Bristow Group Inc. (VTOL) Annual Report (Form 10-K) for the fiscal year ended December 31, 2024
Bristow Group Inc. filed its annual report for the fiscal year ended December 31, 2024, reporting a market value of $820,568 for its voting stock held by non-affiliates as of June 30, 2024. The company’s total outstanding shares of common stock, par value $0.01 per share, were 28,632 as of February 21, 2025. The report does not provide detailed financial information, but it does indicate that the company is a large accelerated filer and has filed all reports required by the Securities Exchange Act of 1934 during the preceding 12 months. The report also indicates that the company has not elected to use the extended transition period for complying with new or revised financial accounting standards and has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting.
Overview of Bristow Group’s Financial Performance
Bristow Group is the leading global provider of innovative and sustainable vertical flight solutions, primarily serving offshore energy companies and government entities. The company operates a fleet of 210 aircraft across six continents and 18 countries.
In 2024, Bristow Group reported strong financial results, with total revenues increasing by 9.1% to $1.415 billion compared to the prior year. This growth was driven by the company’s Offshore Energy Services and Other Services segments, which saw revenues rise by 13.3% and 11.7% respectively.
Offshore Energy Services Segment
The Offshore Energy Services segment, which accounted for 68% of total revenues in 2024, saw a significant improvement in operating income, increasing by 189.8% to $132.2 million. This was primarily due to higher utilization and increased rates, particularly in Africa and Europe. The company was able to offset higher operating costs, such as repairs and maintenance and personnel, through these revenue gains.
Government Services Segment
Revenues from the Government Services segment declined by 2.3% to $329.7 million in 2024. Operating income also decreased by 28.8% to $21.1 million. This was mainly due to a change in rates after transitioning to a long-term contract with the Dutch Caribbean Coast Guard, as well as higher personnel and other operating costs related to the commencement of new contracts in the UK and Ireland.
Other Services Segment
The Other Services segment, which includes the company’s fixed-wing operations and dry-leasing business, saw revenues increase by 11.7% to $119.8 million. However, operating income declined by 10.7% to $13.7 million, primarily due to higher operating costs in the fixed-wing services.
Profitability and Net Income
Overall, Bristow Group’s total operating income increased by 118.3% to $132.6 million in 2024, driven by the strong performance in the Offshore Energy Services segment. The company’s net income attributable to Bristow Group Inc. was $94.8 million, a significant improvement from the $6.8 million net loss in the prior year.
Liquidity and Capital Resources
Bristow Group ended 2024 with $247.5 million in unrestricted cash and $64.0 million in remaining availability under its revolving credit facility, for total liquidity of $311.5 million. The company’s total debt balance, net of deferred financing fees, was $689.8 million as of December 31, 2024.
The company plans to use a combination of cash on hand, operating cash flows, debt financing, and aircraft leasing to fund its projected future capital expenditures, which include the purchase of new aircraft and other growth initiatives, primarily in support of new long-term contracts.
Market Outlook and Strategic Priorities
Bristow Group’s market outlook remains positive, despite some industry concerns about the offshore rig count and “white space” (periods of low activity). The company believes that the dynamics supporting the offshore energy market differ from other oilfield services companies, with the impacts of short-term fluctuations in commodity prices being less severe on its primarily production-focused business.
The company has also announced a new capital allocation framework with key priorities that include:
- Protecting and maintaining a strong balance sheet and liquidity position
- Pursuing high-impact, high-return growth opportunities
- Returning capital to shareholders through opportunistic share repurchases and the initiation of quarterly dividend payments starting in 2026
Bristow Group is well-positioned to meet the growing demand for vertical lift services, particularly in markets such as Nigeria and Brazil, where it has decades of experience and a strong reputation for safety and reliability. The company is also focused on expanding its Government Services business, which it believes will provide attractive long-term cash flow opportunities.
Risks and Challenges
The company faces several risks and challenges, including:
- Supply chain disruptions and the strengthening of the U.S. dollar, which could offset some of the benefits from increased activity
- Transition costs and delays associated with new government services contracts, which may not present the full earnings power and margins from this business until 2026 and beyond
- Potential exacerbation of the supply chain issues related to the S92 heavy helicopters, which could bias the company’s guidance to the lower end of the range
Overall, Bristow Group’s strong financial performance in 2024, combined with its positive market outlook and strategic priorities, position the company well for continued growth and value creation for its shareholders.
