Bristow (VTOL) Q3 2025 Earnings Call Transcript

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Date

Wednesday, Nov. 5, 2025 at 10 a.m. ET

Call participants

President and Chief Executive Officer — Chris Bradshaw

Senior Vice President and Chief Financial Officer — Jennifer Whalen

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Takeaways

Adjusted EBITDA -- Adjusted EBITDA reached $67.1 million in Q3 2025, an increase of $6.4 million from Q2 to Q3 2025, with gains led by Government Services and Other Services segments.

Total revenue -- Increased by $9.9 million from Q2 to Q3 2025, with higher contributions from Other Services and Government Services segments.

Offshore Energy Services (OES) segment revenue -- OES segment revenue declined by $2.4 million from Q2 to Q3 2025, reflecting decreases of $6.6 million in Europe and $1.5 million in Africa, partially offset by a $5.7 million increase in The Americas.

OES adjusted operating income -- OES segment revenue was $2.4 million lower sequentially in Q3 2025, attributed to lower utilization and partially offset by a decrease in general and administrative expenses.

Government Services revenue -- Increased by $8.4 million from Q2 to Q3 2025, driven by the transition of the Irish Coast Guard contract and increased personnel costs.

Government Services adjusted operating income -- Increased by $4.8 million from Q2 to Q3 2025.

Other Services revenue -- Increased by $30.8 million from Q2 to Q3 2025, mainly due to a $4.8 million increase in activity in Australia, partially offset by conclusion of a dry lease contract.

Unrestricted cash balance -- Unrestricted cash balance was $246 million at the end of Q3 2025. Total available liquidity stood at $313 million as of Q3 2025.

Debt repayment -- Made $25 million in accelerated principal payments on the U.K. SAR debt facility in Q3 2025, bringing year-to-date accelerated repayments to $40 million in 2025.

2025 adjusted EBITDA guidance -- Narrowed 2025 adjusted EBITDA guidance to a range of $240 million to $250 million with projected revenues of $1.46 billion to $1.53 billion.

2026 adjusted EBITDA guidance -- Narrowed 2026 adjusted EBITDA guidance to a range of $295 million to $325 million with projected revenues of $1.6 billion to $1.7 billion; the midpoint of 2026 adjusted EBITDA guidance represents a 27% increase over the 2025 midpoint.

2025 OES adjusted operating income guidance -- Provided approximately $200 million adjusted operating income guidance for the Offshore Energy Services (OES) segment in 2025, with expectations for continued strength in 2026 and updated 2026 guidance to a range of $225 million to $235 million, a 15% year-over-year increase from the 2025 to 2026 midpoint.

2026 Government Services adjusted operating income guidance -- The 2026 midpoint for Government Services adjusted operating income reflects a 76% increase over 2025.

Operating cash flows (year to date 2025) -- Generated approximately $122 million in operating cash flows year to date 2025, compared to $126 million for the same period in 2024; working capital remains elevated due to inventory build and contract start-up costs.

2026 capital expenditures (CapEx) -- Capital expenditures projected at $100 million for 2026, including $20 million for maintenance and $80 million designated for growth, mainly for offshore AW189 helicopters.

Free cash flow (2026 guidance) -- Expecting approximately $140 million of free cash flow in 2026 at the midpoint of guidance.

Pending aircraft deliveries -- Five aircraft (two AW189 for Irish Coast Guard, three AW139 for U.K. SAR 2G) currently in modification, plus seven offshore AW189 helicopters under order for Brazil, Africa, and the North Sea.

Vendor credits -- Materially higher this quarter due to increased activity, OEM incentives, and credits tied to asset purchases and maintenance contracts.

Tax benefit -- A one-time tax benefit was realized from the release of a valuation allowance in Australia due to positive results in Q3 2025; future tax rate expected to normalize and trend above U.S. baseline rates given global operations.

Asset sales -- Included a sale leaseback transaction on a new SAR aircraft and sale of an older asset.

Summary

Bristow Group (NYSE:VTOL) reported robust sequential growth in both adjusted EBITDA and total revenue in Q3 2025, highlighted by a significant uplift in Government Services and regional demand in Australia. Management emphasized a favorable long-term offshore energy outlook anchored by constrained helicopter supply and pending government contract ramps, resulting in tightened and elevated guidance ranges for adjusted EBITDA and revenue in 2026. Strategic capital allocation and liquidity improvement continued through principal debt repayments and operational cash generation, while increased vendor credits, higher working capital, and upcoming aircraft fleet modernization reflect industry-wide supply chain dynamics and future growth positioning.

Chris Bradshaw stated, "the midpoint of Bristow's 2026 adjusted EBITDA guidance represents a 27% increase over the midpoint in 2025," positioning the company as a sector outlier for anticipated earnings growth.

Management cited the ongoing transition and ramp-up of the Irish Coast Guard and U.K. SAR 2G contracts as key Government Services margin catalysts, indicating a profit inflection beginning in 2026.

Bristow's order book includes both modifications of delivered aircraft for near-term deployment and outstanding orders for AW189 helicopters targeted at Brazil, Africa, and North Sea market segments.

Persistent supply chain issues continued to affect both maintenance operations and delivery schedules for new helicopters, with Bradshaw describing delays as impacting "both aftermarket and new deliveries."

Guidance and outlook explicitly exclude any near-term earnings from advanced air mobility initiatives, although management anticipates commercial certification of all-electric and hybrid aircraft by 2026 and believes their adoption could become material post-2027.

Industry glossary

AW189: A model of super medium helicopter manufactured by Leonardo, commonly used for offshore crew transport and search and rescue missions.

AW139: A medium twin-engine helicopter designed by Leonardo, widely used for offshore energy and public service operations.

S-92: A heavy-lift helicopter produced by Sikorsky, primarily serving offshore oil and gas transport and search and rescue applications.

OEM: Original Equipment Manufacturer; refers to companies that produce aircraft or critical aerospace components used by operators like Bristow.

Vendor credits: Financial credits provided by equipment manufacturers to operators, often tied to asset purchases or long-term maintenance contracts.

OES (Offshore Energy Services): Bristow segment providing helicopter services supporting offshore oil and gas markets, including crew transport and logistics.

SAR (Search and Rescue): Specialized aviation missions to locate and assist individuals in distress, often under government contracts.

Irish Coast Guard contract: A long-term agreement under which Bristow provides search and rescue helicopter services to the Republic of Ireland, currently in transition to full operational run rate.

U.K. SAR 2G contract: The next-generation search and rescue contract awarded to Bristow for the United Kingdom, currently in transition phase.

Sale leaseback: A financial transaction in which Bristow sells an asset (e.g., an aircraft) and leases it back for operational use, improving liquidity while retaining access to fleet capacity.

Full Conference Call Transcript

Chris Bradshaw: Thank you, Red. To begin, I want to commend the Bristow team for their steadfast dedication to deliver safe, efficient, and reliable services despite the persistent supply chain challenges that have plagued the aviation industry in general and the civilian helicopter industry in particular for the last four years. I appreciate our team's unwavering commitment to operational excellence and delivering the best possible outcome for our customers and stakeholders. We are also pleased to report another quarter of strong financial performance, with adjusted EBITDA of $67.1 million in Q3 2025. Looking forward, Bristow continues to have a positive 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 upstream capital investment. This positive long-term demand outlook is paired with a tight supply dynamic. The fleet status for offshore configured heavy and super medium helicopters remains near full effective utilization levels. The ability to bring in new capacity remains constrained with production lines that must be shared with military aircraft orders and current manufacturing lead times of approximately 24 months. We believe the tight supply of offshore helicopters supports a more constructive outlook for our sector relative to some other offshore equipment sectors.

In addition, 2026 represents an important inflection point for Bristow's Government Services business. As we reach the full operational run rate under the Irish Coast Guard contract and continue the transition to the new UK SAR 2G contract in The United Kingdom. While the cost incurred to effectuate these contract transitions have caused a negative drag on profitability in 2025, that impact inverts in 2026. With adjusted operating income from our Government Services business nearly doubling year over year. For the company as a whole, I would highlight that the midpoint of Bristow's 2026 adjusted EBITDA guidance represents a 27% increase over the midpoint in 2025, reflecting the robust growth expectations for our business.

I will now hand it over to our CFO for a more detailed discussion of Q3 results and our financial outlook. Jennifer?

Jennifer Whalen: Thank you, Chris. And good morning, everyone. As Chris noted, we are pleased to report another quarter of strong financial results with total revenues reflecting an increase of $9.9 million and adjusted EBITDA reflecting an increase of $6.4 million on a consolidated sequential basis. Both of which were primarily driven by our government services and other services segment. We have also updated and tightened our 2025 and 2026 outlook ranges, which I will discuss further on during this call. Turning now to our sequential quarter segment financial results. Beginning with our Offshore Energy Services or OES segment. Revenues and adjusted operating income were both $2.4 million lower this quarter.

Revenues in Europe and Africa were $6.6 million and $1.5 million lower respectively, primarily due to lower utilization. While revenues in The Americas were $5.7 million higher, primarily due to higher utilization. The lower revenues were partially offset by lower general and administrative expenses due to a decrease in professional services fees. Overall, operating expenses were consistent with the preceding quarter primarily due to higher personnel costs of $7.3 million due to the absence of a seasonal personnel cost benefit in Norway the preceding quarter and higher benefits and overtime costs in the current quarter.

These increases were offset by lower repairs and maintenance costs of $5.3 million driven by higher vendor credit and a decrease in other operating expenses of $2.3 million. Moving on to Government Services. Revenues were $8.4 million higher, primarily due to the ongoing transition of the Irish Coast Guard contract and largely comprised of higher subcontractor costs, increased amortization of deferred costs, and higher personnel costs, all of which were related to the new government services contract. Repairs and maintenance costs, however, were $4 million lower due to higher vendor credit and the timing of repairs. General and administrative expenses were $800,000 higher primarily due to higher professional services fees and personnel costs related to the contract transition.

Adjusted operating income for this segment was $4.8 million higher this quarter. Before we move on to our Other Services segment, I'd like to provide color on the references to vendor credits in our OES and Government segment. In our industry, OEM or vendor credits are common practice and generally provided for reasons such as credit tied to asset purchases, particularly when a customer has placed orders for several aircraft, OEM performance and delays, and incentives when entering or extending long-term maintenance contracts.

While we have historically received vendor credits and applied them towards aircraft and inventory parts purchases or ongoing maintenance, we benefited more materially from such credits this quarter and continue to value our strong relationships with our OEMs. As a reminder, Bristow is the world's largest operator of S-92, AW189, and AW139 helicopter models, which remain the most in-demand models for both offshore crew transportation and SAR missions. Finally, revenues from other services were $30.8 million higher primarily due to higher activity in Australia of $4.8 million, partially offset by the conclusion of a dry lease contract. The higher revenues were partially offset by higher operating expenses of $1.9 million related to the increased activity in Australia.

As a result, adjusted operating income was $1.9 million higher this quarter. Moving on to Bristow's financial outlook. You may recall from our previous earnings call that the primary factors that could bias results to either end of our guidance range include supply chain dynamics that impact aircraft availability, customer activity levels influenced by global energy demand, new contract transitions, and the exchange rate of foreign currencies relative to the U.S. Dollar, namely the British pound sterling and to a lesser extent the euro. As such, we are tightening our 2025 adjusted EBITDA range to $240 million to $250 million on total projected revenues of $1.46 billion to $1.53 billion.

For 2026, we are tightening our adjusted EBITDA range to $295 million to $325 million and total projected revenues of $1.6 billion to $1.7 billion. This represents an approximately 27% increase in adjusted EBITDA from the 2025 to 2026 midpoint. Given better visibility into operating costs and expected customer activity levels, we are updating the adjusted operating income guidance ranges for our OES segment to approximately $200 million for 2025. Despite current market conditions in the energy sector, we expect strong performance from this segment to continue in 2026, as evidenced by the updated adjusted operating income range of $225 million to $235 million, representing a 15% year-over-year increase from the midpoint.

While margins in our Government Services segment improved this quarter, and the capital investment for our two new government contracts have largely concluded, we expect this segment will continue to feel the effects of new contract transitions until they are fully operational. The strong margins and earning potential of this business will continue to improve as the operations and revenues for the contract continue to ramp. The 2026 midpoint for our adjusted operating income range reflects a 76% increase compared to 2025. And in Other Services, we expect the improved economics of our regional airline in Australia to persist and for this segment to remain consistent and cash flow accretive. Turning now to cash flows.

Operating cash flows generated approximately $122 million year to date 2025 compared to $126 million in the prior year. Working capital continues to be impacted by increases in inventory to support new contracts and mitigate risks related to supply chain constraints and an increase in other assets primarily related to start-up costs for new government services contracts. However, we expect working capital to improve over time as supply chain constraints subside and our new contracts include their transition periods and reach their full operational run. Additionally, as of the third quarter, our unrestricted cash balance was approximately $246 million with a total available liquidity of $313 million. Moving on to our previously announced capital allocation target.

We made an additional $25 million of accelerated principal payments on the U.K. SAR debt facility in the current quarter, bringing the total accelerated payments to $40 million this year. In summary, we remain focused on meeting our financial and operational targets and executing our capital allocation strategy while continuing to benefit from and working to maintain a strong balance sheet and liquidity position. At this time, I'll turn the call back to Chris for further remarks. Chris?

Chris Bradshaw: Thank you, Jennifer. In conclusion, we are pleased to highlight the company's robust growth outlook for 2026, as evident by expected adjusted EBITDA growth of approximately 27% year over year. This outlook is supported by the growth and stability of our Government Services business, the heavy weighting of our offshore Energy Services business, the more stable production support activities, and the breadth and diversity of the geographic markets we serve. With that, let's open the line for questions.

Operator: Our first question will come from Jason Vandel with Evercore ISI. Your line is now open. Please go ahead.

Jason Vandel: Thanks. Good morning, Chris, Jennifer, and Red.

Chris Bradshaw: Good morning.

Jennifer Whalen: Good morning.

Jason Vandel: I wanted to first ask about your guidance in OES. Give you guys a lot of credit for providing two-year full guidance on most give only one quarter forward. But given the lower utilization in OES during the quarter, I guess the tightening of the forward guidance that you talked about, Jennifer, to be slightly lower. What kind of implications should we make about the market given that? And is this a sign that customer demand for helicopters is beginning to weaken in the short term? Or how should we think about it?

Chris Bradshaw: Thanks for the question. As you noted, we did tighten the range this quarter. That's consistent with how we generally approach as we near the end of a period and the beginning of a new one. We'll look to narrow that range. In this case, that updated guidance did impact the midpoint by about 2%. But in terms of the guidance around the OES business specifically, I would point to two main factors. First, we have experienced some persistent supply chain challenges that are impacting aircraft availability. In some cases, that might result in lost revenue opportunities and other cases, particularly on some legacy contracts, may result in some contractual penalties under the contract related to aircraft availability.

And then the second category I would point to is fewer aircraft, a small number on contract in the North Sea and The U.S. But overall, again, expecting positive offshore energy services activity and growth. Our business and overall for the company really highlighting that we're expecting 27% growth in our adjusted EBITDA year over year, which I think within our sector within a peer group is a real positive differentiator. I'm not sure that anyone else is pointing to that kind of growth in the next year.

Jason Vandel: Yes. No, agree, Chris. And as a follow-up to that, I guess, it's more of a kind of a macro level. Can we discuss your current outlook for your main OES markets and regions given some of the seasonality you have in your And if you can kind of just go around and what you're seeing out there would be helpful.

Chris Bradshaw: Yes. Really right near there in the same category would be Africa where we're seeing continued demand and need for additional aircraft in our business there. And I'd also add The Caribbean to that list, which is still growing. So one of those markets are ones that again are still growing. We're seeing net aircraft inflows meaning that we're mobilizing additional capacity into those markets to meet the demand. The U.S. I would say is mostly stable. Though with less ad hoc work. So The U.S. Gulf is an area where we typically would see a lot of ad hoc aircraft over and above the contracted fleet count.

That has admittedly decreased some which I think is an indication of stable activity stable to be addressed by the contracted fleet levels. And then finally, on the less positive side, would be the North Sea which is softer in terms of activity.

Jason Vandel: Thanks for that additional color. That was helpful. And just one last quick one since you brought up in the prepared remarks on the vendor credits. Since some might not be as familiar with those. Why were those materially higher this quarter And do you guys typically include that in your guidance? Thanks.

Jennifer Whalen: Sure. I mean, it's an indication of the increased activity that we've had. I noted a few different ways that we that credit come about, right, buying aircraft, the incentives when you enter into long-term maintenance contracts or you exit aircraft out of those contracts and then OEM performance and delays. So all of that is it's a mixture of all of those credits. We've always this is not anything new. It's just an increased activity we've always experienced with credit. So as activity levels continue to be increased, is likely to be a heightened level of credits over the next period of time.

Jason Vandel: Understood. Thanks for taking my questions. I'll turn it back.

Operator: Thank you. Our next question comes from the line of Josh Sullivan with Jones Trading.

Josh Sullivan: Hey, good morning.

Chris Bradshaw: Good morning, Josh.

Josh Sullivan: So how many aircraft are you aiming to take delivery of for each of your segments? And then I guess if you could just touch on maybe the timing and location where these aircraft are expected to be deployed?

Chris Bradshaw: Yes. I would say they're really two categories of pending deliveries. The first are aircraft that we've actually already taken delivery from the OEM. But are not yet placed into our operating fleet count as we're completing final configuration and modifications on those aircraft. In our Government Services business, that would be the right category for the pending deliveries. So we've taken delivery of five aircraft that are again undergoing final modifications now before being placed into operations. Two of those are AW189s that are going to the Irish Coast Guard contract in Ireland. And three of them are AW139 aircraft that are going to the new SAR 2G contract in The United Kingdom.

The second category of pending deliveries are aircraft that are still under construction by the OEM. We have not yet taken physical delivery of these aircraft. That category would characterize the remainder which is seven offshore, so OES configured AW189. That we have on order. We know where those are going. Those locations are going to be split between Brazil, Africa, and the North Sea.

Josh Sullivan: Got it. And then where between those two groups or just generally, where are the primary supply chain bottlenecks? At this point?

Chris Bradshaw: Yes. We're still seeing significant supply chain issues I'd say across the board unfortunately. So this is impacting the aftermarket. So delays for parts components that we need to maintain the aircraft keep them operational and in service. Over the last few years, we had more of a concentration of that type of challenge in a particular model namely the S-92 heavy helicopter. However, we're seeing while that situation has actually improved some, so it's ameliorated, they're not quite where we would want it to be. We're seeing now similar issues with other helicopter models for example, the AW189. So aftermarket support would be one category. This is now also impacting the timing of new deliveries.

So not so much for the government side, because I mentioned we've already taken delivery of those aircraft now and are putting them through final modifications. But on the offshore configured AW189s, expect there will be delays aircraft coming off the production line which is just a lot of that relates to something you'll be familiar with Josh, the complexity of a modern aviation supply chain where the OEM itself over the last several decades has outsourced to an increasing number of subcontractors and vendors. And as they're now looking to produce these aircraft, they're having their own struggles in sourcing some of the components on time to meet the expected delivery schedules.

So it's really both aftermarket and new deliveries that are being impacted by these supply chain issues in the industry.

Josh Sullivan: And then I guess maybe a related question, just what does CapEx maybe look like in 2026 as a result?

Chris Bradshaw: So we see total CapEx in 2026 of about $100 million. So that's in round numbers roughly $20 million of maintenance and another $80 million of growth on a net basis which is really related to those offshore configured AW189s that I mentioned. So one thing I would highlight there is if you take that full $100 million of CapEx growth and maintenance, run it through the waterfall of the guidance we've provided. You're still looking at approximately $140 million of free cash flow in 2026 at the midpoint of guidance. Which on a company that has an equity market cap of roughly $1 billion, $140 million is a pretty healthy free cash flow yield in our view.

Josh Sullivan: Yes. So and then I guess just one last one, just any updates on the advanced mobility trials data, LROI, others, just how is that dynamic progressing?

Chris Bradshaw: Yes. Thanks for the question. I'd say that's going very well. As you may be aware we launched in August a Norway sandbox project which really represents a first of its kind real-world flight testing of pre-certified aircraft that's being sponsored by the Norwegian government in partnership with the OEM. Which in this case is Beta Technologies and congratulations to our friends and partners at Beta Technologies for their IPO in the New York Stock Exchange yesterday. It was a nice milestone for them. And here in the test arena in Norway, we're using the Beta CX3 100 all-electric aircraft that's being operated by Bristow.

So what this is allowing us to do is collect real-world data to validate assumptions and learn. So what's the aircraft? What are the batteries? Actually doing in different temperatures at different altitudes, etcetera. And take that incorporate that again into the learnings which again first of its kind, test arena. We see this as being an important step in commercializing advanced air mobility. And we see this type of model being probably likely replicated in other countries and with other AEM model aircraft as well.

Josh Sullivan: Great. I'll leave it there. Thank you for the time.

Chris Bradshaw: Thanks, Josh.

Operator: Our next question is from Steve Silver with Argus Research.

Steve Silver: Thanks, operator, and thanks for taking my questions. Mostly housekeeping. Just in terms of the asset sales that you guys reported this quarter, and then also the proceeds from the sales to helicopters. Hoping you could provide any color just on the nature of these sales, and whether we should expect any further activity like this over the coming years?

Jennifer Whalen: Sure. Morning, Steve. So we opportunistically sell assets when they're no longer needed in our fleet. And typically, there are older assets that are outlasted. They're feasibility in the markets we serve and sold them and typically sold in other markets like utility or firefighting. In addition, we will look at opportunities to sale leaseback transactions when those make sense for helicopters in our fleet. In the case of this quarter, we performed a sale leaseback transaction on one of our new SAR aircraft, which accounted for much of that sales proceeds. For this quarter and we did then sell an older asset as well.

Steve Silver: Great. Thanks. And one more if I may. On the income tax benefit in Q3, hoping you could just discuss the future outlook on the tax line, on the effective tax rate what your thoughts are as the net income position of the company continues to grow?

Jennifer Whalen: Sure. So related to this quarter, each quarter we do review our the attributes for our different tax positions by our different jurisdictions that we're in. This quarter, we did determine that the valuation allowance we had on our Australian operation could be removed due to the positive results we have with that part of our business. So this release of a valuation allowance was the primary driver for the one-time tax benefit. And so I wouldn't expect that tax that was a one-time deal. So as our profitability does improve our tax rate will be closer to a normalized tax rate. We have we're in many different jurisdictions so it'll be some average tax rate.

Little bit somewhat north of what The U.S. Tax rate is.

Steve Silver: Great. Thanks for the additional color. Our final question will come from the line of Colby Sasso with Daniel Energy Partners. Your line is now open. Please go ahead.

Colby Sasso: Hi. Thanks for taking my question. A number of larger integrated E and Ps have talked on their conference calls about a need for more exploratory drilling over the next few years. Do you see this as a focus for your customers moving forward?

Chris Bradshaw: Yes. Good morning and thanks for the question. Yes, we do see that as a focus moving forward. Our business is really much more weighted to production support activity with 85% of our revenues from offshore energy services driven by production activities. For the remainder though we are exposed to exploration. And I'd say our view is probably mostly in line with consensus and that we continue to believe that deepwater projects are favorably positioned with attractive relative return prospects within our oil and gas customer portfolios. And so we see an increasing share of capital investment from the upstream going into deepwater and offshore projects.

And we see that as being a solid long-term driver and outlook for the business. And in our case really coupling that with a very tight supply picture with a limited number of available heavy and super medium offshore configured helicopters today.

Colby Sasso: Makes sense. And as a quick follow-up, noted a new aircraft headed to the North Sea but several drillers have moved their rigs out of Norway in recent years. Setting no near-term upside in rates or utilization in that market. Additionally, E and Ps are not bullish on The UK energy industry either. Can you expand on why you see the need for new builds going into that market?

Chris Bradshaw: Yes. Fair question. And appreciate the opportunity to expand upon that. So I would say that we do not see upside or growth in North Sea, necessarily. It is a mature market that over the long run and is more likely to decline than otherwise. However, what's going on and in this situation is that these are helicopter fleet replacement. So namely new AW189 that will be replacing legacy S92s that are aging out of the fleet. And so we have customers upstream oil and gas companies that we're looking for a more reliable aircraft, a more modern aircraft.

And for Bristow, it's an opportunity for us to provide that on secure long-term contract with enhanced profitability, better returns than what they're replacing. So while not growth this is certainly value accretive for the company.

Colby Sasso: Thanks for the color. I'll turn it back.

Operator: Thank you. This concludes our question and answer session. I'll now turn the call back over to Chris Bradshaw for closing remarks.

Chris Bradshaw: Thank you, Luke, and appreciated the opportunity earlier to talk about what's going on in advanced air mobility and the important developments in that new industry sector for all-electric and hybrid aircraft platforms. As I mentioned, there are some important milestones and developments happening right now. We expect the first aircraft models in that sector to be certified next year, 2026, so really just around the corner. In theory, Bristow might take delivery of the first of those aircrafts in 2026. However, I think that's less likely. We're not contemplating any contributions in our guidance for next year. It's probably more likely that Bristow would take its potential first deliveries in the 2027, 2028 timeframe.

But we do believe that advanced air mobility and both all-electric and hybrid aircraft are going to be a part of the future of aviation. And as the global leader in vertical flight for the last seventy-five plus years, we believe there's a role for Bristow to play there. And are excited about the partnerships we're developing with some of these OEMs and pursuing market opportunities together. We also remain excited about the growth that we're projecting for the business next year with that 27% increase in adjusted EBITDA. Which we see as really a positive differentiator for the company. With that, we appreciate everyone's time today. Hope you stay safe and well. We'll talk to you again next quarter.

Operator: Thank you. This concludes today's call. You may now disconnect at any time.

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