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Bridger Aerospace Stock Plunges Despite Record Q2 Earnings and Profit

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Shares of Bridger Aerospace Group Holdings, Inc. (BAER - Free Report) have lost 10.9% since the company reported its earnings for the quarter ended June 30, 2025. This compares unfavorably to the S&P 500 Index’s 0.5% gain over the same period. Over the past month, BAER has slipped 2.2%, while the broader market rose 2.1%.

BAER’s Financial Performance Snapshot

Bridger Aerospace delivered its strongest second quarter in company history, with revenue climbing 136.3% year over year to $30.8 million from $13 million. Net income was $0.3 million against a $9.9 million loss a year earlier, and adjusted EBITDA surged to $10.8 million from $0.2 million. Loss per diluted share was $0.12, improving from a loss of $0.33 per share a year earlier.

Excluding $5.1 million in revenues from return-to-service work on four Spanish Super Scoopers under its MAB Funding partnership, operational revenue still more than doubled to $25.7 million. The quarter benefited from early and full deployment of the fleet, with both Super Scoopers and surveillance aircraft seeing high utilization.

Selling, general and administrative (SG&A) expenses fell 17.4% to $6.5 million from $7.9 million due to lower non-cash stock-based compensation and reduced earnout consideration, while cost of revenues rose 89.5% to $18.7 million from $9.9 million, partly due to $3.9 million in expenses for the Spanish aircraft program.

Bridger Aerospace’s Other Key Business Metrics

Bridger Aerospace achieved 100% fleet deployment in the quarter, marking the earliest call-outs in its history. Two separate 120-day task orders for Super Scoopers from the U.S. Forest Service ensure deployment through mid-October, supporting the company’s strategy for year-round revenue. Additionally, BAER dropped 4 million gallons of water across multiple states during the season to date.

Cash and cash equivalents stood at $17 million at quarter-end, down from $39.3 million at the end of 2024, largely due to winter maintenance and training expenses. However, $18.3 million in receivables from early fire season activity is expected to boost cash in the coming months.

BAER’s Management Commentary

CEO Sam Davis credited the performance to early deployments, expanded contracts, and the increasing recognition of the Super Scooper’s effectiveness in initial attack operations. Davis noted that all six scoopers operated together in Alaska for the first time under U.S. Forest Service task orders. Management also highlighted ongoing integration of its Ignis Technologies platform with real-time sensor imagery to improve situational awareness for firefighters, and progress on the development of the FF72 firefighting aircraft in partnership with Positive Aviation, targeting a 2029 delivery.

Factors Influencing Bridger Aerospace’s Headline Numbers

Bridger Aerospace’s revenue surge was driven by significantly higher activity levels compared to 2024, aided by favorable wildfire conditions, expanded contracts and earlier deployments. While operational gains were strong, higher maintenance costs associated with the return-to-service program for the Spanish Scoopers weighed on margins. Lower SG&A helped offset these pressures, reflecting disciplined cost control. Interest expense remained relatively stable at $5.7 million. The shift to net profitability was primarily attributed to increased fleet utilization and operational leverage.

BAER’s Guidance

Bridger Aerospace reaffirmed expectations to close 2025 at the higher end of its guidance — adjusted EBITDA between $42 million and $48 million on revenue of $105 million to $111 million. Guidance excludes potential contributions from the Spanish Scoopers.

Management also anticipates continued improvement in cash flow from operating activities and plans to revisit forecasts after third-quarter results, historically the strongest period due to peak wildfire activity.

Bridger Aerospace’s Other Developments

During the quarter, BAER signed a $46 million sale-leaseback agreement for its Bozeman, MT, campus and hangar facilities, with closing expected in third-quarter 2025. Proceeds will be used to reduce debt and interest expenses while retaining operational use under a 10-year lease.

The return-to-service work on the four Spanish Scoopers remains on schedule, with two already certified and potential deployment in Europe under consideration. The remaining two are slated for completion later in 2025 and early 2026.


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