Bridger Aerospace Group Holdings, Inc. ((BAER)) has held its Q1 earnings call. Read on for the main highlights of the call.
Bridger Aerospace Group Holdings, Inc. recently held its earnings call, revealing a mix of promising growth and financial challenges. The company reported significant revenue growth and secured strategic contracts and partnerships, marking a strong start to the year. However, Bridger Aerospace also faced financial challenges, including a net loss and negative adjusted EBITDA. Despite these hurdles, the increase in cash reserves and strategic partnerships indicate potential for future growth.
Record First Quarter Revenue
Bridger Aerospace achieved a record first quarter revenue of $15.6 million, representing a remarkable 184% increase over the previous year. This substantial growth was primarily driven by early wildfire activity, which necessitated the deployment of their scooper fleet earlier than usual.
Expansion of Exclusive Use Contracts
The company expanded its portfolio by adding two exclusive use contracts. These include a significant 5-year $20.1 million contract with the U.S. Department of the Interior and a contract with the state of Montana valued at a minimum of $648,000 annually. These contracts are expected to bolster Bridger Aerospace’s revenue streams and enhance its market position.
Partnership with Positive Aviation
Bridger Aerospace entered into a memorandum of understanding with Positive Aviation, becoming the exclusive North American launch customer for the FF72 aircraft. This partnership includes an option to acquire up to 20 units, potentially enhancing the company’s operational capabilities.
FMS Aerospace Contribution
FMS Aerospace contributed $1.9 million in revenue during the first quarter, further strengthening Bridger’s competitive edge in the aerospace sector.
Increased Cash Position
The company ended the first quarter of 2025 with a robust cash position of $22.3 million, a significant increase from $6.8 million at the end of the first quarter of 2024. This increase in cash reserves provides Bridger Aerospace with greater financial flexibility.
Net Loss for the Quarter
Despite the revenue growth, Bridger Aerospace reported a net loss of $15.5 million, or $0.41 per diluted share, in the first quarter of 2025. This loss highlights the financial challenges the company is currently facing.
Negative Adjusted EBITDA
The company reported a negative adjusted EBITDA of $5.1 million in the first quarter of 2025, reflecting ongoing operational challenges.
Increased Cost of Revenues
The cost of revenues rose to $17.2 million, up from $9.2 million in the first quarter of 2024. This increase was driven by heightened maintenance expenses and pass-through costs, impacting the company’s profitability.
Forward-Looking Guidance
Looking ahead, Bridger Aerospace remains optimistic about its 2025 guidance, projecting adjusted EBITDA between $42 million and $48 million on revenues ranging from $105 million to $111 million. The company emphasized the importance of exclusive use contracts and maintaining year-round readiness to meet increasing wildfire demands.
In conclusion, Bridger Aerospace’s earnings call highlighted a dynamic mix of growth and challenges. While the company experienced significant revenue growth and secured strategic contracts, it also faced financial hurdles, including a net loss and increased costs. However, the company’s strengthened cash position and forward-looking guidance suggest potential for future growth and resilience in the face of challenges.