- The company remains on track toward full-year guidance.
- Third quarter 2023 revenues grew to $1.9 billion, an impressive 28% year-over-year increase, driven by higher deliveries and continued momentum in aftermarket business that generated $414 million in revenue for the quarter, an 11% year-over-year increase.
- Year-over-year operating profitability for the quarter rose on favorable margin performance and higher aftermarket contributions, with adjusted EBITDA increasing by 36% to $285 million and an adjusted EBITDA margin of 15.4%. Third quarter 2023 reported EBIT reached $197 million.
- Increased adjusted EBITDA drove positive free cash flow generation of $80 million. Available liquidity stood strong at $1.2 billion. Reported cash flows from operating activities for the quarter were $179 million and net additions to PP&E and intangible assets for the quarter were $99 million. Cash and cash equivalents as at September 30, 2023 were $1.0 billion.
- Third quarter 2023 ended with a backlog of $14.7 billion, unit book-to-bill of 1.1 reflecting healthy demand environment.
All amounts in this press release are in U.S. dollars, unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.
MONTRÉAL, Nov. 02, 2023 (GLOBE NEWSWIRE) — Bombardier (BBD.B TO) today reported solid financial results for the third quarter 2023, reflecting continued progress towards reaching its 2023 targets on all guided metrics.
“Bombardier’s third quarter results are nothing short of impressive, whether you look at margins, cash generation, overall revenues, order activity and more,” said Éric Martel, President and Chief Executive Officer, Bombardier.
“When we reshaped Bombardier, we set out to build a resilient business that performs in any marketplace. Today, our results demonstrate we are there,” added Martel. “Quarter after quarter, Bombardier has delivered convincing results and we are well on our way to meet 2023 deliveries target and further increase delivery output in the future.”
Strong deliveries and aftermarket growth drive remarkable revenue growth
Bombardier reported a revenue of $1.9 billion in the third quarter 2023, an impressive 28% year-over-year increase, fueled primarily by strong aircraft sales and aftermarket growth. The company delivered 31 aircraft in the third quarter 2023, up six aircraft compared to the same quarter last year, bringing it to a total of 82 deliveries for the year. This included the delivery of the 150th Global 7500 aircraft, the industry flagship that continues to impress and contribute to improved margins for the company. The backlog remains strong at $14.7 billion, and the continued healthy demand resulted in a unit book-to-bill of 1.1 for the quarter. Overall, the company is on track to reach its guidance on deliveries for the year.
Revenues from Bombardier’s aftermarket business continued on their positive trajectory in the third quarter 2023 and grew 11% year-over-year to $414 million. The company has been reaping benefits from the significant expansion of its service centre footprint in 2022 and remains focused on increasing its share of this growing market.
Increased operating profitability and solid cash flow
In terms of profitability, total adjusted EBITDA for the quarter reached $285 million, representing an adjusted EBITDA margin of 15.4% and an impressive 100 basis points margin expansion over the same quarter last year. This growth continues to be underpinned by improving operating margins, including diligent cost management, and growing the aftermarket business.
Adjusted EBIT totaled $193 million, a 54% year-over-year increase. Adjusted net income has also significantly improved to a gain of $80 million compared with a loss of $2 million in the same quarter last year. Adjusted EPS came in at $0.73 for the quarter, an improvement compared with a $0.10 loss in the same quarter last year.
The 36% year-over-year increase in adjusted EBITDA on the back of more deliveries in the third quarter 2023 and a growing aftermarket also contributed to $80 million in free cash flow the company generated in this quarter, in line with expectations to reach more than $250 million by the end of 2023.
SELECTED RESULTS
| Results of the quarter | ||||||||||||
| Three-month periods ended September 30 | 2023 | 2022 | Variance | |||||||||
| Revenues | $ | 1,856 | $ | 1,455 | 28 | % | ||||||
| Adjusted EBITDA | $ | 285 | $ | 210 | 36 | % | ||||||
| Adjusted EBITDA margin | 15.4 | % | 14.4 | % | 100 bps | |||||||
| Adjusted EBIT | $ | 193 | $ | 125 | 54 | % | ||||||
| Adjusted EBIT margin | 10.4 | % | 8.6 | % | 180 bps | |||||||
| EBIT | $ | 197 | $ | 145 | 36 | % | ||||||
| EBIT margin | 10.6 | % | 10.0 | % | 60 bps | |||||||
| Net income (loss) from continuing operations | $ | (37 | ) | $ | 27 | nmf | ||||||
| Net income (loss) | $ | (37 | ) | $ | 27 | nmf | ||||||
| Diluted EPS from continuing operations (in dollars) | $ | (0.47 | ) | $ | 0.20 | $ | (0.67 | ) | ||||
| Adjusted net income (loss) | $ | 80 | $ | (2 | ) | nmf | ||||||
| Adjusted EPS (in dollars) | $ | 0.73 | $ | (0.10 | ) | $ | 0.83 | |||||
| Cash flows from operating activities | $ | 179 | $ | 122 | $ | 57 | ||||||
| Net additions to PP&E and intangible assets | $ | 99 | $ | 70 | $ | 29 | ||||||
| Free cash flow | $ | 80 | $ | 52 | $ | 28 | ||||||
| As at | September 30, 2023 | December 31, 2022 | Variance | |||||||||
| Cash and cash equivalents | $ | 987 | $ | 1,291 | (24 | )% | ||||||
| Available liquidity | $ | 1,249 | $ | 1,499 | (17 | )% | ||||||
| Order backlog (in billions of dollars) | $ | 14.7 | $ | 14.8 | (1 | )% | ||||||
About Bombardier
Bombardier (BBD-B.TO) is a global leader in aviation, focused on designing, manufacturing, and servicing the world’s most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance, and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in government and military special-mission roles leveraging Bombardier Defense’s proven expertise.
Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China and Australia.
For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com.