Bristow Group (ERG1) Q2 2026 Earnings Report

The call presented strong operational and financial positives: affirmed 2026 adjusted EBITDA guidance with ~25% growth, sequential revenue and EBITDA improvement, immediate accretive M&A (Berry Aviation), tightened OES guidance, upgraded Government Services revenue and a materially higher adjusted operating income range versus 2025 midpoint, and improved quarterly operating cash flow and liquidity. Offsetting items were focused and mostly execution/timing related: supply chain and OEM delivery delays causing roughly $8M of 2026 operating income pressure in Government Services, a $1.5M fuel-related margin hit (now contractually mitigated), elevated transition and working capital costs, and early-stage disposal of the Norway business. Overall the positives—sizable guidance affirmation, accretive acquisition, better cash generation, and long-term market tailwinds—outweigh the limited but notable execution headwinds.

Management affirmed full‑year 2026 consolidated guidance of $1.6–$1.7 billion in revenues and $295–$325 million of adjusted EBITDA (≈25% year‑over‑year growth), with segment updates including OES adjusted operating income raised to $235–$245 million, Government Services revenues revised to $475–$495 million with adjusted operating income of $55–$65 million (roughly 60% higher vs. the 2025 midpoint), and Other Services revenues of $155–$175 million with adjusted operating income of $25–$30 million; they closed the Berry Aviation acquisition (July 13), which they expect to be immediately accretive to earnings and free cash flow and to bolster EBITDA margins, noted the planned Norway OES exit would be neutral to 2025 EBITDA on a pro‑forma basis, reported unrestricted cash of $312 million and total liquidity of ≈$372 million, Q2 operating cash flow of $41.4 million (versus $(8.3) million in Q1), paid $3.7 million of dividends and declared $0.125/share, disclosed total 2026 CapEx of ~$160 million (growth $130M + maintenance $30M), and cautioned about a ~ $8 million 2026 adverse impact from supply‑chain delays (plus a $1.5 million fuel timing effect now addressed contractually).