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Bristow Group Inc (VTOL)
NYSE:VTOL

Bristow Group (VTOL) AI Stock Analysis

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Bristow Group

(NYSE:VTOL)

Rating:72Outperform
Price Target:
$36.00
▲(1.64%Upside)
The stock score for Bristow Group is primarily driven by strong valuation metrics and a robust technical outlook, reflecting positive market sentiment and undervaluation. Financial performance is solid, though hampered by cash flow challenges. The earnings call suggests cautious optimism, balancing strategic confidence with market challenges.
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 with significant 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.

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

Bristow Group Business Overview & Revenue Model

Company DescriptionBristow Group Inc., a leader in vertical flight solutions, primarily serves the offshore energy industry, providing helicopter transportation services to oil and gas companies. Additionally, the company is involved in search and rescue operations and offers aviation support to government and civil organizations. With a fleet of versatile helicopters, Bristow Group operates globally, ensuring safe and efficient transport in challenging environments.
How the Company Makes MoneyBristow Group makes money primarily through contracts with companies in the offshore oil and gas sector, charging fees for the transportation of personnel and equipment to and from offshore platforms. The company also earns revenue from government contracts for search and rescue operations and other aviation support services. Revenue streams are further bolstered by partnerships with energy companies and governmental agencies, which help secure long-term contracts and stable income. The company also engages in leasing aircraft and providing maintenance services, adding to its diversified income sources.

Bristow Group Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 20.11%|
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 strong revenue growth and solid profitability margins. The balance sheet is stable with moderate leverage. However, negative free cash flow presents a liquidity management challenge despite strong operating cash flow.
Income Statement
75
Positive
Bristow Group shows a strong gross profit margin of 74.0% and an improving net profit margin at 8.1% TTM. Revenue growth is healthy at 9.3% annually, indicating solid demand. However, EBIT and EBITDA margins are modest at 10.0% and 14.7%, respectively, suggesting room for operational efficiency improvements.
Balance Sheet
70
Positive
The company maintains a stable debt-to-equity ratio of 1.02, highlighting balanced leverage management. ROE is reasonably strong at 12.4%, reflecting effective use of equity. The equity ratio stands at 42.9%, indicating a reasonable level of equity financing. Overall, the balance sheet reflects financial stability with moderate leverage.
Cash Flow
60
Neutral
Operating cash flow exceeds net income, with a ratio of 1.3, indicating strong cash generation relative to earnings. However, free cash flow is negative at -$92.8 million, posing a challenge for liquidity management. Despite this, the company's ability to cover net income with operating cash flow is a positive sign.
BreakdownTTMDec 2024Dec 2023Dec 2022Mar 2022Mar 2021
Income Statement
Total Revenue1.43B1.42B1.30B1.23B1.19B1.18B
Gross Profit912.25M883.43M749.50M210.82M191.81M218.02M
EBITDA250.63M222.83M145.01M126.52M69.67M85.08M
Net Income115.55M94.80M-6.78M9.21M-15.71M-56.28M
Balance Sheet
Total Assets2.17B2.13B1.94B1.81B1.82B1.99B
Cash, Cash Equivalents and Short-Term Investments191.13M247.50M180.26M163.68M266.01M231.08M
Total Debt952.03M957.09M838.32M753.64M720.98M789.12M
Total Liabilities1.24B1.23B1.11B1.03B988.91M1.09B
Stockholders Equity931.72M891.71M823.69M787.31M835.82M897.61M
Cash Flow
Free Cash Flow-92.75M-77.97M-49.47M-63.70M92.79M82.00M
Operating Cash Flow150.14M177.42M32.04M-14.13M123.85M96.84M
Investing Cash Flow-233.42M-245.95M-47.32M-44.14M-17.37M173.27M
Financing Cash Flow144.52M141.10M22.04M-19.91M-63.48M-245.62M

Bristow Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.42
Price Trends
50DMA
31.21
Positive
100DMA
31.47
Positive
200DMA
33.40
Positive
Market Momentum
MACD
0.91
Negative
RSI
66.09
Neutral
STOCH
85.45
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 35.42 is above the 20-day moving average (MA) of 33.53, above the 50-day MA of 31.21, and above the 200-day MA of 33.40, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 66.09 is Neutral, neither overbought nor oversold. The STOCH value of 85.45 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
RERES
76
Outperform
$1.15B14.777.06%3.06%-9.78%-49.45%
76
Outperform
$1.09B16.364.91%10.48%
HLHLX
73
Outperform
$1.04B12.195.64%0.34%
72
Outperform
$1.00B8.9713.19%7.24%8460.38%
OIOII
72
Outperform
$2.15B12.1626.17%10.04%68.14%
68
Neutral
$15.23B10.086.34%5.20%4.06%-66.99%
MRMRC
67
Neutral
$1.13B41.188.29%-9.84%-111.71%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VTOL
Bristow Group
35.42
0.90
2.61%
HLX
Helix Energy
6.69
-5.57
-45.43%
MRC
MRC Global
12.96
-0.31
-2.34%
OII
Oceaneering International
21.73
-3.41
-13.56%
RES
RPC
5.20
-0.55
-9.57%
XPRO
Expro Group Holdings
9.57
-13.14
-57.86%

Bristow Group Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Bristow Group Approves Key Proposals at Annual Meeting
Neutral
Jun 6, 2025

On June 4, 2025, Bristow Group Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were approved. These included the election of nine directors, an advisory vote on executive compensation, the frequency of future advisory votes, an amendment to the 2021 Equity Incentive Plan, and the ratification of KPMG LLP as independent auditors for 2025. The approval of these proposals reflects the company’s ongoing governance and strategic planning efforts.

The most recent analyst rating on (VTOL) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Bristow Group stock, see the VTOL Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Bristow Group Reports Q1 2025 Financial Results
Neutral
May 6, 2025

Bristow Group reported its first quarter 2025 financial results, showing a slight decrease in total revenues to $350.5 million from $353.5 million in the previous quarter. Net income also declined to $27.4 million from $31.8 million. Despite these decreases, the company maintained its adjusted EBITDA outlook for 2025 and 2026, indicating confidence in its business stability and market positioning. The company highlighted increased revenues in its Government Services segment due to new contracts, while the Offshore Energy Services segment experienced mixed results across different regions.

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.Date of analysis: Jun 26, 2025