Kestrel Bets on VTOL With $4.9 Million Buy

Kestrel Investment Management Corp disclosed a new position in Bristow Group (NYSE:VTOL) worth approximately $4.88 million as of September 30, 2025, according to its November 12, 2025, SEC filing.

What happened

According to a Securities and Exchange Commission (SEC) filing dated November 12, 2025, Kestrel Investment Management Corp initiated a new equity position in Bristow Group (NYSE:VTOL) during the third quarter. The fund acquired 135,100 shares, bringing the reported value of the stake to $4.88 million as of September 30, 2025. The position represents 2.75% of Kestrel’s U.S. equity assets in its 13F filing.

What else to know

• Kestrel established a new position in Bristow Group, representing 2.75% of 13F assets; this stake does not place in the fund’s top five holdings.
• Top holdings after the filing:
  • NYSE:PHIN: $9,847,000 (5.5506% of AUM)
  • NYSE:AX: $8,410,000 (4.7406% of AUM)
  • NASDAQ:UPWK: $8,376,000 (4.7215% of AUM)
  • NYSE:TPH: $7,795,000 (4.3940% of AUM)
  • NYSE:ATGE: $7,614,000 (4.2919% of AUM)
• As of November 11, 2025, Bristow Group shares were priced at $38.49, up 1.66% over the past year, underperforming the S&P 500 by 12.53 percentage points.

Company Overview

Company Snapshot

• Provides aviation services, including offshore helicopter transport, commercial search and rescue, and fixed wing transportation, primarily supporting the energy sector.
• Generates revenue by offering contracted flight services to integrated, national, and independent offshore energy companies as well as government agencies.
• Serves energy companies operating offshore, government organizations requiring search and rescue, and clients in regions including the United States, Europe, and select international markets.

Bristow Group Inc. is a leading provider of aviation solutions for the offshore energy industry, with a global fleet supporting critical transport and search and rescue operations. The company's scale and international presence enable it to serve major energy and government clients across multiple continents. Bristow's focus on specialized aviation services positions it as a strategic partner for customers operating in challenging and remote environments.

Foolish take

Kestrel Investment Management Corporation opened a new equity position in Bristow Group in Q3 2025. This company, which operates in a narrow transportation niche, offers air taxis to and from offshore oil rigs, search and rescue, and other fixed wing transport services. It has been growing, with more contracts that have allowed it to build a secure financial base, despite the relative size of the company as a small cap stock.

Bristow Group has been known to be an asset-heavy aviation operator, but new contracts and expanding demand has allowed the company to pay down considerable debt, increasing profitability. The demand for offshore helicopter services is currently significant compared to the supply, which is constrained due to a lack of servicers, giving Bristow the ability to increase rates across the board.

It is also ramping up a government contract that is expected to hit full run-rate in 2026, at which time the interest in this company may increase substantially. Kestrel is getting ahead of the rush and buying Bristow while the price is still low and before it’s more widely known as a picks-and-shovels play for the oil and gas industry.

Despite Bristow being a fairly small company for the Fool universe, it’s one with a promising future.

Glossary

13F filing: A quarterly report required from institutional investment managers detailing their U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Portfolio exposure: The proportion of a portfolio allocated to a particular asset, sector, or investment.
Equity position: Ownership of shares in a company, representing a claim on part of its assets and earnings.
Stake: The amount of ownership or interest an investor holds in a company, usually measured in shares or percentage.
Offshore helicopter transport: Aviation services using helicopters to move people or equipment to and from offshore locations, often for the energy sector.
Search and rescue: Operations conducted to locate and assist people in distress, often using specialized aircraft or teams.
Contracted flight services: Aviation services provided under formal agreements, typically for specific clients or missions.
Integrated energy companies: Firms involved in multiple stages of the energy supply chain, such as exploration, production, and distribution.
TTM: The 12-month period ending with the most recent quarterly report.

Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adtalem Global Education and Axos Financial. The Motley Fool recommends Phinia. The Motley Fool has a disclosure policy.