Bristow (VTOL) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool Wed, May 6, 2026 at 10:14 PM GMT+7 18 min read VTOL Image source: The Motley Fool. President & Chief Executive Officer — Christopher S. Bradshaw Senior Vice President, Chief Financial Officer — Jennifer Dawn Whalen Need a quote from a Motley Fool analyst? Email pr@fool.com Christopher S. Bradshaw: Thank you, Redeate. The company delivered on our goal of zero air accidents in the first quarter, and the Bristow Group Inc. team remains committed to safety as our number one core value and highest operational priority. Bristow Group Inc. s first quarter financial results place us on track for what is expected to be a transformational year for the company. We are pleased to affirm our financial guidance ranges for 2026, which notably reflect adjusted EBITDA growth of approximately 25% year over year. While geopolitical conflicts and tensions have driven turbulent and concerning global conditions thus far in 2026, these macro developments underscore the conviction we have in the outlook for Bristow Group Inc. s business. I will 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 Q1 results and our financial outlook. Jennifer? Jennifer Dawn Whalen: Thank you, Christopher, and good morning, everyone. Today, I will begin with a review of Bristow Group Inc. s sequential quarter financial results on a consolidated basis before covering the financial results and 2026 guidance ranges for each of our segments. While the first quarter is typically our seasonally lowest quarter, Bristow Group Inc. s total revenues were $11.4 million higher compared to Q4 2025, primarily due to increased activity in our Government Services business and increased rates and activity in certain of our key Offshore Energy Services (OES) markets. Adjusted EBITDA was $0.9 million lower in Q1, mainly due to higher repairs and maintenance costs and leased and equipment costs across our segments. 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 $6.9 million higher in Q1 versus Q4 2025, primarily due to increased rates and higher utilization in the U.S. and Trinidad and higher utilization in Africa, which were partially offset by lower utilization in Europe. Adjusted operating income was $0.7 million lower, primarily due to higher operating expenses of $5.6 million and lower earnings from unconsolidated affiliates of $1.8 million offsetting the higher revenue. Operating expenses in OES were higher primarily due to lower vendor credits recognized this quarter, coupled with additional aircraft leases, which were partially offset by lower personnel and other operating expenses. During the quarter, the company recognized additional noncash depreciation expense of $6.4 million related to S-76 medium helicopters used in our OES segment as it finalizes plans to retire this model and transition to newer models as part of Bristow Group Inc. s ongoing fleet management efforts to better meet customer needs. The company plans to complete this transition of models by early 2027 and expects to recognize approximately $24 million of additional depreciation expense through the transition period. Our 2026 OES revenue guidance range remains between $1.0 billion and $1.1 billion, and our 2026 adjusted operating income guidance range remains $225 million to $235 million for this segment. Moving on to Government Services. Revenues were $7.8 million higher, primarily due to the transition of the Irish Coast Guard contract, including the full quarter impact of the base in Sligo that began operations last quarter and the commencement of operations at the final base in Waterford this quarter. Adjusted operating income was $1.9 million higher in Q1, primarily due to the higher revenues, partially offset by higher operating expenses of $4.8 million as a result of higher repairs and maintenance, increased headcount in Ireland, higher lease and equipment costs related to the ongoing transition activities in the U.K., and higher general and administrative expenses of $0.5 million largely related to professional service fees. Our 2026 Government Services revenues guidance range remains between $440 million and $460 million, and the adjusted operating income guidance range remains $70 million to $80 million, which is roughly double that of 2025. Finally, revenues from Other Services were $3.2 million lower in Q1, primarily due to lower seasonal activity in Australia, partially offset by favorable foreign exchange rate impact. Adjusted operating income decreased by $2.9 million due to the lower seasonal revenues, partially offset by reduced operating expenses of $0.4 million related to the lower seasonal activity. Our 2026 revenues and adjusted op

Bristow (VTOL) Q1 2026 Earnings Call Transcript

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Bristow (VTOL) Q1 2026 Earnings Call Transcript

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