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BAER Stock Falls Despite Q4 Earnings Uptick and Record Revenues
BAERBridger Aerospace(BAER) ZACKS·2025-03-18 17:46

Core Viewpoint - Bridger Aerospace Group Holdings, Inc. (BAER) has experienced significant revenue growth in 2024, driven by increased demand for aerial firefighting services due to prolonged wildfire seasons, despite facing a net loss for the quarter and the year. Earnings Performance and Financial Metrics - Fourth-quarter 2024 revenues reached 15.6million,asubstantialincreasefrom15.6 million, a substantial increase from 1.1 million in the prior-year period, primarily due to extended aircraft deployment and 5.1millionfromreturn−to−serviceworkonSpanishSuperScoopers[2]−Forthefullyear,revenuesrose47.85.1 million from return-to-service work on Spanish Super Scoopers [2] - For the full year, revenues rose 47.8% to 98.6 million from 66.7millionin2023,includingapproximately66.7 million in 2023, including approximately 10.1 million from return-to-service work and 3 million from the acquisition of Flight Test & Mechanical Solutions, Inc. (FMS) [3] Net Loss and Adjusted EBITDA - The company reported a net loss of 12.8 million (0.36perdilutedshare)inthefourthquarter,animprovementfromalossof0.36 per diluted share) in the fourth quarter, an improvement from a loss of 31.1 million (0.67perdilutedshare)intheprior−yearperiod[4]−Forthefullyear,netlossnarrowedto0.67 per diluted share) in the prior-year period [4] - For the full year, net loss narrowed to 15.6 million from 77.4millionin2023,withadjustedEBITDArising99.977.4 million in 2023, with adjusted EBITDA rising 99.9% to 37.3 million from 18.7millionin2023[4]CostManagement−Costofrevenuesincreased83.918.7 million in 2023 [4] Cost Management - Cost of revenues increased 83.9% to 15.4 million in fourth-quarter 2024, largely due to higher maintenance costs, including 4.8millionrelatedtotheSpanishSuperScoopers[5]−Selling,general,andadministrativeexpensesdeclined58.84.8 million related to the Spanish Super Scoopers [5] - Selling, general, and administrative expenses declined 58.8% to 7.7 million from 18.6millioninfourth−quarter2023,primarilyduetolowerstock−basedcompensationandprofessionalservicecosts[5]CashFlowandFinancialPosition−BAERended2024withcashandcashequivalentsof18.6 million in fourth-quarter 2023, primarily due to lower stock-based compensation and professional service costs [5] Cash Flow and Financial Position - BAER ended 2024 with cash and cash equivalents of 39.3 million, up from 22.9millionattheendof2023,markingitsfirstyearofpositiveoperatingcashflow[6]ManagementCommentaryandMarketDynamics−InterimCEOSamDavisemphasizedrecordrevenuesandexpandingoperations,highlightingtheincreasingdemandforaerialfirefightingservicesduetoprolongedwildfireseasons[7]−Thecompanyaimstosecuremulti−yearexclusive−usecontractswithstatesandfederalagenciestostabilizerevenuestreams,withongoingregulatorydiscussionspotentiallyenhancinglong−termopportunities[8]2025GuidanceandGrowthOutlook−For2025,BAERexpectsrevenuesintherangeof22.9 million at the end of 2023, marking its first year of positive operating cash flow [6] Management Commentary and Market Dynamics - Interim CEO Sam Davis emphasized record revenues and expanding operations, highlighting the increasing demand for aerial firefighting services due to prolonged wildfire seasons [7] - The company aims to secure multi-year exclusive-use contracts with states and federal agencies to stabilize revenue streams, with ongoing regulatory discussions potentially enhancing long-term opportunities [8] 2025 Guidance and Growth Outlook - For 2025, BAER expects revenues in the range of 105 million to 111million,representingapproximately9111 million, representing approximately 9% growth over 2024 at the midpoint, with adjusted EBITDA projected to be in the range of 42 million-48million[9]FactorsInfluencingResults−Recordrevenuegrowthin2024wasdrivenbyextendedaircraftdeployment,increasedwildfireactivity,andhighercontractedrevenues,withwildfiresconsuming8.9millionacresin2024comparedto2.7millionacresin2023[11]−TheacquisitionofFMScontributed48 million [9] Factors Influencing Results - Record revenue growth in 2024 was driven by extended aircraft deployment, increased wildfire activity, and higher contracted revenues, with wildfires consuming 8.9 million acres in 2024 compared to 2.7 million acres in 2023 [11] - The acquisition of FMS contributed 3 million in revenue over six months, and return-to-service work for the Spanish Super Scoopers added approximately 10.1millioninrevenuein2024[12]OtherDevelopments−BridgerAerospacecontinuestointegrateitsacquisitionofFMS,leveragingitscapabilitiestoenhanceaircraftmodificationandsensortechnology[13]−Thecompanysecuredafive−year,10.1 million in revenue in 2024 [12] Other Developments - Bridger Aerospace continues to integrate its acquisition of FMS, leveraging its capabilities to enhance aircraft modification and sensor technology [13] - The company secured a five-year, 20.1 million agreement with the U.S. Department of the Interior for wildfire management efforts in Alaska [14] - Progress on the return-to-service work for the Spanish Super Scoopers is on track, with the first aircraft receiving a certificate of airworthiness and expected operational status for the 2025 wildfire season [15]