Shares of Bridger Aerospace Group Holdings, Inc. (BAER Quick QuoteBAER - Free Report) have gained 1.8% since the company reported its results for the quarter ended Sept. 30, 2025, outperforming the S&P 500 Index’s 0.6% rise over the same period. Over the past month, the stock has gained 7.8%, outpacing the S&P 500’s 3.2% growth.

BAER’s Earnings Snapshot

Bridger Aerospace delivered another record quarter, with revenue rising 5.2% year over year to $67.9 million from $64.5 million in the third quarter of 2024. Excluding $2.1 million in return-to-service revenue from its Spanish Super Scoopers partnership, core operational revenue grew similarly to $65.7 million, up 5% year over year from $62.4 million. Net income jumped 26.2% to $34.5 million from $27.3 million a year earlier, while diluted earnings per share climbed 19.4% to $0.37 from $0.31 in the prior-year quarter. Adjusted EBITDA increased 4.5% to $49.1 million from $46.9 million in the prior-year quarter, as strong top-line growth and lower operating costs were partly offset by higher maintenance expenses.

Cost of revenues declined 8.1% to $21.1 million from $23 million, and selling, general and administrative (SG&A) expenses fell 10.6% to $7.7 million from $8.6 million, reflecting lower non-cash stock-based compensation and reduced earn-out liabilities.

Bridger Aerospace’s Other Key Business Metrics

Beyond the headline figures, profitability and cash generation strengthened. Gross profit expanded 12.6% to $46.8 million from $41.5 million, lifting the gross margin to 68.9% of revenues from 64.3%. Interest expense edged down 3.1% to $5.8 million from $5.9 million, supporting the bottom-line improvement. Bridger Aerospace’s operating income climbed 18.8% to $39 million from $32.9 million in the prior-year quarter.

Fleet activity remained robust, with the company’s multi-mission aircraft nearly doubling their flight hours year over year and being deployed beyond their guaranteed 150 days to over 220 days per aircraft. Bridger Aerospace’s Super Scoopers recorded a 9% increase in average flight hours year to date, underscoring strong utilization and expanding task orders. The strength of federal and state contracts ensured stable demand even amid a below-average fire season in terms of acres burned.

For the first nine months of 2025, revenues surged 37.6% to $114.3 million from $83 million a year earlier. Excluding $13.1 million of revenues for return-to-service work on the Spanish Super Scoopers, underlying revenues were $101.1 million compared with $78 million in the first nine months of 2024. Adjusted EBITDA over the same period increased 36.2% to $54.8 million from $40.2 million, while BAER swung from a net loss of $2.7 million to net income of $19.3 million.

Cash and cash equivalents rose to $55.1 million as of Sept. 30, 2025, from $39.3 million at year-end 2024, supported by $24.8 million of net cash provided by operating activities year-to-date.

Segment-level detail for the quarter is limited, but management highlighted contributions from Flight Test & Mechanical Solutions (FMS), which generated $2.4 million of revenues in the period, primarily from defense-related modification work, and ongoing return-to-service revenue associated with the four Spanish Super Scoopers under its MAB Funding partnership.

BAER’s Management Commentary and Strategic Context

Management described 2025 as a “defining year,” pointing to record task orders and nearly 10% year-over-year growth in days on contract across the fleet. Multi-mission aircraft nearly doubled flight hours versus the prior year, while the Super Scooper fleet posted about a 9% increase in average flight hours year-to-date.

Executives also emphasized Bridger Aerospace’s role in a changing U.S. wildfire-management landscape. Federal initiatives, including the Wildland Fire Service Plan and the Fire Ready Nation Act, along with proposals to create a national Wildland Fire Service and expand aviation capabilities, are seen as structural tailwinds that reward early detection and aggressive aerial suppression—areas where BAER believes its Scooper and sensor-enhanced surveillance platforms are differentiated.

Factors Influencing Bridger Aerospace’s Results

The revenue increase was driven by high activity levels, with multiple Super Scoopers and surveillance aircraft deployed throughout the quarter. Year-to-date results benefited from earlier-than-usual deployments in 2025 as fire activity extended both earlier and later in the year, as well as from record task orders for the Super Scoopers.

Return-to-service work on the Spanish Super Scoopers continued to be a meaningful contributor to both revenue and costs, but management characterized much of these expenses as pass-through in nature, muting their impact on margins. Lower SG&A stemmed from reduced stock-based compensation and a lower fair value of earn-out consideration, partially offset by an increase in the fair value of warrants. Together with slightly lower interest expense, these factors amplified the translation of modest revenue growth into a double-digit percentage increase in net income.

Industry-wide tailwinds also benefited Bridger Aerospace. The federal government’s fiscal 2026 wildfire budget proposes a threefold increase in funding to $3.7 billion for the new U.S. Wildland Fire Service, consolidating wildfire suppression efforts and expanding aerial response infrastructure. These initiatives are expected to further strengthen Bridger Aerospace’s long-term revenue base and contract visibility.

BAER’s Guidance and Outlook

On the back of strong fleet utilization and record task orders, Bridger Aerospace raised its 2025 revenue outlook. Management now expects full-year revenue between $118 million and $123 million, up from prior guidance of $105 million to $111 million, noting that the company has already surpassed the old range’s upper bound. Adjusted EBITDA guidance was maintained at $42 million to $48 million, with the company indicating it is tracking toward the high end of that range despite the seasonally weaker fourth quarter. Management also anticipates continued improvement in cash provided by operating activities for 2025.

Bridger Aerospace’s Other Developments

The quarter was marked by significant balance-sheet actions. Bridger Aerospace completed a $49 million sale-leaseback of its Bozeman campus facilities. It closed a new senior secured credit facility of up to $331.5 million, including a revolver, term loan and a dedicated fleet-expansion tranche. Proceeds refinanced a $160 million municipal bond and, importantly, created delayed-draw capacity to fund future aircraft acquisitions, including the potential purchase of four Spanish Super Scoopers as they complete return-to-service work.

Operationally, management noted that two of the Spanish Scoopers have already been flying under contract with the government of Portugal, while the remaining two are expected to be ready in early 2026. In parallel, BAER continues to integrate the FMS acquisition and the Ignis Technologies mobile platform to deepen its engineering capabilities and enhance real-time data links between air and ground operations, laying groundwork for additional year-round and non-seasonal revenue streams.