Bridger Aerospace Group Holdings, Inc. (BAER) reported impressive earnings, showcasing a 31 cents earnings per share (EPS) for the third quarter of 2024. This figure marks a significant increase of 40.9% compared to the 22 cents EPS from the same period last year.
Revenue Growth Highlights
In the third quarter, Bridger Aerospace achieved revenues of $64.5 million, representing a year-over-year growth of 20.3%.
This notable increase can be attributed to heightened flight revenues, which included $2.2 million from return-to-service work on four Spanish Super Scoopers as part of Bridger Aerospace’s partnership with MAB Funding LLC, and $1.6 million from the acquisition of FMS Aerospace in June.
In after-hours trading yesterday, the company’s shares rose nearly 24.6%.
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Analyzing Gross Margin Performance
During this quarter, Bridger Aerospace achieved a gross profit of $41.5 million, an increase of 10.2% year over year. However, the gross margin saw a decline of 587 basis points (bps), settling at 64.3%.
Bridger Aerospace Group Holdings, Inc. Price, Consensus and EPS Surprise
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Operating Expenses Overview
Bridger Aerospace saw a commendable decrease in selling, general, and administrative expenses, which fell by 42.6% year over year to $8.6 million.
Profitability Metrics
Operating profit for Bridger Aerospace was reported at $32.9 million, an increase of 45.5% compared to the same quarter last year. This led to an operating margin improvement of 883 bps, reaching 50.9%.
Additionally, net income climbed to $27.3 million, reflecting a rise of 56.4% from the previous year. Adjusted EBITDA for the quarter was $46.9 million, up 21.3% from a year ago.
Liquidity and Debt Position
As of the end of the third quarter 2024, Bridger Aerospace had cash and cash equivalents of $33.3 million, a notable increase from $8.5 million at the end of the second quarter. The total debt slightly decreased to $205.2 million from $205.7 million.
Cumulative net cash from operating activities stood at $0.2 million compared to a cash outflow of $41.5 million a year earlier.
Revised Guidance for the Year
Bridger Aerospace has updated its guidance for the full year. For 2024, they now expect total revenues to range between $90 million and $95 million, which reflects an increase of 35-42% compared to 2023 figures. Previously, they had projected revenues of $70-$86 million.
The adjusted EBITDA forecast for 2024 has also changed, now estimated between $35 million and $40 million, signifying an over 85% increase from last year, adjusting from an earlier estimate of $35 million to $51 million.
Conclusion
Bridger Aerospace demonstrated strong financial performance in the third quarter of 2024, marked by both revenue and net income gains. The acquisition of FMS contributed positively to their results.
Management mentioned that the Super Scooper fleet was utilized more than ever during this period, indicating ongoing operational strength. The international venture into Spain is on track, with repairs on the first two Super Scoopers nearly finished, pointing to potential growth ahead.
However, the decline in gross margin raises some concerns for the future.
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