Q4 2025 Bridger Aerospace Group Holdings Inc Earnings Call

March 5, 2026

Speaker #2: Thank you for your continued patience. Your meeting will begin shortly. If you need assistance throughout the event today, please press star zero, and a member of our team will be happy to help you.

Speaker #2: Please stand by. Your meeting is about to begin. Greetings and welcome to the Bridger Aerospace 4th Quarter 2025 conference call. As a reminder, today's call is being recorded.

Speaker #2: To introduce your host, Eric Gerratt, Chief Financial Officer. Thank you, Mr. Gerratt, you may begin. It is now my pleasure. Good afternoon, and thank you for joining us today.

Eric Jarrett: Good afternoon and thank you for joining us today. Joining me on the call this afternoon is Chief Executive Officer, Sam Davis, and incoming CFO, Ann Hayes. Before we begin, please note that certain statements contained in this conference call that do not describe historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various assumptions, risks, and uncertainties, actual results may differ materially from those expressed or implied by such statements. Factors that could cause results to differ materially from those expressed include, but are not limited to, those disclosed in the company's filings with the US Securities and Exchange Commission, including our expectations regarding financial results for 2026.

Eric Gerratt: Good afternoon and thank you for joining us today. Joining me on the call this afternoon is Chief Executive Officer, Sam Davis, and incoming CFO, Anne Hayes. Before we begin, please note that certain statements contained in this conference call that do not describe historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various assumptions, risks, and uncertainties, actual results may differ materially from those expressed or implied by such statements. Factors that could cause results to differ materially from those expressed include, but are not limited to, those disclosed in the company's filings with the US Securities and Exchange Commission, including our expectations regarding financial results for 2026.

Speaker #2: Joining me on the call this afternoon are Chief Executive Officer Sam Davis and incoming CFO Anne Hayes. Before we begin, please note that certain statements contained in this conference call that do not describe historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

Speaker #2: Since forward-looking statements are based on various assumptions, risks, and uncertainties, actual results may differ materially from those expressed or implied by such cause results to differ materially from those expressed include, but are not statements.

Speaker #2: Factors that could limited to, those disclosed in the company's filings with the U.S. Securities and Exchange Commission, including our expectations regarding financial results for 2026.

Speaker #2: Management cannot control or predict many factors that impact future results. Listeners should not place undue reliance on forward-looking statements which reflect management's views only as of today.

Eric Jarrett: Management cannot control or predict the many factors that impact future results. Listeners should not place undue reliance on forward-looking statements which reflect management's views only as of today. We anticipate that subsequent events and developments will cause our assessments to change. However, we undertake no obligation to revise or update any forward-looking statement or to make any other forward-looking statement. Throughout this afternoon's earnings release and call today, we refer to the non-GAAP financial measure adjusted EBITDA. The definition, calculation, and reconciliation of the financial statements of adjusted EBITDA can be found in Exhibit A of our earnings release, which is available on our website. We believe adjusted EBITDA is useful in evaluating our reported results as a supplement to, and not a substitute for results reported under GAAP. With that, I'd like to turn the call over to Sam.

Eric Gerratt: Management cAnneot control or predict the many factors that impact future results. Listeners should not place undue reliance on forward-looking statements which reflect management's views only as of today. We anticipate that subsequent events and developments will cause our assessments to change. However, we undertake no obligation to revise or update any forward-looking statement or to make any other forward-looking statement. Throughout this afternoon's earnings release and call today, we refer to the non-GAAP financial measure adjusted EBITDA. The definition, calculation, and reconciliation of the financial statements of adjusted EBITDA can be found in Exhibit A of our earnings release, which is available on our website. We believe adjusted EBITDA is useful in evaluating our reported results as a supplement to, and not a substitute for results reported under GAAP. With that, I'd like to turn the call over to Sam.

Speaker #2: We anticipate that subsequent events and developments will cause our assessments to change. However, we undertake no obligation to revise or update any forward-looking statement or to make any other forward-looking statement.

Speaker #2: Throughout this afternoon's earnings release and call today, we refer to the non-GAAP financial measure, adjusted EBITDA. The definition, calculation, and reconciliation to the financial statements of adjusted EBITDA can be found in Exhibit A of our earnings release, which is available on our website.

Speaker #2: We believe adjusted EBITDA is useful in evaluating our reported results as a supplement to and not a substitute for results reported under GAAP. With that, I'd like to turn the call over to Sam.

Speaker #3: You, Eric. First, I wanted to say how proud I am of our team throughout this period of incredible growth. They have risen to the occasion and have been the champions of Bridger culture, focused on the mission, and dedicated to safety.

Sam Davis: Thank you, Erik. First, I wanted to say how proud I am of our team throughout this period of incredible growth. They have risen to the occasion and have been the champions of Bridger culture and focused on the mission and dedicated to safety. Their execution drove record operational and financial performance again in 2025. We generated positive net income and posted a second year of positive cash flow, with revenue and adjusted EBITDA both growing by more than 20%. It's important to note that this record performance was achieved during what was statistically a below average fire year. This financial resilience underscores the strength of our business model, the growing diversification of our revenue streams, and the benefits of securing longer-term task orders for our aircraft.

Sam Davis: Thank you, Eric. First, I wanted to say how proud I am of our team throughout this period of incredible growth. They have risen to the occasion and have been the champions of Bridger culture and focused on the mission and dedicated to safety. Their execution drove record operational and financial performance again in 2025. We generated positive net income and posted a second year of positive cash flow, with revenue and adjusted EBITDA both growing by more than 20%. It's important to note that this record performance was achieved during what was statistically a below average fire year. This financial resilience underscores the strength of our business model, the growing diversification of our revenue streams, and the benefits of securing longer-term task orders for our aircraft.

Speaker #3: Their execution drove record operational and financial performance again in 2025. We generated positive net income and posted a second year of positive cash flow with revenue and adjusted EBITDA both growing by more than 20%.

Speaker #3: It's important to note that this record performance was achieved during what was statistically a below-average fire year. This financial resilience underscores the strength of our business model, the growing diversification of our revenue streams, and the benefits of securing longer-term task orders for our aircraft.

Speaker #3: While the reported number of wildfires nationwide was noticeably higher in 2025, at nearly 78,000 fires compared to the five- and ten-year averages of around 62,000, they burned far below the normal acreage nationwide of 5.1 million acres—more than 30% below the five- and ten-year averages.

Sam Davis: While the reported number of wildfires nationwide was noticeably higher in 2025 at nearly 78,000 fires compared to the 5 and 10-year averages of around 62,000, they burned far below the normal acreage nationwide of 5.1 million acres, more than 30% below the 5 and 10-year averages. This is likely the result of our federal and state customers' growing emphasis on early detection, initial and direct attack, and a more rapid response to wildfire. This proactive approach, combined with the impressive performance of our Super Scoopers and enhanced Aerotack assets, helped drive strategic pre-positioning of our fleet and improved utilization in 2025. Utilization, which is measured in days on contract, was up almost 10% year-over-year. Our multi-mission aircraft almost doubled their flight hours year-over-year and remained deployed well into November.

Speaker #3: This is likely the result of our federal and state customers' growing emphasis on early detection, initial and direct attack, and a more rapid response to wildfire.

Speaker #3: This proactive approach, combined with the impressive performance of our scoopers and enhanced air attack assets, helped drive strategic pre-positioning of our fleet and improved utilization in 2025.

Speaker #3: Utilization, which is measured in days on contract, was up almost 10% year over year. Our multi-mission aircraft almost doubled their flight hours year over year and remained deployed well into November.

Speaker #3: The increased utilization rates have paralleled an ideological shift in how the U.S. fights wildfires. Throughout 2025, we saw many federal and state customers place increased emphasis on initial and direct attack.

Sam Davis: The increased utilization rates have paralleled an ideological shift in how the US fights wildfires. Throughout 2025, we saw many federal and state customers place increased emphasis on initial and direct attack. Fortunately for Bridger, we have the aircraft best suited for this aggressive wildfire management style. We are directing our efforts to maximize the use of aircraft we have while finding other opportunities to expand our capacity with additional aircraft. Looking at the 2025 wildfire statistic for Super Scoopers specifically, there continues to be unmet demand as demonstrated by over 60 orders that were unable to be filled due to aircraft already deployed in fires. Of the total requests made, this represented a 48% unfilled rate. Far this year, we have deployed two Pilatus PC-12s and two Super Scoopers to fight fire.

Speaker #3: Fortunately for Bridger, we have the aircraft best suited for this aggressive wildfire management style. We are directing our efforts to maximize the use of aircraft we have while finding other opportunities to expand our capacity with additional aircraft.

Speaker #3: Looking at the 2025 wildfire statistic for super scoopers, specifically, there continues to be unmet demand as demonstrated by over 60 orders that were unable to be filled due to aircraft already deployed and fires.

Speaker #3: Of the total requests made, this represented a 48% unfilled rate. So far this year, we have deployed two Pilatus PC-12s and two Super Scoopers to fight fire.

Speaker #3: Of the PC-12s, one multi-mission aircraft mobilized to Oklahoma and one mobilized to Texas to provide aerial intelligence for early season wildfires. The call-up of our enhanced air attack platform demonstrates the aforementioned prioritization of early detection and the proven effectiveness of our advanced sensors and imaging systems.

Sam Davis: Of the PC-12s, one multi-mission aircraft mobilized to Oklahoma and one mobilized to Texas to provide aerial intelligence for early season wildfires. The call-up of our enhanced Air Attack platform demonstrates the aforementioned prioritization of early detection and the proven effectiveness of our advanced sensors and imaging systems. Demonstrating our ongoing commitment for year-round readiness, at least three of our Super Scoopers have remained ready throughout the winter months to be dispatched or to support training. Early in the year, we even pre-positioned aircraft in Arizona as a proximity advantage as wildfire threats began to rise in the southern states. Let me now provide an update on our contracting as we look out to 2026. We continue to target multi-year and exclusive use contracts to build resiliency in our revenue and drive utilization.

Speaker #3: Demonstrating our ongoing commitment for year-round readiness, at least three of our super scoopers have remained ready throughout the winter months to be dispatched or to support training.

Speaker #3: Early in the year, we even pre-positioned aircraft in Arizona as a proximity advantage as wildfire threats began to rise in the southern states. Let me now provide an update on our contracting as we look out to 2026.

Speaker #3: We continue to target multi-year and exclusive-use contracts to build resiliency in our revenue and drive utilization. Maximizing the number of these exclusive-use commitments helps to ensure our fleet remains dedicated to critical wildfire response efforts.

Sam Davis: Maximizing the number of these exclusive use commitments helps to ensure our fleet remains dedicated to critical wildfire response efforts. We are in active discussions with numerous states to provide exclusive use of our firefighting assets and are optimistic that current budgeting and planning cycles will lead to future opportunities in the coming months. Just this week, we announced a five-year multiple award, indefinite delivery, indefinite quantity, or IDIQ contract for call when needed fixed wing transportation services in Alaska. We will be supporting personnel and cargo movements for the U.S. Department of the Interior and other federal agencies on an as-needed basis. Although this is not a guarantee, this contract is estimated at $18.6 million. This contract allows Bridger to create additional work for existing aircraft as well as answer demand as we grow our fleet with similar capabilities at the state and federal level.

Sam Davis: Maximizing the number of these exclusive use commitments helps to ensure our fleet remains dedicated to critical wildfire response efforts. We are in active discussions with numerous states to provide exclusive use of our firefighting assets and are optimistic that current budgeting and plAnneing cycles will lead to future opportunities in the coming months. Just this week, we Anneounced a five-year multiple award, indefinite delivery, indefinite quantity, or IDIQ contract for call when needed fixed wing transportation services in Alaska. We will be supporting personnel and cargo movements for the U.S. Department of the Interior and other federal agencies on an as-needed basis. Although this is not a guarantee, this contract is estimated at $18.6 million. This contract allows Bridger to create additional work for existing aircraft as well as answer demand as we grow our fleet with similar capabilities at the state and federal level.

Speaker #3: We are in active discussions with numerous states to provide exclusive use of our firefighting assets and are optimistic that current budgeting and planning cycles will lead to future opportunities in the coming months.

Speaker #3: Just this week, we announced a five-year multiple award in definite delivery in definite quantity or IDIQ contract for call-needed fixed-wing transportation services in Alaska.

Speaker #3: We will be supporting personnel and cargo movements for the U.S. Department of Interior and other federal agencies on an as-needed basis. Although this is not a guarantee, this contract is estimated at $18.6 million.

Speaker #3: This contract allows Bridger to create additional work for existing aircraft as well as answer demand as we grow our fleet with similar capabilities at the state and federal level.

Speaker #3: Through our FMS subsidiary, we are dedicating resources for modification work on several internal aircraft to enhance our technology platforms. These modified aircraft are becoming a growing part of our contracting discussions.

Sam Davis: Through our FMS subsidiary, we are dedicating resources for modification work on several internal aircraft to enhance our technology platforms. These modified aircraft are becoming a growing part of our contracting discussions. We're also in active firefighting contract discussions for our first two Spanish Scoopers in Europe, having purchased them from our partnership with MAB Funding, LLC in Q4. The third and fourth Spanish Scoopers continue to undergo the final stages of their return to service work by our Spanish subsidiary, Albacete Aero. As they become available later in 2026, we will look to enter discussions with Mab to potentially acquire these aircraft as well. Let me now provide a quick update on FMS and Ignis, our two acquisitions. FMS contributed $7.9 million in revenue for 2025.

Speaker #3: We're also in active firefighting contract discussions for our first two Spanish scoopers in Europe, having purchased them from our partnership with MAB Funding LLC in the fourth quarter.

Speaker #3: The third and fourth Spanish scoopers continue to undergo the final stages of their return-to-service work by our Spanish subsidiary, Albacete Aero. As they become available later in 2026, we will look to enter discussions with MAB to potentially acquire these aircraft as well.

Speaker #3: Let me now provide a quick update on FMS and Ignis. Our two acquisitions. FMS contributed $7.9 million in revenue for 2025. As I mentioned, much of their resources have been dedicated to internal aircraft modifications for Bridger aircraft to solidify our competitive edge.

Sam Davis: As I mentioned, much of their resources have been dedicated to internal aircraft modifications for Bridger Aerospace to solidify our competitive edge. These technology-enhanced platforms are in high demand and have been instrumental in our ability to position Bridger for high-margin work. We also continue to see a number of contracting opportunities, primarily with the DoD, in active bids with FMS's capabilities that put Bridger uniquely positioned to respond to. In addition to awarded work with our partner, Positive Aviation, for the FF72 aircraft, our recent wins include a small award with the U.S. Air Force and Boresight. While revenue in FMS saw delays due to federal budgeting uncertainties through 2025, we do see momentum in federal funding with recent increases through the National Defense Authorization Act for 2025 for $895 billion.

Speaker #3: These technology-enhanced platforms are in high demand and have been instrumental in our ability to position Bridger for high-margin work. We also continue to see a number of contracting opportunities primarily with the DOD in active bids with FMS's capabilities that put Bridger uniquely positioned to respond to.

Speaker #3: In addition, to awarded work with our partner, Positive Aviation for the FF-72 aircraft, our recent wins include a small award with the U.S. Air Force and BoreSight.

Speaker #3: While revenue in FMS saw delays due to federal budgeting uncertainties through 2025, we do see momentum in federal funding, with recent increases through the National Defense Authorization Act for 2025 for $195 billion.

Speaker #3: With our integrated services, we remain well-positioned for a wide range of defense, as well as commercial, work. We're in the middle of repurposing our business development team to target this work.

Sam Davis: With our integrated services, we remain well-positioned for a wide range of defense as well as commercial work. We're in the middle of repurposing our business development team to target this work. Much of the opportunities are fairly small and strategic, with potential to scale into large volume, non-fire, non-seasonal, complementary to the services we already provide. Also, a quick update on the Ignis Technologies platform. Since launching the mobile platform to support firefighters in the field over a year ago, pilot programs utilizing the platform with counties, crews, and incident management teams continue. We are now linking Bridger's real-time sensory image with the Ignis app, creating a seamless data flow from air to ground.

Speaker #3: And much of the opportunities are fairly small and strategic, with potential to scale into large volume, non-fire, non-seasonal, complementary to the services we already provide.

Speaker #3: Also a quick update on the Ignis technologies platform. Since launching the mobile platform to support firefighters in the field over a year ago, pilot programs utilizing the platform with counties, crews, and incident management teams continue.

Speaker #3: We are now linking Bridger's real-time sensory image with the Ignis app, creating a seamless data flow from air to ground. Already this year, we have been live streaming wildfire progression, delivering perimeter mapping, and even providing drop targets for aerial support as we deliver our imagery to ground firefighters.

Sam Davis: Already this year, we have been live streaming wildfire progression, delivering perimeter mapping, and even providing drop targets for aerial support as we deliver our imagery to ground firefighters, pilots, and incident commanders to make effective real-time decisions and enhance the safety of all operations in the fire stack. This capability is unlocking new levels of situational awareness and supporting multi-mission aviation contracts and enhances both operational effectiveness and safety. With the continued success of our sensor-enhanced aircraft in this field, the need for interactive live data streaming is stronger than ever, and we intend for this to be a critical part of our sensor-enhanced aviation contracts this year. As we look out to 2026, we are well positioned for another year of greater than 25% growth.

Speaker #3: Pilots and incident commanders to make effective, real-time decisions and enhance the safety of all operations in the fire stack. This capability is unlocking new levels of situational awareness and supporting multi-mission aviation contracts and enhances both operational effectiveness and safety.

Speaker #3: With the continued success of our sensor-enhanced aircraft in this field, the need for interactive live data streaming is stronger than ever, and we intend for this to be a critical part of our sensor-enhanced aviation contracts this year.

Speaker #3: As we look out to 2026, we are well positioned for another year of greater than 25% growth. This includes revenue from our two new Spanish scoopers as well as two new air attack aircraft, which we added in the fourth quarter.

Sam Davis: This includes revenue from our two new Super Scoopers as well as two new Air Attack aircraft, which we added in the Q4. Our improved balance sheet provides the financial flexibility to acquire additional aircraft in response to contract expansion opportunities and further drive EBITDA growth and long-term shareholder value. This growth stands against a backdrop of recent federal initiatives to restructure our national wildland firefighting system. This includes the executive order in early 2025 that called for the establishment of a National Wildland Firefighting Task Force, the establishment of the U.S. Wildland Fire Service, and passage of the Fire Ready Nation Act and Aerial Firefighting Enhancement Act of 2025, all of which are focused on improving wildfire response.

Speaker #3: Our improved balance sheet provides the financial flexibility to acquire additional aircraft in response to contract expansion opportunities, and further drive EBITDA growth and long-term shareholder value.

Speaker #3: This growth stands against a backdrop of recent federal initiatives to restructure our national wildfire firefighting system. This includes the executive order in early 2025 that called for the establishment of a national wildland firefighting task force, the establishment of the Wildland Fire Service, and passage of the Fire Ready Nation Act and Aerial Firefighting Enhancement Act of 2025.

Speaker #3: All of which are focused on improving wildfire response. With Bridger's significant air attack fleet, including modern fire imaging and surveillance aircraft and the world's largest private Super Scooper fleet, we believe we are uniquely positioned to protect lives, property, critical infrastructure, and the environment as the nation focuses on preparedness and aggressive wildfire suppression.

Sam Davis: With Bridger's significant Air Attack fleet, including modern fire imaging and surveillance air-aircraft and the world's largest private Super Scooper fleet, we believe we are uniquely positioned to protect lives, property, critical infrastructure, and the environment as the nation focuses on preparedness and aggressive wildfire suppression. We have exciting opportunities before us, and I remain grateful and humbled to lead this exceptional team. Let me now turn it back to Eric, who will talk about our strong financial performance in 2025.

Speaker #3: We have exciting opportunities before us, and I remain grateful and humbled to lead this exceptional team. Let me now turn it back to Eric, who will talk about our strong financial performance in 2025.

Speaker #1: Thanks, Sam. Looking at our results for the fourth quarter of 2025, revenue was $8.5 million compared to $15.6 million in the fourth quarter of 2024.

Eric Jarrett: Thanks, Sam. Looking at our results for Q4 2025, revenue was $8.5 million compared to $15.6 million in Q4 2024. The decline year-over-year was partially related to the later deployment of our Super Scoopers in Q4 2024 compared to Q4 2025. Excluding revenue for return to service work performed on the Spanish Super Scoopers as part of our partnership agreement with MAB Funding, LLC, which was $0.8 million in Q4 2025 and $5.1 million in Q4 2024. Revenue from ongoing operations, including FMS, was approximately $7.7 million compared to approximately $10.5 million in Q4 2024.

Eric Gerratt: Thanks, Sam. Looking at our results for Q4 2025, revenue was $8.5 million compared to $15.6 million in Q4 2024. The decline year-over-year was partially related to the later deployment of our Super Scoopers in Q4 2024 compared to Q4 2025. Excluding revenue for return to service work performed on the Spanish Super Scoopers as part of our partnership agreement with MAB Funding, LLC, which was $0.8 million in Q4 2025 and $5.1 million in Q4 2024. Revenue from ongoing operations, including FMS, was approximately $7.7 million compared to approximately $10.5 million in Q4 2024.

Speaker #1: The decline year over year was partially related to the later deployment of our Super Scoopers in the fourth quarter of 2024 compared to the fourth quarter of 2025.

Speaker #1: Excluding revenue from for return-to-service work performed on the Spanish super scoopers as part of our partnership agreement with MAB funding LLC, which was $0.8 million in the fourth quarter of 2025 and $5.1 million in the fourth quarter of 2024, revenue from ongoing operations, including FMS, was approximately $7.7 million compared to approximately $10.5 million in the fourth quarter of 2024.

Speaker #1: Cost of revenues was $14.1 million in the fourth quarter of 2025 and was comprised of flight operations expenses of $5.7 million and maintenance expenses of $8.4 million.

Eric Jarrett: Cost of revenues was $14.1 million in Q4 2025 and was comprised of flight operations expenses of $5.7 million and maintenance expenses of $8.4 million. This compares to $15.4 million in Q4 2024, which included $5.8 million of flight operation expenses and $9.6 million of maintenance expenses. Cost of revenues associated with the return to service work on the Spanish Super Scoopers declined $4.2 million in Q4 2025 compared to Q4 2024.

Eric Gerratt: Cost of revenues was $14.1 million in Q4 2025 and was comprised of flight operations expenses of $5.7 million and maintenance expenses of $8.4 million. This compares to $15.4 million in Q4 2024, which included $5.8 million of flight operation expenses and $9.6 million of maintenance expenses. Cost of revenues associated with the return to service work on the Spanish Super Scoopers declined $4.2 million in Q4 2025 compared to Q4 2024.

Speaker #1: This compares to $15.4 million in the fourth quarter of 2024, which included $5.8 million of flight operation expenses and $9.6 million of maintenance expenses.

Speaker #1: Cost of revenues associated with the return-to-service work on the Spanish super scoopers declined 4.2 million in the fourth quarter of 2025 compared to the fourth quarter of 2024.

Speaker #1: Selling general and administrative expenses were $13.4 million in the fourth quarter of 2025 compared to $7.7 million in the fourth quarter of 2024, primarily reflecting an increase in the fair value of our warrants and an increase in earnout consideration compared to the fourth quarter of 2024.

Eric Jarrett: Selling general and administrative expenses were $13.4 million in Q4 2025 compared to $7.7 million in Q4 2024, primarily reflecting an increase in the fair value of our warrants and an increase in earn-out consideration compared to Q4 2024. Interest expense for Q4 was $6 million compared to $5.9 million in Q4 last year. Other income was $10 million in Q4 2025 compared to $0.3 million in Q4 2024.

Eric Gerratt: Selling general and administrative expenses were $13.4 million in Q4 2025 compared to $7.7 million in Q4 2024, primarily reflecting an increase in the fair value of our warrants and an increase in earn-out consideration compared to Q4 2024. Interest expense for Q4 was $6 million compared to $5.9 million in Q4 last year. Other income was $10 million in Q4 2025 compared to $0.3 million in Q4 2024.

Speaker #1: Interest expense for the fourth quarter was $6 million, compared to $5.9 million in the fourth quarter last year. Other income was $10 million in the fourth quarter of 2025, compared to $0.3 million in the fourth quarter of 2024.

Speaker #1: The increase was primarily attributable to a gain of $16.9 million related to the sale-leaseback transaction, partially offset by a loss of $7.8 million on the extinguishment of debt in conjunction with our debt refinancing in the fourth quarter of 2025.

Eric Jarrett: The increase was primarily attributable to a gain of $16.9 million related to the sale-leaseback transaction, partially offset by a loss of $7.8 million on the extinguishment of debt in conjunction with our debt refinancing in the Q4 of 2025. For the Q4 of 2025, we reported a net loss of $15.1 million or $0.40 per diluted share, compared to a net loss of $12.8 million or $0.36 per diluted share in the Q4 of 2024. Adjusted EBITDA was negative $9.5 million in the Q4, compared to negative $2.9 million in the Q4 of 2024. A reconciliation of adjusted EBITDA to net loss is included in Exhibit A of our earnings release distributed earlier today.

Eric Gerratt: The increase was primarily attributable to a gain of $16.9 million related to the sale-leaseback transaction, partially offset by a loss of $7.8 million on the extinguishment of debt in conjunction with our debt refinancing in the Q4 of 2025. For the Q4 of 2025, we reported a net loss of $15.1 million or $0.40 per diluted share, compared to a net loss of $12.8 million or $0.36 per diluted share in the Q4 of 2024. Adjusted EBITDA was negative $9.5 million in the Q4, compared to negative $2.9 million in the Q4 of 2024. A reconciliation of adjusted EBITDA to net loss is included in Exhibit A of our earnings release distributed earlier today.

Speaker #1: For the fourth quarter of 2025, we reported a net loss of $15.1 million, or $0.40 per diluted share. Compared to a net loss of $12.8 million, or $0.36 per diluted share, in the fourth quarter of 2024, adjusted EBITDA was negative $9.5 million in the fourth quarter, compared to negative $2.9 million in the fourth quarter of 2024.

Speaker #1: A reconciliation of adjusted EBITDA to net loss is included in Exhibit A of our earnings release distributed earlier today. Looking at our results for the full year 2025, revenue was $122.8 million compared to $98.6 million in 2024, a 25% increase.

Eric Jarrett: Looking at our results for the full year 2025, revenue was $122.8 million compared to $98.6 million in 2024, a 25% increase. Excluding return to service work on the Spanish Super Scoopers, revenue was at $108.8 million compared to $88.5 million in 2024, which was up 23%. Cost of revenues was $71.1 million, comprised of flight operation expenses of $31.9 million and maintenance expenses of $39.2 million. Cost of revenues for 2024 was $57.5 million, comprised of $31 million of flight operations expenses and maintenance expenses of $26.5 million.

Eric Gerratt: Looking at our results for the full year 2025, revenue was $122.8 million compared to $98.6 million in 2024, a 25% increase. Excluding return to service work on the Spanish Super Scoopers, revenue was at $108.8 million compared to $88.5 million in 2024, which was up 23%. Cost of revenues was $71.1 million, comprised of flight operation expenses of $31.9 million and maintenance expenses of $39.2 million. Cost of revenues for 2024 was $57.5 million, comprised of $31 million of flight operations expenses and maintenance expenses of $26.5 million.

Speaker #1: Excluding return-to-service work on the Spanish Super Scoopers, revenue was $108.8 million compared to $88.5 million in 2024, which was up 23%. Cost of revenues was $71.1 million, comprised of flight operation expenses of $31.9 million and maintenance expenses of $39.2 million.

Speaker #1: Cost of revenues for 2024 was $57.5 million, comprised of $31 million of flight operation expenses and maintenance expenses of $26.5 million. Cost of revenues for 2025 included an increase of approximately $5.4 million of expenses associated with the return-to-service work on the Spanish super scoopers compared to 2024.

Eric Jarrett: Cost of revenues for 2025 included an increase of approximately $5.4 million of expenses associated with the return to service work on the Spanish Super Scoopers compared to 2024. SG&A expenses were $36.3 million compared to $35.8 million in 2024, with the increase primarily driven by an increase in the fair value of our warrants, partially offset by a decrease in non-cash stock-based compensation expense. Interest expense for 2025 was $23.3 million compared to $23.7 million in 2024. We also reported other income of $11.8 million for 2025, inclusive of the gain of $16.9 million on the sale-leaseback transaction, partially offset by the loss of $7.8 million on the extinguishment of debt.

Eric Gerratt: Cost of revenues for 2025 included an increase of approximately $5.4 million of expenses associated with the return to service work on the Spanish Super Scoopers compared to 2024. SG&A expenses were $36.3 million compared to $35.8 million in 2024, with the increase primarily driven by an increase in the fair value of our warrants, partially offset by a decrease in non-cash stock-based compensation expense. Interest expense for 2025 was $23.3 million compared to $23.7 million in 2024. We also reported other income of $11.8 million for 2025, inclusive of the gain of $16.9 million on the sale-leaseback transaction, partially offset by the loss of $7.8 million on the extinguishment of debt.

Speaker #1: SG&A expenses were $36.3 million compared to $35.8 million in 2024, with the increase primarily driven by an increase in the fair value of our warrants partially offset by a decrease in non-cash stock-based compensation expense.

Speaker #1: Interest expense for 2025 was $23.3 million, compared to $23.7 million in 2024. We also reported other income of $11.8 million for 2025, inclusive of the gain of $16.9 million on the sale-leaseback transaction, partially offset by the loss of $7.8 million on the extinguishment of debt.

Speaker #1: Other income was $2.1 million for 2024. Net income was $4.1 million in 2025 compared to a net loss of $15.6 million in 2024. Adjusted EBITDA was $45.3 million in 2025 compared to $37.3 million in 2024.

Eric Jarrett: Other income was $2.1 million for 2024. Net income was $4.1 million in 2025 compared to a net loss of $15.6 million in 2024. Adjusted EBITDA was $45.3 million in 2025 compared to $37.3 million in 2024. Turning to the balance sheet, we ended 2025 with total cash and cash equivalents of $31.4 million. During Q4, we completed our previously announced sale-leaseback transaction with SR Aviation Infrastructure for our Bozeman Yellowstone International Airport campus facilities. We also entered into a new senior secured facility for up to $331.5 million led by Bain Capital's private credit group.

Eric Gerratt: Other income was $2.1 million for 2024. Net income was $4.1 million in 2025 compared to a net loss of $15.6 million in 2024. Adjusted EBITDA was $45.3 million in 2025 compared to $37.3 million in 2024. Turning to the balance sheet, we ended 2025 with total cash and cash equivalents of $31.4 million. During Q4, we completed our previously Anneounced sale-leaseback transaction with SR Aviation Infrastructure for our Bozeman Yellowstone International Airport campus facilities. We also entered into a new senior secured facility for up to $331.5 million led by Bain Capital's private credit group.

Speaker #1: Turning to the balance sheet, we ended 2025 with total cash and cash equivalents of $31.4 million. During the fourth quarter, we completed our previously announced sale leaseback transaction with SR Aviation Infrastructure for our Bozeman Yellowstone International Airport campus facilities.

Speaker #1: We also entered into a new senior secured facility for up to $331.5 million, led by Bain Capital's private credit group. Together, these transactions were used to refinance Bridger's $160 million municipal bond with Gallatin County and consolidate the majority of our other existing debt.

Eric Jarrett: Together, these transactions were used to refinance Bridger's $160 million municipal bond with Gallatin County and consolidate the majority of our other existing debt. Most importantly, our new credit facility provides significant capacity and financial flexibility through a delayed draw facility of up to $100 million designed to fund future fleet expansion to support the economic growth we are pushing. Let me now turn the call over to Ann Hayes, our incoming CFO, to go over our 2026 guidance.

Eric Gerratt: Together, these transactions were used to refinance Bridger's $160 million municipal bond with Gallatin County and consolidate the majority of our other existing debt. Most importantly, our new credit facility provides significant capacity and financial flexibility through a delayed draw facility of up to $100 million designed to fund future fleet expansion to support the economic growth we are pushing. Let me now turn the call over to Anne Hayes, our incoming CFO, to go over our 2026 guidance.

Speaker #1: Most importantly, our new credit facility provides significant capacity and financial flexibility through a delayed draw facility of up to $100 million, designed to fund future fleet expansion to support the economic growth we are pushing.

Speaker #1: Let me now turn the call over to Anne Hayes, our incoming CFO, to go over our 2026 guidance.

Speaker #2: Thanks, Eric. We are starting 2026 with the addition of six new aircraft on balance sheet. This consists of two previously leased PC-12s with contracts through 2027, two King Air multi-mission aircraft, and the two Spanish scoopers purchased in December.

Ann Hayes: Thanks, Erik. We are starting 2026 with the addition of six new aircraft on balance sheet. This consists of two previously leased PC-12s with contracts through 2027, two King Air multi-mission aircraft, and the two Spanish Scoopers purchased in December. These new assets, coupled with increased utilization on the existing aircraft, will help us achieve growth of over 25% from last year when excluding the 2025 return to service work in Spain. We are initiating 2026 guidance ranges of $135 million to $145 million for total revenues and $55 million to $60 million for adjusted EBITDA. The company also expects continued improvement in cash provided by operating activities in 2026 and positive net income. Company is evaluating several different international operating contracts for the two Scoopers that we closed in December, which are currently stationed in Spain.

Anne Hayes: Thanks, Eric. We are starting 2026 with the addition of six new aircraft on balance sheet. This consists of two previously leased PC-12s with contracts through 2027, two King Air multi-mission aircraft, and the two Spanish Scoopers purchased in December. These new assets, coupled with increased utilization on the existing aircraft, will help us achieve growth of over 25% from last year when excluding the 2025 return to service work in Spain. We are initiating 2026 guidance ranges of $135 million to $145 million for total revenues and $55 million to $60 million for adjusted EBITDA. The company also expects continued improvement in cash provided by operating activities in 2026 and positive net income. Company is evaluating several different international operating contracts for the two Scoopers that we closed in December, which are currently stationed in Spain.

Speaker #2: These new assets, coupled with increased utilization on the existing aircraft, will help us achieve growth of over 25% from last year, when excluding the 2025 return-to-service work in Spain.

Speaker #2: We are initiating 2026 guidance ranges of $135 to $145 million for total revenues and $55 to $60 million for adjusted EBITDA. The company also expects continued improvement in cash provided by operating activities in 2026 and positive net income.

Speaker #2: The company is evaluating several different international operating contracts for the two scoopers that we closed in December, which are currently stationed in Spain. The contribution from the scoopers and the two new MMA aircraft is expected to be roughly 10 to 15 percent of 2026 revenue at an approximate 40% EBITDA margin.

Ann Hayes: The contribution from the Scoopers and the 2 new MMA aircraft is expected to be roughly 10% to 15% of 2026 revenue at an approximate 40% EBITDA margin. While we've had a good start to the year with 2 Scoopers and 2 Air Attack flying in late February, we expect to report a net loss in Q1 due to the winter maintenance activity. With that, I'll turn it back to Sam for final comments.

Anne Hayes: The contribution from the Scoopers and the 2 new MMA aircraft is expected to be roughly 10% to 15% of 2026 revenue at an approximate 40% EBITDA margin. While we've had a good start to the year with 2 Scoopers and 2 Air Attack flying in late February, we expect to report a net loss in Q1 due to the winter maintenance activity. With that, I'll turn it back to Sam for final comments.

Speaker #2: While we've had a good start to the year with two scoopers and two Air Attack flying in late February, we expect to report a net loss in the first quarter due to the winter maintenance activity.

Speaker #2: With that, I'll turn it back to Sam for final comments.

Speaker #3: Thank you, Anne and Eric. As we announced in November, Eric is officially retiring at the end of the month, and Anne has taken over the CFO role officially as of March 10.

Eric Jarrett: Thank you, Ann and Erik. As we announced in November, Erik is officially retiring at the end of the month, and Ann has taken over the CFO role officially on 10 March. I want to again express our gratitude to Erik for his financial leadership over the last three and a half years and his dedication to building Bridger into the resilient and profitable company that it is. I also want to take the opportunity to say how excited we all are to welcome Ann Hayes officially as our new CFO, having joined us after serving as audit chair of our board of directors. She is ideally suited to lead us through our next chapter of growth and has clearly bought into the mission, evidenced by her step from audit chair to join the Bridger team.

Sam Davis: Thank you, Anne and Eric. As we Anneounced in November, Eric is officially retiring at the end of the month, and Anne has taken over the CFO role officially on 10 March. I want to again express our gratitude to Erik for his financial leadership over the last three and a half years and his dedication to building Bridger into the resilient and profitable company that it is. I also want to take the opportunity to say how excited we all are to welcome Anne Hayes officially as our new CFO, having joined us after serving as audit chair of our board of directors. She is ideally suited to lead us through our next chapter of growth and has clearly bought into the mission, evidenced by her step from audit chair to join the Bridger team.

Speaker #3: I want to again express our gratitude to Eric for his financial leadership over the last three and a half years, and his dedication to building Bridger into the resilient and profitable company that it is.

Speaker #3: I also want to take the opportunity to say how excited we all are to welcome Anne Hayes officially as our new CFO, having joined us after serving as audit chair of our board of directors.

Speaker #3: She is ideally suited to lead us through our next chapter of growth and is clearly bought into the mission, evidenced by her step from Audit Chair to join the Bridger team.

Speaker #3: I also want to welcome Bill Andrews, our new chief operating officer, announced earlier this week. He joined us most recently from Lockheed Martin as vice president and executive program manager for C-130s T-5s and P-3s.

Eric Jarrett: I also want to welcome Bill Andrews, our new chief operating officer, announced earlier this week.

Sam Davis: I also want to welcome Bill Andrews, our new chief operating officer, Announced earlier this week.

Sam Davis: He joined us most recently from Lockheed Martin as Vice President and Executive Program Manager for C-130s, T56s, and P-3s from development to support. As a U.S. Air Force and Air National Guard veteran for over 25 years, he served as an aircraft commander and C-130 evaluator pilot. We're privileged to have him join us both for his stellar career and his exemplary military service, which are an incredible fit for the Bridger Aerospace mission. He has the right skill set to help grow Bridger Aerospace into a robust and scalable organization. Having led multi-billion dollar programs at Lockheed Martin across aircraft delivery, upgrades, support, and readiness initiatives, he is exactly who we need to grow our organization in size and year-round operation. This includes his experience supporting the C-130 MAFFS aerial firefighting aircraft for the California Air National Guard.

Speaker #3: From development to support, as a U.S. Air Force and Air National Guard veteran for over 25 years, he served as an aircraft commander and NC-130 evaluator pilot.

Speaker #3: We're privileged to have him join us, both for his stellar career and his exemplary military service, which are an incredible fit for the Bridger mission.

Speaker #3: He has the right skill set to help grow Bridger into a robust and scalable organization. Having led multibillion-dollar programs at Lockheed Martin across aircraft delivery, upgrade, support, and readiness initiatives, he is exactly who we need to grow our organization in size and year-round operation.

Speaker #3: This includes his experience supporting the C-130 MAF aerial firefighting aircraft for the California Air National Guard. We also see his unique service and support in the defense space as instrumental as we pursue additional opportunities adjacent to our firefighting missions.

Sam Davis: We also see his unique service and support in the defense space as instrumental as we pursue additional opportunities adjacent to our firefighting missions. To recap, 2025, we flew in 21 states. We provided support for 380 fires and dropped 7.3 million gallons of water. We had the earliest deployment in customer history with Scoopers dispatching to the Palisades fire in California in January. Across the fleet, we flew record hours greater than 10% above 2024 in a relatively slow fire year. When we came home from the field in November, we had maintained 96% uptime on contract, had driven 125,000 miles in our support vehicles, and most notably, every Bridger employee came home safe.

Speaker #3: To recap 2025, we flew in 21 states. We provided support for 380 fires and dropped 7.3 million gallons of waters. We had the earliest deployment in customer history with scoopers dispatching to the Palisades Fire in California in January.

Speaker #3: Across the fleet, we flew record hours—greater than 10% above 2024—in a relatively slow fire year. And when we came home from the field in November, we had maintained 96% uptime on contract, had driven 125,000 miles in our support vehicles, and most notably, every Bridger employee came home safe.

Speaker #3: As we sit here today, three of Bridger scoopers have completed winter maintenance, and two of those are already responding to early season wildfire activity in Texas.

Sam Davis: As we sit here today, 3 of Bridger Super Scoopers have completed winter maintenance. 2 of those are already responding to early season wildfire activity in Texas. 1 MMA is on contract in Oklahoma. 1 Air Attack is in Texas. Air Attack on aircraft are on standby here in Bozeman, preparing work for early 2026. The remaining 3 Super Scoopers are finishing up winter maintenance and should be ready over the course of Q2. Our staged winter maintenance program ensures we can provide flexibility within our fleet, utilize the excess capacity of our Super Scoopers, and deliver year-round readiness. Legislation and greater appropriations to pro-prioritize preparedness, early detection, and suppression are making a difference to how we fight wildfire. Bridger is uniquely positioned to support our federal and state customers.

Speaker #3: One MMA is on contract in Oklahoma, and one Air Attack is in Texas. Air Attack aircraft are on standby here in Bozeman, preparing work for early 2026.

Speaker #3: The remaining three scoopers are finishing up winter maintenance and should be ready over the course of the second quarter. Our staged winter maintenance program ensures we can provide flexibility within our fleet, utilizing the excess capacity of our scoopers and delivering year-round readiness.

Speaker #3: Legislation and greater appropriations to prioritize preparedness, early detection, and suppression are making a difference in how we fight wildfire. And Bridger is uniquely positioned to support our federal and state customers.

Speaker #3: As Anne stated, we are on track for another record year supported by a much-improved balance sheet with significant capacity and financial flexibility to fund future fleet expansion, drive organic growth, and build on our long-term vision.

Sam Davis: As Ann stated, we are on track for another record year, supported by a much improved balance sheet with significant capacity and financial flexibility to fund future fleet expansion, drive organic growth, and build on our long-term vision to innovate and deploy the most advanced technology in our industry and deliver on our mission to protect lives, property, critical infrastructure, and the environment. Together, our team is ready to answer the call to serve year-round. We're excited for and positioned to make 2026 another incredible year. With that, I'd like to open up the call to the operator for any questions.

Sam Davis: As Anne stated, we are on track for another record year, supported by a much improved balance sheet with significant capacity and financial flexibility to fund future fleet expansion, drive organic growth, and build on our long-term vision to innovate and deploy the most advanced technology in our industry and deliver on our mission to protect lives, property, critical infrastructure, and the environment. Together, our team is ready to answer the call to serve year-round. We're excited for and positioned to make 2026 another incredible year. With that, I'd like to open up the call to the operator for any questions.

Speaker #3: To innovate and deploy the most advanced technology in our industry and deliver on our mission to protect lives, property, critical infrastructure, and the environment.

Speaker #3: Together, our team is ready to answer the call to serve year-round. We're excited for and positioned to make 2026 another incredible year. With that, I'd like to open up the call to the operator for any questions.

Speaker #1: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two.

Operator: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star one to ask a question. Our first question comes from Austin Moeller with Canaccord. Your line is open.

Speaker #1: Once again, that is star one to ask a question. Our first question comes from Austin Moller with Canaccord. Your line is open.

Speaker #4: Hi, good afternoon. So just my first question, I was going to ask about the appointment of Bill Andrews. Is the intent there for him to help build out the FMS business, or does this potentially signal that you might buy C-130s or other government aircraft after the recent legislation that permits that?

Austin Moeller: Hi, good afternoon. Just my first question, I was gonna ask about the appointment of Bill Andrews. Is the intent there for him to help build out the FMS business, or does this potentially signal that you might buy like C-130s or other government aircraft after the recent legislation that permits that?

Speaker #3: Yeah, so primarily Bill's focus is good to talk to you again, Austin. Thanks for the question. Primarily, Bill's focus is going to be on making sure that our fleet is deployed and ready to go year-round across the country and really focus on our operational excellence and build upon that.

Sam Davis: Yeah. Good to talk to you again, Austin. Thanks for the question. Primarily, Bill's focus is gonna be on making sure that our fleet is deployed and ready to go year-round across the country and really focus on our operational excellence and build upon that. It's more aligned with your first comment, where we're looking at all of the expertise and the years of experience he has in leading very large programs, obviously at a much different scale, that he can bring that context into the Bridger Aerospace family.

Speaker #3: But it's more aligned with your first comment, where we're looking at all of the expertise and the years of experience he has in leading very large programs.

Speaker #3: Obviously, at a much different scale, he could bring that context into the Bridger family. And we're uniquely positioned, I think, with our integrated services to do defense work adjacent to the mission we're doing in firefighting, with all of the services we have in-house.

Sam Davis: We're uniquely positioned, I think, with our integrated services to do defense work adjacent to the mission we're doing in firefighting with all of the services we have in-house, and really taking the opportunity with the funding going on in the defense space and the work that we have in the team and have Bill help identify and lead the team to capitalize on some of that. There's a lot of appropriately sized work for us to do, both on modification, flight test, and design, to go after defense work and other smaller jobs that maybe the larger primes can't quite capture. We have the quick ability to do turnkey solutions, and FMS is a key part of that.

Speaker #3: And really taking the opportunity with the funding going on in the defense space, and the work that we have in the team, and have Bill help identify and lead the team to capitalize on some of that.

Speaker #3: There's a lot of appropriately sized work for us to do, both on modification, flight test, and design to go after defense work and other smaller jobs that maybe the larger primes can't quite capture.

Speaker #3: And we have the quick ability to do turnkey solutions and FMS is a key part of that.

Speaker #4: Okay. And can you give us any update on the return to service work for the second two super scoopers being worked on under MAF funding?

Austin Moeller: Okay. Can you give us any update on the return to service work for the second two Super Scoopers being worked on under MAB funding and when they might be returned to service and you could potentially purchase and take ownership of those aircraft?

Speaker #4: And when they might be returned to service and you could potentially purchase and take ownership of those aircraft?

Speaker #3: Yeah, great question. So I think last we left off, the third aircraft is quite near certification of airworthiness. And so there's a clear opportunity if we're focused on the first two getting firefighting work in Europe this year.

Sam Davis: Yeah, great question. I think last we left off the third aircraft is quite near certification of airworthiness. There's a clear opportunity if we're focused on the first two getting firefighting work in Europe this year and then exploring potentially moving them even back to North America for fighting fire in the future. The third is near completion, and that obviously makes that a much closer target for us from an acquisition perspective. The fourth is a little bit further out. We're sourcing parts and working to get that underway. That would probably be a little bit later in the year, if not toward the end of the year, that we would get that complete.

Speaker #3: And then exploring potentially moving them even back to North America for fighting fire in the future. So the third is near completion, and that obviously makes that a much closer target for us from an acquisition perspective.

Speaker #3: The fourth is a little bit further out. We're sourcing parts and working to get that underway. That would probably be a little bit later in the year, if not toward the end of the year, that we would get that complete.

Sam Davis: Again, focusing on folding in the first two to doing firefighting and three and fourth are a nice dovetail into work that we find for the first pair.

Speaker #3: But again, focusing on folding in the first two to doing firefighting, and three and fourth are a nice dovetail into work that we find for the first pair.

Sam Davis: Again, focusing on folding in the first two to doing firefighting and three and fourth are a nice dovetail into work that we find for the first pair.

Speaker #4: Okay. And just one more here. Can you speak to the potential contract opportunities in Europe? Which ones you think—which countries you think are perhaps the highest probability that you could get deployed in advance of the fire season in Q2?

Austin Moeller: Okay. Just one more here. Can you speak to the potential contract opportunities in Europe? Which countries you think are perhaps the highest probability that you could get deployed in advance of the fire season in Q2?

Speaker #3: Yeah, and I'll be as direct as I can be without being too speculative or leading here because we're in communication and negotiations. But the two leading countries I would say that have shown great interest in committing to the scoopers stationed in Spain would be Portugal and Turkey.

Sam Davis: Yeah. I'll be as direct as I can be without being too speculative or leading here because we're in, you know, communication and negotiations. The two leading countries, I would say, that have shown great interest in committing to the Scoopers stationed in Spain would be Portugal and Turkey. We're working with our partner overseas in Europe, Vinci, that has helped us both on the return to service work and flight operations to pursue those countries with the economics we have in mind together as well as, you know, the mentality of the first come, first serve basis as they get set up for the fire season.

Speaker #3: We're working with our partner overseas in Europe Avinci's that has helped us both on the return to service work and flight operations. To pursue those countries with the economics we have in mind together as well as the mentality of the first come, first serve basis as they get set up for the fire season.

Sam Davis: In terms of timing, the appropriations are a little bit later than ideal in Europe, not as quite as early as a commitment as you get in the US. We're hoping to have something in line and defined by March and/or maybe end of April. That's kind of the timeline we're managing to. There are other countries that would be interested. They just haven't gone as far down their appropriation cycle as the first two.

Speaker #3: In terms of timing, the appropriations are a little bit later than ideal. In Europe, it's not quite as early as the commitment that you get in the US.

Speaker #3: So we're hoping to have something in line and defined by March, or maybe end of April. So that's kind of the timeline we're managing to.

Speaker #3: There are other countries that would be interested to just haven't gone as far down their appropriation cycle as the first two.

Speaker #4: Great. That's super helpful. I'll pass it back there. Thanks.

Austin Moeller: Great. That's super helpful. I'll pass it back to you. Thanks.

Speaker #1: And once again, for your questions, that is star one. We'll pause for just another moment to allow further questions to queue. Thank you.

Operator: Once again, for your questions, that is star and one. We'll pause for just another moment to allow further questions to queue. Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Sam Davis for any additional or closing remarks. My apologies. We actually did get an additional question. We'll move to Mark Williams with EmergingGrowth.com. Your line is open.

Speaker #1: At this time, there are no further questions in the queue. I will now turn the meeting back to Sam Davis for any additional or closing remarks.

Speaker #1: Oh, and my apologies. We actually did get an additional question. We'll move to Mark Williams with EmergingGrowth.com. Your line is open.

Speaker #5: Great, good afternoon, and congratulations on a strong quarter. Just real quick, with the 2026 guidance removing the return to service revenue and profitability from that, how should we think about normalized EBITDA margins across core missions?

Mark Williams: Great. Good afternoon, and congratulations on another strong quarter. Just real quick, with the 2026 guidance, removing the return to service revenue and then profitability from that, how should we think about normalized EBITDA margins across core missions? What will be driving the expansion forecasting?

Speaker #5: And what will be driving the expansion forecasted?

Speaker #3: Yeah, thanks, Mark. And appreciate you asking the question. I'll answer kind of the first part, and then I'll let Anne jump in if she can.

Sam Davis: Yeah. Thanks, Mark, and appreciate you asking the question. I'll answer kind of the first part, and then I'll let Ann jump in if she can. We're focused on the expansion with the expanding capacity in the current fleet we have and capitalizing more on the margins with the core fleet, not including the return to service, as you mentioned. Improving both the utilization, including the days and hours we have on contract for our Scoopers and Air Attack aircraft in hand, as well as the addition of 2 Scoopers in Spain, which we're factoring in, as well as 2 additional sensor-enhanced planes we will add to contract here shortly. As everybody should know on the call, those sensor-enhanced planes have a quite a attractive margin versus non-sensor enhanced.

Sam Davis: Yeah. Thanks, Mark, and appreciate you asking the question. I'll answer kind of the first part, and then I'll let Anne jump in if she can. We're focused on the expansion with the expanding capacity in the current fleet we have and capitalizing more on the margins with the core fleet, not including the return to service, as you mentioned. Improving both the utilization, including the days and hours we have on contract for our Scoopers and Air Attack aircraft in hand, as well as the addition of 2 Scoopers in Spain, which we're factoring in, as well as 2 additional sensor-enhanced planes we will add to contract here shortly. As everybody should know on the call, those sensor-enhanced planes have a quite a attractive margin versus non-sensor enhanced.

Speaker #3: We're focused on the expansion with the expanded capacity and the current fleet we have, and capitalizing more on the margins with the core fleet.

Speaker #3: Not including the return to service, as you mentioned. So, improving both the utilization—including the days and hours we have on contract for our scoopers and air attack aircraft in hand—as well as the addition of two scoopers in Spain, which we're factoring in, as well as two additional sensor-enhanced planes we will add to contract here shortly.

Speaker #3: And, as everybody should know on the call, those sensor-enhanced planes have quite an attractive margin versus non-sensor-enhanced. So, continuing to drive those margins up overall and improvement.

Sam Davis: Continuing to drive those margins up overall an improvement. Ann, I don't know if there's anything else you want to add there?

Sam Davis: Continuing to drive those margins up overall an improvement. Anne, I don't know if there's anything else you want to add there?

Speaker #3: And I don't know if there's anything else you want to add there.

Speaker #6: Yeah, no. So we had in 2025, we had about 14 million in revenue from the return to service. So we're increasing 29% when excluding that in 2026.

Ann Hayes: Yeah, no. We had in 2025, we had about $14 million in revenue from the return to service. We're increasing 29% when excluding that in 2026. As far as the margins, as Sam mentioned, our Scoopers are generally over 40% adjusted EBITDA margin, and our newer MMA aircraft can be as high as 40% to 50% or above. Any aircraft that we're adding at this point are increasing EBITDA margins compared to the more simple Air Attack that did not have the sensors that have a lower EBITDA margin.

Anne Hayes: Yeah, no. We had in 2025, we had about $14 million in revenue from the return to service. We're increasing 29% when excluding that in 2026. As far as the margins, as Sam mentioned, our Scoopers are generally over 40% adjusted EBITDA margin, and our newer MMA aircraft can be as high as 40% to 50% or above. Any aircraft that we're adding at this point are increasing EBITDA margins compared to the more simple Air Attack that did not have the sensors that have a lower EBITDA margin.

Speaker #6: And as far as the margins, as Sam mentioned, our scoopers are generally over 40% adjusted EBITDA margin. And our newer MMA aircraft can be as high as 40 to 50 or above.

Speaker #6: So any aircraft that we're adding at this point are increasing EBITDA margins compared to the more simple air attack that did not have the sensors, that have a lower EBITDA margin.

Speaker #5: Okay, great. And then, along those lines, maintenance expenses increased. In 2025, as aircraft were added, and with the addition of the new aircraft, how should we think about how expenses—maintenance expenses—should scale with those aircraft?

Mark Williams: Okay, great. Along those lines, maintenance expenses increased in 2025 as aircraft were added. With the addition of the new aircraft, how should we think about how expenses, maintenance expenses should scale with those aircraft?

Speaker #3: Great. I'll take the first part of this, Mark, again, and then let Anne put some numbers behind it. But excluding, again, the return to service, we saw less of an increase in our cost of revenue as opposed to the revenue that we saw year over year.

Sam Davis: Great. I'll take the first part of this, Mark, again, and then let Ann put some numbers behind it. Excluding again the return to service, we saw a less of an increase in our cost of revenue as opposed to the revenue that we saw year-over-year. It continued to see that as we set guidance for this year because we're seeing more economies of scale as the fleet grows and we become more efficient with spend. There were some additional costs, variable costs that are associated with being deployed more and having more activities such as travel, obviously wear and tear on aircraft and more of the maintenance intervals that we have to perform. However, it grows at a less of a rate than the revenue grows.

Sam Davis: Great. I'll take the first part of this, Mark, again, and then let Anne put some numbers behind it. Excluding again the return to service, we saw a less of an increase in our cost of revenue as opposed to the revenue that we saw year-over-year. It continued to see that as we set guidance for this year because we're seeing more economies of scale as the fleet grows and we become more efficient with spend. There were some additional costs, variable costs that are associated with being deployed more and having more activities such as travel, obviously wear and tear on aircraft and more of the maintenance intervals that we have to perform. However, it grows at a less of a rate than the revenue grows.

Speaker #3: And it continued to see that as we set guidance for this year, because we're seeing more economies of scale as the fleet grows and we become more efficient with spend.

Speaker #3: There were some additional variable costs that are associated with being deployed more and having more activities, such as travel, obviously wear and tear on aircraft, and more of the maintenance intervals that we have to perform.

Speaker #3: However, it grows at less of a rate than the revenue grows, so we have that factored into a more profitable gross profit this year with our core fleet and the aircraft that we're adding.

Sam Davis: We have that factored into a more profitable gross profit this year with our core fee-fleet and the aircraft that we're adding.

Speaker #6: Yes, I would just add that in 2025, the aircraft maintenance did include that Spain return-to-service work. So we will see that decrease in 2026.

Ann Hayes: Yes. I would just add that in 2025, the aircraft maintenance did include that Spain return to service work. We will see that decrease in 2026. We are seeing margins, as mentioned earlier, with that decrease and the high margin aircraft, we are seeing margins increase.

Anne Hayes: Yes. I would just add that in 2025, the aircraft maintenance did include that Spain return to service work. We will see that decrease in 2026. We are seeing margins, as mentioned earlier, with that decrease and the high margin aircraft, we are seeing margins increase.

Speaker #6: And we are seeing margins, as mentioned earlier, with that decrease and the high-margin aircraft. We are seeing margins increase.

Mark Williams: Okay, great. Last question, just real quick. With the refinancing and the liquidity available under the DDTL that occurred this past year, do you see any need for additional funding throughout the next year or 2, or especially bringing on the 2 new scoopers? I don't know if they were funded under the DDTL or part of other parts of that funding, but how should we think about that?

Speaker #5: Great. And then last question, just real quick. With the refinancing and the liquidity available under the DDTL that occurred this past year, do you see any need for additional funding throughout the next year or two, especially bringing on the two new scoopers?

Speaker #5: I don't know if they were funded under the DDTL or part of other parts of that funding, but how should we think about that?

Sam Davis: Good question. The DDTL that we have in hand, which at close was $100 million, we built that around what we see for the next couple years in terms of opportunity of aircraft that we could go out and add to contract and contribute the same as the fleet we have, which does include aircraft 3 and 4 scoped into that amount. We don't yet foresee any problem of our growth outpacing that from an aircraft acquisition perspective. We could obviously revisit that if the demand necessitated that many aircraft. Right now, including the aircraft we added at the end of the year, that was factored into the model at the time we closed it, we're on pace for that.

Speaker #3: Yeah, good question. Yeah, so, good question. The DDTL that we have in hand, which closed, was $100 million. We built that around what we see for the next couple of years in terms of opportunity—of aircraft that we can go out and add to contract and contribute the same as the fleet we have.

Speaker #3: Which does include aircraft three and four scoped into that amount. So we don't yet foresee any problem of outpacing of our growth outpacing that from an aircraft acquisition perspective.

Speaker #3: We could obviously revisit that if the demand necessitated that many aircraft. But right now, including the aircraft we added at the end of the year, that was factored into the model at the time we closed it.

Speaker #3: And so we're on pace for that. And that, again, is a good outlook for us for the next couple of years.

Sam Davis: That, again, is a good outlook for us for the next couple years.

Ann Hayes: just to provide a...

Speaker #6: And just to provide a sorry, go ahead.

Anne Hayes: just to provide a...

Sam Davis: Yeah.

Ann Hayes: Sorry, go ahead.

Anne Hayes: Sorry, go ahead.

Speaker #3: Well, just real quick, Mark, just the other thing to add. So, the purchase for the first two Spanish scoopers was included in the overall term loan.

Eric Jarrett: Well, just real quick, Mark, just the other thing to add. The purchase for the first two Spanish Super Scoopers was included in the overall term loan. We didn't tap the deferred draw facility for those. To Sam's point, the two surveillance aircraft we added at the end of the year did come out of the DDTL facility, but there's still about $90 million left in it. The first two Spanish Super Scoopers came out of the term loan that's already on the balance sheet, and we still have, like I said, about $90 million of capacity on that deferred draw facility.

Eric Gerratt: Well, just real quick, Mark, just the other thing to add. The purchase for the first two Spanish Super Scoopers was included in the overall term loan. We didn't tap the deferred draw facility for those. To Sam's point, the two surveillance aircraft we added at the end of the year did come out of the DDTL facility, but there's still about $90 million left in it. The first two Spanish Super Scoopers came out of the term loan that's already on the balance sheet, and we still have, like I said, about $90 million of capacity on that deferred draw facility.

Speaker #3: So we didn't tap the deferred draw facility for those. And to Sam's point, the two surveillance aircraft we added at the end of the year, did come out of the DDTL facility, but they're still about 90 million left in it.

Speaker #3: So the first two Spanish scoopers came out of the term loan that's already on the balance sheet, and we still have, like I said, about $90 million of capacity on that deferred draw facility.

Speaker #5: Great, great. Thank you, thank you all for your time. Thank you, appreciate it.

Mark Williams: Great. Great. Thank you. Thank you all for your time. Thank you. Appreciate it.

Speaker #3: Thank you, Mark.

Sam Davis: Thank you, Mark.

Speaker #1: There are no further questions at this time. I'd now like to turn it back to Sam Davis for any additional or closing remarks.

Operator: There are no further questions at this time. I'd now like to turn it back to Sam Davis for any additional or closing remarks.

Speaker #3: Thank you. Thanks again for joining our conference call today. We look forward to updating you on our progress when we report our Q1 results in May.

Sam Davis: Thank you. Thanks again for joining our conference call today. We look forward to updating you on our progress when we report our Q1 results in May. If anyone has any follow-up questions, please reach out to our investor relations. Thanks, and have a good day.

Speaker #3: If anyone has any follow-up questions, please reach out to our Investor Relations. Thanks, and have a good day.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

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