Yahoo Finance Bridger Aerospace Group Holdings Inc (BAER) Reports Record Revenue in 2023 Despite Challenges
Revenue Growth: Bridger Aerospace Group Holdings Inc (NASDAQ:BAER) reported a 44% increase in revenue to $66.7 million in 2023.
Adjusted EBITDA: Adjusted EBITDA rose significantly to $18.7 million, compared to $3.7 million in the previous year.
Net Loss: Despite revenue growth, the company experienced a net loss of $77.4 million in 2023, widening from a $42.1 million loss in 2022.
Operational Milestones: Record contract awards, including a $60 million fire surveillance and technology contract, and the earliest seasonal deployment of Super Scooper aircraft.
2024 Outlook: Bridger Aerospace anticipates Adjusted EBITDA to grow over 80% in 2024, ranging from $35 million to $51 million.
On March 19, 2024, Bridger Aerospace Group Holdings Inc (NASDAQ:BAER) released its 8-K filing, announcing its financial results for the fiscal year ended December 31, 2023. The company, a leading provider of aerial firefighting and wildfire management services, reported a record revenue of nearly $67 million, a significant 44% increase from the previous year's $46.4 million, despite experiencing the slowest fire season in two decades.
Bridger Aerospace's financial achievements are particularly noteworthy given the challenges faced during the year, including a shorter-than-average North American wildfire season. The company's ability to secure record contract awards and expand its fleet with the purchase of four Super Scoopers from the Spanish Government underscores its resilience and strategic growth initiatives.
Financial Performance and Challenges
The company's gross margin improved to 38% in 2023, up from 27% in 2022, driven by the record utilization of its growing Super Scooper fleet. However, Bridger Aerospace faced increased costs of revenues, which rose 22% to $41.3 million, primarily due to higher employee labor and depreciation expenses associated with the expansion of its aircraft fleet.
Selling, general, and administrative expenses also surged to $82.9 million in 2023, compared to $35.1 million in the previous year, largely due to non-cash stock-based compensation related to restricted stock units (RSUs) granted to management and employees. The company also incurred impairment charges associated with plans to phase out certain aging aircraft platforms in its aerial surveillance operations.
Despite these challenges, Bridger Aerospace's adjusted EBITDA saw a remarkable increase, reaching $18.7 million in 2023, up from $3.7 million in 2022. This measure is important as it reflects the company's operational profitability before the impact of non-cash and one-time expenses.
Key Financial Metrics
Interest expense for the year was $23.2 million, an increase from $20.0 million in 2022, due to a full year of interest expense related to bonds issued in the third quarter of 2022. The net loss for 2023 widened to $77.4 million from a net loss of $42.1 million in the previous year. The company attributes the net loss to the significant increase in stock-based compensation and other non-cash expenses.
Looking ahead, Bridger Aerospace is well-positioned for growth in 2024, with an anticipated Adjusted EBITDA growth of over 80% to between $35 million and $51 million. This outlook is consistent with the company's previously issued guidance and reflects the impact of recent cost structure optimizations and the expected contribution from the newly acquired Spanish Super Scoopers.
Conclusion and Outlook
Bridger Aerospace's performance in 2023 demonstrates the company's ability to navigate a challenging environment and emerge with a stronger financial position. The company's strategic investments and operational efficiencies have set the stage for continued growth in the coming year. Investors and stakeholders can look forward to Bridger Aerospace's continued expansion and its contributions to sustainable and effective aerial firefighting solutions.
For a more detailed analysis of Bridger Aerospace Group Holdings Inc (NASDAQ:BAER)'s financial results and future prospects, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Bridger Aerospace Group Holdings Inc for further details.
This article first appeared on GuruFocus.
