HI Uplift: Bristow posts stellar Q1 results
Bristow is off to a stellar start in 2025. The company reported its first quarter results posting a 315% year-over-year increase in net profit of $27.4m against just $6.6m last year despite a modest 4% YoY increase in revenue.
Revenues were $350.5m – a 4% increase on the same period last year – with broad-based growth across all three operating segments. Offshore energy, which contributed two-thirds of the total revenue, was up 9% while government services up 5% compared with the same period of last year.
On the flipside, the revenues saw modest decline on a sequential basis, down by $3m from the last quarter of 2024.
‘Higher revenues from new contracts’
“Revenues decreased $3m primarily due to lower utilisation resulting from seasonality in our other services segment, namely our fixed swing operations in Australia, partially offset by higher revenues from new contracts and government,” explained the company’s chief financial officer Jennifer Whalen during the company’s earnings call.
“Revenues from offshore energy services remained consistent with last quarter.” While revenues were lower on sequential basis, the company did manage to maintain profitability; as adjusted EBIDTA for the quarter stayed flat at $58m for the first quarter. Segment-wise, offshore energy services’ adjusted operating income inched up by $3m to $47m, government services were up to $14m while income from other services declined by $6m.
While acknowledging the headwinds caused by the US tariffs, Bristow management maintained its guidance for 2025 and 2026.
Explaining the rationale for maintaining the outlook, Bristow’s CEO Chris Bradshaw said: “We did take a hard look at our outlook, starting first with the view on the macro and oil and gas industry, with a particular focus on offshore activity.
‘Customer conversations’
“And we’re having customer conversations regularly, potentially daily, to make sure that we understand our customers’ plans and expectations for the aircraft that we have located around the world. All of these factors and the combination gave us the confidence to reaffirm our previously issued guidance for not just this year, but also next year in 2026.”
The company is confident US tariffs are unlikely to affect its profitability and margins. Bristow expects to post a revenue of $1.4bn to $1.6bn during 2025 with growth across all three segments.
For offshore energy services, Bristow said that this outlook is underpinned by “meaningful increases” in Americas region especially from the expanded operations in Brazil with further activity expected in US and Suriname, South America. For Africa, the company said that Nigeria remains one of its most promising markets, as it continues to absorb increasing demand in the region. For Europe, however, the company expects stable growth in 2025 with S92 supply challenges continuing to pose a “risk”.
‘Transitioning to new contracts’
In the government services segment, Bristow said that the “2025 will be a year of transitioning to new contracts.” The company said it expects the majority of capex for the €670m ($755m) Irish Coast Guard (IRCG) contract and the £1.6bn ($2.13bn) UK Second-Generation Search and Rescue (UKSAR2G) contract to conclude in the first half of 2025. However, it expects full earnings power and quality margins from this business to materialise from 2026 and beyond.
Bristow also expects to benefit significantly from the recently-agreed long-term support deal with Sikorsky covering its 60 S-92 aircraft – the world’s biggest S-92 fleet – operating worldwide.
The package, covering offshore energy missions and SAR, includes the manufacturer’s Total Assurance Program (TAP). This provides Bristow with continued aftermarket support to operate its S-92 fleet within a known budget, designed to cut the risk of unplanned costs.
Search and rescue helicopters
Key features of the agreement include: a power-by-the-hour (PBH) provision for offshore energy services and search and rescue helicopters and coverage for most replacement costs for parts including airframe, drive train, gearboxes, avionics and consumable parts.
Speaking last month, Stu Stavley, chief operating officer, Offshore Energy Services, Bristow said: “This long-term support agreement will enable us to maintain our high level of service to our customers, while also controlling our operational costs and improving our overall efficiency.”
Bristow ended the quarter with total liquidity of $254.3m with no major debt maturities due between 2025-2027.
HI Uplift Dashboard: Helicopters for sale
Multi engine
- Total for sale/lease: 281 – three more than last week
- Percentage for sale/lease: 3.75
- Absorption rate: 3.94 months
- Total fleet: 7,486 – one more than last week.
Single engine
- Total for sale/lease: 424 – two more than last week
- Percentage for sale/lease: 3.67
- Absorption rate: 3.85 months
- Total fleet: 11,566 – four more than last week.
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Source: Amstat, May 9th, 2025.
