19:31:27 EDT Tue 05 May 2026
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Bristow Group Reports First Quarter 2026 Results

2026-05-05 16:30 ET - News Release

Bristow Group Reports First Quarter 2026 Results

PR Newswire

HOUSTON, May 5, 2026 /PRNewswire/ --

First Quarter Highlights

  • Total revenues of $388.7 million in Q1 2026 compared to $377.3 million in Q4 2025
  • Net income of $13.1 million, or $0.44 per diluted share, in Q1 2026 compared to net income of $18.4 million, or $0.61 per diluted share, in Q4 2025
  • Adjusted EBITDA(1) in Q1 2026 was $59.3 million compared to $60.1 million in Q4 2025
  • Affirmed 2026 Adjusted EBITDA outlook range of $295 - $325 million

Bristow Group Inc. (NYSE: VTOL) ("Bristow" or the "Company") today reported net income attributable to the Company of $13.1 million, or $0.44 per diluted share, for the quarter ended March 31, 2026 (the "Current Quarter") on total revenues of $388.7 million compared to net income attributable to the Company of $18.4 million, or $0.61 per diluted share, for the quarter ended December 31, 2025 (the "Preceding Quarter") on total revenues of $377.3 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.

                                                                    Three Months Ended


                                                          March 31,                    December 31,
                                                               2026                             2025



 Total revenues                                           $388,705                         $377,264



 Operating income                                           34,675                           32,083



 Net income attributable to Bristow Group Inc.              13,106                           18,423



 Basic earnings per common share                              0.45                             0.63



 Diluted earnings per common share                            0.44                             0.61



 Net cash provided by (used in) operating activities       (8,250)                          76,913




             Non-GAAP
          
            (1)
     
 :



 Adjusted Operating Income                                 $52,853                          $54,803



 EBITDA                                                     54,777                           50,511



 Adjusted EBITDA                                            59,275                           60,128



 Free Cash Flow                                           (12,609)                          70,869



 Adjusted Free Cash Flow                                  (11,766)                          71,752


 __________________



 (1)                See definitions of these non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial measures in
                       the Non-GAAP Financial Measures section further below.

"Bristow's first quarter results place us on track for what is expected to be a transformational year for the Company in 2026," said Chris Bradshaw, President and CEO of Bristow Group. "Bristow is favorably positioned to benefit from three global megatrends, namely: increased defense spending; the importance of energy security; and the electrification of transportation. In the context of a complicated geopolitical landscape and expectations for structurally higher defense spending, we believe there will be compelling organic and inorganic growth opportunities for a specialized aviation services provider with Bristow's track record, operational expertise, and financial flexibility. Recent geopolitical events have also 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. In addition, Bristow has created significant option value, with minimal capital commitment to date, as an early leader in what is expected to be a large and rapidly growing addressable market for new generation electric and hybrid-electric aircraft."

Sequential Quarter Results

Offshore Energy Services

                                             Three Months Ended



 
            ($ in thousands)    March 31,                    December 31,                   Favorable
                                        2026                             2025         (Unfavorable)



 Revenues                          $254,333                         $247,454  $6,879      2.8 %



 Operating income                    35,720                           42,193 (6,473)  (15.3) %



 Adjusted Operating Income           50,156                           50,838   (682)   (1.3) %



 Operating income margin               14 %                            17 %



 Adjusted Operating Income margin      20 %                            21 %

Revenues from Offshore Energy Services were $6.9 million higher in the Current Quarter. Revenues in the Americas were $5.6 million higher primarily due to increased rates and higher utilization in the U.S. and Trinidad. Revenues in Africa were $4.0 million higher primarily due to higher utilization and other revenues driven by activity. Revenues in Europe were $2.8 million lower primarily due to lower utilization and reimbursable revenues in the UK, partially offset by favorable foreign exchange impacts.

Operating income from Offshore Energy Services was $6.5 million lower in the Current Quarter primarily due to higher depreciation and amortization expense of $6.0 million, higher operating expenses of $5.6 million and lower earnings from unconsolidated affiliates of $1.8 million, partially offset by the higher revenues.

The higher depreciation and amortization expense was due to accelerated depreciation on S76D medium helicopters resulting from a revision to their estimated useful lives. Repairs and maintenance costs were $10.6 million higher primarily due to lower vendor credits. Leased?in equipment costs were $0.8 million higher primarily due to additional aircraft leases. Personnel costs were $3.1 million lower primarily due to lower severance costs in Africa and lower benefits costs and decreased headcount in the U.S. Other operating costs were $2.9 million lower primarily due to lower reimbursable expenses and subcontractor costs, partially offset by higher training costs. Earnings from unconsolidated affiliates were $1.8 million lower in the Current Quarter primarily due to dividends received in the Preceding Quarter.

Government Services

                                             Three Months Ended



 
            ($ in thousands)    March 31,                    December 31,                  Favorable
                                        2026                             2025        (Unfavorable)



 Revenues                          $107,870                         $100,097 $7,773           7.8 %



 Operating income (loss)                943                          (1,607) 2,550              nm



 Adjusted Operating Income            9,510                            7,646  1,864          24.4 %


  Operating income (loss) margin         1 %                           (2) %


  Adjusted Operating Income margin       9 %                             8 %


          __________________



          
            nm = Not Meaningful

Revenues from Government Services were $7.8 million higher in the Current Quarter primarily due to the transition of the Irish Coast Guard ("IRCG") contract, including the full quarter impact of the Sligo base that commenced operations in the Preceding Quarter and the commencement of operations at the final base in Waterford in the Current Quarter. Operating income was $0.9 million in the Current Quarter compared to an operating loss of $1.6 million in the Preceding Quarter primarily due to the higher revenues, partially offset by higher operating expenses of $4.8 million and higher general and administrative expenses of $0.5 million. The increase in operating expenses was due to higher repairs and maintenance costs of $2.3 million primarily related to the timing of repairs, higher personnel costs of $1.6 million due to increased operating personnel headcount in Ireland and higher leased-in equipment costs of $0.5 million related to ongoing transition activities on the second-generation UK search and rescue ("UKSAR2G") contract. The increase in general and administrative expenses was primarily due to higher professional services fees.

Other Services

                                             Three Months Ended



 
            ($ in thousands)    March 31,                    December 31,                    Favorable
                                        2026                             2025          (Unfavorable)



 Revenues                           $26,502                          $29,713 $(3,211)      (10.8) %



 Operating income (loss)            (1,345)                           1,530  (2,875)            nm



 Adjusted Operating Income            1,089                            4,032  (2,943)      (73.0) %



 Operating income (loss) margin       (5) %                             5 %



 Adjusted Operating Income margin       4 %                            14 %

Revenues from Other Services were $3.2 million lower in the Current Quarter primarily due to lower seasonal utilization in Australia, partially offset by favorable foreign exchange rate impacts. Operating loss was $1.3 million in the Current Quarter compared to operating income of $1.5 million in the Preceding Quarter, primarily due to the lower seasonal revenues, partially offset by lower operating expenses of $0.4 million related to lower activity.

Corporate

                                                 Three Months Ended



 
            ($ in thousands)        March 31,                    December 31,                     Favorable
                                            2026                             2025           (Unfavorable)



 
            Corporate:



 Total expenses                          $8,282                           $7,922    $(360)        (4.5) %



 Gains (losses) on disposal of assets     7,639                          (2,111)    9,750              nm



 Operating loss                           (643)                        (10,033)    9,390          93.6 %





 
            Consolidated:



 Interest income                         $3,918                           $2,935      $983          33.5 %



 Interest expense, net                 (13,816)                        (10,432)  (3,384)       (32.4) %



 Loss on extinguishment of debt         (2,849)                                  (2,849)             nm



 Other, net                             (5,353)                         (2,884)  (2,469)       (85.6) %



 Income tax expense                     (3,510)                         (3,026)    (484)       (16.0) %

Operating loss was $0.6 million in the Current Quarter compared to an operating loss of $10.0 million in the Preceding Quarter, primarily due to net gains on asset dispositions of $7.6 million in the Current Quarter compared to net losses of $2.1 million in the Preceding Quarter. During the Current Quarter, the Company sold two heavy helicopters and various other assets. During the Preceding Quarter, the Company sold or otherwise disposed of a heavy helicopter and various other assets.

Interest income was $1.0 million higher in the Current Quarter primarily due to income earned from U.S. Treasury bill investments on escrowed funds used in the satisfaction and discharge of the 6.875% Senior Secured Notes.

Interest expense was $3.4 million higher primarily due to higher debt balances and concurrent interest expense incurred during the refinancing of the Company's 6.875% Senior Notes.

Loss on extinguishment of debt was $2.8 million due to the write off of unamortized deferred financing fees associated with the redemption of the 6.875% Senior Notes.

Other expense, net of $5.4 million in the Current Quarter was primarily due to foreign exchange losses. Other expense, net of $2.9 million in the Preceding Quarter primarily resulted from pension-related costs of $4.9 million and foreign exchange losses of $3.1 million, partially offset by gains on insurance recoveries of $5.0 million.

Affirms 2026 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):

                                                                2026E



 
            Revenues:



 Offshore Energy Services                      
          $1,010 - $1,080



 Government Services                               
          $440 - $460



 Other Services                                    
          $130 - $150



 Total Revenues                          
   
            $1,580 - $1,690





 
            Adjusted Operating Income:



 Offshore Energy Services                          
          $225 - $235



 Government Services                                 
          $70 - $80



 Other Services                                      
          $20 - $25



 Corporate                                            ($35 -$30)


                                            
     
            $280 - $310





 
            Adjusted EBITDA              
     
            $295 - $325





 Cash interest                                           ~$40



 Cash taxes                                          
          $25 - $30



 Maintenance capital expenditures                    
          $20 - $25

Capital Allocation and Liquidity

In the Current 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. In the Preceding Quarter, purchases of property and equipment were $29.1 million, of which $6.0 million were maintenance capital expenditures, and cash proceeds from the sale of assets were $2.0 million.

As of March 31, 2026, the Company had $342.1 million of unrestricted cash and $51.5 million of remaining availability under its asset-based revolving credit facility (the "ABL Facility") for total liquidity of $393.6 million. Borrowings under the ABL Facility are subject to satisfaction of certain terms and conditions.

Net cash used in operating activities was $8.3 million in the Current Quarter compared to net cash provided by operating activities of $76.9 million in the Preceding Quarter. The negative variance is primarily due to changes in working capital, namely an increase in accounts receivable. This is primarily attributable to timing, as the Company does not have a material amount of aged receivables.

During the Current Quarter, Bristow declared a dividend of $0.125 per share of common stock and paid $3.7 million in cash dividends.

On April 30, 2026, Bristow declared a dividend of $0.125 per share of common stock, payable on May 29, 2026, to shareholders of record at the close of business on May 15, 2026.

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, May 6, 2026, to review results for the first quarter ended March 31, 2026. The conference call can be accessed using the following link:

Link to Access Earnings Call: https://bristowgroup-1q2026.open-exchange.net

A replay will be available through May 27, 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 May 27, 2026. The accompanying investor presentation will be available on May 5, 2026, on Bristow's website at www.bristowgroup.com.

For additional information concerning Bristow, contact Jennifer Whalen at InvestorRelations@bristowgroup.com, (713) 369-4636 or visit Bristow Group's website at https://ir.bristowgroup.com/.

About Bristow Group

Bristow Group Inc. is the leading global provider of innovative and sustainable vertical flight solutions. We primarily provide aviation services to a broad base of offshore energy companies and government entities. Our aviation services include personnel transportation, search and rescue ("SAR"), medevac, fixed-wing transportation, unmanned systems and ad hoc helicopter services. Our offshore energy customers charter our helicopters primarily to transport personnel to, from and between onshore bases and offshore production platforms, drilling rigs and other installations. Our government customers primarily outsource SAR activities whereby we operate specialized helicopters and provide highly trained personnel. Our other services include fixed-wing transportation services through a regional airline in Australia and dry-leasing aircraft to third-party operators in support of other industries and geographic markets.

Our core business of providing aviation services to leading global energy companies and government entities provides us with geographic and customer diversity that helps mitigate risks associated with a single market or customer. We currently have customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, the Falkland Islands, Ireland, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad and Tobago, 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 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 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 search and rescue ("SAR") 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.


 
            BRISTOW GROUP INC.


 
            Condensed Consolidated Statements of Operations


 (unaudited, in thousands, except per share amounts)




                                                                         Three Months Ended


                                                               March 31,                    December 31,                            Favorable/
                                                                    2026                             2025       (Unfavorable)



 
            Total revenues                                   $388,705                         $377,264                $11,441



 
            Costs and expenses:



 Operating expenses



 Personnel                                                      103,569                          104,378                    809



 Repairs and maintenance                                         68,569                           55,291                (13,278)



 Insurance                                                        6,597                            6,139                   (458)



 Fuel                                                            20,146                           20,765                    619



 Leased-in equipment                                             28,549                           27,329                 (1,220)



 Other                                                           66,107                           69,648                  3,541



 Total operating expenses                                       293,537                          283,550                 (9,987)



 General and administrative expenses                             44,252                           43,441                   (811)



 Depreciation and amortization expense                           24,386                           18,377                 (6,009)



 Total costs and expenses                                       362,175                          345,368                (16,807)



 Gains (losses) on disposal of assets                             7,639                          (2,111)                 9,750



 Earnings from unconsolidated affiliates                            506                            2,298                 (1,792)



 
            Operating income                                   34,675                           32,083                  2,592



 Interest income                                                  3,918                            2,935                    983



 Interest expense, net                                         (13,816)                        (10,432)                (3,384)



 Loss on extinguishment of debt                                 (2,849)                                                (2,849)



 Other, net                                                     (5,353)                         (2,884)                (2,469)



 Total other income (expense), net                             (18,100)                        (10,381)                (7,719)



 
            Income before income taxes                         16,575                           21,702                 (5,127)



 Income tax expense                                             (3,510)                         (3,026)                  (484)



 
            Net income                                         13,065                           18,676                 (5,611)



 Net loss (income) attributable to noncontrolling interests          41                            (253)                   294



 
            Net income attributable to Bristow Group Inc.     $13,106                          $18,423                $(5,317)





 Basic earnings per common share                                  $0.45                            $0.63



 Diluted earnings per common share                                $0.44                            $0.61





 Weighted average common shares outstanding, basic               29,254                           29,093



 Weighted average common shares outstanding, diluted             30,062                           29,963





 
            Adjusted Operating Income                         $52,853                          $54,803                $(1,950)



 
            EBITDA                                            $54,777                          $50,511                 $4,266



 
            Adjusted EBITDA                                   $59,275                          $60,128                  $(853)











 
            BRISTOW GROUP INC.


 
            REVENUES BY SEGMENT


 (unaudited, in thousands)




                                                                         Three Months Ended                                     Favorable
                                                                                                          (Unfavorable)


                                                               March 31,                    December 31,
                                                                    2026                             2025



 Offshore Energy Services:



 Europe                                                         $98,651                         $101,412      $(2,761)    (2.7) %



 Americas                                                       105,399                           99,757         5,642       5.7 %



 Africa                                                          50,283                           46,285         3,998       8.6 %



   Total Offshore Energy Services                              $254,333                         $247,454        $6,879       2.8 %



 Government Services                                            107,870                          100,097         7,773       7.8 %



 Other Services                                                  26,502                           29,713       (3,211)   (10.8) %


                                                                $388,705                         $377,264       $11,441       3.0 %







 
            FLIGHT HOURS BY SEGMENT


 (unaudited)




                                                                         Three Months Ended                                     Favorable
                                                                                                          (Unfavorable)


                                                               March 31,                    December 31,
                                                                    2026                             2025



 Offshore Energy Services:



 Europe                                                           8,217                            8,543         (326)    (3.8) %



 Americas                                                        10,470                           10,506          (36)    (0.3) %



 Africa                                                           5,545                            5,185           360       6.9 %



   Total Offshore Energy Services                                24,232                           24,234           (2)        - %



 Government Services                                              4,051                            4,186         (135)    (3.2) %



 Other Services                                                   3,337                            3,622         (285)    (7.9) %


                                                                  31,620                           32,042         (422)    (1.3) %


 
            BRISTOW GROUP INC.


 
            First Quarter Segment Statements of Operations


 (unaudited, in thousands)




                                                                           Offshore          Government            Other      Corporate    Consolidated
                                                                   Energy           Services             Services
                                                                  Services



 
            Three Months Ended March 31, 2026



 Revenues                                                                 $254,333             $107,870           $26,502 
 $           -        $388,705



 Less:



 Personnel                                                                  63,360               32,626             7,583                         103,569



 Repairs and maintenance                                                    50,581               14,572             3,416                          68,569



 Insurance                                                                   3,968                2,316               313                           6,597



 Fuel                                                                       12,974                2,817             4,355                          20,146



 Leased-in equipment                                                        16,641               10,100             1,808                          28,549



 Other segment costs                                                        34,980               25,097             5,993                          66,070



 Total operating expenses                                                  182,504               87,528            23,468                         293,500



 General and administrative expenses                                        23,484               10,922             1,981           7,902           44,289



 Depreciation and amortization expense                                      13,131                8,477             2,398             380           24,386



 Total costs and expenses                                                  219,119              106,927            27,847           8,282          362,175



 Gains on disposal of assets                                                     -                                               7,639            7,639



 Earnings from unconsolidated affiliates                                       506                                                                  506



 
            Operating income (loss)                                      $35,720                 $943          $(1,345)         $(643)         $34,675


               Non-GAAP
            
              (1)
       
 :



 Depreciation and amortization expense                                      13,131                8,477             2,398             380           24,386



 PBH amortization                                                            1,305                   90                36                           1,431



 Gains on disposal of assets                                                     -                                             (7,639)         (7,639)



 
              Adjusted Operating Income (Loss)                           $50,156               $9,510            $1,089        $(7,902)         $52,853






                                                                           Offshore          Government            Other      Corporate    Consolidated
                                                                   Energy           Services             Services
                                                                  Services



 
            Three Months Ended December 31, 2025



 Revenues                                                                 $247,454             $100,097           $29,713 
 $           -        $377,264



 Less:



 Personnel                                                                  66,467               31,061             6,850                         104,378



 Repairs and maintenance                                                    39,989               12,312             2,990                          55,291



 Insurance                                                                   3,680                2,150               309                           6,139



 Fuel                                                                       13,069                2,618             5,078                          20,765



 Leased-in equipment                                                        15,885                9,574             1,870                          27,329



 Other segment costs                                                        37,830               25,002             6,816                          69,648



 Total operating expenses                                                  176,920               82,717            23,913                         283,550



 General and administrative expenses                                        23,536               10,388             1,804           7,713           43,441



 Depreciation and amortization expense                                       7,103                8,599             2,466             209           18,377



 Total costs and expenses                                                  207,559              101,704            28,183           7,922          345,368



 Losses on disposal of assets                                                    -                                             (2,111)         (2,111)



 Earnings from unconsolidated affiliates                                     2,298                                                                2,298



 
            Operating income (loss)                                      $42,193             $(1,607)           $1,530       $(10,033)         $32,083


               Non-GAAP
            
              (1)
       
 :



 Depreciation and amortization expense                                       7,103                8,599             2,466             209           18,377



 PBH amortization                                                            1,542                  654                36                           2,232



 Losses on disposal of assets                                                    -                                               2,111            2,111



 
              Adjusted Operating Income (Loss)                           $50,838               $7,646            $4,032        $(7,713)         $54,803


 __________________



 (1)                See definitions of these non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial measures in
                       the Non-GAAP Financial Measures section further below.


 
            BRISTOW GROUP INC.


 
            CONDENSED CONSOLIDATED BALANCE SHEETS


 (unaudited, in thousands)




                                                                                           March 31, December 31,
                                                                                                2026          2025


                                             
         
            ASSETS



 Current assets:



 Cash and cash equivalents                                                                 $344,525      $293,631



 Accounts receivable, net                                                                   261,463       217,102



 Inventories                                                                                132,768       132,727



 Prepaid expenses and other current assets                                                   52,825        50,828



 Total current assets                                                                       791,581       694,288



 Property and equipment, net                                                              1,147,582     1,152,668



 Investment in unconsolidated affiliates                                                     24,358        23,852



 Right-of-use assets                                                                        245,478       241,666



 Other assets                                                                               196,285       198,787



 Total assets                                                                            $2,405,284    $2,311,261




                              
          
           LIABILITIES AND STOCKHOLDERS' EQUITY



 Current liabilities:



 Accounts payable                                                                           $80,342       $86,286



 Accrued wages, benefits and related taxes                                                   61,777        68,654



 Income taxes payable and other accrued taxes                                                28,411        22,759



 Deferred revenue                                                                            27,689        22,440



 Accrued maintenance and repairs                                                             39,409        28,793



 Current portion of operating lease liabilities                                              74,488        77,038



 Accrued interest and other accrued liabilities                                              27,921        31,317



 Current maturities of long-term debt                                                        27,404        27,943



 Total current liabilities                                                                  367,441       365,230



 Long-term debt, less current maturities                                                    727,406       643,511



 Other liabilities and deferred credits                                                      33,749        31,782



 Deferred taxes                                                                              47,110        46,571



 Long-term operating lease liabilities                                                      170,711       164,544



 Total liabilities                                                                        1,346,417     1,251,638





 Stockholders' equity:



 Common stock                                                                                   332           325



 Additional paid-in capital                                                                 766,987       762,520



 Retained earnings                                                                          451,024       441,739



 Treasury stock, at cost                                                                   (98,157)     (87,129)



 Accumulated other comprehensive loss                                                      (61,196)     (57,750)



 Total Bristow Group Inc. stockholders' equity                                            1,058,990     1,059,705



 Noncontrolling interests                                                                     (123)         (82)



 Total stockholders' equity                                                               1,058,867     1,059,623



 Total liabilities and stockholders' equity                                              $2,405,284    $2,311,261

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 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).

                                                                         
 
            Three Months Ended


                                                               March 31,   December 31,                    September 30,   June 30,        LTM
                                                                    2026            2025                              2025        2025



       Net income                                               $13,065         $18,676                           $51,591     $31,779    $115,111



       Depreciation and amortization                             24,386          18,377                            17,739      17,312      77,814
expense



       Interest expense, net                                     13,816          10,432                             9,962      10,034      44,244



       Income tax expense (benefit)                               3,510           3,026                          (11,843)     20,443      15,136



       EBITDA                                                   $54,777         $50,511                           $67,449     $79,568    $252,305



       (Gains) losses on disposal of                            (7,639)          2,111                           (8,245)    (6,209)   (19,982)
assets



       Loss on extinguishment of debt                             2,849                                                                  2,849



       Foreign exchange (gains) losses                            4,554           3,051                             2,946    (17,435)    (6,884)



       Special items(1)                                           4,734           4,455                             4,947       4,776      18,912



       Adjusted EBITDA                                          $59,275         $60,128                           $67,097     $60,700    $247,200





       
            (1)  Special items include the following:




                                                                         
 
            Three Months Ended


                                                               March 31,   December 31,                    September 30,   June 30,        LTM
                                                                    2026            2025                              2025        2025



       PBH amortization                                          $1,431          $2,232                            $2,172      $3,587      $9,422



       Gain on insurance claim                                        -        (4,970)                                                (4,970)



       Other special items                                        3,303           7,193                             2,775       1,189      14,460


                                                                  $4,734          $4,455                            $4,947      $4,776     $18,912

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).

                                                    
 
            Three Months Ended


                                          March 31,   December 31,                    September 30,   June 30,         LTM
                                               2026            2025                              2025        2025



          Net cash provided by (used in)  $(8,250)        $76,913                           $23,057     $99,039     $190,759
operating activities



          Less: Maintenance capital        (4,359)        (6,044)                          (2,800)    (4,532)    (17,735)
expenditures



          Free Cash Flow                 $(12,609)        $70,869                           $20,257     $94,507     $173,024



          Plus: Special items                  843             883                             1,108         786        3,620



          Adjusted Free Cash Flow        $(11,766)        $71,752                           $21,365     $95,293     $176,644

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).

                                                                            Three Months Ended                                 Increase
                                                                                                                    (Decrease)


                                                                  March 31,                    December 31,
                                                                       2026                             2025



 
            Offshore Energy Services:



 Operating income                                                  $35,720                          $42,193  $(6,473)        (15.3) %



 Depreciation and amortization expense                              13,131                            7,103     6,028           84.9 %



 PBH amortization                                                    1,305                            1,542     (237)        (15.4) %



 
            Offshore Energy Services Adjusted Operating Income   $50,156                          $50,838    $(682)         (1.3) %





 
            Government Services:



 Operating income (loss)                                              $943                         $(1,607)   $2,550               nm



 Depreciation and amortization expense                               8,477                            8,599     (122)         (1.4) %



 PBH amortization                                                       90                              654     (564)        (86.2) %



 
            Government Services Adjusted Operating Income         $9,510                           $7,646    $1,864           24.4 %





 
            Other Services:



 Operating income (loss)                                          $(1,345)                          $1,530  $(2,875)              nm



 Depreciation and amortization expense                               2,398                            2,466      (68)         (2.8) %



 PBH amortization                                                       36                               36                       - %



 
            Other Services Adjusted Operating Income              $1,089                           $4,032  $(2,943)        (73.0) %





 
            Total Segment Adjusted Operating Income              $60,755                          $62,516  $(1,761)         (2.8) %





 
            Corporate:



 Operating loss                                                     $(643)                       $(10,033)   $9,390           93.6 %



 Depreciation and amortization expense                                 380                              209       171           81.8 %



 Losses (gains) on disposal of assets                              (7,639)                           2,111   (9,750)              nm



 
            Corporate Adjusted Operating Loss                   $(7,902)                        $(7,713)   $(189)         (2.5) %





 
            Consolidated Adjusted Operating Income               $52,853                          $54,803  $(1,950)         (3.6) %


 
            BRISTOW GROUP INC.


 
            FLEET COUNT




                                                             Number of Aircraft



 
            Type                                   Owned             Leased            Total      Maximum               Average Age
                                                                                 Aircraft                        (years)


                                                                                                                         (1)
                                                    Aircraft           Aircraft                     Passenger

                                                                                                  Capacity



 
            Heavy Helicopters:



 S92                                                     32                  29               61             19                        16



 AW189                                                   23                   5               28             16                         8


                                                          55                  34               89



 
            Medium Helicopters:



 AW139                                                   48                   9               57             12                        14



 S76 D/C++                                               13                                  13             12                        14



 AS365                                                    1                                   1             12                        36


                                                          62                   9               71



 
            Light-Twin Engine Helicopters:



 AW109                                                    3                                   3              7                        19



 H135                                                    12                                  12              6                         9


                                                          15                                  15



 
            Light-Single Engine Helicopters:



 AS350                                                   12                                  12              4                        27



 AW119                                                   13                                  13              7                        19


                                                          25                                  25



 
            Total Helicopters                         157                  43              200                                      15



 Fixed Wing                                               8                   5               13



 Unmanned Aerial Systems ("UAS")                          3                                   3



 
            Total Fleet
            
        (2)      168                  48              216


 ______________________



 (1)                    
 Reflects the average age of helicopters that are owned by the Company.



 (2)                      Does not include certain aircraft shown in the under construction line in the table. Upon completion of additional
                             configuration, the newly-delivered aircraft will appear in the fleet table above when placed into service.

The table below presents the number of aircraft in our fleet as of March 31, 2026, their distribution among the segments through which we operate, as a percentage of total revenues for the three months ended March 31, 2026, and the number of aircraft not yet reflected in our fleet as they were on order or under construction as of March 31, 2026.

                                      Percentage                    Helicopters                  Fixed       UAS
                                   of
                                                                                                 Wing
                                         Total

                                       Revenues


                                      Heavy      Medium      Light              Light   Total
                                                        Twin            Single



 Offshore Energy Services                  65 %     57          60                  12                             129



 Government Services                       28 %     32          11                   3       20                 3     69



 Other Services                             7 %                                            5          13           18



 Total                                    100 %     89          71                  15       25          13      3    216



 Aircraft not currently in fleet:



 Under construction(1)(3)                            5                                                             5



 Options(2)                                         10                              7                              17




 (1)   Under construction reflects new aircraft that the Company has either taken possession of and are undergoing additional
          configuration before being placed into service or are currently under construction by the Original Equipment
          Manufacturer ("OEM") and pending delivery. Includes five AW189 heavy helicopters.



 (2) 
 Options include 10 AW189 heavy helicopters and seven H135 light-twin helicopters.



 (3)   Excludes leased aircraft in the Company's possession but not yet placed in service and any orders or options for
          electric/hybrid vertical takeoff and landing and short takeoff and landing aircraft, collectively known as Advanced
          Air Mobility ("AAM") aircraft, that may have deposits but are pending regulatory certification.

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SOURCE Bristow Group

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