Bristow Group, Inc.

Good day, everyone, and welcome to Bristow Group's second quarter of 2026 earnings call. Today's call is being recorded. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number five on your telephone keypad. At this time, I would like to turn the call over to Red Tillohan, Senior Manager of Investor Relations and Financial Reporting.

Thank you, Ami. Good morning, everyone, and welcome to Bristow Group's second quarter of 2026 earnings call. I am joined on the call today with our President and Chief Executive Officer, Chris Bradshaw, and Senior Vice President and Chief Financial Officer, Jennifer Whalen. Before we begin, I'd like to take this opportunity to remind everyone that during the course of this call, management may make forward-looking statements that are subject to risks and uncertainties that are described in more detail on slide three of our investor presentation. You may access the investor presentation on our website. We will also reference certain non-GAAP financial measures such as EBITDA and free cash flow. A reconciliation of such measures to GAAP is included in the earnings release and the investor presentation. I will now turn the call over for President and CEO. Bristow?

Thank you, Red. I'll begin with a brief note on safety, which remains Bristow's number one core value and highest operational priority. The company has delivered on our goal of zero air accidents year-to-date 2026. With regard to occupational safety, we are pleased that the number of lost work days is down from this time last year, and we are on track to achieve our third consecutive year of fewer lost work days. I would like to thank everyone on the Bristow team for their continued commitment to play safety first every day. We close on the acquisition of Barry Aviation on July 13th, and we are excited to welcome the Barry team to Bristow. Headquartered in San Marcos, Texas, Barry Aviation operates a fleet of more than 20 aircraft, primarily providing military and defense aviation services across multiple countries. Through its government services offering, Barry provides a broad range of services such as special missions, ISR operations, MRO Services, Training and Mission Support, and Unmanned Aerial Systems Design and Development Capabilities. Barry's other services consist of on-demand cargo logistics for blue chip end customers and aftermarket supply chain aviation solutions. Barry has extensive experience supporting all branches of the U.S. military, and a record of excellence in completing missions that demand precision, safety and strict compliance. Bristow and Barry share a cultural emphasis on safety, reliability and rapid response in complex environments. And through this transaction, customers will benefit from Bristow's scale, operational expertise and global platform. We now have a presence on six continents across 20 different countries. Various specialized capabilities across a range of mission-critical operations and strong customer relationships are complementary to our existing government services operations, better positioning Bristow to compete for long-duration government programs. The acquisition is expected to enhance the quality of Bristow's earnings through increased exposure to contracted government services and multi-mission aviation activities, supporting a more durable and balanced business profile. The acquisition is also expected to be immediately accretive to Bristow's earnings and free cash flow while bolstering the company's EBITDA margin profile. In a separate initiative, we announced that Bristow is pursuing the sale of our Norway offshore energy services business as part of our longstanding portfolio optimization strategy. The exit is consistent with Bristow's ongoing strategy to deploy assets and resources and markets with attractive margin profiles and value accretive returns on capital. Bristow remains focused on growing our global offshore energy services business and markets that meet our financial return parameters. We also expect to continue pursuing other opportunities in Norway, such as those in the advanced air mobility space. We should note that the timing and structure of any sale transaction remains subject to market conditions and other considerations. I would further note that the planned exit of the Norway OES business and the addition of Barry Aviation would have been neutral to Bristow's 2025 EBITDA on a pro forma basis. Turning now to our financial outlook, Bristow's second quarter financial results keep us on track for what is expected to be a transformational year for the company. We are pleased to affirm our adjusted EBITDA guidance range for full year 2026 of $295 to $325 million, which reflects year-over-year growth of approximately 25%. The ability to confirm this outlook despite macro uncertainties and continued supply chain challenges that are adversely impacting our government search and rescue contract transitions is a testament to the complementary nature of Bristow's business segments. and the benefits provided by the significant geographic and customer diversity in our business model. I'll have more comments on the strong tailwinds poised to benefit the company later in the call. But for now, I will hand it over to our CFO for a detailed discussion of Q2 results and our financial outlook. Jennifer?

Jennifer Dawn Whalen Thank you, Chris, and good morning, everyone. Before we begin, I would like to echo Chris's comments on the acquisition of Barry Aviation. We are pleased to have successfully closed the deal and welcome the Barry Aviation team to Bristow. As we begin consolidating Barry Aviation's financials, we plan to include their special missions, MRO, CRO, and UAS business as part of our government services segment, and their on-demand cargo and remaining services as part of our other segments. Today, I will begin with a review of Bristow's sequential quarter financial results on a consolidated basis before covering the financial results and the 2026 guidance ranges for each of our segments. In Q2, Bristow's total revenues were $23.1 million higher compared to Q1, primarily due to higher utilization in our other services segment and higher fuel revenues and rates in our offshore energy services or OES business. Adjusted EBITDA was $20.5 million higher in Q2, largely attributable to the increased revenues across our segment and lower repairs and maintenance costs. We are affirming our 2026 guidance ranges of $1.6 billion to $1.7 billion for total revenues and $295 million to $325 million for adjusted EBITDA. Turning now to our segment financial results. Revenues in our OES segment were $7.3 million higher in Q2, primarily due to higher rates and fuel revenues in Europe and across several key markets in the Americas, while revenues in Africa remain consistent with the preceding quarter. Adjusted operating income in OES was $16.4 million higher this quarter, due to higher revenues coupled with lower operating expenses of $4.3 million and higher earnings from unconsolidated affiliates of $2.2 million. In Q2, repairs and maintenance costs were $7.8 million lower primarily due to higher vendor credits. Personnel costs were $6.3 million lower due to seasonal personnel cost variations in Norway, while increases in activity and global commodity prices contributed to higher fuel, and other operating costs of $9.9 million. Depreciation and amortization expense was $4 million higher as a result of accelerated depreciation of assets related to a leased facility in the U.S. and capital spare parts associated with the S-7060 medium helicopter model that is in the process of being phased out, as I mentioned last quarter. Given the continued performance of our OES business, we are tightening our 2026 revenues guidance and increasing the adjusted operating income guidance range to $235 to $245 million for this segment. Moving on to government services. Revenues were $4.4 million higher, largely attributable to the commencement of operations at two UK SAR 2G seasonal bases and increased rates from annual rate escalations. Irish Coast Guard revenues were $1.5 million higher due to the full quarter impact of the Waterford phase that commenced operations last quarter, and revenues in the U.S. were $1 million higher due to higher utilization. Penalties related to aircraft availability, which has been adversely impacted by continued supply chain challenges, have remained elevated in the current quarter, but were consistent with the preceding quarter. while fuel revenues were consistent with the preceding quarter despite increases in global fuel prices due to contractual lags in the rebuilding fuel costs under UK SAR 2G. Adjusted operating income was $2.3 million lower primarily due to higher operating expenses of $6.1 million offsetting the higher revenues. The commencement of operations at certain UK SAR 2G and Irish Coast Guard bases including full quarter impact of costs that were previously deferred, increased overtime costs to support the ongoing transition, and one-time salary adjustments related to a labor agreement in the U.K. resulted in personnel costs being $3.3 million higher this quarter. Additionally, increased training, travel between bases, and higher base and facilities costs related to transitions were $1.8 million higher this quarter. Lastly, fuel costs were $1.5 million higher due to higher global fuel prices. While fuel is typically a pass-through, there is a delay between when the company incurs the cost of fuel at prevailing market prices and is then able to recoup the fuel expense under UK's RTG. In summary, the lower margins in this segment are expected to be largely confined to calendar year 2026. The unprecedented pace and severity of increases in global jet fuel prices in Q2 adversely impacted profitability in our government services segment by $1.5 million, primarily due to a deferred price adjustment mechanism in the UK's R2G contract. We have since tightened the adjustment mechanism via a contractual amendment, and this impact should not recur in Q3 and beyond. In addition, and more materially, continued supply chain challenges have resulted in delayed aircraft deliveries and modification schedules, which adversely impacted 2026 adjusted operating income by approximately $8 million. This is a function of elevated KPI penalties adversely impacting revenues, as well as transition costs persisting longer than anticipated due to retained headcount and other transition costs. The net impact of these factors is included in our revised government services segment adjusted operating income range for 2026. While some of these transition costs will roll into early 2027, the 2027 government services results should track closer to the original guidance range plus the additional benefit of the incremental EBITDA from the Berry acquisition. As a reminder, these are typically 10-year base contract periods plus option year. and we still expect to generate attractive long-term cash flow yields on these important government services mandates. At this time, we are updating our 2026 government services segment guidance ranges to include the addition of varied aviation government contracts and take into the effect the transition impact I noted a moment ago. As such, our 2026 revenues guidance range is updated to $475 to $495 million, and the adjusted operating income guidance range is updated to $55 to $65 million for this segment, which is roughly 60% higher when compared to the midpoint to 2025 results. And finally, revenues from other services were $11.4 million higher in Q2, primarily due to higher seasonal activity and higher fuel revenues. Adjusted operating income was $4.2 million higher due to the higher seasonal revenues, partially offset by higher operating expenses of $7.7 million related to the higher activity and fuel prices. We are updating our 2026 other services guidance ranges based on the performance to date and to include the addition of various ODC and other offerings. The updated 2026 revenues and adjusted operating income guidance for this segment is between $155 and $175 million and $25 to $30 million respectively. Turning now to cash flows and liquidity. As of June 2026, our unrestricted cash balance was $312 million with total available liquidity of approximately $372 million. Net cash provided by operating activities was $41.4 million this quarter compared to net cash used in operating activities of $8.3 million in Q1. The increase in operating cash flows is primarily due to higher earnings coupled with a decrease in working capital uses during the current quarter. On a year-to-date basis, working capital uses remain elevated as a result of increases in accounts receivables due to higher activity increases in other assets related to startup costs for new government services contracts as the costs are incurred prior to the full commencement of revenues, and a decrease in accounts payable and accrued liabilities related to the timing of tax and OEM vendor payments at the end of the current quarter. As noted in previous calls, the company does not have material amounts of age receivables in any of our segments. and new contract transitions are set to conclude in the coming quarter, so we expect to see continued improvements in working capital as activity and timing-related items normalize. During the current quarter, Bristow paid $3.7 million in dividends and on July 30th declared another dividend at $0.125 per share of common stock. This dividend will be paid on August 28th, 2026 to shareholders of record at the close of business on August 14th. We consistently evaluate the best uses of our cash flow and aim to yield the highest value and return on capital. Additionally, we will continue to execute on our capital allocation strategy, which prioritizes maintaining a strong balance sheet, the conclusion of investments and other transition costs tied to growth in our various regions, and a return of capital to shareholders. We believe the company will continue to generate strong free cash flow and accelerate in earnest as we near the completion of this transformative year. At this time, I'll turn the call back to Chris for further remarks. Chris?

Thank you. Looking forward, we continue to believe Bristow is favorably positioned to benefit from three global megatrends, namely increased defense spending, the importance of energy security, and the electrification of transportation. Taking each of these in turn, Number one, we expect defense spending to increase significantly over a multi-year period. With the expected scale of these defense expenditures and the continued budgetary pressures for most countries in the Western world, we anticipate the need for increased public-private partnerships to realize these government and military objectives. We see additional growth opportunities in our core government search and rescue business as well as a broader spectrum of aviation services to government and military customers, particularly in Europe and the Americas. The recent addition of Barry Aviation significantly increases our exposure and addressable opportunities in this segment. The transaction will enable cross-selling of services to government customers by leveraging the combined company's expertise, diversified fleet, and global footprint. Number two, the importance of energy security. Recent geopolitical events have placed an enduring emphasis on where hydrocarbon supplies are located. And the established offshore energy basins that Bristow services represent some of the most attractive and secure sources of supply. Deepwater projects are favorably positioned, offering attractive relative returns within the asset portfolios of oil and gas companies. and we believe offshore projects will receive an increasing share of future upstream capital investment. The leading indicators for offshore activity from subsea equipment orders to rig contracting activity to expected FID approvals are positive and poised to further benefit Bristow's OES business. Number three, the electrification of transportation. We have continued to advance Bristow's position as an early leader in the development of the advanced air mobility industry, which will incorporate the operation of next-generation aircraft powered by electric, hybrid electric, and other new propulsion technologies. Bristow has a unique opportunity to leverage our core competencies as an advanced, proven operator to serve the needs of this new industry sector. Most recently, the Scottish Electric Aviation Network or Project Sean, was launched by a Bristow-led consortium in partnership with Beta Technologies and supported by £1.5 million of funding from the UK Department of Transport to advance electric aviation services across Scotland's highlands and islands. We believe Bristow has created significant option value with minimal capital commitment to date in what is expected to be a large and rapidly growing addressable market for these new generation aircraft. In conclusion, we have a very positive outlook for Bristow's business as we continue the company's evolution as a global leader in mission-critical aviation services for government entities, offshore energy companies, and other customers around the world. With that, let's open the line for questions. Amy?

At this time, I would like to remind everyone in order to ask a question, press star then the number five on your telephone keypad. If you would like to withdraw your question, Press star and the number 5 once again. We'll pause for just a moment to compile the Q&A roster. The first question is from Jason Bandel from Evercore ISI. Your line is now open. Thanks.

Good morning, Chris, Jennifer, and Red.

Good morning.

Good morning. I have a couple of questions this morning on OES. Can we unpack your update guidance in OES there a little more? Can you discuss what were the primary drivers that led to the increase in the adjusted operating income while narrowing the range for revenue?

Sure. We did have better performance in the first half of the year. This was both in rates and in activity, more aircraft being put on contracts that went longer than we had originally expected. and we expect that to continue through the rest of the year which really informed our increase in the guidance and we just have more certainty around the revenues so we're able to tighten the revenues item.

Got it. Understood. And then on the effective utilization side of things, has that changed for a portion of your fleet in recent months and can you kind of discuss, I guess, well first of all, what IL capacity looks like right now? and expectations for flight hours for the rest of the year. And if you give us some color regionally as well, that would be helpful too.

Yes, happy to address that. So there has not been a material change in the effective utilization. It remains, if we're talking about the relevant heavy super medium and medium offshore helicopter models, effective utilization remains very tight. And as we know, it's also a constrained supply picture with limited new capacity that could come into the market. In terms of flight hour activity, we would expect second half 26 to be slightly higher, but not a huge increase. We see 2027 as being a more significant inflection point for new incremental offshore projects moving forward. Regionally, I would say that the North Sea remains a more mature market, so stable, but not a lot of growth that we're seeing. We're seeing more growth and higher activity in areas like Africa, as well as in South America, so Brazil, Suriname, and even in the Caribbean with Trinidad, we've seen growth. and more activity regionally in those locations.

Great. That's helpful color. Chris, my last one, just around the planned Norwegian exit. I guess first, have you experienced any impact to that business after you made that announcement? And then I guess secondly, any sense for timing about a potential exit there would be helpful as well?

Sure, so take those in order. No, we have not seen a material impact on the business since the announcement. We're continuing to focus on delivering safe and reliable service to our long-term customers there. It is a very Well-established business that's been around for more than 30 years, strong customer relationships, good operating footprint, a strong, very capable management team continuing to manage the business there in Norway. In terms of timing, we are at the beginning of the process. So we're still in the process of reaching out to potential buyers to gauge who has an interest. And for those that are interested, we would then move forward in earnest with a more detailed part of that sale process. So still at the early stages of that. Understood.

Thanks so much. I'll turn it back. Thank you. The next question is from Savi Sip from Raymond James. Your line is now open.

Hey, good morning. Maybe, Jennifer, you noted that most of the transition costs related to your government SAR contracts in the U.K. and Ireland should subside in 2026, but maybe some continuing into early 2027. Could you provide a little bit more color on which costs are expected to flow into 2027?

Sure, there will be some additional costs related to aircraft and people as we prepare the last of the aircraft for the UK Star 2G to modifications, et cetera, onto that. So there will be people costs and some other lease costs, et cetera. And those people will roll off, and this is really very early in the part of 27, those people would then roll off and all the rest of those costs would roll off as well.

That's helpful. and maybe Chris, you know, you mentioned, you know, the Sean, Project Sean announcement with kind of advanced mobility kind of taking a lot of attention at Farnborough. In particular around these kind of practical commercial deployments, kind of what milestones should investors watch to kind of evaluate Bristow's progress in converting, you know, this segment from an investment into like true commercial opportunities?

I would note a couple of things there. First would be aircraft certification timelines. So in the Western world, we're still waiting on the first of these aircraft to be certified. Those companies are making progress with the relevant regulatory authorities, whether that be the FAA here in the U.S., EOS in Europe, or the CAA in the U.K. And within that certification timeline, Thank you. Thank you. Thank you. positions with our partners. Those are largely contingent upon things like the certification timeline, also the aircraft's actual performance meeting, the design specifications. So as you see some of those positions move into firm orders and start to show up in our CAPEX schedule, that would be an indicator that we believe we've reached a point where there is an underwritable business case to put the aircraft to work.

That makes sense. That's helpful. And if I might, just following up on Jason's question earlier, he asked on the OES side, just on the government services side, just what are your flight hour expectations there and how that should progress given some of the challenges that you're having with the transition?

I would expect flight hours to be relatively stable, should be consistent. Our variations in flight hours tend to be more seasonal. So in the summer months when it's warmer and people are out being more active, we tend to have more call-outs for rescue missions, whereas in the months where maybe the weather is such that people aren't outdoors or doing more things, we tend to have less call-outs for those rescue missions. But should be noting those seasonal differences relatively stable from a flight hour standpoint otherwise.

Got it. Thank you.

Our next question comes from Alex Reguil with Texas Capital. Your line is now open.

Thank you, and good morning, everyone. What percentage of Barry revenues are under long-term contracts, and how does that re-compete schedule look over the next few years?

Jennifer, I don't know if you wanted to take that. I can certainly start, and then Jennifer can add as we go. Maybe I'll back up a minute. There are different contract structures in dairy business versus our existing government search and rescue business, and a lot of that really goes back to the mission itself. So in our civilian search and rescue work, we know the mission is going to be there. For better or worse, we know that there are going to – be people who get in a condition where they need to be saved and for us to go conduct those rescue missions. So because of that visibility, the contracts tend to be longer term in nature. On the Barry side, which is primarily doing business with various branches of the U.S. military, those military missions tend to evolve more rapidly. There are more changes in the scope and demands of the mission, and so those tend to be and many more. The company, Berry, is very well positioned on its three largest contracts. It's really held these for multiple contract cycles. And they are in pretty demanding environments in Africa, in Asia Pacific. So they're very strongly positioned as the incumbent and very much valued and trusted by the military customer. But, Jennifer, I don't know if you wanted to add anything to that.

Yeah, I mean, I would just say, you know, some of these contracts they've been on for a very long time. So, you know, even though they've changed slightly the mission over time, they're, you know, highly specialized what they do. You know, as far as contract coverage, it's a pretty high percentage. But, again, as Chris noted, the contracts, tend to be shorter in duration, but again, they do a specialized mission, so they tend to be in a very good position when the mission changes and the contract changes.

That's helpful. Sorry if I missed this, but can you speak more to the supply chain challenges that you referenced earlier in the prepared remarks?

Yes, and these have really evolved over time. A few years ago, we as an industry were having a very acute supply chain challenge around the S-92, which is a Sikorsky manufactured helicopter. Those A lot of improvements have been made there, and there's been a strong recovery. Not always exactly where we want it to be, of course, but a very strong recovery on that side of things. And then what we're experiencing now more is with a different OEM, Leonardo, around either, in some cases, the 139, but namely the AW189 model helicopter. And it really stems from the fact that, you know, Going into the downturn in the offshore oil and gas industry, there weren't a lot of new deliveries being made. But as activity has picked up and deliveries have been placed from that end market, but also, importantly, around search and rescue aircraft, which has mainly been Bristow, as well as military customers, because as a reminder, that production line is shared across all global military and civilian customers. It's been a challenge as they've ramped up, and that's impacted the schedule for new aircraft deliveries. So, as aircraft have been late in our modifications, because we're not taking delivery and putting to work a base aircraft, right? When we're putting it into search and rescue configuration, it's highly bespoke to that country's mission, and it takes some time after initial delivery to complete all the aircraft modifications, including The mission management system. So it's just pushed all of that timeline to the right for us, which has resulted in some KPI penalties. It's resulted in us keeping personnel, transition personnel on longer than contemplated. So higher compensation, but also all the other expenses that come along with a transition to a new aircraft model and at a new base. in some cases. Just to put one number around that, it could be a longer answer, but to put one number around that, Leonardo plans to make $40 and many, many, many, many, many, many, many, many, where they plan to get some of these key components back to a recovery status by either Q4 of 26 or, in some cases, Q1 of 27.

Very helpful. Thank you. Our next question is from Steve Silver with Argus Research. Your line is now open.

Thanks, operator, and thanks for taking my questions. So looking at this announcement about Project Sean in Scotland, I'm curious as to whether there are any similar opportunities that you see emerging around the world over the near term, and perhaps if there are any others that may be in the current pipeline at earlier stages.

Yes, happy to address that. So first with Project Sean itself, Really pleased to have that opportunity in Scotland. We think the community there will benefit from it. It's certainly a landscape, a geography that is well-suited to this type of aircraft and being able to enhance regional connectivity on an efficient, both from time and money standpoint. And also happy to have the funding support from the UK Department of Transport for that program. Also in Norway, we are moving forward with phase two of the test arena. So by way of reminder, there was a phase one where we worked in partnership with Beta Technologies to test out potential cargo routes using their CTAW, Alia aircraft. This phase two will be with a different aircraft and a different mission type. It's going to be with Electro.Aero, really focused more on regional passenger missions and exploring those capabilities in Norway. Also, here in the U.S., we're partnered with a few of the OEMs on the different state EIPP programs, which were sponsored by the administration. One of those, for example, is with our partner Elroy, using their unmanned hybrid aircraft, the Chaparral. We're actually going to be doing test missions. Later this month in Louisiana, testing the use of those aircraft to move cargo to offshore platforms and drilling rigs in the U.S. Gulf. So a few different projects underway globally as this industry continues to progress.

That's helpful. Thanks. So while the company's liquidity remains healthy, there have been a couple of moving parts this year with the Berry acquisition, the financing earlier in the year, and you guys also have a share repurchase program in place. I'm just curious as to whether you have any updated thinking on any net debt targets either by the end of 2026 or even at the end of 2027.

Thank you for the question. I mean, you know, we have, you know, over time done some, you know, debt repurchases and paid down some debt. We don't have a target per se, but we, you know, always in our capital allocations we protect the balance sheet. That's our number one priority. You know, we do show in our guidance you can kind of get back to where our free cash flow is. It kind of gives you an idea of where we are. And as a reminder, when we did the and so forth. We did have a bond deal earlier this year. We did upsize the bond from $400 million to $500 million, you know, which gave us the flexibility to be able to do the barrier acquisition without too much friction.

Great. And one last one, if I may. So, now that we are halfway through the year, do you have any update on your full year expectations for free cash flow?

As you saw, the guidance, we don't really generally give free cash flow guidance, but you have the waterfall there, so you can get to where we're at. I will say our expected growth CapEx for this year is $130 million, plus the maintenance CapEx of $30 million gets you $160 million for the total CapEx for the year. And then there's going to need to be some assumptions made around working capital as it has remained elevated. used as the working capital this year. But generally, you can kind of get to where we are thinking from there.

Yeah, and I think, Jennifer, the only other note I'd add to that is on the CapEx numbers you gave for the full year, very much weighted to the first half. So we've gotten through most of that already. The second half of the year really would just see about $30 million of growth CapEx plus the proportionate share of maintenance for the year. That's helpful.

Great. Thanks so much for taking the questions.

Our final question today is from Josh Jane from Daniel Energy Partners. Your line is now open.

Good morning. Thanks for taking my questions. First one, just obviously a lot of volatility in the energy space with the Iran conflict. Could you just speak to if this persists? The impact on the near to intermediate term for the business, but then also conversely, what do you see as the long-term impact of this conflict? Does it strengthen the outlook in the energy business over a multiyear period and give you more confidence in sort of your multiyear outlook? That's the first question.

Yes, thank you for the question. So near term, it hasn't had a big impact on our business. I think we have have been in a good position in that we are offshore oriented, but we're not in the Middle East, so we're not directly impacted. And we haven't seen a material change in customer activity levels thus far. We do expect that to change, though. Our expectation is that on the other side of this, there will be structurally higher commodity prices. And so we think the thesis, which already existed coming into the conflict, that there would be a growth in offshore spend and offshore activity going forward, we think that thesis has been significantly de-risked. So more confidence, more conviction in the outlook for offshore activity. and certainly what we're seeing is an increased importance of energy security and an emphasis on that moving forward and where the source of hydrocarbons is coming from. And again, I think we are fortunate in that the basins, the offshore basins that we serve at Bristow are some of the most well established as well as most secure sources of offshore supply globally.

Understood. Thanks for that answer. And then just one just on general capital allocation. So once you do have a sort of resolution or conclusion with Norway business, would that potentially open the door to perhaps a more aggressive return of capital to shareholder stance, or are there More things out there similar to Barry that may be a more attractive use of capital based on sort of where we are in the cycle for defense spending today. I'm just curious how you're thinking about those options or potential proceeds once you do have a resolution to the sale of that business, and then I'll turn it back.

Thanks. Yeah, thank you. It's a great question, and I think appropriate to ask the two together. So in terms of... In terms of potential share repurchases, we will deploy the program on an opportunistic basis. So we'll evaluate that in the context of other opportunities as well as, of course, where the share price is at the time and whether or not we're in a window where we're permitted to be buying back shares. And just a logistical note, for most of this calendar year, we have been restricted because of the Berry acquisition and the potential sale of Norway, as well as our normal earnings-related blackout windows. But we'll continue to approach and take an opportunistic approach to the deployment of capital under that share repurchase program. As we do weigh considerations and alternatives, other M&A will be a part of that. And to that part of your question, we do see additional opportunities for similar token acquisitions that would be in the government, military space, other opportunities to add differentiated capabilities, customer relationships, things that we see as being very long-term value-added opportunities. So we do see a pretty compelling opportunity set. Now, of course, each of those situations would need to meet our financial parameters so far within the context of deals that make sense for us financially. Thanks, Elton.

This concludes our question and answer session. I will now turn the call back over to Chris Bradshaw for closing remarks.

Thanks, everyone, for joining the call today. I know it's a busy time out in the market as well as summer plans, so we appreciate that. I also wish everyone stay safe and well, and we look forward to speaking again next quarter. Thank you.

This concludes today's call. You may now disconnect at any time.