Earnings

Bristow Lifts Profit as Offshore Margins Widen

The Tip Desk · August 5, 2026 · 2 min read

Free cash flow improved to $34.3 million from negative $12.6 million in the prior quarter.

The helicopter-services provider Bristow Group Inc. (VTOL) lifted second-quarter adjusted EBITDA 34.6% sequentially to $79.8 million as its margin widened to about 19.4% from 15.2%.

The rebound reversed a slight decline in adjusted EBITDA during the first quarter. Revenue growth accelerated even as companywide flight hours slipped 0.8%, reflecting stronger pricing and fuel revenue rather than higher overall activity.

Revenue rose 5.9% from the first quarter to $411.8 million, accelerating from the prior period’s 3.0% sequential increase. Net income attributable to Bristow climbed 61% to $21.2 million, while diluted earnings increased to $0.70 a share from $0.44 a share and surpassed the fourth quarter’s $0.61 a share. Operating income rose 14.1% to $39.6 million, and adjusted operating income increased 36% to $71.9 million.

Offshore Energy Services supplied most of the profit improvement. Revenue increased 2.9% to $261.6 million despite a 4.8% decline in flight hours, while operating income rose 28.9% to $46.1 million. The segment’s adjusted operating margin widened to 25% from 20%, supported by higher rates and fuel revenue.

Government Services revenue rose 4% to $112.2 million as flight hours increased 14%, though the segment swung to a $2.1 million operating loss. The deterioration was due to higher transition, fuel and personnel costs, including $3.6 million of aircraft-availability penalties. Other Services revenue rose 43% to $37.9 million and generated $2.9 million of operating income after a $1.3 million loss in the prior quarter.

Operating cash flow turned positive at $41.1 million from a use of $8.3 million, even as property and equipment purchases increased to $67.4 million. Bristow’s full-year outlook continues to call for adjusted EBITDA of $295 million to $325 million, with total segment revenue of $1.64 billion to $1.72 billion and adjusted operating income of $280 million to $310 million.

Bristow completed its $105 million all-cash acquisition of Berry Aviation on July 13, adding special-mission, intelligence, surveillance and reconnaissance, maintenance, training, unmanned-aircraft and cargo-logistics capabilities to Government Services. The expansion came as the segment absorbed costs from existing UK and Ireland transitions, leaving execution on those programs central to its margin recovery.

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