Bristow Q3 Profit Rises to $27.7 Million as Revenue Climbs

Bristow Group reported on November 3, 2026, that third-quarter revenue rose to $437.9 million from $411.8 million in the second quarter, while net income attributable to the company increased to $27.7 million, or $0.93 per diluted share, from $21.2 million, or $0.70. The company also affirmed the midpoint of its full-year 2026 Adjusted EBITDA guidance.

Operating income increased to $47.7 million from $39.6 million for the quarter ended September 30, 2026. Adjusted EBITDA, which Bristow defines as EBITDA adjusted for items including non-cash asset-sale gains and losses, non-cash foreign-exchange gains and losses on certain balance-sheet revaluations and special items, rose to $89.6 million from $79.8 million. Income tax expense increased to $9.1 million from $0.1 million, primarily reflecting higher pre-tax book income and the absence of a Nigerian tax credit used in the preceding quarter.

Acquisition Lifts Government and Other Services

Government Services revenue rose 15.9% sequentially to $130.0 million from $112.2 million. The increase was primarily due to Berry Aviation, acquired in July 2026 and renamed Bristow Special Mission Inc., which contributed $16.9 million of third-quarter revenue. UK search-and-rescue revenue added another $1.6 million, primarily because of lower penalties and increased fuel revenue, while Irish Coast Guard revenue declined $0.7 million on higher aircraft-availability penalties.

The segment nevertheless remained unprofitable on an operating basis. Its operating loss narrowed to $1.4 million from $2.1 million as higher operating, administrative and depreciation expenses partly offset the revenue increase. Adjusted Operating Income, defined by Bristow as operating income or loss before depreciation and amortization including power-by-the-hour amortization, increased to $9.7 million from $7.2 million, with the corresponding margin rising to 7% from 6%.

Other Services revenue climbed 36.8% to $51.9 million from $37.9 million. Bristow Special Mission contributed $9.2 million, and increased activity in Australia added $4.8 million. Segment operating income rose to $9.9 million from $2.9 million, although the acquired operation also brought higher operating, administrative and depreciation costs.

President and CEO Chris Bradshaw expects growth from Bristow Special Missions to accelerate in the fourth quarter and full-year 2027.

Offshore Profit Rises as Revenue Slips

Offshore Energy Services moved in the opposite direction on revenue but still earned more. Revenue declined 2.1% to $256.0 million from $261.6 million. European revenue fell by $10.9 million, primarily because of lower utilization, while Americas revenue increased by $6.0 million on higher utilization and rates.

Operating income nevertheless increased to $49.2 million from $46.1 million, and operating margin improved to 19% from 18%. The improvement principally reflected $8.3 million lower operating expenses, $1.6 million lower depreciation and amortization and $1.1 million lower general and administrative expenses, which offset lower revenue and a $2.3 million decline in earnings from unconsolidated affiliates. Adjusted Operating Income increased to $68.5 million from $66.5 million, taking its margin to 27% from 25%.

Cash Improves as Supply-Chain Delays Constrain Margins

Bradshaw said delayed aircraft-modification programs for new search-and-rescue contracts and their associated knock-on effects are depressing current Government Services margins. “We expect these supply chain issues to stabilize during 2027, facilitating a return to historically strong margins on these long-term government contracts,” he said.

Bristow’s updated 2026 outlook calls for total revenue of $1.64 billion to $1.70 billion and Adjusted EBITDA of $300 million to $320 million. The Government Services ranges are $470 million to $490 million of revenue and $35 million to $45 million of Adjusted Operating Income. The corresponding ranges are $240 million to $250 million for Offshore Energy Services and $25 million to $30 million for Other Services.

Cash generation also strengthened. Net cash provided by operating activities rose to $61.2 million from $41.1 million, primarily on higher earnings and reduced working-capital uses. Free Cash Flow, which Bristow defines as operating cash flow less maintenance capital expenditures, increased to $56.0 million from $34.3 million. Purchases of property and equipment totaled $20.8 million, including $5.1 million of maintenance spending, while asset sales generated $19.2 million.

At September 30, 2026, Bristow held $233.4 million of unrestricted cash and had $53.9 million of remaining availability under its asset-based revolving credit facility, producing total liquidity of $287.3 million. It repurchased 547,785 common shares during the quarter for $25.0 million, leaving $96.0 million available under its $125.0 million repurchase program.

The quarter combines stronger consolidated earnings and cash generation with a Government Services business that remains in an operating loss despite acquisition-driven revenue growth. Offshore profitability and the Special Mission contribution are supporting results now, while management’s forecast of supply-chain stabilization in 2027 leaves the timing of a broader government-contract margin recovery unresolved.