Bristow’s Berry acquisition lifts Q3 revenue as offshore demand builds
Bristow ended the quarter with 195 helicopters, 36 fixed-wing and three unmanned systems.
Bristow Group posted third quarter 2026 revenue of $438m – an increase of 6.4% on the $412m achieved in the second quarter.
Of the absolute $26.2m increase, the biggest single driver was Berry Aviation, now Bristow Special Mission (BSM), acquired by the Bristow Group on July 13th.
BSM contributed $16.9m to the operator’s Government Services business and $9.2m to Other Services in the third quarter, representing together roughly the whole sequential gain. Higher utilisation in the Americas and Australia added to the quarter, partly offset by lower utilisation in Europe.
Government Services revenue rose $17.8m from the second quarter to $130m, while the segment’s adjusted operating income climbed $2.5m from the second quarter to $10m. On a (General Accepted Accounting Principles) GAAP basis the segment still posted an operating loss of $1.4m in the third quarter, narrower than the $2.1m loss in the second.
Other Services was the standout for the company during the quarter. Revenue rose $14.0m from the second quarter to $52m. Australia added $4.8m on top of BSM and adjusted operating income more than doubled to $13m from $5m in the second quarter.
Offshore Energy Services, biggest part of the business, saw revenue decline by $5.6m from the second quarter to $256m. Europe was down $10.9m on the second quarter on lower utilisation. Africa slipped $0.7m from the second quarter on higher penalties. On the flipside, Americas was up $6.0m on the second quarter on higher utilisation and rates, with flight hours rising to 10,793 from 10,112.
Adjusted EBITDA was roughly $10m higher than in the second quarter at $90m, lifting the margin to 20% from 19% over the same period.
Net income rose to $27.8m from $21.2m in the second quarter.
In the third quarter earnings presentation, the company said the OEM on-time delivery has deteriorated by about 20% since 2020. The industry-wide average downtime for major base maintenance on a heavy helicopter has more than doubled, from 36 days in 2020 to 75 in 2025, it said. For super-mediums, downtime risen from 37 days in 2020 to 60 in 2025, with most of that increase coming after 2023, when it stood at 37 days again before jumping to 52 in 2024.
Bristow said that it has built up inventory to defend availability but the penalty payments and negotiated discounts “have not solved underlying problems”. It also argued that those penalties “drastically underestimate” the true cost, which it lists as lost revenue opportunities, delayed contract transitions, staff time spent chasing parts, cannibalisation of its own fleet, extra headcount and overtime, and outsourced maintenance. It also mentioned the delays in parts for S92 and AW189, the backbone of its fleet, as the assets most exposed to these risks.
Offshore demand grows
Bristow’s market view shows the demand is not an issue. Mentioning a report from the Wood Mackenzie and Barclays, Bristow said that the offshore final investment decisions are up significantly from 2025. It also anticipates that in longer term, global oil and gas demand is expected to grow 12.4% between 2025 and 2040, with liquids up 9.0% and gas up 17.5% over that period.
It also mentioned Westwood’s forecast about 52,000km of new logistics routes over the next decade which includes floating production systems, fixed facilities, rigs and offshore wind substations.
Bristow ended the third quarter with $233.4m of unrestricted cash and $287.3m of total liquidity. Total debt was $760m and net debt $527m. The debt stack is $500m of 6.750% senior secured notes due 2033, $153m of UKSAR debt due 2036, $107m of Irish Coast Guard debt due 2031, and a $70m asset-based lending (ABL) facility to 2031.
Cash generation was solid. Operating cash flow rose to $61.2m in the third quarter from $41.1m in the second, free cash flow was $56.0m and adjusted free cash flow $64.3m.
Fleet behind the growth
Bristow ended the quarter with 195 helicopters, 36 fixed-wing and three unmanned systems with a total of 234 aircraft. This excludes UAS platforms developed, designed or produced by BSM.
Further breakdown showed that of the total, 178 are owned with 56 leased. Of these, heavy fleet assets stand at 87, made up of 57 S92s averaging 16 years old and 30 AW189s averaging eight, and there are 68 medium helicopters, led by 54 AW139s.
The company has three more AW189s under construction, with options on nine more and five H135s.
