Bridger Aerospace Group Holdings, Inc. Q4 FY2024 earnings call

• Record fourth quarter and full year 2024 results with revenue exceeding guidance and adjusted EBITDA within range.
• Achieved positive cash flow from operations in 2024, aiming to improve in 2025.
• Early scooper deployments in January and mid-January, with longest deployment in company history.
• Acquisition of SMS Aerospace in June 2024, contributing revenue and opportunities with DoD.
• Ignis Technologies' mobile platform for firefighters with transition to subscription model.
• Spanish scoopers return to service on track, first aircraft with EASA certificate, second expected in 60 days.
• Targeting exclusive use contracts with states for firefighting assets, optimistic about future opportunities.
• Calls for regulatory change and increased appropriations for wildfire fighting, with over thirty bills in Washington.
• Fighting wildfire is nonpartisan, with growing support across political affiliations.

Wildfire Fighting Operations

• Fourth Quarter 2024: Revenue was $15.6 million, a $14.5 million increase from the fourth quarter of 2023. Cost of revenues was $15.4 million. Adjusted EBITDA was negative $2.9 million.
• Full Year 2024: Revenue reached a record $98.6 million, up 48% from 2023. Cost of revenues was $57.5 million. Adjusted EBITDA doubled to $37.3 million.

SMS Aerospace

• Acquired in June 2024, contributed $3 million in revenue over the first six months of ownership. Partnering with Bridger on aircraft modifications.

Ignis Technologies

• Launched mobile platform for firefighters, with transition to subscription-based model for 2025. Focus on linking Bridger real-time sensor imagery within the app.

• 2025 revenue guidance: $105 million to $111 million, predominantly organic based on six Super Scoopers and eight MMA/aerial surveillance aircraft.
• 2025 adjusted EBITDA guidance: $42 million to $48 million, before impact of Spanish Super Scoopers.
• Expect positive cash flow from operations in 2025.
• Full year contribution from SMS Aerospace, RTS revenue from Spanish scoopers projected at 50% of 2024 amount.
• Conservative guidance due to seasonality, with bulk of adjusted EBITDA expected in third quarter.

• Government agency contracting lags and budgeting delays.
• Uncertainty regarding regulatory change and appropriations.
• Variability in wildfire season length and intensity.
• Fuel price and travel cost impacts not reflected in guidance.

Q: What can you tell us about the delivery and operational cadence of the Spanish Scoopers in Europe for the fire season relative to your most recent expectation?

A: The first Spanish scooper has a certificate of airworthiness from EASA, the second expected in 60 days. Two Spanish scoopers expected for fire season, with other two ready within the season.

Q: How do you feel about your cash balance and do you expect it to be sufficient to support working capital and operations in the US and upgrade of the Spanish scoopers and their initial operations in Europe?

A: Ended 2024 with over $39 million in cash. Funding for Spanish scooper upgrades comes from partnership with Mab Group, so cash is sufficient for US operations.

Q: Does the revenue guide for 2025 reflect the fact that we are looking at a full year continuing resolution before the fiscal year 2025-2026 budgets are passed? And how have the California fires impacted your conversations with congressional lawmakers and state governments?

A: Revenue guidance for 2025 envisions funding at prior year levels, no factored in increases. California fires have increased interest and contracting opportunities at state and federal levels.

Q: How would you expect lower fuel prices and travel costs to affect open and flight operations costs and is this reflected in your guidance?

A: Did not reflect lower fuel prices in guidance, but potential upside if fuel prices reduce. Most fuel costs for scooper operations borne by customers.