Bristow Group (VTOL) AI Stock Analysis

Compare

76 Followers

Top Page

Bristow Group

(NYSE:VTOL)

Rating:59Neutral

Price Target:―

Bristow Group shows strong revenue growth and positive earnings call sentiment, but faces challenges with high debt levels and negative cash flow, impacting its financial stability. Technical indicators suggest a bearish trend, while the valuation is reasonable. The company's strategic focus on growth and capital allocation provides a cautiously optimistic long-term outlook.

Positive Factors

Financial Performance

Bristow Group Inc. beat the market's estimate for adjusted EBITDA, reaffirming its financial guidance thanks to its significant backlog in Government Services and Offshore Energy markets.

Government Contracts

The company's Government Search and Rescue (SAR) portfolio is growing on the back of the 1.6B UK and 700M Irish contract wins.

Shareholder Returns

VTOL announced a new $125M share repurchase authorization as well as a $0.125 quarterly dividend.

Negative Factors

Other Services Segment

The Other Services segment experienced a decline in sales and operating income due to lower seasonal utilization and unfavorable foreign exchange effects.

Seasonal Utilization

The Other Services segment experienced a decline in sales and operating income due to lower seasonal utilization.

Bristow Group (VTOL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$987.28M

Dividend YieldN/A

Average Volume (3M)212.61K

Price to Earnings (P/E)8.8

Beta (1Y)1.14

Revenue Growth42.03%

EPS GrowthN/A

CountryUS

Employees3,447

SectorEnergy

Sector Strength68

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.91

Shares Outstanding28,775,316

10 Day Avg. Volume267,380

30 Day Avg. Volume212,610

Financial Highlights & Ratios

PEG Ratio-0.20

Price to Book (P/B)0.97

Price to Sales (P/S)0.00

P/FCF Ratio-11.95

Enterprise Value/Market Cap1.37

Enterprise Value/Revenue0.25

Enterprise Value/Gross Profit1.38

Enterprise Value/Ebitda2.37

Forecast

1Y Price Target

$50.00

Price Target Upside46.58% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Bristow Group Business Overview & Revenue Model

Company DescriptionBristow Group (VTOL) is a leading global provider of vertical flight solutions, specializing in helicopter transportation services primarily in the offshore energy industry. The company operates a diverse fleet of aircraft, offering transportation and search and rescue services to government and civil organizations worldwide. Bristow Group is recognized for its commitment to safety, efficiency, and reliability in challenging environments.

How the Company Makes MoneyBristow Group generates revenue through service contracts with energy companies, governments, and other entities requiring helicopter transportation and search and rescue operations. The company's key revenue streams include long-term contracts with oil and gas companies to transport personnel and equipment to offshore platforms. Additionally, Bristow provides search and rescue services to government and civil organizations, often under long-term agreements. Partnerships with government agencies and commercial enterprises, along with the strategic positioning near major offshore energy hubs, significantly contribute to the company's earnings by ensuring a steady demand for its specialized aviation services.

Bristow Group Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 15.67%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

Bristow Group's earnings call presented a mixed outlook. The company demonstrated strong operational safety and reaffirmed financial guidance, indicating confidence in its long-term strategy. However, challenges such as U.S. tariffs, revenue decreases in certain segments, and working capital issues highlight ongoing concerns. Despite these challenges, the overall sentiment leans towards cautious optimism due to strong government services revenue and a positive outlook for offshore energy services.

Q1-2025 Updates

Positive Updates

Zero Air Accidents and Improved Workplace Safety

Bristow achieved its target of zero air accidents in Q1 2025 and experienced fewer recordable injuries and lost workdays compared to Q1 2024.

Affirmation of Financial Guidance

Bristow reaffirmed its financial guidance for 2025 with expected revenues of $1.4 billion to $1.6 billion and adjusted EBITDA of $230 million to $260 million. The 2026 guidance was also affirmed.

Strong Offshore Energy Services Outlook

Despite challenges, the outlook for the Offshore Energy Services business remains positive with deepwater projects favorably positioned in portfolios, driving continued investments.

Government Services Revenue Increase

Revenues from Government Services increased by $3.4 million, primarily due to the Irish Coast Guard contract.

Stable Financial Position

Bristow reported available liquidity of approximately $254 million and has funded 86% of the capital investments needed for new government services contracts.

Negative Updates

Impact of U.S. Tariffs

Recently implemented U.S. tariffs on steel and aluminum imports are expected to introduce incremental costs and complexity into the supply chain, affecting repairs and maintenance costs.

Decrease in Overall Revenues

Revenues decreased by $3 million primarily due to lower utilization from seasonality in the Other Services segment, particularly in Australia.

Challenges in Europe

Revenues in Europe decreased by $4.5 million due to lower utilization in the U.K.

Working Capital Challenges

Working capital uses of $56.4 million resulted from increased accounts receivables, contract start-up costs, and inventory increases.

Company Guidance

During the Bristow Group's first quarter 2025 earnings call, the company reaffirmed its financial guidance for 2025 and 2026, projecting revenues of $1.4 to $1.6 billion and adjusted EBITDA between $230 and $260 million for 2025, with 2026 revenues anticipated to range from $1.5 to $1.8 billion and adjusted EBITDA from $275 to $335 million. Despite macroeconomic challenges, including U.S. tariffs on aircraft parts and oil price volatility, Bristow remains optimistic about its Offshore Energy Services business, forecasting adjusted operating income of $190 to $210 million on revenues of $950 million to $1 billion for 2025. The company also highlighted its strong liquidity position, with available liquidity of approximately $254 million as of March 31, 2025, and emphasized the stability from its Government Services segment, which is expected to contribute significantly as new contracts become operational.

Bristow Group Financial Statement Overview

Summary

Bristow Group demonstrates solid revenue growth and improved profitability metrics in the TTM period. While the balance sheet shows a stable structure, the high debt levels could pose a risk if not strategically handled. Cash flow concerns, particularly negative free cash flow, remain a challenge, indicating potential liquidity risks. Overall, the company is on a positive trajectory but must address cash flow sustainability and debt management to strengthen its financial position.

Income Statement

Positive

Bristow Group's revenue has shown a consistent upward trend, with a notable revenue growth rate of 7.89% in the TTM (Trailing-Twelve-Months) compared to 2023. The gross profit margin improved significantly to 69.74% in TTM, indicating effective cost management. Net income transitioned from a loss in 2023 to a profit in TTM, resulting in a positive net profit margin of 3.93%. The EBIT and EBITDA margins also improved, showing enhanced operational efficiency. However, past volatility in net income suggests potential risks in sustaining profitability.

Balance Sheet

Positive

The company's debt-to-equity ratio stands at 0.92 in TTM, reflecting a relatively balanced capital structure, though slightly high for the fossil fuels industry. The return on equity (ROE) improved to 6.12% in TTM, a positive sign of profitability. The equity ratio is stable at 43.04%, indicating a reasonable level of financial stability. However, the high total debt level poses a risk if not managed carefully.

Cash Flow

Neutral

Free cash flow remains negative, with a decline in free cash flow growth rate, indicating potential liquidity challenges. The operating cash flow to net income ratio improved to 2.12 in TTM, suggesting better cash generation relative to earnings. However, the persistent negative free cash flow to net income ratio highlights ongoing cash flow management issues that need addressing.

TTM	Dec 2023	Dec 2022	Mar 2022	Mar 2021	Dec 2019
Breakdown
Income Statement		Total Revenue
1.40B	1.30B	1.23B	1.19B	1.18B	226.06M
	Gross Profit
976.28M	749.50M	210.82M	191.81M	218.02M	71.51M
	EBIT
120.38M	60.75M	46.76M	-17.56M	3.50M	-3.28M
	EBITDA
180.16M	145.01M	126.52M	69.67M	93.97M	9.00M
	Net Income Common Stockholders
55.07M	-6.78M	18.04M	-15.71M	-56.28M	-14.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
208.58M	180.26M	163.68M	266.01M	231.08M	196.66M
	Total Assets
2.09B	1.94B	1.81B	1.82B	1.99B	1.95B
	Total Debt
829.42M	838.32M	753.64M	651.11M	711.21M	867.20M
	Net Debt
620.84M	658.05M	589.95M	385.10M	480.13M	670.54M
	Total Liabilities
1.19B	1.11B	1.03B	988.91M	1.09B	1.52B
	Stockholders Equity
899.17M	823.69M	787.31M	835.82M	897.61M	426.49M
Cash Flow		Free Cash Flow
-74.41M	-49.47M	-63.70M	92.79M	82.00M	20.99M
	Operating Cash Flow
116.87M	32.04M	-14.13M	123.85M	96.84M	27.55M
	Investing Cash Flow
-186.72M	-47.32M	-44.14M	-17.37M	173.27M	48.62M
	Financing Cash Flow
59.95M	22.04M	-19.91M	-63.48M	-245.62M	-9.43M

Bristow Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price34.11

Price Trends

50DMA

29.54

Positive

100DMA

31.68

Positive

200DMA

33.60

Positive

Market Momentum

MACD

1.08

Negative

RSI

71.10

Negative

STOCH

96.13

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTOL, the sentiment is Positive. The current price of 34.11 is above the 20-day moving average (MA) of 30.69, above the 50-day MA of 29.54, and above the 200-day MA of 33.60, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 96.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTOL.

Bristow Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDG	75 Outperform	$80.86B	48.61	-29.16%	―	14.90%	17.50%
AIR	74 Outperform	$2.45B	246.75	-1.08%	―	21.07%	-120.95%
PHI	72 Outperform	$4.70B	8.52	28.10%	7.64%	-0.91%	11.25%
HXL	69 Neutral	$4.38B	35.93	7.87%	1.24%	5.37%	29.15%
VTOL	59 Neutral	$987.28M	8.82	13.19%	―	42.03%	―
Sector *	58 Neutral	$7.55B	3.49	-4.45%	10.15%	0.79%	-49.51%
SPR	37 Underperform	$4.34B	―	81.63%	―	-2.91%	-109.95%

* Energy Sector Average

Performance Comparison

VTOL

Bristow Group

34.11

1.13

3.43%

AIR

AAR

67.95

0.35

0.52%

HXL

Hexcel

54.45

-8.70

-13.78%

PHI

PLDT

21.74

-1.20

-5.23%

SPR

Spirit AeroSystems

37.01

6.54

21.46%

TDG

Transdigm Group

1,427.40

178.20

14.27%

Bristow Group Corporate Events

Business Operations and StrategyFinancial Disclosures

Bristow Group Increases 2024 EBITDA Outlook Amid Growth

Positive

Nov 5, 2024

Bristow Group reported a solid performance for Q3 2024 with net income of $28.2 million on revenues of $356.4 million. The company raised its full-year Adjusted EBITDA outlook to $220-$230 million, reflecting growth in its government services and offshore energy sectors. Despite higher operating expenses due to personnel costs and maintenance, Bristow remains optimistic about its multi-year growth cycle, citing favorable industry conditions and an opportunity to optimize its contract portfolio.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.