Bristow Group Inc

Elroy Air announced that Bristow Group Inc. has expanded its early delivery reservations for the Chaparral autonomous cargo aircraft, reserving 10 additional early delivery positions for a total of 15. Bristow previously secured early delivery slots for five Chaparral drones and announced a pre-order agreement for up to 100 Chaparral drones. The announcement follows the first autonomous, uncrewed flight demonstrations conducted in Houma, Louisiana, as part of the Federal Aviation Administration's and the U.S. Department of Transportation's eVTOL Integration Pilot Program, in collaboration with government and industry partners. Bristow Executive Vice President and Chief Transformation Officer David Stepanek said the Louisiana demonstrations gave the company a chance to explore how Chaparral could support a range of transportation and logistics missions, adding that Bristow sees potential applications across commercial, government services, and special mission operations. Elroy Air CEO Dr. Andrew Clare said the company was proud to have partnered with Bristow over the last few years and appreciated Bristow's continued confidence in the platform. The Chaparral is an uncrewed, autonomous VTOL aircraft that carries 500+ pounds of cargo, requires no runways or fixed infrastructure, and has a hybrid-electric powertrain with range of up to 450 miles. Kratos Defense & Security Solutions, the exclusive U.S. manufacturer of Chaparral, will produce the aircraft at its expanding Sacramento, California facility, with the first production aircraft planned for late 2026.

Bristow Group reported second-quarter net income of $21.2 million, or $0.70 per diluted share, up sharply from $13.1 million, or $0.44 per share, in the first quarter, on total revenue of $411.8 million, up from $388.7 million, and adjusted EBITDA of $79.8 million, up from $59.3 million. The company closed its acquisition of Berry Aviation for $105.0 million in cash on July 13, adding special missions, intelligence and reconnaissance, maintenance and repair, training, unmanned aircraft systems development and on-demand cargo logistics to its Government Services segment, while affirming full-year adjusted EBITDA guidance of $295 million to $325 million. Offshore Energy Services, which generates the bulk of Bristow's business, saw revenue rise to $261.6 million from $254.3 million as operating margin expanded to 18% from 14%. Government Services revenue rose to $112.2 million from $107.9 million, but the segment swung to an operating loss of $2.1 million from operating income of $0.9 million, as aircraft availability penalties tied to supply chain challenges cost $3.6 million. Bristow ended the quarter with $312.3 million in unrestricted cash and $371.6 million in total liquidity, operating cash flow flipped positive to $41.1 million from negative $8.3 million, and the company declared a quarterly dividend of $0.125 per share on July 30, payable August 28.

Elroy Air announced the completion of the first autonomous and uncrewed flights authorized under the U.S. Department of Transportation and Federal Aviation Administration's eVTOL Integration Pilot Program, a milestone toward nationwide commercial autonomous cargo operations. The company's Chaparral aircraft, capable of carrying over 500 pounds of payload up to 450 miles, flew a week-long series of missions in Houma, Louisiana, in late August, in partnership with LIFTOFF Louisiana and Bristow Group, transporting packages, medical supplies, and other cargo. Elroy Air was selected for the eIPP in March 2026 as part of Louisiana's application, and Chaparral remains the only purpose-built heavy-payload cargo drone in the program. The flights were conducted under air traffic control oversight at Houma–Terrebonne Airport, with officials praising the safe and disciplined operation. Elroy Air's commercial demand pipeline exceeds 1,400 aircraft, representing over $5 billion in potential revenue, and Kratos Defense & Security Solutions will manufacture the Chaparral at its Sacramento facility, with first production aircraft planned for late 2026.

Bristow Group reported second-quarter 2026 revenue of $411.8 million and affirmed its full-year adjusted EBITDA guidance of $295 million to $325 million, representing approximately 25% year-over-year growth. The company completed the $105 million cash acquisition of Berry Aviation on July 13, 2026, which is expected to be immediately accretive to earnings and free cash flow while bolstering the EBITDA margin profile. In a separate initiative, Bristow announced it is pursuing the sale of its Norway Offshore Energy Services business as part of its long-standing portfolio optimization strategy. Government Services segment guidance was updated to $475 million to $495 million in revenue and $55 million to $65 million in adjusted operating income, reflecting the inclusion of Berry Aviation contracts and an $8 million adverse impact from supply chain delays. The company also declared a quarterly cash dividend of $0.125 per share.

Bristow Group has agreed to acquire Berry Aviation from Acorn Capital Management for $105 million in cash. The deal is expected to enhance Bristow's earnings through increased exposure to contracted government services and multi-mission aviation activities. Berry Aviation operates a fleet of more than 20 aircraft, primarily providing government and defense aviation services across multiple countries, with special missions, ISR operations, MRO services, training, and UAS design making up nearly 72 percent of its revenues. Berry Aviation reported total revenue of around $108 million in 2025. The transaction is expected to close in the third quarter of 2026 and will be funded through cash.