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DATE
Thursday, March 5, 2026 at 5 p.m. ET
CALL PARTICIPANTS
- Chief Executive Officer — Sam Davis
- Chief Financial Officer — Eric L. Gerratt
- Incoming Chief Financial Officer — Anne Hayes
TAKEAWAYS
- Revenue growth -- Full-year revenue reached $122.8 million, up 25%, with revenue excluding return-to-service work rising 23% to $108.8 million.
- Net income -- The company reported net income of $4.1 million versus a net loss of $15.6 million in 2024.
- Adjusted EBITDA -- Adjusted EBITDA increased to $45.3 million, up from $37.3 million.
- 2026 guidance -- Management projected total revenues of $135 million to $145 million and adjusted EBITDA of $55 million to $60 million, excluding Spain return-to-service work.
- Aircraft fleet expansion -- Six new aircraft, including two PC-12s, two King Air MMAs, and two Spanish Super Scoopers, were added to the balance sheet.
- Exclusive-use contracts -- The company is pursuing additional exclusive-use, multiyear contracts and recently secured a five-year IDIQ contract for transport services in Alaska, estimated at $18 million.
- High utilization -- Utilization, as measured in days on contract, was up nearly 10%, and multi-mission aircraft flight hours almost doubled.
- Cost structure -- 2025 cost of revenues was $71.1 million, split between $31.9 million in flight operations and $39.2 million in maintenance.
- Other income -- Other income totaled $11.8 million, primarily reflecting a $16.9 million gain from a sale-leaseback, partially offset by a $7.8 million loss on debt extinguishment.
- Liquidity and financing -- Cash and equivalents ended the year at $31.4 million, with a new $331.5 million senior secured facility providing $100 million in delayed draw capacity.
- Segment contribution -- FMS subsidiary contributed $7.9 million in revenue and is supporting both internal aircraft modification and external contract bids, especially with U.S. federal defense agencies.
- Margin profile -- Management stated, "our Scoopers are generally over 40% adjusted EBITDA margin, and our newer MMA aircraft can be as high as 40% to 50% or above."
- 2026 revenue mix -- New Scoopers and MMA aircraft are expected to make up 10%-15% of projected 2026 revenue, contributing approximately 40% EBITDA margin.
- International operations -- Two Spanish Super Scoopers are under active contract negotiations in Europe, with Portugal and Turkey cited as leading prospects for near-term deployment.
- Operational scope -- The company supported 380 fires across 21 states, dropping 7.3 million gallons of water while maintaining 96% uptime and record fleet hours, which rose over 10%.
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RISKS
- The company stated, "we expect to report a net loss in the first quarter due to the winter maintenance activity."
- Revenue from FMS was "delays due to federal budgeting and budgeting uncertainties through 2025," suggesting potential unpredictability in certain contract streams.
SUMMARY
Bridger Aerospace Group Holdings (BAER 2.04%) delivered a return to profitability with $4.1 million in net income and a 25% top-line increase, supported by expanded fleet deployment, contractual diversification, and operational efficiency initiatives. Management outlined robust 2026 guidance, with total revenues expected to reach up to $145 million and adjusted EBITDA to hit $60 million, underpinned by new high-margin assets and a strengthened capital structure. Strategic alignment with evolving federal wildfire management policy, targeted international market expansion, and recent leadership additions position the company to further capitalize on rising market demand for aerial wildfire services.
- Incoming CFO Anne Hayes highlighted plans for improved operating cash flow and reiterated expectations for 2026 profitability despite anticipated early-year seasonality.
- The company emphasized financial flexibility, citing nearly $90 million remaining in its delayed draw facility for further fleet investments.
- Ongoing integration of Ignis Technologies into real-time sensor platforms is driving additional value in multi-mission contracts, according to management disclosures.
- Federal legislative actions—including the Fire Ready Nation Act and Aerial Firefighting Enhancement Act of 2025—are directly referenced as catalysts supporting Bridger Aerospace Group Holdings' future business prospects.
INDUSTRY GLOSSARY
- IDIQ (Indefinite Delivery, Indefinite Quantity) contract: Contract vehicle allowing for an undefined quantity of goods/services over a fixed period as needs arise.
- Exclusive-use contracts: Agreements in which aircraft or assets are contracted for dedicated, priority use by a government agency, typically over a multi-year term.
- Super Scooper: Aerial firefighting aircraft capable of quickly scooping and dropping large volumes of water on wildfires.
- MMA (Multi-Mission Aircraft): Aircraft configured for multiple roles, such as firefighting, surveillance, and intelligence.
- FMS (Flight Management Systems): Refers to the company's subsidiary specializing in avionics, aircraft modification, and technical integration.
- Sale-leaseback: A financial transaction in which an asset is sold to generate immediate cash and then leased back to maintain operational use.
- DDTL (Delayed Draw Term Loan): A loan facility that allows the borrower to draw down funds over time, as needed, rather than in a lump sum at closing.
Full Conference Call Transcript
Eric L. Gerratt: Good afternoon, and thank you for joining us today. Joining me on the call this afternoon is Chief Executive Officer Sam Davis, and incoming CFO, Anne Hayes. Before we begin, please note that certain statements contained in this conference call that do not describe historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Since forward-looking statements are based on various assumptions, risks, and uncertainties, actual results may differ materially from those expressed or implied by such statements. Factors that could cause results to differ materially from those expressed include, but are not limited to, those disclosed in the company's filings with the U.S.
Securities and Exchange Commission, including our expectations regarding financial results for 2025. Management cannot control or predict many factors that impact future results. Listeners should not place undue reliance on forward-looking statements, which reflect management's views only as of today. We anticipate that subsequent events and developments will cause our assessments to change. However, we undertake no obligation to revise or update any forward-looking statement or to make any other forward-looking statement. Throughout this afternoon's earnings release and call today, we refer to the non-GAAP financial measure adjusted EBITDA. The definition, calculation, and reconciliation to the financial statements of adjusted EBITDA can be found in Exhibit A of our earnings release, which is available on our website.
We believe adjusted EBITDA is useful in evaluating our reported results as a supplement to, and not a substitute for, results reported under GAAP. I will now turn the call over to Sam Davis.
Sam Davis: Thank you, Eric. First, I wanted to say how proud I am of our team throughout this period of incredible growth. They have risen to the occasion and have been the champions of Bridger Aerospace Group Holdings, Inc. culture, focused on our mission, and dedicated to safety. Their execution drove record operational and financial performance again in 2025. We generated positive net income and posted a second year of positive cash flow, with revenue and adjusted EBITDA both growing by more than 20%. It is important to note that this record performance was achieved during what was statistically a below-average fire year.
This financial resilience underscores the strength of our business model, the growing diversification of our revenue streams, and the benefits of securing longer-term task orders for our aircraft.
While the reported number of wildfires nationwide was noticeably higher in 2025, at nearly 78,000 fires compared to the five- and ten-year averages of around 62,000, they burned far below the normal acreage nationwide at 5,100,000 acres, more than 30% below the five- and ten-year averages. This is likely the result of our federal and state customers' growing emphasis on early detection, initial and direct attack, and a more rapid response to wildfire. This proactive approach, combined with the impressive performance of our scoopers and enhanced Air Attack assets, helped drive strategic prepositioning of our fleet and improved utilization in 2025. Utilization, which is measured in days on contract, was up almost 10% year over year.
Our multi-mission aircraft almost doubled their flight hours year over year and remained deployed well into November.
The increased utilization rates have paralleled an ideological shift in how the U.S. fights wildfires. Throughout 2025, we saw many federal and state customers place increased emphasis on initial and direct attack. Fortunately for Bridger Aerospace Group Holdings, Inc., we have the aircraft best suited for this aggressive wildfire management style. We are directing our efforts to maximize the use of aircraft we have while finding other opportunities to expand our capacity with additional aircraft. Looking at the 2025 wildfire statistics for Super Scoopers specifically, there continues to be unmet demand as demonstrated by over 60 orders that were unable to be filled due to aircraft already deployed and fires.
Of the total requests made, this represented a 48% unfilled rate.
So far this year, we have deployed two Pilatus PC-12 and two Super Scoopers to fight fire. Of the PC-12s, one multi-mission aircraft mobilized to Oklahoma and one mobilized to Texas to provide aerial intelligence for early season wildfires. The call-up of our enhanced Air Attack platform demonstrates the aforementioned prioritization of early detection and the proven effectiveness of our advanced sensors and imaging systems. Demonstrating our ongoing commitment for year-round readiness, at least three of our Super Scoopers have remained ready throughout the winter months to be dispatched or to support training. Early in the year, we even prepositioned aircraft in Arizona as a proximity advantage as wildfire threats began to rise in the southern states.
Let me now provide an update on our contracting as we look out to 2026. We continue to target multiyear and exclusive-use contracts to build resiliency in our revenue and drive utilization. Maximizing the number of these exclusive-use commitments helps to ensure our fleet remains dedicated to critical wildfire response efforts. We are in active discussions with numerous states to provide exclusive use of our firefighting assets and are optimistic that current budgeting and planning will lead to future opportunities in the coming months. Just this week, we announced a five-year multiple-award indefinite delivery, indefinite quantity, or IDIQ, contract for call-when-needed fixed-wing transportation services in Alaska. We will be supporting personnel and cargo movements for the U.S.
Department of the Interior and other federal agencies on an as-needed basis. Although this is not a guarantee, this contract is estimated at $18,000,000. This contract allows Bridger Aerospace Group Holdings, Inc. to create additional work for existing aircraft, as well as answer demand as we grow our fleet with similar capabilities at the state and federal level.
Through our FMS subsidiary, we are dedicating resources for modification work on several internal aircraft to enhance our technology platforms. These modified aircraft are becoming a growing part of our contracting discussions. We are also in active firefighting contract discussions for our first two Spanish scoopers in Europe, having purchased them from our partnership with Mab Funding LLC in the fourth quarter. The third and fourth Spanish scoopers continue to undergo the final stages of their return-to-service work by our Spanish subsidiary, Alphacente Aero. As they become available later in 2026, we will look to enter discussions with Mab to potentially acquire these aircraft as well.
Let me now provide a quick update on FMS and Ignis, our two acquisitions. FMS contributed $7,900,000 in revenue for 2025. As I mentioned, much of their resources have been dedicated to internal aircraft modifications for Bridger Aerospace Group Holdings, Inc. aircraft to solidify our competitive edge. These technology-enhanced platforms are in high demand and have been instrumental in our ability to position Bridger Aerospace Group Holdings, Inc. for high-margin work. We also continue to see a number of contracting opportunities, primarily with the DoD, in active bids with FMS' capabilities that put Bridger Aerospace Group Holdings, Inc. uniquely positioned to respond to.
In addition to awarded work with our partner, Positive Aviation, for the FF-72 aircraft, our recent wins include a small award with the U.S. Air Force and boresight. While revenue in FMS saw delays due to federal budgeting and budgeting uncertainties through 2025, we do see momentum in federal funding with recent increases through the National Defense Authorization Act for 2025 for $895,000,000,000. With our integrated services, we remain well positioned for a wide range of defense as well as commercial work.
We are in the middle of repurposing our business development team to target this work, and much of the opportunities are fairly small and strategic with potential to scale into large volume, non-fire, non-seasonal, complementary to the services we already provide.
Also, a quick update on the Ignis Technologies platform. Since launching the mobile platform to support firefighters in the field over a year ago, pilot programs utilizing the platform with counties, crews, and incident management teams continue. We are now linking Bridger Aerospace Group Holdings, Inc.'s real-time sensor imagery with the Ignis app, creating a seamless data flow from air to ground. Already this year, we have been live streaming wildfire progression, delivering perimeter mapping, and even providing drop targets for aerial support as we deliver our imagery to ground firefighters, pilots, and incident commanders to make effective real-time decisions and enhance the safety of all operations in the fire stack.
This capability is unlocking new levels of situational awareness and supporting multi-mission aviation contracts, and enhances both operational effectiveness and safety. With the continued success of our sensor-enhanced aircraft in this field, the need for interactive live data streaming is stronger than ever, and we intend for this to be a critical part of our sensor-enhanced aviation contracts this year.
As we look out to 2026, we are well positioned for another year of greater than 25% growth. This includes revenue from our two new Spanish Scoopers as well as two new AeroTech aircraft, which we added in the fourth quarter. Our improved balance sheet provides the financial flexibility to acquire additional aircraft in response to contract expansion opportunities, and further drive EBITDA growth and long-term shareholder value. This growth stands against a backdrop of recent federal initiatives to restructure our national wildland firefighting system.
This includes the executive order in early 2025 that called for the establishment of a national wildland firefighting task force, the establishment of the Wildland Fire Service, and passage of the Fire Ready Nation Act and Aerial Firefighting Enhancement Act 2025, all of which are focused on improving wildfire response. With Bridger Aerospace Group Holdings, Inc.'s significant air attack fleet, including modern fire imaging and surveillance aircraft and the world's largest private Super Scooper fleet, we believe we are uniquely positioned to protect lives, property, critical infrastructure, and the environment as the nation focuses on preparedness and aggressive wildfire suppression. We have exciting opportunities before us, and I remain humbled to lead this exceptional team.
Let me now turn it back to Eric, who will talk about our strong financial performance in 2025.
Eric L. Gerratt: Thanks, Sam. Looking at our results for 2025, revenue was $8,500,000 compared to $15,600,000 in 2024. The decline year over year was partially related to the later deployment of our Super Scoopers in 2024 compared to 2025. Excluding revenue from return-to-service work performed on the Spanish Super Scoopers as part of our partnership agreement with MAP Funding LLC, which was $800,000 in 2025 and $5,100,000 in 2024, revenue from ongoing operations, including FMS, was approximately $7,700,000 compared to approximately $10,500,000 in 2024. Cost of revenues was $14,100,000 in the fourth quarter 2025 and was comprised of flight operations expenses of $5,700,000 and maintenance expenses of $8,400,000.
This compares to $15,400,000 in 2024, which included $5,800,000 of flight operations expenses and $9,600,000 of maintenance expenses. Cost of revenues associated with the return-to-service work on the Spanish Super Scoopers declined $4,200,000 in 2025 compared to 2024. Selling, general, and administrative expenses were $13,400,000 in 2025 compared to $7,700,000 in 2024, primarily reflecting an increase in the fair value of our warrants and an increase in earnout consideration compared to 2024. Interest expense for the fourth quarter was $6,000,000 compared to $5,900,000 in the fourth quarter last year. Other income was $10,000,000 in 2025 compared to $300,000 in 2024.
The increase was primarily attributable to a gain of $16,900,000 related to the sale-leaseback transaction, partially offset by a loss of $7,800,000 on the extinguishment of debt in conjunction with our debt refinancing in 2025. For 2025, we reported a net loss of $15,100,000, or $0.40 per diluted share, compared to a net loss of $12,800,000, or $0.03 per diluted share, in 2024. Adjusted EBITDA was negative $9,500,000 in the fourth quarter compared to negative $2,900,000 in 2024. A reconciliation of adjusted EBITDA to net loss is included in Exhibit A of our earnings release distributed earlier today.
Looking at our results for the full year 2025, revenue was $122,800,000 compared to $98,600,000 in 2024, a 25% increase. Excluding return-to-service work on the Spanish Super Scoopers, revenue was $108,800,000 compared to $88,500,000 in 2024, which was up 23%. Cost of revenues was $71,100,000, comprised of flight operation expenses of $31,900,000 and maintenance expenses of $39,200,000. Cost of revenues for 2024 was $57,500,000, comprised of $31,000,000 of flight operations expenses and maintenance expenses of $26,500,000. Cost of revenues for 2025 included an increase of approximately $5,400,000 of expenses associated with the return-to-service work on the Spanish Super Scoopers compared to 2024.
SG&A expenses were $36,300,000 compared to $35,800,000 in 2024, with the increase primarily driven by an increase in the fair value of our warrants partially offset by a decrease in non-cash stock-based compensation expense. Interest expense for 2025 was $23,300,000 compared to $23,700,000 in 2024. We also reported other income of $11,800,000 for 2025, inclusive of the gain of $16,900,000 on the sale-leaseback transaction partially offset by the loss of $7,800,000 on the extinguishment of debt. Other income was $2,100,000 for 2024. Net income was $4,100,000 in 2025 compared to a net loss of $15,600,000 in 2024. Adjusted EBITDA was $45,300,000 in 2025 compared to $37,300,000 in 2024.
Turning to the balance sheet, we ended 2025 with total cash and cash equivalents of $31,400,000. During the fourth quarter, we completed our previously announced sale-leaseback transaction with SR Aviation Infrastructure for our Bozeman Yellowstone International Airport campus facilities. We also entered into a new senior secured facility for up to $331,500,000 led by Bain Capital's private credit group. Together, these transactions were used to refinance Bridger Aerospace Group Holdings, Inc.'s $160,000,000 municipal bond with Gallatin County and consolidate the majority of our other existing debt.
Most importantly, our new credit facility provides significant capacity and financial flexibility through a delayed draw facility of up to $100,000,000 designed to fund future fleet expansion to support the economic growth we are pushing. I will now turn the call over to Anne Hayes, our incoming CFO, to go over our 2026 guidance.
Anne Hayes: Thanks, Eric. We are starting 2026 with the addition of six new aircraft on balance sheet. This consists of two previously leased PC-12 with contracts through 2027, two King Air multi-mission aircraft, and the two Spanish Scoopers purchased in December. These new assets, coupled with increased utilization on the existing aircraft, will help us achieve growth of over 25% from last year when excluding the 2025 return-to-service work in Spain. We are initiating 2026 guidance ranges of $135,000,000 to $145,000,000 for total revenues and $55,000,000 to $60,000,000 for adjusted EBITDA. The company also expects continued improvement in cash provided by operating activities in 2026 and positive net income.
The company is evaluating several different international operating contracts for the two Scoopers that we closed in December, which are currently stationed in Spain. The contribution from the Scoopers and the two new MMA aircraft is expected to be roughly 10% to 15% of 2026 revenue at an approximate 40% EBITDA margin. While we have had a good start to the year with two Scoopers and two AeroTac flying in late February, we expect to report a net loss in the first quarter due to the winter maintenance activity. With that, I will turn it back to Sam for final comments.
Sam Davis: Thank you, Anne and Eric. As we announced in November, Eric is officially retiring at the end of the month, and Anne has taken over the CFO role officially on March 10. I want to again express our gratitude to Eric for his financial leadership over the last three and a half years and his dedication to building Bridger Aerospace Group Holdings, Inc. into the resilient and profitable company that it is. I also want to take the opportunity to say how excited we all are to welcome Anne Hayes officially as our new CFO, having joined us after serving as audit chair of our board of directors.
She is ideally suited to lead us through our next chapter of growth and has clearly bought into the mission, evidenced by her step from audit chair to join the Bridger Aerospace Group Holdings, Inc. team. I also want to welcome Bill Andrews, our new chief operating officer announced earlier this week. He joined us most recently from Lockheed Martin as vice president and executive program manager for C-130s, F-35s, and P-3s, from development to support. As a U.S. Air Force and Air National Guard veteran for over 25 years, he served as an aircraft commander and C-130 evaluator pilot.
We are privileged to have him join us both for his stellar career and his exemplary military service, which are an incredible fit for the Bridger Aerospace Group Holdings, Inc. mission. He has the right skill set to help grow Bridger Aerospace Group Holdings, Inc. into a robust and scalable organization, having led multibillion-dollar programs at Lockheed Martin across aircraft delivery, upgrades, support, and readiness. He is exactly who we need to grow our organization in size and year-round operation. This includes his experience supporting the C-130 MAF aerial firefighting aircraft for the California Air National Guard.
We also see his unique service and support in the defense space as instrumental as we pursue additional opportunities adjacent to our firefighting missions.
To recap 2025, we flew in 21 states, we provided support for 380 fires, and dropped 7,300,000 gallons of water. We had the earliest deployment in customer history with Scoopers dispatching to the Palisades Fire in California in January. Across the fleet, we flew record hours greater than 10% above 2024, a relatively slow fire year. When we came home from the field in November, we had maintained 96% uptime on contract, had driven 125,000 miles in our support vehicles, and, most notably, every Bridger Aerospace Group Holdings, Inc. employee came home safe. As we sit here today, three of Bridger Aerospace Group Holdings, Inc.
Scoopers have completed winter maintenance, and two of those are already responding to early season wildfire activity in Texas. One MMA is on contract in Oklahoma and one AeroTac is in Texas. Air Attack aircraft are on standby here in Bozeman preparing for early 2026. The remaining three Scoopers are finishing up winter maintenance and should be ready over the course of the second quarter. Our staged winter maintenance program ensures we can provide flexibility within our fleet, utilize the excess capacity of our Scoopers, and deliver year-round readiness.
Legislation and greater appropriations to prioritize preparedness, early detection, and suppression are making a difference to how we fight wildfire, and Bridger Aerospace Group Holdings, Inc. is uniquely positioned to support our federal and state customers. As Anne stated, we are on track for another record year supported by a much-improved balance sheet with significant capacity and financial flexibility to fund future fleet expansion, drive organic growth, and build on our long-term vision to innovate and deploy the most advanced technology in our industry and deliver on our mission to protect lives, property, critical infrastructure, and the environment. Together, our team is ready to answer the call to serve year-round.
We are excited for and positioned to make 2026 another incredible year. We will now open for questions.
Operator: Thank you. To ask a question, please press star one. Once again, that is star one to ask a question. Our first question comes from Austin Moeller with Canaccord. Your line is open.
Austin Moeller: Hi. Good afternoon. So this is my first question. I was going to ask about the appointment of Bill Andrews. Is the intent there for him to help build out the FMS business, or does this potentially signal that you might buy, like, C-130s or other government aircraft after the recent legislation that permits that?
Sam Davis: Yeah. So primarily, Bill's focus is—good to talk to you again, Austin; thanks for the question—primarily Bill's focus is going to be on making sure that our fleet is deployed and ready to go year-round across the country and really focus on our operational excellence and build upon that. But it is more aligned with your first comment, where we are looking at all of the expertise and the years of experience he has in leading very large programs, obviously at a much different scale, that he could bring that context into the Bridger Aerospace Group Holdings, Inc. family.
And we are uniquely positioned, I think, with our integrated services to do defense work adjacent to the mission we are doing in firefighting with all of the services we have in-house, and really taking the opportunity with the funding going on in the defense space and the work that we have and the team, and have Bill help identify and lead the team to capitalize on some of that.
There is a lot of appropriately sized work for us to do, both on modification, flight test, and design, to go after defense work and other smaller jobs that maybe the larger primes cannot quite capture, and we have the quick ability to do turnkey solutions, and FMS is a key part of that.
Austin Moeller: Okay. And can you give us any update on the return-to-service work for the second two Super Scoopers being worked on under MAP Funding? When they might be returned to service and you could potentially purchase and take ownership of those aircraft.
Sam Davis: Yeah. Great question. So I think last we left off, the third aircraft is quite near certification of airworthiness. And so there is a clear opportunity if we are focused on the first two getting firefighting work in Europe this year, and then exploring potentially moving them even back to North America for fighting fire in the future. So the third is near completion, and that obviously makes that a much closer target for us from an acquisition perspective. The fourth is a little bit further out. We are sourcing parts and working to get that underway.
That would probably be a little bit later in the year, if not toward the end of the year, that we would get that complete. But, again, focusing on folding in the first two to doing firefighting, and three and four are a nice dovetail into work that we find for the first pair.
Austin Moeller: Okay. And just one more here. Can you speak to the potential contract opportunities in Europe— which ones you think, which countries you think are perhaps the highest probability that you could get deployed in advance of the fire season in Q2?
Sam Davis: Yeah. And I will be as direct as I can be without being speculative or leading here because we are in communication and negotiations. But the two leading countries, I would say, that have shown great interest in committing to the Scoopers stationed in Spain would be Portugal and Turkey. We are working with our partner overseas in Europe, Avinci's, that has helped us both on the return-to-service work and flight operations, to pursue those countries with the economics we have in mind together as well as, you know, the mentality of the first-come, first-serve basis as they get set up for the fire season.
In terms of timing, the appropriations are a little bit later than ideal in Europe, not as quite as early as a commitment as you get in the U.S. So we are hoping to have something in line and defined by March and/or maybe April. So that is kind of the timeline we are managing to. There are other countries that would be interested; they just have not gone as far down their appropriation cycle as the first two.
Austin Moeller: Great. That is super helpful. I will pass it back there. Thanks.
Operator: And once again, to ask your questions, that is star one. Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Sam Davis for any additional or closing remarks. Oh, and my apologies. We actually did get an additional question. We will move to Mark Williams with EmergingGrowth.com. Your line is open.
Mark Williams: Great. Good afternoon and congratulations on another strong quarter. Just real quick, with the 2026 guidance removing the return-to-service revenue and then profitability from that, how should we think about normalized EBITDA margins across core missions? And what will be driving the expansion forecast?
Sam Davis: Yeah. Thanks, Mark, and appreciate you asking. I will answer kind of the first part, then I will let Anne jump in if she can. We are focused on the expansion with the expanded capacity in the current fleet we have and capitalizing more on the margins with the core fleet, not including the return to services as you mentioned. So improving both the utilization, including the days and hours we have on contract for our Scoopers and Air Attack aircraft in hand, as well as the addition of two Scoopers in Spain, which we are factoring in, as well as two additional sensor-enhanced planes we will add to contracts here shortly.
And as everybody should know on the call, those sensor-enhanced planes have quite an attractive margin versus non-sensor-enhanced. So continuing to drive those margins up overall and improvement. Anne, I do not know if there is anything else you want to add there.
Anne Hayes: Yeah. No. So we had in 2025, we had about $14,000,000 in revenue from the return to service. So we are increasing 29% when excluding that in 2026. And as far as the margins, as Sam mentioned, our Scoopers are generally over 40% adjusted EBITDA margin, and our newer MMA aircraft can be as high as 40% to 50% or above. So any aircraft that we are adding at this point are increasing EBITDA margins compared to the more simple Air Attack that did not have the sensors that have a lower EBITDA margin.
Mark Williams: Okay. Great. And then along those lines, maintenance expenses increased. In 2025 as aircraft were added and with the addition of the new aircraft, how should we think about how maintenance expenses should scale with those aircraft.
Sam Davis: Great. I will take the first part of this, Mark, again, and then Anne can put some numbers behind it. But excluding, again, the return to service, we saw less of an increase in our cost of revenue as opposed to the revenue that we saw year over year, and continue to see that as we set guidance for this year because we are seeing more economies of scale as the fleet grows and we become more efficient with spend. There were some additional variable costs that are associated with being deployed more and having more activities such as travel, obviously wear and tear on aircraft, and more of the maintenance intervals that we have to perform.
However, it grows at less of a rate than the revenue grows. So we have that factored into a more profitable gross profit this year with our core fleet and the aircraft that we are adding.
Anne Hayes: Yes. I would just add that in 2025, the aircraft maintenance did include that Spain return-to-service work, so we will see that decrease in 2026. And as mentioned earlier, with that decrease and the high-margin aircraft, we are seeing margins increase.
Mark Williams: Great. And then last question, just real quick. With the refinancing and the liquidity available under the DDTL that occurred this past year, do you see any need for additional funding throughout the next year or two, especially bringing on the two new Scoopers? I do not know if they were funded under the DDTL or part of other parts of that funding that—
Sam Davis: Yeah. Good question. The DDTL that we have in hand, which at close was $100,000,000, we built that around what we see for the next couple years in terms of opportunity of aircraft that we could go out and add to contract and contribute the same as the fleet we have, which does include aircraft three and four scoped into that amount. So we do not yet foresee any problem of our growth outpacing that from an aircraft acquisition perspective. We could obviously revisit that if the demand necessitated that many aircraft.
But right now, including the aircraft we added at the end of the year, that was factored into the model at the time we closed it, and so we are on pace for that. And that, again, is a good outlook for us for the next couple years. The purchase for the first two Spanish Super Scoopers was included in the overall term loan, so we did not tap the deferred draw facility for those. And the two surveillance aircraft we added at the end of the year did come out of the DDTL facility, but there is still about $90,000,000 left in it.
So the first two Spanish Scoopers came out of the term loan that is already on the balance sheet, and we still have, like I said, about $90,000,000 of capacity on that deferred draw facility.
Mark Williams: Great. Great.
Sam Davis: Thank you. Thank you all for your time. Thank you. Appreciate it. Thank you, Mark.
Operator: There are no further questions at this time. I would now like to turn it back to Sam Davis for any additional or closing remarks.
Sam Davis: Thank you. Thanks again for joining our conference call today. We look forward to updating you on our progress when we report our Q1 results in May. If anyone has any follow-up questions, please reach out to our Investor Relations.
Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.
