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BAER Stock Falls Despite Q4 Earnings Uptick and Record Revenues
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Shares of Bridger Aerospace Group Holdings, Inc. (BAER - Free Report) have lost 8.9% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 1.2% gain over the same time frame. Over the past month, the stock lost 25.1% compared with the S&P 500’s 7.9% decline.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Earnings Performance and Financial Metrics
Bridger Aerospace reported fourth-quarter 2024 revenues of $15.6 million, marking a substantial increase from $1.1 million in the prior-year period. The revenue growth was primarily driven by the extended aircraft deployment into November, following an early start to the 2024 wildfire season, and $5.1 million from return-to-service work on four Spanish Super Scoopers under a partnership agreement with MAB Funding, LLC. Additionally, the company's June 2024 acquisition of Flight Test & Mechanical Solutions, Inc. (“FMS”) contributed approximately $1.4 million to revenues.
For the full year, revenues rose 47.8% to $98.6 million from $66.7 million in 2023. Revenues for 2024 included approximately $10.1 million related to return-to service work performed on the four Spanish Super Scoopers as part of the partnership agreement with MAB Funding, LLC and $3 million from the acquisition of FMS.
Bridger Aerospace reported a net loss of $12.8 million ($0.36 per diluted share) in the fourth quarter, improving from a loss of $31.1 million ($0.67 per diluted share) in the prior-year period. For the full year, net loss narrowed to $15.6 million from $77.4 million in 2023, reflecting improved cost controls and higher revenues. Adjusted EBITDA in 2024 rose 99.9% to $37.3 million from $18.7 million in 2023. However, fourth-quarter adjusted EBITDA remained negative at $2.9 million, although it improved from a loss of $10.4 million in fourth-quarter 2023.
Bridger Aerospace Group Holdings, Inc. Price, Consensus and EPS Surprise
Cost of revenues increased 83.9% to $15.4 million in fourth-quarter 2024 from $8.4 million in the prior-year quarter, largely due to higher maintenance costs, including $4.8 million related to the Spanish Super Scoopers. Selling, general, and administrative expenses declined 58.8% to $7.7 million from $18.6 million in fourth-quarter 2023, primarily due to lower stock-based compensation and professional service costs. Interest expense remained relatively stable at $5.9 million compared with $6 million in fourth-quarter 2023.
BAER ended 2024 with cash and cash equivalents of $39.3 million, up from $22.9 million at the end of 2023. The company generated $9.4 million in cash from operating activities against net cash used in operating activities of $26.8 million at the end of 2023, marking its first year of positive operating cash flow.
Management Commentary and Market Dynamics
Interim CEO Sam Davis highlighted BAER’s record revenues and expanding operations, emphasizing the increasing demand for aerial firefighting services due to prolonged wildfire seasons. The company deployed its Super Scoopers as late as November 2024 and as early as January 2025, marking the earliest operational start in its history. The growing year-round nature of wildfire activity is expected to create more consistent revenue opportunities.
Bridger Aerospace is also focused on securing multi-year exclusive-use contracts with states and federal agencies to stabilize revenue streams. Management noted that ongoing regulatory discussions in Washington, including over 30 pending bills related to wildfire response funding, could enhance long-term opportunities.
2025 Guidance and Growth Outlook
For 2025, Bridger Aerospace expects revenues in the range of $105 million to $111 million, representing approximately 9% growth over 2024 at the midpoint. Adjusted EBITDA is projected to be in the range of $42 million-$48 million, reflecting growth of 20% at the midpoint of the range.
The company remains cautious about potential revenue variability due to the seasonal nature of wildfire activity. Additionally, BAER’s guidance does not factor in potential revenue contributions from the four Spanish Super Scoopers, which are undergoing return-to-service work. Two of these aircraft are expected to be operational for the 2025 wildfire season, with the remaining two following later in the year.
Factors Influencing Results
The record revenue growth in 2024 was primarily driven by extended aircraft deployment, increased wildfire activity, and higher contracted revenues. Wildfires consumed 8.9 million acres in 2024, significantly above the 2.7 million acres burned in 2023. This increase in fire activity contributed to heightened demand for BAER’s services.
The company’s acquisition of FMS in June 2024 also played a role in revenue growth, contributing $3 million in revenue over six months. Additionally, the return-to-service work for the Spanish Super Scoopers added approximately $10.1 million in revenue in 2024.
Other Developments
Bridger Aerospace continues to integrate its June 2024 acquisition of FMS, which contributed $3 million in revenues in the second half of the year. The company is leveraging FMS’s capabilities to enhance its aircraft modification and sensor technology, potentially expanding into Department of Defense contracts.
BAER also reported progress with Ignis Technologies, which launched a mobile platform to support firefighters. Bridger aims to transition pilot users to a subscription-based model for the 2025 wildfire season.
A key contract secured in January 2025 was a five-year, $20.1 million agreement with the U.S. Department of the Interior to support wildfire management efforts in Alaska.
Additionally, Bridger Aerospace’s Spanish subsidiary, Albacete Aero, remains on track with the return-to-service work for the four Spanish Super Scoopers. BAER made progress on its Spanish Super Scoopers program, with the first aircraft receiving a certificate of airworthiness from the European Union Aviation Safety Agency. A second aircraft is expected to receive approval within the next 60 days, with both expected to be operational for the 2025 wildfire season. The remaining two Super Scoopers are anticipated to enter service later in the year.
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BAER Stock Falls Despite Q4 Earnings Uptick and Record Revenues
Shares of Bridger Aerospace Group Holdings, Inc. (BAER - Free Report) have lost 8.9% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 1.2% gain over the same time frame. Over the past month, the stock lost 25.1% compared with the S&P 500’s 7.9% decline.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Earnings Performance and Financial Metrics
Bridger Aerospace reported fourth-quarter 2024 revenues of $15.6 million, marking a substantial increase from $1.1 million in the prior-year period. The revenue growth was primarily driven by the extended aircraft deployment into November, following an early start to the 2024 wildfire season, and $5.1 million from return-to-service work on four Spanish Super Scoopers under a partnership agreement with MAB Funding, LLC. Additionally, the company's June 2024 acquisition of Flight Test & Mechanical Solutions, Inc. (“FMS”) contributed approximately $1.4 million to revenues.
For the full year, revenues rose 47.8% to $98.6 million from $66.7 million in 2023. Revenues for 2024 included approximately $10.1 million related to return-to service work performed on the four Spanish Super Scoopers as part of the partnership agreement with MAB Funding, LLC and $3 million from the acquisition of FMS.
Bridger Aerospace reported a net loss of $12.8 million ($0.36 per diluted share) in the fourth quarter, improving from a loss of $31.1 million ($0.67 per diluted share) in the prior-year period. For the full year, net loss narrowed to $15.6 million from $77.4 million in 2023, reflecting improved cost controls and higher revenues. Adjusted EBITDA in 2024 rose 99.9% to $37.3 million from $18.7 million in 2023. However, fourth-quarter adjusted EBITDA remained negative at $2.9 million, although it improved from a loss of $10.4 million in fourth-quarter 2023.
Bridger Aerospace Group Holdings, Inc. Price, Consensus and EPS Surprise
Bridger Aerospace Group Holdings, Inc. price-consensus-eps-surprise-chart | Bridger Aerospace Group Holdings, Inc. Quote
Key Business Metrics and Cost Management
Cost of revenues increased 83.9% to $15.4 million in fourth-quarter 2024 from $8.4 million in the prior-year quarter, largely due to higher maintenance costs, including $4.8 million related to the Spanish Super Scoopers. Selling, general, and administrative expenses declined 58.8% to $7.7 million from $18.6 million in fourth-quarter 2023, primarily due to lower stock-based compensation and professional service costs. Interest expense remained relatively stable at $5.9 million compared with $6 million in fourth-quarter 2023.
BAER ended 2024 with cash and cash equivalents of $39.3 million, up from $22.9 million at the end of 2023. The company generated $9.4 million in cash from operating activities against net cash used in operating activities of $26.8 million at the end of 2023, marking its first year of positive operating cash flow.
Management Commentary and Market Dynamics
Interim CEO Sam Davis highlighted BAER’s record revenues and expanding operations, emphasizing the increasing demand for aerial firefighting services due to prolonged wildfire seasons. The company deployed its Super Scoopers as late as November 2024 and as early as January 2025, marking the earliest operational start in its history. The growing year-round nature of wildfire activity is expected to create more consistent revenue opportunities.
Bridger Aerospace is also focused on securing multi-year exclusive-use contracts with states and federal agencies to stabilize revenue streams. Management noted that ongoing regulatory discussions in Washington, including over 30 pending bills related to wildfire response funding, could enhance long-term opportunities.
2025 Guidance and Growth Outlook
For 2025, Bridger Aerospace expects revenues in the range of $105 million to $111 million, representing approximately 9% growth over 2024 at the midpoint. Adjusted EBITDA is projected to be in the range of $42 million-$48 million, reflecting growth of 20% at the midpoint of the range.
The company remains cautious about potential revenue variability due to the seasonal nature of wildfire activity. Additionally, BAER’s guidance does not factor in potential revenue contributions from the four Spanish Super Scoopers, which are undergoing return-to-service work. Two of these aircraft are expected to be operational for the 2025 wildfire season, with the remaining two following later in the year.
Factors Influencing Results
The record revenue growth in 2024 was primarily driven by extended aircraft deployment, increased wildfire activity, and higher contracted revenues. Wildfires consumed 8.9 million acres in 2024, significantly above the 2.7 million acres burned in 2023. This increase in fire activity contributed to heightened demand for BAER’s services.
The company’s acquisition of FMS in June 2024 also played a role in revenue growth, contributing $3 million in revenue over six months. Additionally, the return-to-service work for the Spanish Super Scoopers added approximately $10.1 million in revenue in 2024.
Other Developments
Bridger Aerospace continues to integrate its June 2024 acquisition of FMS, which contributed $3 million in revenues in the second half of the year. The company is leveraging FMS’s capabilities to enhance its aircraft modification and sensor technology, potentially expanding into Department of Defense contracts.
BAER also reported progress with Ignis Technologies, which launched a mobile platform to support firefighters. Bridger aims to transition pilot users to a subscription-based model for the 2025 wildfire season.
A key contract secured in January 2025 was a five-year, $20.1 million agreement with the U.S. Department of the Interior to support wildfire management efforts in Alaska.
Additionally, Bridger Aerospace’s Spanish subsidiary, Albacete Aero, remains on track with the return-to-service work for the four Spanish Super Scoopers. BAER made progress on its Spanish Super Scoopers program, with the first aircraft receiving a certificate of airworthiness from the European Union Aviation Safety Agency. A second aircraft is expected to receive approval within the next 60 days, with both expected to be operational for the 2025 wildfire season. The remaining two Super Scoopers are anticipated to enter service later in the year.