Bridger Aerospace Group Holdings, Inc.

Bridger Aerospace Group Holdings, Inc. (Bridger) operates in the aerial wildfire management industry, providing surveillance, relief, suppression, and aerial firefighting services, primarily across the United States, with a mission to deploy advanced aviation technologies to protect lives, property, and the environment. The company also offers airframe modification and integration solutions for governmental and commercial customers. The industry is characterized by increasing demand for aerial firefighting services due to prolonged and year-round wildfire seasons, expansion of the wildland-urban interface, and escalating fuels management challenges. Federal and state funding for wildfire control has been increasing, with average annual federal government fire suppression spending at $3.0 billion ¹ for 2019-2023, a 28% ² increase from the prior five-year period, and total federal wildland fire management funding increasing from $6.2 billion ³ in 2024 to $7.3 billion ⁴ in 2025. The company is positioned to capitalize on this demand, especially given the limited supply of purpose-built suppression aircraft and unfulfilled requests for fixed-wing aircraft, which reached 738 ⁵ in 2025.

Bridger’s core business model revolves around generating revenue through three primary service offerings: Fire Suppression, Aerial Surveillance, and Maintenance, Repair and Overhaul (MRO). Revenue is primarily generated from short, medium, and long-term contracts with government agencies, including the U.S. Forest Service (USFS) and the Department of Interior (DOI), now operating as the U.S. Wildland Fire Service (USWFS). The company's contracts often include a "termination for convenience" clause, but typically provide for reimbursement of costs incurred and a reasonable margin in such events. The majority of contracts have a single performance obligation satisfied over time, with revenue recognized based on varying daily rates for standby and flight time.

The Fire Suppression segment involves deploying CL-415EAF ("Super Scooper") aircraft to drop large volumes of water directly onto active wildfires. These specialized amphibious aircraft can scoop up to 1,412 gallons ⁶ of water in approximately 12 seconds ⁷ and can make up to 35 ⁸ drops, totaling approximately 50,000 gallons ⁹ of water, before needing to refuel, assuming a water source within a five-mile radius. Bridger operates the largest commercial Super Scooper fleet worldwide. Fire suppression revenue increased by $13.1 million ¹⁰, or 20% ¹¹, to $79.8 million ¹² in 2025 from $66.8 million ¹³ in 2024, driven by favorable rate increases for Super Scoopers.

The Aerial Surveillance segment provides real-time intelligence, command and control, and situational awareness to incident commanders using manned "Air Attack" aircraft and sensor-enhanced manned aircraft. This includes early detection, perimeter mapping, and real-time video downlink. The integrated software capabilities ("Ignis") transform airborne sensor data into incident-ready intelligence, streaming live video, geo-referenced imagery, and interactive mapping over Starlink. Aerial surveillance revenue increased by $4.4 million ¹⁴, or 33% ¹⁵, to $17.4 million ¹⁶ in 2025 from $13.1 million ¹⁷ in 2024, primarily due to increased flight hours.

The Maintenance, Repair and Overhaul (MRO) segment includes maintenance and repair services for return-to-service upgrades of Canadair CL-215 Amphibious ("Spanish Scoopers") aircraft, as well as turnkey aerospace engineering services, aircraft modification, and airworthiness certification for governmental and commercial customers. MRO revenue increased by $7.6 million ¹⁸, or 54% ¹⁹, to $21.5 million ²⁰ in 2025 from $13.9 million ²¹ in 2024, primarily due to return-to-service work on Spanish Scoopers and contributions from the FMS acquisition. Other services revenue decreased by $0.8 million ²², or 16% ²³, to $4.1 million ²⁴ in 2025 from $4.9 million ²⁵ in 2024, mainly due to a decrease in third-party training and flight operations services.

For the fiscal year ended December 31, 2025, Bridger reported total revenue of $122.8 million ²⁶, an increase from $98.6 million ²⁷ in 2024. Gross income was $51.7 million ²⁸, up from $41.1 million ²⁹ in the prior year. Total cost of revenues was $71.1 million ³⁰, compared to $57.5 million ³¹ in 2024. Selling, general and administrative expenses were $36.3 million ³², slightly up from $35.8 million ³³ in 2024. Interest expense decreased to $23.3 million ³⁴ from $23.7 million ³⁵. Other income significantly increased to $11.8 million ³⁶ from $2.1 million ³⁷. The company achieved a net income of $4.1 million ³⁸ in 2025, a substantial improvement from a net loss of $15.6 million ³⁹ in 2024. Basic and diluted loss per share was $(0.42) ⁴⁰ in 2025, compared to $(0.81) ⁴¹ in 2024. Cash and cash equivalents stood at $31.4 million ⁴² as of December 31, 2025, down from $39.3 million ⁴³ in 2024. Total debt, net of debt issuance costs, was $212.4 million ⁴⁴ as of December 31, 2025, compared to $202.5 million ⁴⁵ in 2024. Net cash provided by operating activities was $16.7 million ⁴⁶ in 2025, up from $9.4 million ⁴⁷ in 2024.

Year-over-year, total revenue increased by $24.2 million ⁴⁸, or 25% ⁴⁹. Fire suppression revenue grew by 20% ⁵⁰, aerial surveillance by 33% ⁵¹, and MRO by 54% ⁵². Geographically, U.S. revenue increased by $20.3 million ⁵³, or 23% ⁵⁴, to $108.8 million ⁵⁵, while Spain revenue increased by $3.9 million ⁵⁶, or 39% ⁵⁷, to $14.0 million ⁵⁸. Gross income increased by $10.5 million ⁵⁹, or 26% ⁶⁰. Flight operations costs increased by 3% ⁶¹, and maintenance costs increased by 48% ⁶². Selling, general and administrative expenses increased by 1% ⁶³, primarily due to a $8.8 million ⁶⁴ unfavorable year-over-year variance from the change in fair value of warrants, partially offset by an $8.7 million ⁶⁵ decrease in stock-based compensation. Other income saw a significant increase of 470% ⁶⁶, driven by a $16.9 million ⁶⁷ gain from a sale-leaseback transaction, partially offset by a $7.2 million ⁶⁸ loss on debt extinguishment.

During 2025, Bridger completed several significant operational developments. On October 1, 2025, the company purchased its second King Air aircraft for approximately $3.7 million ⁶⁹ to support aerial surveillance. On October 28, 2025, Bridger completed a sale and leaseback transaction of its hangar and office facilities at the Bozeman Yellowstone Airport for gross proceeds of $49.3 million ⁷⁰, resulting in net cash proceeds of approximately $46.8 million ⁷¹. On the same date, the company completed a comprehensive debt refinancing, replacing its $160.0 million ⁷² Series 2022 Bonds with a new Credit Agreement providing $210.0 million ⁷³ in Initial Term Loans, a $21.5 million ⁷⁴ Revolving Credit Facility, and a $100.0 million ⁷⁵ Delayed Draw Term Loan. This refinancing resulted in a $7.8 million ⁷⁶ loss on extinguishment of debt. On December 17, 2025, Bridger drew $10.3 million ⁷⁷ from the DDTL to purchase two Pilatus aircraft previously under operating leases. On December 23, 2025, the company purchased two Spanish Scoopers from MAB for an aggregate purchase price of $50.0 million ⁷⁸, with each aircraft allocated $25.0 million ⁷⁹. These two Spanish Scoopers will remain in Europe for the first part of 2026 to assess international operations.

Management expects that existing cash and cash equivalents, along with cash generated from operations, will be sufficient to meet current working capital and capital expenditure requirements for at least the next 12 months. The company has $100.0 million ⁸⁰ remaining available for potential future sales under the 2025 ATM Agreement as of March 3, 2026, which may be utilized for future financings under its effective shelf registration statement. Additionally, as of December 31, 2025, the company had $89.7 million ⁸¹ remaining available under the Delayed Draw Term Loan (DDTL) and $21.5 million ⁸² on the undrawn Revolving Credit Facility, providing further liquidity.

A major growth area for Bridger is the acquisition and deployment of additional aircraft to meet increased demand. The company has already purchased six new Super Scoopers between 2020 and 2025, and on December 23, 2025, acquired two Spanish Scoopers for $50.0 million ⁸³. These Spanish Scoopers will remain in Europe for the first part of 2026 to assess international operations, indicating a strategic move towards geographic expansion. The company is an original customer for Longview Aviation Services Inc.'s (LAS) Super Scooper Program and anticipates synergies with De Havilland's new DHC 515 model, which is expected to have a robust production line and supply chain after approximately 20 ⁸⁴ orders are filled, though production is anticipated to be unavailable until the 2030s ⁸⁵ after these initial orders.

Another significant growth vector is domestic and international expansion of market share and service offerings. Bridger plans to expand into additional U.S. domestic markets by leveraging existing relationships with federal and state agencies and establishing dedicated local market teams. This includes cultivating demand in new states as they develop or expand aerial firefighting aviation programs. The company is also exploring international operations for both fire suppression and surveillance, as evidenced by the deployment of the two newly acquired Spanish Scoopers to Europe in early 2026 for operational assessment.

Bridger intends to pursue opportunistic Mergers & Acquisitions (M&A) to expand its fleet, add new geographies, or introduce additional services. While no specific transactions are currently probable, the company regularly evaluates potential acquisition opportunities, including those that could be significant. However, the MAB Services Agreement restricts Bridger from acquiring, leasing, or operating any new Super Scooper or other firefighting aircraft during its term, excluding those currently owned or leased, and prohibits purchasing other equity interests, assets, or properties with cash or cash equivalents, which may limit growth options other than the acquisition and return to service of the Spanish Scoopers under the agreement.

Regarding operational outlook, the company's ability to remain in compliance with financial covenants depends on operating performance and the seasonal nature of its business, which can be affected by factors outside its control, such as wildfire activity, government contracting volume, interest rate volatility, and general macroeconomic conditions. The company's SMS system, which promotes safety, has been in place nearly two years ⁸⁶ ahead of its FAA-mandated date of May 2027 ⁸⁷. The company continually invests in fleet expansion and modernization to enhance operational capabilities.

For capital allocation, Bridger's primary sources of liquidity are expected to be cash flows from operations, available borrowings under the DDTL and Revolver, and potential access to equity capital markets. The company may seek to raise additional capital through public or private equity or debt offerings for general corporate purposes or specific growth initiatives. As of December 31, 2025, the company had $89.7 million ⁸⁸ remaining available under the DDTL and $21.5 million ⁸⁹ on the undrawn Revolver. The Credit Agreement requires annual prepayments based on a percentage of Excess Cash Flow, beginning with the fiscal year ending December 31, 2026 ⁹⁰. The company does not anticipate declaring or paying any cash dividends on its Common Stock for the foreseeable future, intending to retain future earnings for development, operation, and expansion of the business.

Bridger faces several material risks, including the inherent dangers of aircraft operations and fighting unpredictable wildfires, which could lead to accidents, losses, and adverse publicity. The unavailability of aircraft, particularly Super Scoopers, due to loss, mechanical failure, or lack of skilled personnel (pilots and maintenance) could significantly reduce operating revenues. The company is highly dependent on its senior management team and other highly skilled personnel, and an inability to attract or retain them would inhibit operations. Cyber-based attacks on IT systems pose a risk of service disruption, increased overhead, decreased sales, and reputational harm. Climate change and unusual weather patterns introduce volatility, potentially increasing or decreasing wildfire activity and thus demand for services. The business is seasonal, with the majority of revenue historically occurring in the second and third quarters, leading to significant quarterly and annual fluctuations in operating results. A substantial majority of revenue is concentrated in the Western United States, making the company vulnerable to regional weather patterns. Bridger relies on a few large government customers, with sales to the three largest customers representing 87% ⁹¹ of total revenues in 2025, and sales to the largest customer alone representing 66% ⁹². This concentration exposes the company to risks of early contract termination, audits, investigations, and pressure for lower prices or more favorable terms. There is a limited supply of new Super Scooper aircraft, and an inability to acquire additional units could impede revenue growth. The company also relies on a limited number of suppliers for raw materials and components, and third-party partners for aircraft servicing and maintenance, exposing it to supply chain disruptions and quality control issues. Bridger has a substantial amount of debt, with $210.0 million ⁹³ drawn under Initial Term Loans and $10.3 million ⁹⁴ under the DDTL as of December 31, 2025, and servicing this debt could impair operations or require changes in business strategy. The Credit Agreement contains financial covenants, including a Total Leverage Ratio not exceeding 7.00x ⁹⁵ through December 31, 2026, and a minimum Operating Cash Flow of at least $30.0 million ⁹⁶, with non-compliance potentially leading to accelerated debt obligations. The MAB Services Agreement restricts the company from acquiring, leasing, or operating new firefighting aircraft (excluding those currently owned or leased) and purchasing other equity interests, assets, or properties with cash, which could limit growth options. The company has incurred significant losses since inception and may not achieve or maintain profitability. The price of its Common Stock and Warrants is likely to be highly volatile, and non-U.S. citizen ownership is limited to 24.9% ⁹⁷ of aggregate votes or 49.0% ⁹⁸ of outstanding equity securities, which could impact transferability, liquidity, and market value.

Management's message to shareholders emphasizes Bridger's mission to deploy advanced aviation technologies to protect lives, property, critical infrastructure, and the environment, aiming to set the global standard in aviation services through innovation and advanced technology. The overall tone is one of confidence in the company's strategic direction and its ability to meet increasing demand for aerial firefighting services, despite inherent industry risks and macroeconomic factors. Management explicitly states that they expect existing cash and cash equivalents, along with cash generated from operations, to be sufficient to meet current working capital and capital expenditure requirements for at least the next 12 months. They also highlight the positive long-term outlook due to increasing demand for services and the company's consistent ability to meet those demands. Key strategic priorities include continued investment in fleet expansion and modernization, as demonstrated by the purchase of a second King Air aircraft for $3.7 million ⁹⁹ and two Spanish Scoopers for $50.0 million ¹⁰⁰ in 2025. Another priority is the expansion of market share and service offerings both domestically and internationally, with the Spanish Scoopers being deployed to Europe in early 2026 to assess international operations. Finally, management intends to pursue opportunistic Mergers & Acquisitions to further expand the fleet, add new geographies, or introduce additional services.