Shares of Bridger Aerospace Group Holdings, Inc. (BAER Quick QuoteBAER - Free Report) have gained 28.1% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 Index’s 4.6% gain over the same time frame. Over the past month, the stock has gained 1.2% compared with the S&P 500’s 8.8% growth.

Earnings Snapshot and Segmental Overview

Bridger Aerospace reported a record first-quarter 2025 revenue of $15.6 million, marking a 184.1% increase from $5.5 million in the same period last year. This surge was largely driven by earlier-than-usual wildfire deployments and the contribution of $1.9 million in revenues from the acquisition of Flight Test & Mechanical Solutions (FMS). Excluding non-recurring return-to-service work on Spanish Super Scoopers, core revenues increased to $9.7 million from $4.5 million a year earlier.

The net loss improved to $15.5 million (or $0.41 per diluted share) from $20.1 million (or $0.55 per share) in the prior year. Adjusted EBITDA also improved, narrowing to negative $5.1 million from negative $6.9 million in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Other Key Business Metrics

Despite higher revenues, the cost of revenues rose 86.9% to $17.2 million from $9.2 million in first-quarter 2024. This included $5.6 million in expenses related to Spanish Scoopers and increased maintenance tied to greater field utilization. Operating loss narrowed significantly to $10.2 million from $15.3 million in the prior year. Selling, general and administrative (SG&A) expenses decreased 26% to $8.6 million from $11.6 million, primarily due to lower non-cash stock-based compensation costs.

Cash and cash equivalents at the quarter-end were $22.3 million, up from $6.8 million a year ago, although down from $39.3 million at year-end 2024, due to seasonal maintenance and training expenses.

Management Commentary

CEO Sam Davis emphasized the company’s response to increasingly year-round wildfire activity, noting record early deployments in California, Oklahoma and North Carolina as key drivers of first-quarter performance. Bridger Aerospace’s strategy involves maintaining year-round readiness and increasing exclusive-use contracts to stabilize revenues. Davis highlighted the deployment of nearly all sensor-equipped and air attack aircraft for 2025, asserting readiness for the upcoming wildfire season.

CFO Eric Gerratt reiterated that Bridger Aerospace has historically experienced net losses in the first and fourth quarters due to seasonality, but expressed confidence in improving full-year metrics. SVP John Saunders affirmed that early activity, longer wildfire seasons, and FMS integration support BAER’s 2025 outlook.

Factors Influencing Headline Numbers

The standout first-quarter revenue was aided by both the early start to the wildfire season and strategic deployments under new contracts. Notably, $5.9 million of revenues stemmed from return-to-service work on the Spanish Scoopers, a one-time revenue stream that significantly boosted top-line results. However, excluding this, core revenue still saw more than 100% growth. Maintenance expenses spiked due to these Scoopers and fleet readiness investments, though management characterized them as largely pass-through costs.

The reduction in SG&A was another key factor, stemming from decreased stock-based compensation compared to the 2023 period, which had elevated costs tied to the business combination completed that year.

Guidance

Bridger Aerospace reaffirmed its 2025 guidance of adjusted EBITDA between $42 million and $48 million on projected revenue between $105 million and $111 million. Management emphasized that this guidance excludes potential upside from deploying the Spanish Scoopers in Europe, where contracts are in final negotiation stages. The company expects a full year of FMS contributions and cost rationalization benefits, which will support margin expansion. Notably, BAER continues to expect most of its adjusted EBITDA to be generated in the third quarter, which coincides with the peak wildfire season.

Other Developments

The quarter included multiple strategic advances. Bridger Aerospace secured a five-year, $20.1 million IDIQ contract with the U.S. Department of the Interior for surveillance aircraft in Alaska and won a wildfire mapping contract in Montana, utilizing a Daher Kodiak 100 modified in-house with FMS support. Additionally, BAER’s acquisition of FMS not only added revenues but also enhanced engineering capabilities, contributing to competitive bids and margin expansion.

On the international front, the company is progressing with the return to service of four Spanish Scoopers acquired via a joint venture, aiming for European deployment in 2025. It also signed a memorandum of understanding with Positive Aviation to serve as the North American launch customer for the FF72 aircraft, with the potential to acquire up to 20 units, positioning Bridger Aerospace for long-term fleet modernization and global expansion.