireland were $1.3 million higher, primarily due to increased training, travel between bases, and higher base and facilities costs. Fuel costs were $1.5 million higher due to higher global fuel prices, and while fuel is typically a pass-through, there are delays between when the Company incurs the cost of fuel at prevailing market prices and is then able to recoup the fuel expense under UKSAR2G. Depreciation and amortization expense was higher primarily due to the full quarter impact of a helicopter and other assets placed into service in the Current Quarter for UKSAR2G. The increase in general and administrative expenses was primarily due to higher professional services fees and higher personnel costs. In summary, the operating income margin in the Current Quarter was adversely impacted by total penalties related to aircraft availability of $3.6 million, fuel expenses in excess of fuel revenues of $1.5 million, and certain transition costs that have persisted beyond the commencement of operations at select bases. Other Services Revenues from Other Services were $11.4 million higher in the Current Quarter primarily due to higher seasonal utilization and higher fuel revenues. Operating income was $2.9 million in the Current Quarter compared to an operating loss of $1.3 million in the Preceding Quarter, primarily due to the higher seasonal revenues and lower general and administrative expenses of $0.5 million, partially offset by higher operating expenses of $7.7 million related to increased activity and higher fuel prices. Corporate Operating loss was $6.6 million higher in the Current Quarter primarily due to lower net gains on asset dispositions of $7.5 million, partially offset by lower general and administrative expenses of $0.8 million due to lower compensation costs related to lower headcount. During the Current Quarter, the Company sold one AW139 medium helicopter, one AS365 medium helicopter, one fixed wing aircraft and various other assets resulting in net gains of $0.1 million. During the Preceding Quarter, the Company sold two heavy helicopters and various other assets resulting in net gains of $7.6 million. Interest income was $1.0 million lower primarily due to income earned from U.S. Treasury bill investments on escrowed funds in the Preceding Quarter. Interest expense was $1.6 million lower primarily due to the concurrent interest expense incurred during the refinancing of the Company's 6.875% Senior Secured Notes in the Preceding Quarter, partially offset by a full quarter of interest expense incurred on the 6.750% Senior Secured Notes. Loss on extinguishment of debt was $2.8 million in the Preceding Quarter due to the write-off of unamortized deferred financing fees associated with the redemption of the 6.875% Senior Notes. Other expense, net of $8.9 million in the Current Quarter was primarily due to non-cash foreign exchange losses of $7.7 million and pension-related costs of $1.9 million, partially offset by gains related to insurance claims of $0.7 million. Other expense, net of $5.4 million in the Preceding Quarter was primarily due to non-cash foreign exchange losses. Income tax expense was $3.4 million lower in the Current Quarter primarily due to higher tax credit utilization in Nigeria. Affirms Adjusted EBITDA Outlook Range and Updates Segment Outlook Please refer to the section entitled "Forward-Looking Statements Disclosure" below for further discussion regarding the risks and uncertainties as well as other important information regarding Bristow's guidance. The following guidance contains non-GAAP financial measures. Please read the section entitled "Non-GAAP Financial Measures" for further information. Select financial outlook for 2026 is as follows (in USD, millions): Capital Allocation and Liquidity In the Current Quarter, purchases of property and equipment were $67.4 million, of which $6.8 million were maintenance capital expenditures, and cash proceeds from the sale of assets were $5.1 million. In the Preceding Quarter, purchases of property and equipment were $41.3 million, of which $4.4 million were maintenance capital expenditures, and cash proceeds from the sale of assets were $24.9 million. As of June 30, 2026, the Company had $312.3 million of unrestricted cash and $59.3 million of remaining availability under its asset-based revolving credit facility (the "ABL Facility") for total liquidity of $371.6 million. Borrowings under the ABL Facility are subject to satisfaction of certain terms and conditions. Net cash provided by operating activities was $41.1 million in the Current Quarter compared to net cash used in operating activities of $8.3 million in the Preceding Quarter. The increase in operating cash flows is primarily due to higher earnings, coupled with a decrease in working capital uses during the Current Quarter. On July 30, 2026, Bristow declared a dividend of $0.125 per share of common stock, payable on August 28, 2026, to shareholders of record at the close of business on August 14, 2026. Acquisition of Berry Aviation On July 13, 2026, the Company completed the acquisition of Berry Aviation Inc. ("Berry Aviation") for $105.0 million, in an all-cash transaction, subject to customary purchase price adjustments. Berry Aviation is expected to add differentiated capabilities that further strengthen the Company's Government Services offering, including special missions, intelligence, surveillance and reconnaissance (ISR) operations, maintenance, repair and overhaul (MRO) services, training and mission support, unmanned aerial systems (UAS) design and development capabilities, and on-demand cargo logistics (ODC). The acquisition is also expected to support a more diversified and balanced business profile. Conference Call The Company's management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, August 5, 2026, to review results for the second quarter ended June 30, 2026. The conference call can be accessed using the following link: Link to Access Earnings Call: https://bristowgroup-2q2026.open-exchange.net A replay will be available through August 26, 2026 by using the link above. A replay will also be available on the Company's website at www.bristowgroup.com shortly after the call and will be accessible through August 26, 2026. The accompanying investor presentation will be available on August 4, 2026, on Bristow's website at www.bristowgroup.com. About Bristow Group Bristow Group Inc. is a leading global provider of mission-critical aviation services for government entities, offshore energy companies and other customers around the world. Our business is comprised of three operating segments: Offshore Energy Services (OES), Government Services and Other Services. Through the use of helicopters, fixed-wing aircraft, unmanned aerial systems (UAS) and highly skilled personnel, we provide aviation services such as personnel transportation, offshore energy logistics, search and rescue (SAR), special missions, intelligence, surveillance and reconnaissance (ISR) operations, maintenance, repair and overhaul (MRO) services, medevac, unmanned systems, on-demand cargo logistics (ODC) and other specialized aviation solutions. We are also involved in various advanced air mobility (AAM) initiatives and emerging next-generation aviation technologies. Our diversified customer and revenue mix, coupled with our broad geographic footprint, supports a durable and balanced business profile. We currently have a presence in Australia, Benin, Brazil, Canada, Chile, Djibouti, the Dutch Caribbean, the Falkland Islands, Ireland, Kenya, the Marshall Islands, the Netherlands, Nigeria, Norway, the Philippines, Spain, Suriname, Trinidad, the United Kingdom ("UK") and the United States ("U.S ."). Forward-Looking Statements Disclosure This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements about our future business, strategy, operations, capabilities and results; financial projections; plans and objectives of our management, including our expectations regarding our quarterly dividend program and our intention to pay down debt; expected actions by us and by third parties, including our customers, competitors, vendors and regulators; and other matters. Some of the forward-looking statements can be identified by the use of words such as "believes," "belief," "forecasts," "expects," "plans," "anticipates," "intends," "projects," "estimates," "may," "might," "will," "would," "could," "should" or other similar words; however, all statements in this press release, other than statements of historical fact or historical financial results, are forward-looking statements. Our forward-looking statements reflect our views and assumptions on the date hereof regarding future events and operating performance. We believe that they are reasonable, but they involve significant known and unknown risks, uncertainties, assumptions and other factors, many of which may be beyond our control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and factors that could cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K, and in particular, the risks discussed in Part I, Item 1A, "Risk Factors" of such report and those discussed in other documents we file with the Securities and Exchange Commission (the "SEC"). Accordingly, you should not put undue reliance on any forward-looking statements. You should consider the following key factors when evaluating these forward-looking statements: the impact of supply chain disruptions, inflation and increased fuel prices and our ability or inability to recoup rising costs in the rates we charge to our customers; our reliance on a limited number of helicopter manufacturers and suppliers and the impact of a shortfall in availability of aircraft components and parts required for maintenance and repairs of our helicopters, including significant delays in the delivery of parts for our S92 and AW189 fleet and aircraft in general; our reliance on a limited number of customers and the reduction of our customer base as a result of consolidation and/or the energy transition; public health crises, such as pandemics and epidemics, and any related government policies and actions; our inability to execute our business strategy for diversification efforts related to government services and advanced air mobility; the potential for cyberattacks or security breaches that could disrupt operations, compromise confidential or sensitive information, damage reputation, expose to legal liability, or cause financial losses; the possibility that we may be unable to maintain compliance with covenants in our financing or other agreements; global and regional changes in the demand, supply, prices or other market conditions affecting oil and gas, including changes resulting from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries ("OPEC") and other producing countries, and geopolitical risks; fluctuations in the demand for our services; the possibility of significant changes in foreign exchange rates and controls; potential effects of increased competition and the introduction of alternative modes of transportation and solutions; the possibility that portions of our fleet may be grounded for extended periods of time or indefinitely (including due to severe weather events); the possibility of political instability, civil unrest, war or acts of terrorism in any of the countries where we operate or elsewhere, including the ongoing conflict in Iran, which could result in operational interruptions and supply impacts, including fuel shortages and price increases; the possibility that we may be unable to re-deploy our aircraft to regions with greater demand; the existence of operating risks inherent in our business, including the possibility of declining safety performance; labor issues, including our inability to negotiate acceptable collective bargaining or union agreements with employees covered by such agreements; the possibility of changes in tax, environmental, trade, immigration and other laws and regulations and policies, including, without limitation, tariffs and actions of the governments that impact the aviation industry, oil and gas operations, favor renewable energy projects or address climate change; any failure to effectively manage, and receive anticipated returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions; the possibility that we may be unable to dispose of older aircraft through sales into the aftermarket; the possibility that we may impair our long-lived assets and other assets, including inventory, property and equipment and investments in unconsolidated affiliates; general economic conditions, including interest rates or uncertainty in the capital and credit markets; disruptions in global trade, including as a result of tariffs, trade restrictions, retaliatory trade measures or the effect of such actions on trading relationships between the United States ("U.S.") and other countries; the potential effects of any future U.S. government shutdown on our Government Services business; the possibility that reductions in spending on aviation services by governmental agencies where we are seeking contracts could adversely affect or lead to modifications of the procurement process or that such reductions in spending could adversely affect Government Services contract terms or otherwise delay service or the receipt of payments under such contracts; and the effectiveness of our environmental, social and governance initiatives. The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe are important factors to consider. All forward-looking statements in this press release are qualified by these cautionary statements and are only made as of the date hereof. The forward-looking statements in this press release should be evaluated together with the many uncertainties that affect our businesses, particularly those discussed in greater detail in Part I, Item 1A, "Risk Factors" and Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K and Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Part II, Item 1A, "Risk Factors" of the Company's subsequent Quarterly Reports on Form 10-Q. We disclaim any obligation or undertaking, other than as required by law, to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, whether as a result of new information, future events or otherwise. 44,289Depreciation and amortization expense13,1318,4772,39838024,386Total costs and expenses219,119106,92727,8478,282362,175Gains on disposal of assets———7,6397,639Earnings from unconsolidated affiliates506———506Operating income (loss)$ 35,720$ 943$ (1,345)$ (643)$ 34,675Non-GAAP(1):Depreciation and amortization expense13,1318,4772,39838024,386PBH amortization1,3059036—1,431Gains on disposal of assets———(7,639)(7,639)Adjusted Operating Income (Loss)$ 50,156$ 9,510$ 1,089$ (7,902)$ 52,853 Non-GAAP Financial Measures The Company's management uses EBITDA, Adjusted EBITDA and Adjusted Operating Income to assess the performance and operating results of its business. Each of these measures, as well as Free Cash Flow and Adjusted Free Cash Flow, each as detailed below, are non-GAAP measures, have limitations, and are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in the Company's financial statements prepared in accordance with generally accepted accounting principles in the United States ("GAAP") (including the notes), included in the Company's filings with the SEC and posted on the Company's website. EBITDA and Adjusted EBITDA EBITDA is defined as Earnings before Interest expense, Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for non-cash gains and losses on the sale of assets, non-cash foreign exchange gains (losses) related to the revaluation of certain balance sheet items, and certain special items that occurred during the reported period, such as the amortization of PBH maintenance agreements that are non-cash within the period, gains on insurance claims, non-cash nonrecurring insurance adjustments and other special items which include professional service fees related to unusual litigation proceedings and other nonrecurring costs related to strategic activities. The professional services fees are primarily attorneys' fees related to litigation and arbitration matters that the Company is pursuing (where no gain contingency has been recorded or identified) that are unusual in nature and outside of the normal course of the Company's continuing business operations. The other nonrecurring costs primarily related to strategic activities are costs associated with financing transactions and proposed mergers and acquisitions ("M&A") transactions. These special items are related to various pursuits that are not individually material to the Company and, as such, are aggregated for presentation. The Company views these matters and their related financial impacts on the Company's operating performance as extraordinary and not reflective of the operational performance of the Company's core business activities. In addition, the same costs are not reasonably likely to recur within two years nor have the same charges or gains occurred within the prior two years. The Company includes EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of its operating performance. Management believes that the use of EBITDA and Adjusted EBITDA is meaningful to investors because it provides information with respect to the Company's ability to meet its future debt service, capital expenditures and working capital requirements and the financial performance of the Company's assets without regard to financing methods, capital structure or historical cost basis. Neither EBITDA nor Adjusted EBITDA is a recognized term under GAAP. Accordingly, they should not be used as an indicator of, or an alternative to, net income the most directly comparable GAAP measure, as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management's discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definitions of EBITDA and Adjusted EBITDA (or similar measures) may vary among companies and industries, they may not be comparable to other similarly titled measures used by other companies. The following tables provide a reconciliation of net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (unaudited, in thousands). The Company is unable to provide a reconciliation of projected Adjusted EBITDA (non-GAAP) for the outlook periods included in this release to projected net income (GAAP) for the same periods because components of the calculation are inherently unpredictable. The inability to forecast certain components of the calculation would significantly affect the accuracy of the reconciliation. Additionally, the Company does not provide guidance on the items used to reconcile projected Adjusted EBITDA due to the uncertainty regarding timing and estimates of such items. Therefore, the Company does not present a reconciliation of projected Adjusted EBITDA (non-GAAP) to net income (GAAP) for the outlook periods. Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow represents the Company's net cash provided by (used in) operating activities less maintenance capital expenditures. Adjusted Free Cash Flow is Free Cash Flow adjusted to exclude costs paid in relation to certain special items which primarily include (i) professional service fees related to unusual litigation proceedings and (ii) other nonrecurring costs related to strategic activities. The professional services fees are primarily attorneys' fees related to unusual litigation and arbitration matters that the Company is pursuing (where no gain contingency has been recorded or identified) that are unusual in nature and outside of the normal course of the Company's continuing business operations. The other nonrecurring costs related to strategic activities are costs associated with financing transactions and proposed M&A transactions. These special items are related to various pursuits that are not individually material to the Company and, as such, are aggregated for presentation. The Company views these matters and their related financial impacts on the Company's operating performance as extraordinary and not reflective of the operational performance of the Company's core business activities. In addition, the same costs are not reasonably likely to recur within two years nor have the same charges or gains occurred within the prior two years. Management believes that Free Cash Flow and Adjusted Free Cash Flow are meaningful to investors because they provide information with respect to the Company's ability to generate cash from the business. Neither Free Cash Flow nor Adjusted Free Cash Flow is a recognized term under GAAP. Accordingly, these measures should not be used as an indicator of, or an alternative to, net cash provided by operating activities, the most directly comparable GAAP measure. Investors should note numerous methods may exist for calculating a company's free cash flow. As a result, the method used by management to calculate Free Cash Flow and Adjusted Free Cash Flow may differ from the methods used by other companies to calculate their free cash flow. As such, they may not be comparable to other similarly titled measures used by other companies. The following table provides a reconciliation of net cash provided by (used in) operating activities, the most directly comparable GAAP measure, to Free Cash Flow and Adjusted Free Cash Flow (unaudited, in thousands). Adjusted Operating Income by Segment Adjusted Operating Income (Loss) ("Adjusted Operating Income") is defined as operating income (loss) before depreciation and amortization (including PBH amortization) and gains or losses on asset dispositions that occurred during the reported period. The Company includes Adjusted Operating Income to provide investors with a supplemental measure of each segment's operating performance. Management believes that the use of Adjusted Operating Income is meaningful to investors because it provides information with respect to each segment's ability to generate cash from its operations. Adjusted Operating Income is not a recognized term under GAAP. Accordingly, this measure should not be used as an indicator of, or an alternative to, operating income (loss), the most directly comparable GAAP measure, as a measure of operating performance. Because the definition of Adjusted Operating Income (or similar measures) may vary among companies and industries, it may not be comparable to other similarly titled measures used by other companies. The following table provides a reconciliation of operating income (loss), the most directly comparable GAAP measure, to Adjusted Operating Income for each segment and Corporate (unaudited, in thousands). The table below presents the number of aircraft in our fleet as of June 30, 2026, their distribution among the segments through which we operate, as a percentage of total revenues for the three months ended June 30, 2026, and the number of aircraft not yet reflected in our fleet as they were on order or under construction as of June 30, 2026. View original content to download multimedia:https://www.prnewswire.com/news-releases/bristow-group-reports-second-quarter-2026-results-302842957.html