10-Q · May 5, 2026
Bristow Group Inc. reported Q1 2026 revenues of $388.7 million, a slight increase from the prior quarter and beating estimates. However, EPS of $0.44 significantly missed the consensus estimate of $1.08. Notable growth…
Earnings analysis · 10-Q
VTOL earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Bristow produced sequential Q2 improvement: revenue increased 5.9% to $411.755 million, operating income rose 14.1% to $39.576 million, and diluted EPS was $0.70. OES and Other Services drove the improvement, but…
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Bristow produced sequential Q2 improvement: revenue increased 5.9% to $411.755 million, operating income rose 14.1% to $39.576 million, and diluted EPS was $0.70. OES and Other Services drove the improvement, but Government Services turned to a $2.145 million operating loss amid $3.6 million of availability penalties and elevated transition and fuel costs. First-half revenue grew 10.1%, while attributable net income fell 42.0% to $34.260 million, and cash conversion was pressured by $71.5 million of working-capital use and $108.7 million of capital expenditures.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.7
- Operating margin
- 9.6%
What stood out
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Revenue grew sequentially and year over year
Q2 revenue was $411.755 million, up $23.050 million, or 5.9%, from $388.705 million in Q1 2026. First-half revenue increased $73.501 million, or 10.1%, to $800.460 million versus $726.959 million a year earlier.
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Sequential earnings and margin improved
Operating income increased $4.901 million, or 14.1%, sequentially to $39.576 million, producing a 9.6% consolidated operating margin. Net income attributable to Bristow rose 61.4% sequentially to $21.154 million from $13.106 million.
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OES delivered strong incremental profitability
OES revenue rose $7.285 million sequentially to $261.618 million and operating income increased $10.333 million to $46.053 million; its operating margin expanded to 18% from 14%. Europe contributed $5.915 million of the revenue increase.
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Other Services returned to profitability
Other Services revenue rose $11.401 million, or 43.0%, sequentially to $37.903 million, and the segment moved to $2.929 million of operating income from a $1.345 million operating loss.
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Liquidity supports portfolio investment
Liquidity was $371.6 million at June 30, comprising $312.3 million of unrestricted cash and $59.3 million of ABL availability. The company also completed the $105.0 million all-cash Berry Aviation acquisition in July 2026 to expand Government Services capabilities.
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Fleet investment targets OES demand
Management is upgrading the OES fleet with AW189 helicopters and has $58.8 million of unfunded capital commitments, primarily for two AW189 aircraft due in 2026 and 2027.
What to watch
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Government Services transition costs pressured margin
Government Services generated a $2.145 million Q2 operating loss after $0.943 million of operating income in Q1. Management cited $3.6 million of aircraft-availability penalties, $1.5 million of fuel expense in excess of fuel revenue, and persistent transition costs.
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Updated fuel availability and price risk
The sole updated risk factor highlights fuel-supply disruption and price volatility associated with the Iran conflict. In Q2, Government Services incurred $1.5 million of fuel expense above fuel revenue because contractual recovery lags persisted.
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Working-capital use and elevated capex burden
Six-month operating cash flow fell to $32.826 million from $98.436 million, as working capital consumed $71.5 million, including higher receivables and Government Services start-up costs. Capital expenditures were $108.7 million, exceeding operating cash flow by $75.874 million.
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Higher debt and interest expense weigh on earnings
Total debt, net of deferred financing fees, was $745.5 million at June 30, 2026, including $27.4 million classified as current. First-half net interest expense increased $6.520 million year over year to $26.044 million.
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FX and pension costs reduced first-half profit
First-half net income attributable to Bristow declined $24.847 million, or 42.0%, to $34.260 million despite 10.1% revenue growth, driven in part by $14.283 million of other expense versus $28.965 million of other income a year earlier.
Management's outlook
The 10-Q MD&A does not provide quantitative revenue or EPS guidance; management states that operating cash flow and other liquidity sources are expected to be sufficient for working capital, debt service, capital expenditures and capital-allocation targets.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.