Bristow Group's $700 million Irish Coast Guard contract will boost cash flow and may act as catalyst for stock, says analyst

The roughly $700 million Irish Coast Guard contract won by Bristow Group Inc. (VTOL) and announced on Monday is the company's second largest ever and combined with a recent UK search & rescue contract sets the company up for significant stable cash flow, according to Benchmark. Bristow Group's search & rescue is its highest margin service, said analyst Josh Sullivan. The company provides aviation services to a base of offshore energy companies and government entities, including personnel transportation, search & rescue, medevac and ad-hoc helicopter services. The contract was announced by the Irish government and is valued at 670 million euros over 10 years. Last year, the company won a 1.6 billion pound contract from the UK Coast Guard. "We also believe given the tightening Offshore market coupled with this Irish SAR win, VTOL will be in a position to provide long-term guidance, which could be a catalyst for the stock," said Sullivan, who has a buy rating on Bristow stock. The Irish contract provides for day and night-time operation of four helicopter bases in Sligo, Shannon, Waterford and Dublin. Fort the first time, the new Coast Guard aviation service will include a fixed wing aircraft, said the company. Bristow stock has fallen 14% in the year to date, while the S&P 500 has gained 9.5%.

-Ciara Linnane

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05-31-23 0633ET

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