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Bristow Group Inc (VTOL)
NYSE:VTOL
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Bristow Group
(NYSE:VTOL)
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Rating:74Outperform
Price Target:
$50.00
▲(7.04% Upside)
Action:UpgradedDate:01/27/26
The score is driven by attractive valuation (low P/E) and a positive earnings outlook with raised/tightened EBITDA guidance, supported by strong price trend and positive momentum. The main offset is cash-flow quality (negative free cash flow) plus overbought technical readings that raise near-term volatility risk.
Positive Factors
Improving profitability and margins
Sustained margin expansion signals stronger pricing power and operational efficiency in core helicopter services. Higher gross and net margins provide a structural buffer against cyclical revenue swings in offshore energy, supporting durable earnings and reinvestment capacity over the next 2-6 months.
Strong liquidity position
Material cash and available liquidity increase financial flexibility to fund operations, service debt, and absorb contract transition costs. This liquidity supports execution of strategic initiatives and refinancing, reducing near-term default risk and enabling selective investment over the medium term.
Government services inflection
Rapidly improving government segment profitability diversifies revenue away from cyclical offshore energy. A near-doubling of operating income indicates contract scale and margin uplift, creating a more resilient revenue mix and higher recurring cash flow potential beyond commodity-driven cycles.
Negative Factors
Weak free cash flow conversion
Negative free cash flow despite improving growth highlights a structural conversion issue between reported earnings and cash available for debt reduction or capex. Low OCF-to-net-income reduces ability to self-fund fleet maintenance or VTOL investment without external financing over the next several quarters.
Persistent supply-chain constraints
Aircraft and aftermarket delays limit capacity to capture demand and raise maintenance costs, constraining revenue growth and utilization rates. Ongoing supply disruption can depress serviceable flight hours and increase capital and operating expense variability for multiple quarters.
Regional demand softness and lower utilization
Softer utilization across Europe, Africa and a mature North Sea market weigh on sustainable revenue growth for core offshore services. Structural regional weakness reduces pricing leverage and may prolong recovery timelines, pressuring segment margins and fleet deployment decisions over the medium term.
Bristow Group (VTOL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)193.82K
Price to Earnings (P/E)9.8
Beta (1Y)1.23
Revenue Growth4.78%
EPS Growth156.83%
CountryUS
Employees3,447
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.61
Shares Outstanding28,920,000
10 Day Avg. Volume179,940
30 Day Avg. Volume193,821
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.10
Price to Sales (P/S)0.69
P/FCF Ratio-12.54
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit3.09
Enterprise Value/Ebitda5.67
Forecast
1Y Price Target
$57.33Price Target Upside22.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.17
Revenue Forecast (FY)$1.63B
Bristow Group Business Overview & Revenue Model
Company DescriptionBristow Group Inc. provides aviation services to integrated, national, and independent offshore energy companies in the United States. It also offers commercial search and rescue services; and other helicopter and fixed wing transportation services. As of March 31, 2022, the company had a fleet of 229 aircrafts, of which 213 were helicopters. It also has operations in Australia, Brazil, Canada, Chile, the Dutch Caribbean, Guyana, India, Mexico, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, and the United Kingdom. The company was founded 1948 and is headquartered in Houston, Texas.
How the Company Makes MoneyBristow Group generates revenue primarily through its helicopter transportation services, which cater to the offshore oil and gas industry, as well as the wind energy sector. The company's revenue model includes contracts for long-term service agreements, flight hour billing, and project-based services. Key revenue streams come from daily operational flights, maintenance services, and training programs for pilots and crew. The company also benefits from strategic partnerships with major energy companies and government agencies, which secure consistent demand for its services. Additionally, Bristow's investment in VTOL technology positions it to capitalize on new market opportunities, further enhancing its earnings potential.
Bristow Group Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call emphasized solid full‑year results, strengthened liquidity and capital structure (including a $500M refinancing at 6.75%), initiation of a dividend, continued strong cash generation, and positive forward guidance with expected adjusted EBITDA growth of ~25% in 2026. Key growth drivers include improved OES contract terms (average ~25% rate uplift on renewals) and a maturing Government Services portfolio expected to roughly double adjusted operating income in 2026. Short‑term headwinds include seasonal Q4 softness, transition and start‑up costs in Government Services, supply‑chain delays affecting aircraft deliveries, and macro/FX sensitivities. On balance, the positive operational and financial catalysts — confirmed guidance, contract repricing in OES, refinancing, dividend initiation, NAV, and AAM progress — outweigh the near‑term execution risks and seasonal softness.Q4-2025 Updates
Positive Updates
Full-Year Financial Performance
Total revenues for 2025 were up $75 million versus 2024; adjusted EBITDA for 2025 was $246 million, approximately +4% year-over-year and in line with prior guidance.
2026 Financial Guidance and Expected EBITDA Growth
Company affirmed 2026 guidance of $1.6B–$1.7B in total revenues and $295M–$325M in adjusted EBITDA, implying roughly +25% year-over-year adjusted EBITDA growth vs. 2025.
Offshore Energy Services (OES) Momentum and Contract Renewal Uplift
OES revenues were +$24.4M year-over-year (Africa +$21.7M, Americas +$19.2M, Europe -$16.5M). Adjusted operating income for OES was +$30M year-over-year. Management expects 2026 OES revenue of $1.0B–$1.1B and adjusted operating income of $225M–$235M (≈ +11.8%–15.8% vs. $203M in 2025). Approximately 50% of the OES customer contract portfolio had been rolled over by year-end with an average rate uplift of ~25% on renewed contracts, driving most of the segment’s 2026 improvement.
Government Services Scale-Up
Full-year Government Services revenues rose +$49.8M year-over-year driven by the new Irish Coast Guard contract and higher U.K. SAR revenues. Management expects 2026 Government Services revenues of $440M–$460M and adjusted operating income of $70M–$80M — roughly double 2025 levels as contract ramps complete.
Improved Liquidity and Debt Refinancing
Closed $500M senior secured notes due 2033 at a 6.75% coupon in January; unrestricted cash of ~$286M and total available liquidity of ~$347M as of Dec 2025. No near-term debt maturities and management expects to pay down certain equipment financing by end of 2026.
Strong Cash Generation
Cash flow from operations of $198M in 2025 vs. $177M in 2024 (≈ +11.9%); adjusted free cash flow was approximately $26M higher year-over-year, and management expects continued strong free cash flow conversion into 2026.
Shareholder Return Initiative & NAV Disclosure
Initiated a cash dividend program with a $0.125/share dividend payable March 26, 2026. Annual NAV disclosure shows aggregate NAV of ~$1.8B (~$60/share) based on third‑party helicopter appraisals.
Advanced Air Mobility (AAM) Leadership
Completed Norway electric aviation test arena (>100 missions over 6 months) with Beta Technologies; secured early delivery slots (including Electra EL9 slot #1). Capital commitments to date are small ('a few million'), with optional future commitments up to ~$30M tied to milestones.
Negative Updates
Sequential Q4 Softness
Total revenues and adjusted EBITDA were $9M and $7M lower in Q4 versus Q3, respectively, primarily due to seasonal declines in Other Services and Offshore Energy Services.
OES Near-Term Headwinds in Q4 and Regional Variability
Q4 OES revenues were $3M lower sequentially due to the end of fixed-wing services in Africa and lower U.S. utilization; Europe revenues were down $16.5M year-over-year, reflecting regional weakness.
Government Services Margin Pressure from Transition Costs
Full-year Government Services adjusted operating income declined by $12.6M year-over-year, driven by higher expenses from new contract commencements (Ireland and U.K.). Q4 adjusted operating income was $3.2M lower, impacted by $2.9M higher repairs & maintenance and $1.6M higher personnel costs.
Other Services Profitability Decline
Other Services Q4 revenues were $5.2M lower sequentially and full-year adjusted operating income decreased by $5.4M year-over-year, largely due to higher operating expenses from increased activity in Australia.
Supply Chain and Delivery Delays
Aircraft delivery delays related to supplier and broader aviation industry supply chain constraints (noted for UKSAR2G transitions and Leonardo deliveries) complicate timelines and introduce execution risk.
Working Capital and Start-Up Cost Pressure
Working capital has been elevated by start-up costs for new government contracts and higher inventory to mitigate supply chain risk, which has impacted available liquidity despite strong operating cash flow.
Macro and FX Sensitivities
Management highlighted downside/upside risks from oil price volatility (≈15% of revenues tied to exploration activity) and foreign exchange exposure (GBP/EUR impact on SAR contracts), which could materially bias results within the 2026 guidance range.
Transcript Guidance Ambiguity for Other Services
The transcript contains an anomalous line stating 2026 'adjusted operating income guidance' for Other Services as $225M which appears inconsistent with segment size and may reflect a transcription or presentation error, creating temporary ambiguity for that segment’s guidance.
Company Guidance
Bristow affirmed 2026 consolidated guidance of $1.6–$1.7 billion in revenues and $295–$325 million in adjusted EBITDA (roughly +25% year‑over‑year versus 2025 adjusted EBITDA of $246 million), while highlighting segment targets: Offshore Energy Services revenues of $1.0–$1.1 billion (vs. $990 million in 2025) and adjusted operating income of $225–$235 million (vs. $203 million in 2025, ~15% uplift), Government Services revenues of $440–$460 million and adjusted operating income of $70–$80 million (roughly double 2025), and Other Services revenues of $130–$150 million with adjusted operating income cited at $225 million; management said ~50% of OES contracts were renewed by year‑end with an average leading‑edge rate uplift of ~25% and expects the portfolio reset substantially complete by year‑end 2026. Liquidity and cash metrics include unrestricted cash of ~$286 million, total available liquidity of ~$347 million, operating cash flow of $198 million in 2025 (vs. $177 million in 2024) and adjusted free cash flow ~ $26 million higher year‑over‑year; Bristow also completed a $500 million senior secured note issuance due 2033 at 6.75%, has no near‑term debt maturities, plans to pay down UKSAR2G equipment financing by end‑2026, initiated a $0.125/share cash dividend payable March 26, 2026, reports an aggregate NAV of ~ $1.8 billion (~$60/share) (aircraft fair market value cited at ~$1.6 billion), expects seven AW189 deliveries this year, and noted only a few million dollars of committed AAM capital to date with up to ~$30 million of optional Electra investment.Bristow Group Financial Statement Overview
Summary
Financials are solid but uneven: income statement strength (improving profitability and ~49% gross margin, ~9.7% net margin) is offset by weaker cash-flow quality (negative free cash flow despite strong growth, and moderate operating cash flow vs. net income). Leverage appears manageable (debt-to-equity 0.65) with improved ROE (14.83%).Income Statement
Bristow Group's income statement shows a strong performance with a consistent increase in revenue, evidenced by a TTM revenue growth rate of 1.46%. The gross profit margin has improved to 49.19% in the TTM, indicating effective cost management. The net profit margin also increased to 9.71%, reflecting enhanced profitability. However, the gross profit margin has decreased from the previous year, suggesting potential cost pressures.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.65, indicating a manageable level of debt. The return on equity has improved to 14.83%, showcasing effective utilization of equity. However, the equity ratio is not explicitly provided, which limits a comprehensive assessment of asset financing.68
Positive
Cash Flow
Cash flow analysis reveals a significant improvement in free cash flow growth at 175.82%, although the free cash flow remains negative. The operating cash flow to net income ratio is 0.42, indicating moderate cash generation relative to net income. The negative free cash flow to net income ratio suggests challenges in converting profits into free cash flow.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Mar 2022 | Mar 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.42B | 1.30B | 1.20B | 1.19B | 1.14B |
| Gross Profit | 429.76M | 398.28M | 330.81M | 278.88M | 191.81M | 287.85M |
| EBITDA | 234.01M | 215.17M | 141.18M | 116.67M | 124.34M | 159.05M |
| Net Income | 142.44M | 94.80M | -6.78M | 9.21M | -15.79M | -56.09M |
Balance Sheet | ||||||
| Total Assets | 2.27B | 2.13B | 1.94B | 1.81B | 1.82B | 1.99B |
| Cash, Cash Equivalents and Short-Term Investments | 250.71M | 247.50M | 180.26M | 163.68M | 263.77M | 228.01M |
| Total Debt | 924.61M | 957.09M | 838.32M | 753.64M | 720.98M | 789.12M |
| Total Liabilities | 1.23B | 1.23B | 1.11B | 1.03B | 988.91M | 1.09B |
| Stockholders Equity | 1.04B | 891.71M | 823.69M | 787.31M | 835.82M | 897.61M |
Cash Flow | ||||||
| Free Cash Flow | -23.84M | -77.97M | -49.47M | -63.70M | 92.79M | 82.00M |
| Operating Cash Flow | 172.55M | 177.42M | 32.04M | -14.13M | 123.85M | 96.84M |
| Investing Cash Flow | -138.69M | -245.95M | -47.32M | -44.14M | -17.37M | 173.27M |
| Financing Cash Flow | 21.88M | 141.10M | 22.04M | -19.91M | -63.48M | -245.62M |
Bristow Group Technical Analysis
Positive
46.71
Price Trends
41.41
Positive
39.68
Positive
37.22
Positive
Market Momentum
1.40
Positive
66.53
Neutral
84.04
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 46.71 is above the 20-day moving average (MA) of 45.20, above the 50-day MA of 41.41, and above the 200-day MA of 37.22, indicating a bullish trend. The MACD of 1.40 indicates Positive momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 84.04 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $26.16B | 28.48 | 29.85% | 0.44% | 11.73% | 45.70% | |
77 Outperform | $3.86B | 10.83 | 39.64% | ― | 8.71% | 72.09% | |
74 Outperform | $1.35B | 9.79 | 14.72% | ― | 4.78% | 156.83% | |
67 Neutral | $1.55B | 46.09 | 1.99% | ― | -1.95% | 530.91% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $7.44B | 53.35 | 2.29% | 3.24% | -1.43% | -63.13% |
* Energy Sector Average
VTOL
Bristow Group
46.71
8.69
22.86%
FTI
TechnipFMC
66.13
37.49
130.90%
HLX
Helix Energy
9.60
0.98
11.37%
NOV
NOV
20.16
5.74
39.83%
OII
Oceaneering International
37.92
15.30
67.64%
Bristow Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Bristow Group completes major refinancing and credit extension
Positive
Jan 27, 2026
On January 26, 2026, Bristow Group Inc. completed a private offering of $500 million in 6.750% senior secured notes due 2033, guaranteed by key subsidiaries and secured against helicopters and other assets, while also amending and extending its asset‑based revolving credit facility to 2031 with reduced commitments of $70 million and lower pricing but an option to increase total commitments to $105 million. A portion of the note proceeds was used to redeem in full Bristow’s outstanding 6.875% senior secured notes due 2028, satisfying and discharging the related indenture and releasing associated liens, a refinancing that extends the company’s debt maturity profile, lowers the cost and complexity of its capital structure and supports a stronger liquidity position for its global aviation operations, with remaining proceeds earmarked for general corporate purposes.
The most recent analyst rating on (VTOL) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Bristow Group stock, see the VTOL Stock Forecast page.
Business Operations and StrategyPrivate Placements and Financing
Bristow Group Launches $400 Million Senior Secured Notes
Positive
Jan 13, 2026
On January 13, 2026, Bristow Group Inc. announced it had launched, subject to market conditions, a private offering of $400 million in senior secured notes due 2033 to eligible institutional and non-U.S. investors under Rule 144A and Regulation S. The notes, secured by first-priority liens on a broad pool of collateral including roughly 70 pledged aircraft and guaranteed by key domestic and foreign subsidiaries, are intended to fund the full redemption and satisfaction of the company’s outstanding 6.875% senior secured notes due 2028, of which about $397 million remained as of September 30, 2025, marking a significant refinancing step that extends Bristow’s debt maturity profile and could strengthen its capital structure for continued operations in its global aviation services markets.
The most recent analyst rating on (VTOL) stock is a Hold with a $44.00 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 Strong Q3 2025 Financial Results
Positive
Nov 4, 2025
Bristow Group reported strong financial results for the third quarter of 2025, with total revenues of $386.3 million and a net income of $51.5 million, marking a significant increase from the previous quarter. The company anticipates continued growth in 2026, driven by a tight supply of offshore helicopters and a positive outlook for offshore energy services, despite a mid-cycle activity plateau in the industry.
The most recent analyst rating on (VTOL) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Bristow Group stock, see the VTOL Stock Forecast page.
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.