Bristow Group (NYSE:VTOL) outlined improved safety performance, steady 2025 results, and a higher earnings outlook for 2026 as executives emphasized contract repricing in offshore energy services, a ramp in government services profitability, and a strengthened balance sheet following a January refinancing.
Safety update and 2025 performance
President and CEO Chris Bradshaw opened the company’s fiscal fourth-quarter and full-year 2025 earnings call by reiterating that safety remains Bristow’s top priority. He said the company experienced fewer lost workdays in 2025, marking the second consecutive year of improvement in that metric, and reaffirmed its “Target Zero” safety culture.
Whalen noted that, on a sequential basis, fourth-quarter total revenue and Adjusted EBITDA were $9 million and $7 million lower than the third quarter, primarily due to lower seasonal activity in the company’s other services and Offshore Energy Services segments.
2026 guidance: higher EBITDA driven by contract resets and government margin expansion
Management affirmed 2026 guidance calling for total revenues of $1.6 billion to $1.7 billion and Adjusted EBITDA of $295 million to $325 million. Bradshaw said the EBITDA outlook implies approximately 25% year-over-year growth and added that the company expects “strong cash flow conversion.”
Executives described a business that has become more diversified, with Bradshaw highlighting the growth of government services and calling those contracts “infrastructure-like cash flows” that provide a durable foundation. He said Bristow expects adjusted operating income in government services to double in 2026, while adjusted operating income in Offshore Energy Services is expected to rise by approximately 15%, primarily due to improved terms on contract renewals.
Segment details: Offshore, government services, and other services
Offshore Energy Services (OES): Whalen said OES revenue declined $3 million in the fourth quarter from the prior quarter, mainly due to the end of fixed-wing services in Africa and lower U.S. utilization. Adjusted operating income was consistent sequentially as higher affiliate earnings and lower operating expenses offset the revenue decline.
For the full year, Whalen reported OES revenues were $24.4 million higher year over year, driven by increased utilization and additional aircraft capacity in Africa and higher utilization in the Americas, partially offset by lower utilization in Europe. She said adjusted operating income increased $30 million, helped by higher revenue and lower general and administrative expenses and operating costs.
For 2026, Bristow guided to OES revenues of $1.0 billion to $1.1 billion (versus $990 million in 2025) and adjusted operating income of $225 million to $235 million (versus $203 million in 2025).
During Q&A, Bradshaw provided additional detail on contract repricing. He said the company was about 50% through rolling over its OES customer contract portfolio as of its last disclosure and expects to be “substantially complete” by the end of the current calendar year, with the portfolio effectively reset by December. He said the average rate uplift on renewed “leading-edge” contracts versus legacy rates is about 25% globally, with regional differences, and that most of the anticipated 2026 OES operating income growth is tied to improved contract terms. He cited Africa and Brazil as key regions where demand is growing and where Bristow is mobilizing additional aircraft capacity.
Asked about Venezuela, Bradshaw said Bristow is not expecting near-term offshore helicopter opportunities there, but noted the company will support some work out of Trinidad into joint basins that overlap with Venezuela. He added that Bristow’s established presence in the region could be an advantage if opportunities materialize.
Government Services: Whalen said government services revenue was $0.8 million lower sequentially due to seasonal activity in the U.K., partially offset by the commencement of operations at an additional base in Ireland. Fourth-quarter adjusted operating income fell $3.2 million, reflecting higher repairs and maintenance and higher personnel costs related to contract transitions.
On a full-year basis, Whalen said government services revenue increased $49.8 million due to the commencement of the Irish Coast Guard contract and higher U.K. search and rescue (SAR) revenues, which she said were largely driven by favorable foreign exchange impacts and the commencement of fixed-wing services. Full-year adjusted operating income declined $12.6 million, which she attributed primarily to higher expenses associated with starting new contracts in Ireland and the U.K.
For 2026, Bristow guided to government services revenues of $440 million to $460 million and adjusted operating income of $70 million to $80 million, which Whalen said is roughly double 2025 levels as operations ramp and transition-related costs subside. In response to questions, management said the U.K. SAR transition to the UKSAR2G contract is progressing well but has faced aircraft delivery delays tied to broader aviation supply chain issues. On the Irish contract, Whalen said transition costs continue into 2026, primarily involving pilot training as crews move to a new aircraft type.
Other Services: Whalen said other services revenue declined $5.2 million sequentially due to lower seasonal activity in Australia, and adjusted operating income fell $4.1 million. For the full year, revenue was up $0.8 million, but adjusted operating income declined $5.4 million due mainly to higher operating expenses tied to increased activity in Australia. The company guided to 2026 revenues of $130 million to $150 million and adjusted operating income of $20 million to $25 million.
Balance sheet actions, liquidity, and a new dividend
Bristow highlighted a January refinancing in which it completed an upsized $500 million senior secured notes transaction due 2033 with a 6.75% coupon. Whalen said the company used part of the proceeds to redeem 6.875% senior notes, with remaining proceeds for general corporate purposes, and stated the refinancing increased pro forma cash and liquidity. As of December 2025, Bristow had approximately $286 million in unrestricted cash and total available liquidity of about $347 million.
Whalen said working capital has been pressured in recent years due to startup costs for new government services contracts and inventory purchases intended to mitigate supply chain constraints. Even so, she said operating cash flow was $198 million in 2025, up from $177 million in the prior year, and that adjusted free cash flow increased year over year.
Bradshaw said the company’s outlook, balance sheet, and liquidity supported the initiation of a dividend program, referencing an announced cash dividend of $0.125 per share payable on March 26, 2026.
NAV disclosure and longer-term themes: offshore supply tightness, defense, and advanced air mobility
Bradshaw also discussed Bristow’s annual net asset value (NAV) disclosure. He said a third-party desktop appraisal as of December 31, 2025 estimated fair market values for Bristow’s owned helicopters, contributing to an aggregate NAV of approximately $1.8 billion, or about $60 per share. In Q&A, management clarified that the aircraft fair market value reflects the current fleet and does not include future aircraft deliveries, though deposits are reflected elsewhere in the NAV presentation.
Looking beyond 2026, Bradshaw said the company has a positive long-term outlook for offshore energy activity, citing deepwater project economics and what he described as tight supply for offshore-configured heavy and super medium helicopters, constrained by long manufacturing lead times and production lines shared with military orders.
He also pointed to potential opportunities tied to higher defense spending and described continued discussions with European governments regarding outsourced coast guard-style services. Separately, Bradshaw highlighted Bristow’s advanced air mobility initiatives, including the completion of what he called the company’s first electric aviation project in Norway with BETA Technologies, involving more than 100 missions over six months. He said a formal report is expected in a couple of months and referenced learnings related to battery storage and charging, as well as radar positioning and communications.
Bradshaw also discussed Bristow’s secured delivery slots for Electra’s EL9 hybrid-electric aircraft and an expanded collaboration with Vertical Aerospace and Skyports Infrastructure aimed at advancing the U.K.’s first electric air travel network, with initial service targeted for early 2029. Addressing investment levels, he said Bristow has made only “a few million dollars” of capital commitments to date, with additional commitments subject to certification and performance milestones; he said potential Electra-related commitments could be up to $30 million for aircraft ordered so far.
About Bristow Group (NYSE:VTOL)
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.
