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Date

Thursday, February 26, 2026 at 10 a.m. ET

Call participants

  • President & Chief Executive Officer — Christopher S. Bradshaw
  • Senior Vice President & Chief Financial Officer — Jennifer Dawn Whalen

Takeaways

  • Adjusted EBITDA -- $246 million reported, up approximately 4% compared to the prior year, and in line with guidance.
  • 2026 Adjusted EBITDA Guidance -- Affirmed range of $295 million to $325 million, representing approximately 25% projected growth.
  • Total Revenues -- $75 million higher annually, with 2025 full-year total of $1.46 billion.
  • 2026 Total Revenues Guidance -- Range reaffirmed at $1.6 billion to $1.7 billion.
  • Offshore Energy Services (OES) 2025 Revenue -- $990 million reported, up by $24.4 million due to higher utilization and capacity, especially in Africa (+$21.7 million) and the Americas (+$19.2 million), offset by a $16.5 million decrease in Europe.
  • OES 2026 Revenue Guidance -- Set at $1.0 billion to $1.1 billion; adjusted operating income targeted at $225 million to $235 million compared to $230 million in 2025.
  • OES Contract Renewal Rate Impact -- CEO Bradshaw stated, "on average, globally, the rate uplift for leading-edge contracts compared to the legacy contract rates they are replacing is about 25%," driving most of the 15% segment adjusted operating income increase expected in 2026.
  • Government Services 2025 Revenue -- Up $49.8 million year over year, driven by the Irish Coast Guard contract commencement and higher UK SAR revenues.
  • Government Services 2025 Adjusted Operating Income -- $12 million lower due to higher expenses related to new contract launches in Ireland and the UK.
  • Government Services 2026 Revenue Guidance -- Range of $440 million to $460 million, with adjusted operating income guidance of $70 million to $80 million, roughly double the current year.
  • Other Services 2025 Revenue -- Increased by $800,000 year over year; adjusted operating income fell by $5.4 million, mainly due to increased operating expenses related to activity in Australia.
  • Other Services 2026 Guidance -- Revenues projected at $130 million to $150 million, adjusted operating income at $20 million to $25 million.
  • Q4 Sequential Results -- Total revenue down $9 million, adjusted EBITDA down $7 million versus Q3, due to seasonal decreases in Other Services and OES segments.
  • Liquidity and Cash -- Unrestricted cash balance at $286 million and total liquidity at $347 million as of December 2025.
  • Cash Flow -- $198 million in operating cash flow generated, with adjusted free cash flow up by $26 million compared to the prior year.
  • Refinancing Activity -- $500 million senior secured notes issued with a 6.75% coupon and 2033 maturity; proceeds used partly to redeem 6.875% senior notes and pledge a portion of new aircraft as collateral.
  • Dividend Initiation -- Company announced a $0.25 per share dividend payable on March 26, 2026.
  • Net Asset Value (NAV) Disclosure -- Estimated NAV of $1.8 billion, or $60 per share, based on fair market value of owned aircraft as of December 31, 2025, excluding future undelivered aircraft.
  • Advanced Air Mobility Initiatives -- Bristow Group completed its first electric aviation project in Norway, secured top delivery slots for the Electra eL-9 aircraft, and announced new UK electric air travel partnerships, with capital commitments of "a few million dollars" to date and up to $30 million possible for Electra orders if milestones are met.

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Risks

  • Bradshaw acknowledged, "we have had some aircraft delivery delays, which has complicated the timeline" for the UK SAR2G contract due to supply chain issues in the helicopter industry.
  • Whalen cited that higher repairs and maintenance ($2.9 million) and higher personnel costs ($1.6 million) led to a $3.2 million sequential decrease in Government Services adjusted operating income in Q4.
  • Whalen indicated full-year Government Services adjusted operating income declined by $12 million primarily from expenses related to starting new contracts in Ireland and the UK.
  • Management noted potential risks to guidance from oil price volatility, FX rate fluctuations (notably GBP and EUR on UK and Ireland contracts), and ongoing supply chain constraints.

Summary

Bristow Group (VTOL +1.07%) affirmed its robust growth outlook by maintaining its 2026 revenue and adjusted EBITDA guidance, supported by confirmation of a substantial contract rate uplift in Offshore Energy Services and doubling of expected Government Services adjusted operating income. Strategic initiatives included the launch of a shareholder dividend and successful refinancing of senior debt, improving capital flexibility and eliminating near-term maturities. The company highlighted progress in advanced air mobility, with significant operational milestones and selective commitments in electric aircraft and UK projects, reinforcing its positioning in emerging aviation markets.

  • Management disclosed that by year-end, the entire Offshore Energy Services contract portfolio will have reset rates, and "most of the 15% uplift in the adjusted operating income" for the segment derives from this.
  • Bradshaw emphasized that supply-demand dynamics for offshore-configured heavy and super-medium aircraft remain tight, and manufacturing lead times are extended due to competition with military orders.
  • Whalen confirmed, "no significant financing is needed" for the seven AW189 aircraft set for delivery in 2026 because of January's bond offering.
  • Bradshaw shared that Bristow Group has secured the initial delivery slot for the Electra eL-9 ultra-short takeoff and landing aircraft and limited firm capital obligated so far only if performance milestones are satisfied.
  • Government Services growth pipeline is driven by ongoing discussions with several European countries on outsourced Coast Guard opportunities, buoyed by increasing defense budgets and client interest in public-private aviation partnerships.
  • OES segment growth is mainly attributed to expanding activity and capacity deployment in Africa and Brazil, while operating cost controls contributed to improved segment income.
  • Ongoing transition costs for new contracts in Ireland are expected to decline through 2026 as pilot retraining completes and bases reach full operation.
  • Management detailed that, although deposits for undelivered aircraft appear in NAV disclosures, the fair market value shown includes only active owned fleet as of year-end.

Industry glossary

  • Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, before certain non-recurring or non-cash adjustments, used by Bristow to measure segment and consolidated operating performance.
  • OES (Offshore Energy Services): Bristow's segment providing helicopter and aviation support primarily for offshore oil and gas operations.
  • Government Services: Bristow's segment focused on contracts for government and public sector clients, notably including search and rescue operations.
  • AW189: A model of heavy helicopter manufactured by Leonardo S.p.A., often used in offshore and SAR operations.
  • UK SAR2G: The United Kingdom’s next-generation search and rescue helicopter contract transitioning from the previous SARH program.
  • Electra eL-9: A hybrid-electric, ultra-short takeoff and landing (eSTOL) fixed-wing aircraft targeted for regional advanced air mobility service.
  • NAV (Net Asset Value): The estimated market value of assets owned, minus liabilities and deferred taxes, establishing a per-share valuation metric annually disclosed by Bristow.

Full Conference Call Transcript

Christopher S. Bradshaw: Thank you, Redeate. I will begin with a note on safety, which is Bristow Group Inc.'s number one core value and our highest operational priority. We experienced fewer lost workdays in 2025, the second consecutive year of improvement in this metric. The Bristow Group Inc. team remains committed to our target zero safety culture and the belief that we each own safety every day. By maintaining situational awareness and always looking out for one another, we can deliver on Bristow Group Inc.’s commitment to zero accidents and zero harm. We are also pleased to report strong financial performance in 2025.

Full year adjusted EBITDA of $246 million was in line with guidance for 2025, and we are affirming our financial guidance range of $295 million to $325 million for 2026, which reflects adjusted EBITDA growth of approximately 25% year over year. We expect strong cash flow conversion, which Jennifer will further detail in her commentary. For now, I will refer you to slide 15 in our earnings presentation, which summarizes the transformative growth in Bristow Group Inc.’s business over the last few years. Since the pandemic era trough in 2022, we have experienced significant year-over-year growth in revenues, adjusted operating income, adjusted EBITDA, and margins.

With the continued growth and diversification of our Government Services business, Bristow Group Inc. has evolved into a scaled, multi-mission aviation services provider with leading market positions in our core markets. As reflected in our firm financial outlook, we expect adjusted operating income in our Government Services business to double in 2026, and the high-quality, infrastructure-like cash flows from these contracts provide a durable cash flow foundation for the company. In addition, we expect adjusted operating income in our Offshore Energy Services business to increase by approximately 15% in 2026, primarily due to improved terms on contract renewals.

In January, Bristow Group Inc. completed a successful refinancing of our senior notes with an upsized $500 million transaction at a lower coupon rate of 6.75% and an extended maturity into 2033. Bristow Group Inc.’s positive financial outlook, robust balance sheet, and strong liquidity position support the initiation of the company’s cash dividend program, confirmed by yesterday’s announcement of a $0.25 per share dividend payable on March 26, 2026. I will now hand it over to our CFO for a more detailed discussion of 2025 results and our financial outlook. Jennifer?

Jennifer Dawn Whalen: Thank you, Chris, and good morning, everyone. Today, I will begin with a review of Bristow Group Inc.’s sequential quarter and full year financial results on a consolidated basis before covering the financial results and 2026 guidance ranges for each of our segments. Total revenues and adjusted EBITDA were $9 million and $7 million lower in Q4 compared to Q3, respectively, primarily due to lower seasonal activity in our Other Services and Offshore Energy Services segments.

As Chris noted, we are pleased to report another year of strong financial results with total revenues in 2025 up $75 million compared to 2024, and adjusted EBITDA of $246 million, which is approximately 4% higher than last year and in line with our previously published outlook. At this time, we are affirming our 2026 guidance ranges of $1.6 billion to $1.7 billion for total revenues and $295 million to $325 million for adjusted EBITDA. Turning now to our segment financial results. Revenues in our Offshore Energy Services, or OES, segment were $3 million lower in Q4 primarily due to the end of fixed-wing services in Africa and lower utilization in the U.S.

Adjusted operating income was consistent with the preceding quarter as the lower revenues were partially offset by higher earnings from unconsolidated affiliates coupled with lower net operating expenses, largely due to lower subcontractor and repairs and maintenance costs. Year over year, OES revenues were $24.4 million higher, primarily due to increased utilization and additional aircraft capacity in Africa of $21.7 million and higher utilization in the Americas of $19.2 million, primarily driven by the U.S. and Brazil. Revenues in Europe were $16.5 million lower due to lower utilization.

Adjusted operating income was $30 million higher in the current year, primarily due to the higher revenues coupled with lower general and administrative expenses of $5.9 million and lower operating expenses of $3.6 million. The decrease in G&A costs was attributable to lower professional service fees, insurance, and lease costs, while operating expenses benefited from lower R&M costs, lower fuel prices, and lower insurance premiums, which were partially offset by higher personnel and other operating costs related to increased activity. Our 2026 OES revenues guidance range is between $1.0 billion and $1.1 billion compared to $990 million reported for 2025, and our 2026 adjusted operating income guidance range is $225 million to $235 million compared to $230 million in 2025.

Moving on to Government Services. Revenues were $800,000 lower primarily due to lower seasonal activity in the UK but were partially offset by the commencement of operations at an additional base in Ireland. Adjusted operating income was $3.2 million lower in Q4, impacted by higher repairs and maintenance of $2.9 million resulting from lower vendor credit and the timing of repairs, coupled with higher personnel costs of $1.6 million related to contract transitions, which were partially offset by lower other operating expenses.

Full year revenues from Government Services were $49.8 million higher in the current year with the commencement of the Irish Coast Guard contract and higher UK SAR revenues, largely resulting from favorable FX impact and the commencement of fixed-wing services. Adjusted operating income was $12 million lower in the current year, primarily due to higher expenses attributable to the commencement of new contracts in Ireland and the UK, partially offset by the higher revenue. The outlook for our Government Services business is positive, as illustrated by the 2026 revenue guidance range of $440 million to $460 million and adjusted operating income guidance range of $70 million to $80 million, which is roughly double that of 2025.

As shown on slides 14 and 15, the strong margins and earning potential of this business will continue to improve as the operation and revenues for these contracts continue to ramp, and certain costs subside as transitions to the new contracts conclude in 2026. Finally, revenues from our Other Services were $5.2 million lower in Q4 primarily due to lower seasonal activity in Australia, and adjusted operating income was $4.1 million lower due to the lower revenues, partially offset by lower operating expenses of $1.2 million related to lower seasonal activity.

On a full year basis, revenues from Other Services were $800,000 higher in the current year as a result of higher activity, partially offset by lower revenues due to the conclusion of certain dry lease contracts. Adjusted operating income was $5.4 million lower in the current year primarily due to higher operating expenses of $5.9 million offsetting the higher revenues of $800,000. The increase in operating expenses was due to higher activity in Australia.

We expect the improved economics in our regional airline in Australia to continue for this segment to remain consistent and cash flow accretive, and our 2026 revenues and adjusted operating income guidance for this segment is between $130 million and $150 million and $20 million to $25 million, respectively. Moving on to cash flows and liquidity. As of December 2025, our unrestricted cash balance was approximately $286 million with total available liquidity of approximately $347 million. In recent years, working capital has been impacted by increases in our various other assets, primarily related to start-up costs for new Government Services contracts and inventory to support new contracts and mitigate risks related to supply chain constraints.

Despite these impacts, the business has continued to generate strong operating cash flows. In 2025, cash flow from our operations generated $198 million compared to $177 million in the prior year, and adjusted free cash flow was approximately $26 million higher in the current year. We expect the business to continue generating strong free cash flows into 2026 and working capital to improve over time as supply chain constraints subside and our new contracts conclude their transition periods, reaching their full operational run rate. Lastly, as Chris noted, in January, Bristow Group Inc. closed a private offering of $500 million senior secured notes due in 2033 with a coupon of 6.75%.

The company used a portion of the net proceeds to redeem the 6.875% senior notes, with the remaining net proceeds to be used for general corporate purposes. This refinancing has increased the pro forma cash balance and liquidity of the company. Today, Bristow Group Inc. has no near-term debt maturities, attractive financing with a lower coupon rate and improved terms, amortizing equipment financing that includes flexible prepayment terms, and growth and net leverage ratios that have continued to reduce each year.

In summary, we are pleased with Bristow Group Inc.’s financial performance this year and with the outcome of this transaction, and remain committed to protecting and maintaining a strong balance sheet and liquidity position while furthering shareholder return initiatives with the commencement of our new cash dividend program. I will now turn the call back to Chris for further remarks. Thank you.

Christopher S. Bradshaw: I will now refer you to slide 21 in our earnings presentation, which summarizes Bristow Group Inc.’s annual net asset value, or NAV, disclosure. As a reminder, we provide this NAV presentation annually in compliance with certain covenants and other disclosure obligations. The helicopter fair market values are based on a desktop appraisal performed by a third-party expert as of 12/31/2025. The NAV calculation takes this estimated fair market value of Bristow Group Inc.’s owned aircraft plus the book value of other tangible assets, less total debt and deferred taxes, to arrive at an aggregate NAV of approximately $1.8 billion, or $60 per share.

Thus far in the call, we have discussed Bristow Group Inc.’s financial outlook for 2026, an outlook supported by the growth and stability of our Government Services business, the heavy weighting of our Offshore Energy Services business toward the more stable production support activities, and the breadth and diversity of the geographic markets we serve. Looking forward, we would now like to share some perspectives beyond the confines of calendar year 2026. Bristow Group Inc. continues to have a positive long-term outlook for offshore energy services activity. Deepwater projects are favorably positioned, offering attractive relative returns within the asset portfolios of oil and gas companies, and we believe offshore projects will receive an increasing share of future upstream capital investment.

This positive demand outlook is paired with a tight supply dynamic. The fleet status for offshore-configured heavy and super-medium aircraft remains tight, and the ability to bring in new capacity remains constrained, with long manufacturing lead times on production lines that must be shared with military aircraft orders. We believe this constructive supply-demand balance supports a positive outlook for the offshore helicopter sector. As noted earlier, with the continued growth and diversification of our Government Services business, Bristow Group Inc. has evolved into a scaled, multi-mission aviation services provider. We see additional growth opportunities in our core government search and rescue business, as well as a broader spectrum of aviation services to government and military customers.

In the context of a complicated geopolitical landscape and expectations for significant increases in defense spending, we believe there will be compelling organic and inorganic growth opportunities for a specialized aviation services provider with Bristow Group Inc.’s track record, operational expertise, and financial flexibility. Finally, as summarized on slide 5 of the earnings presentation, we have continued to advance Bristow Group Inc.’s position as an early leader in advanced air mobility. We recently completed Bristow Group Inc.’s first electric aviation project, conducted as an international test arena in Norway in partnership with the local regulator and our partners at Beta Technologies, where we flew over 100 missions in six months of operational testing.

In addition, we recently secured some of the first delivery slots, including slot number one, for the hybrid-electric, highly versatile, Electra eL-9 ultra-short takeoff and landing aircraft. Bristow Group Inc. also recently announced an expanded role in advancing the UK’s first electric air travel network through a new collaboration with Vertical Aerospace and Skyports Infrastructure, with initial service targeted for early 2029. We believe that Bristow Group Inc. has created significant option value with minimal capital commitment to date in what is expected to be a large and rapidly growing addressable market for these new-generation aircraft. We will now open for questions. Luke?

Operator: At this time, I would like to remind everyone that in order to ask a question, please press star then the number 5 on your telephone keypad. If you would like to withdraw your question, please press star and the number 5 once again. We will pause for just a moment to compile the Q&A roster. The first question will come from Jason Vandeil with Evercore ISI. Please ask your question.

Jason Vandeil: Thanks. Good morning, Chris, Jennifer, and Redeate. So you affirmed your 2026 OES guidance and noted improved terms on contract renewals. Can you talk about how far into the renewal cycle you currently are? Have there been any kind of changes to rates as these contracts renew? And how much of this is reflected in your guidance?

Christopher S. Bradshaw: Yes. As of our last disclosure, we were about 50% through rolling over our Offshore Energy Services customer contract portfolio, and we expect to be substantially complete with that conversion by the end of this calendar year. So by December, effectively, all of the OES customer contract portfolio will have reset. The impact is reflected in our guidance for 2026, and most of the 15% uplift in the adjusted operating income for that segment is due to those improved contract terms. On average, globally, the rate uplift for leading-edge contracts compared to the legacy contract rates they are replacing is about 25%.

There are some regional differences, some higher and some lower, but on average, it has been about 25%, and that is holding pretty consistent.

Jason Vandeil: Got it. Thanks for that color. And then next, can you highlight the regions that are going to be driving your growth in 2026, and where you are most likely to mobilize additional capacity, whether it is taken from other markets or just from new aircraft deliveries?

Christopher S. Bradshaw: Yes, happy to do that. The regions where we are seeing more demand and growth, and where we are mobilizing additional aircraft capacity, include Africa, which has been a strong region for us the last couple of years, and we expect it to remain that way in 2026, as well as Brazil, which has been one of the fastest-growing deepwater basins, and again, we expect that to continue. Those are probably two of the faster-growing ones that I would highlight in terms of where additional capacity is moving into.

Jason Vandeil: Got it. And last one for me, just a popular topic this quarter in terms of this discussion around Venezuela. We generally think about the onshore opportunity there, but there has been some offshore gas development in the past. How do you view potential opportunities for Bristow Group Inc. in Venezuela and, just given your presence in the Caribbean, would you have any kind of advantages if you decide to enter that market?

Christopher S. Bradshaw: Yes. There could be. We are not expecting near-term opportunities to materialize for offshore helicopters, though we will be supporting some work out of Trinidad into joint basins that overlap Venezuela, which are more likely to go forward now. But as you noted, we do have a large presence in the Americas that includes longtime presence in Trinidad, where we do both crew change and search and rescue work, as well as Suriname and including Curaçao. So given our presence in the region, I think if and when opportunities do materialize, we are as well positioned as anyone to take advantage of them.

Jason Vandeil: Thank you so much. I will turn it back. Thank you.

Operator: The next question comes from Joshua Ward Sullivan with JonesTrading. Your line is now open. Please go ahead.

Joshua Ward Sullivan: Good morning. Just wanted to ask on UK SAR2G. Just on the transition, how is that coming along, supply chain issues or otherwise state of the world? Any delays or risks to aircraft delivery timelines we should be thinking about?

Christopher S. Bradshaw: Thank you for the question, Josh. I would say, overall, the transition from the current UK SARH contract to the new UK SAR2G contract is going well, and I want to extend my gratitude to the whole team, everyone on the Bristow Group Inc. team, as well as the Maritime and Coastguard Agency team that are working on that. There have been some aircraft delays, consistent with the supply chain issues that have plagued the aviation industry and certainly the civilian helicopter industry over the last few years. I think Leonardo is having some of those with their suppliers and vendors as well, so we have had some aircraft delivery delays, which has complicated the timeline.

But we are working closely in collaboration with our customer at the Maritime and Coastguard Agency to manage through those issues, and the communication is going well. Again, overall, the contract transition to UK SAR2G is progressing well.

Joshua Ward Sullivan: And then, I guess, on the Irish side, now you have the full suite of bases online, and the costs you mentioned in the prepared comments there, Jennifer, can you just talk about what costs are going to be subsiding through 2026 and how that ramps down?

Jennifer Dawn Whalen: Sure. So there are still transition costs for the Irish Coast Guard contract into 2026. As we took the last phase over in February, there is still training that needs to occur. These pilots are moving from one aircraft type to a new aircraft type. So it is primarily that training and getting everyone up to speed and trained and ready to go on the new contract.

Joshua Ward Sullivan: Got it. And then maybe just switching over to advanced air mobility. Congrats on the Norway sandbox and getting that done, but curious if you could give us any insights into findings or how significant the initiative was towards your future plans. You know, you guys are on the tip of the spear there, so it is always interesting to hear your perspectives.

Christopher S. Bradshaw: Yes. I would say very significant. This was really a first-of-its-kind project globally, and we were able to operate the aircraft on a daily basis in partnership with the local regulator and Beta Technologies and get some valuable real-world insights. There will be a formal report published in a couple of months. I do not want to preempt that, but I would say at a high level, there are some learnings related to the battery storage, battery charging, as well as radar position and communication of the aircraft.

There will be more to say on that when the full report comes out, but we were really excited to complete that project, which is one of the first of its kind globally.

Joshua Ward Sullivan: And just one last one. Chris, your comments on just the defense market given geopolitically what is going on and your interest there, but then combining it with the reality that you guys are at the tip of the spear in the advanced mobility market and the interest the defense market has in those applications. Are you looking at your combined capabilities here? Is that going to be an advantage, or are you thinking more traditional kind of defense sort of orientation?

Christopher S. Bradshaw: We are thinking both. We are thinking traditional defense orientation, and we are already doing work today with the UK MOD, and we have done some work historically with the U.S. military, but we think that opportunity set will be a big one for us going forward. But also, I think you are spot on, Josh, in mentioning that our early leader position in advanced mobility should be a strong interplay with government and militaries, which are expected to be some of the biggest customers globally for those new-generation aircraft.

Operator: Thank you for the time. The next question comes from Savi Syth with Raymond James. Your line is now open. Please go ahead.

Savi Syth: Hey, good morning, everyone. I wonder if you could talk a little bit about the thinking and the shift in your debt strategy here and how you are thinking about balance sheet targets going forward.

Jennifer Dawn Whalen: Sure. We were happy to execute the transaction that we did in January, and we were able to upsize that with an attractive coupon and term, and dramatically better credit spreads than the last issuance that we had. We did state that we plan to pay down debt by 2026, and that would likely be our UK SAR2G equipment financing, and all things being equal, that would still be the case. In the meantime, we will evaluate other opportunities. We still feel comfortable where we are at on that, and we are happy to get that refi done.

Savi Syth: Got it. And then just on the aircraft deliveries that are expected here in 2026, could you remind me the plan on the financing front on that, Jennifer?

Jennifer Dawn Whalen: So we do have orders for seven AW189 this year. We do plan to either pay for those with cash on hand or lease them or do something else around that, but no significant financing is needed based on what we did in the bond deal. We did pledge a couple of those in that bond deal.

Savi Syth: Got it. And then just finally, if I might ask one last question just on the Electra announcement that came. It sounded like that included some agreements on PDPs. Could you talk about or provide a little bit more detail on the timing and level of investment in that area?

Christopher S. Bradshaw: Yes. Thank you for the question, and happy to address that. To date, we only have a few million dollars of capital commitments that have been made. The agreements that we have in place are subject to certain milestones around certification and aircraft performance. If those are met, and if we see the compelling market opportunities, we have the option to bring those aircraft in, and specifically to the Electra that would be up to $30 million for the ones that have been ordered thus far.

And the financing for anything that we would do around advanced air mobility, we think we have the ability to execute given the financial flexibility that Bristow Group Inc. has built today with our balance sheet and liquidity position.

Savi Syth: Helpful. Thank you.

Operator: Once again, if you have a question, you may press 5 on your telephone keypad. Our next question will come from Alex Ragil with Texas Capital. Your line is now open.

Alex Ragil: Thank you, and good morning. As it relates to your guidance, can you talk to some of the variables that could either surprise you on the upside or the downside?

Jennifer Dawn Whalen: Sure. Happy to answer that. There are items that would bias either to the high side or the low side of the range. Really, macro environment—price of oil and stability of prices—could. About 15% of our revenues do come from exploration, which would be the most affected by those. Foreign exchange rates, particularly the British pound and the euro, in our search and rescue contracts in Ireland and the UK—we do get paid in those currencies—and so it could bias us one way or the other depending on what happens with the dollar to those currencies. And then further supply chain constraints or improvements could also affect that and bias us one way or the other.

Alex Ragil: That is very helpful. And then can you also help us to understand where the next kind of notable government contracts might develop and what that timeline might look like?

Christopher S. Bradshaw: Yes. There is not a published tangible timeline for a lot of the search and rescue projects to date, but I would note that there are a lot of conversations that are going on now with European governments. A lot of them have made commitments to spend more on defense over the next several years, and one of the ways from a budgetary standpoint they may look to balance that is potentially outsourcing some of the non-combatant services like a civilian coast guard. So we are having encouraging conversations with a few different countries in Europe today about outsourced Coast Guard opportunities, similar to what we are already doing for countries like the UK, Netherlands, Ireland, etc.

So we remain optimistic about the pipeline for additional government search and rescue work. And then beyond that, we do see a broader set of opportunities for an aviation service partner to work in public-private type partnerships with militaries and governments in both Europe and the Americas to meet some of the increased defense spending objectives that they have.

Alex Ragil: Very helpful. Thank you.

Operator: Our final question will come from Steven Silver with Argus Research. Your line is now open.

Steven Silver: Thanks, operator, and thanks for taking my questions. First, referencing the NAV slide, does the cited $1.6 billion in fair market value of the owned aircraft reflect any of the new aircraft that have been committed for purchase but not yet delivered, or does that just apply to the current fleet?

Jennifer Dawn Whalen: Good morning, Steve. Thanks for the question. No, the fair market value of the aircraft on the NAV slide reflects the third-party appraisal of the aircraft that Bristow Group Inc. has in the fleet today and does not include the anticipated new deliveries. However, there are deposits for the new aircraft in the other PP&E line on that NAV slide.

Steven Silver: Great. And so even though commercialization is still a few years out now, as AAM gets closer to the market and Bristow Group Inc. has now secured initial delivery slots, is there any early view that you have on the supply dynamics that you envision for that market that could help define the pace of an eventual commercial rollout?

Christopher S. Bradshaw: It will start small as those companies mature their manufacturing capabilities. So it could be single digits to low double digits in the first year, ramping up pretty quickly after that. But I think it will be a measured pace within this decade, but likely scaling to a much larger hundreds of units across the different manufacturers as we roll the calendar into the next decade.

Steven Silver: Great. And one last one, if I may. Earlier you discussed the improved terms on the 2026 contract renewals for OES supporting adjusted operating income growth. Can you provide any details on the percentage of the total contract book that was up for renewal this year, and any parameters around contracts coming up for renewal over the next couple of years that you are envisioning?

Christopher S. Bradshaw: So about 50% of the OES customer contracts had renewed prior to 2025, and most of the rest, potentially all, will have renewed by the end of this calendar year.

Jennifer Dawn Whalen: The benefits of that within calendar 2026 are reflected in the guidance range that we have provided.

Christopher S. Bradshaw: And future years will include the full-year benefit of those. It has been a healthy rate uplift—again, about 25% on average globally for leading-edge rates compared to the legacy contract rates that they are replacing—and most of the 15% increase in our adjusted operating income from our OES segment in 2026 is due to those improved contract terms.

Steven Silver: Great, thanks for the details.

Christopher S. Bradshaw: Thank you.

Operator: This concludes our question and answer session. I will now turn the call over to Christopher S. Bradshaw for closing remarks.

Christopher S. Bradshaw: Thank you, Luke, and thanks, everyone, for joining the call. We look forward to updating you again next quarter. In the meantime, stay safe and well. This concludes today’s call. You may now disconnect at any time.