Bristow 2025 Q1 Earnings Misses Targets as Net Income Declines 13.8%

Bristow Group (NYSE: VTOL) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company saw a slight revenue decrease to $350.53 million. Bristow reaffirmed its 2025 and 2026 Adjusted EBITDA outlook ranges, signaling confidence in future performance despite ongoing macroeconomic challenges. The results were below expectations, with no guidance adjustment.

Revenue

In the first quarter of fiscal 2025, Bristow Group experienced a 0.8% decline in total revenue, reaching $350.53 million, compared to the same period in 2024. Within its business segments, Offshore Energy Services generated $239.78 million, Government Services contributed $85.94 million, and Other Services added $24.80 million.

Earnings/Net Income

Bristow's earnings per share (EPS) fell 14.4% to $0.95 from $1.11 in the previous year's first quarter. The company's net income also decreased by 13.8%, reaching $27.38 million compared to $31.77 million in the previous year. The decline in EPS and net income reflects a challenging quarter for Bristow.

Price Action

The stock price of Bristow has edged down 0.57% during the latest trading day, has edged down 0.77% during the most recent full trading week, and has edged down 1.24% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Bristow (VTOL) shares after a revenue increase and holding them for 30 days yielded a 9.75% return over the past five years, significantly underperforming the benchmark's return of 83.12%. The strategy's low Sharpe ratio of 0.12 indicates poor risk-adjusted returns. Moreover, it experienced a maximum drawdown of -21.01%, highlighting its high risk and emphasizing the importance of effective risk management. This underperformance underscores the need for investors to carefully evaluate their strategies and consider the broader market conditions before making investment decisions.

CEO Commentary

“While acknowledging that macroeconomic risks and uncertainties have increased significantly in recent months, we continue to have a positive outlook for Bristow’s business,” said Chris Bradshaw, President and CEO of Bristow Group. This optimism is supported by the stability of the Government Services segment and the focus of the Offshore Energy Services business on production support activities. Additionally, the diversity of geographic markets served enhances the company's growth prospects despite current challenges.

Guidance

Bristow reaffirms its 2025 Adjusted EBITDA outlook range of $230 - $260 million and the 2026 Adjusted EBITDA outlook range of $275 - $335 million, indicating confidence in future performance amid macroeconomic challenges.

Additional News

In recent developments, Bristow Group has strengthened its collaboration with Sikorsky, a Lockheed Martin company, through a long-term support agreement for Bristow's S-92 helicopter fleet. This partnership aims to enhance operational efficiency by including Sikorsky's Total Assurance Program, which covers over 90% of replacement costs for parts and offers access to a global support network. Additionally, Bristow announced its first quarter 2025 earnings call scheduled for May 7, 2025, providing investors an opportunity to engage with the company's leadership. Lastly, Bristow maintains a robust liquidity position with $254.3 million, including $191.1 million in unrestricted cash, ensuring financial stability amid challenging market conditions.