Bristow Group Q3 2026 Net Income Rises to $27.7M on $437.9M Revenue; Adjusted EBITDA Reaches $89.6M
Why It MattersBristow's quarter shows that earnings at helicopter service providers now hinge on how quickly supply chain bottlenecks clear for government aircraft modification programs, while acquisitions and offshore cost control carry growth meanwhile.
What happened
Bristow Group Inc. (NYSE: VTOL) reported net income attributable to the company of $27.7 million, or $0.93 per diluted share, for the quarter ended September 30, 2026, on total revenues of $437.9 million. In the quarter ended June 30, 2026, the company reported net income of $21.2 million, or $0.70 per diluted share, on revenues of $411.8 million.
Operating income was $47.7 million, against $39.6 million in the preceding quarter. Adjusted EBITDA was $89.6 million, up from $79.8 million, and net cash provided by operating activities was $61.2 million, compared with $41.1 million. Free Cash Flow was $56.0 million and Adjusted Free Cash Flow was $64.3 million.
The company repurchased 547,785 shares for total consideration of $25.0 million and declared a quarterly cash dividend of $0.125 per share. It also affirmed the midpoint of its 2026 Adjusted EBITDA guidance. Through the first nine months of 2026, Bristow paid cash dividends of more than $11 million and repurchased more than $36 million of common shares.
Government Services revenues rose $17.8 million to $130.0 million, mainly because of the acquisition of Berry Aviation, now known as Bristow Special Mission Inc. (BSM), which contributed $16.9 million. Other Services revenues rose $14.0 million to $51.9 million, including $9.2 million from BSM and $4.8 million from increased activity in Australia. In Offshore Energy Services, operating income was $3.2 million higher, helped by lower operating expenses.
President and CEO Chris Bradshaw said persistent industry supply chain challenges have delayed aircraft modification programs for the company's new search and rescue contracts, depressing current Government Services margins. He said he expects these issues to stabilize during 2027.
Industry impact & what to watch
Government search and rescue work is a segment where revenue growth and margin growth can come apart. A contract win brings revenue only once the aircraft have been modified and delivered into service, so a bottleneck in modification parts or capacity pushes margins down even while the order book looks healthy. Bristow's quarter fits that mechanism: Government Services revenue grew by $17.8 million, and $16.9 million of that came from an acquisition rather than from new contracts reaching full productivity.
The offshore side of the business shows the opposite dynamic. A $3.2 million rise in Offshore Energy Services operating income came with lower operating expenses, which points to cost discipline as the driver in a segment that is already operating at scale. For helicopter operators with a mix of energy and government work, the two segments therefore move on different clocks, one on cost control and the other on supply chain recovery.
The point that decides how the government margin story resolves is Bradshaw's expectation that supply chain issues stabilize during 2027. Future quarterly reports showing Government Services margins recovering would confirm that timeline; continued modification delays would extend the drag beyond it.
