- Second quarter 2023 revenues rise to $1.7 billion, up 8% year-over-year, reflecting 29 deliveries and 19% year-over-year aftermarket revenue increase to $428 million.
- Year-over-year profitability grows on favorable margin performance across platforms, and higher contributions from aftermarket, with adjusted EBITDA increasing by 37% to $275 million; adjusted EBITDA margin up 350 basis points to 16.4%. Second quarter 2023 reported EBIT was $245 million. Positive reported net income and adjusted net income reach $10 million and $80 million respectively.
- Free cash flow usage at $222 million includes planned working capital investments to support higher deliveries, the completion of the new Global Aircraft Manufacturing Centre at the Toronto Pearson Airport, and non-recurring cash flow items of $104 million. Available liquidity stands strong at $1.2 billion as at June 30, 2023, including $0.9 billion of cash and cash equivalents. Reported cash flow usage from operating activities for the quarter was $134 million and net additions to PP&E and intangible assets for the quarter were $88 million.
- Second quarter of 2023 ended with a backlog at $14.9 billion, reflecting expected demand profile at a unit book-to-bill of 1.1 times.
- Credit rating upgrade from S&P Global Ratings in May 2023 further underscores Bombardier’s successful financial discipline, performance, and proactive debt management.
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, Aug. 03, 2023 (GLOBE NEWSWIRE) — Bombardier (BBD.B TO) reported today its financial results for the second quarter of 2023, signaling continued progress on all business fundamentals and performance on track toward reaching 2023 full-year guidance.
“Bombardier delivered a very strong second quarter. Our team successfully navigated a highly dynamic business environment that saw sustained demand for new and pre-owned jets, as well as steady service growth, all while supply chain pressure persisted,” said Éric Martel, President and Chief Executive Officer, Bombardier. “We continue to progress on our positive trajectory by delivering remarkable growth in profitability, propelled by a strong adjusted EBITDA increase and margin expansion, as well as a positive adjusted net income and earnings per share. Thanks to our team’s tremendous work, we boosted our revenues this quarter by 8 % year-over-year, driven in part by an exceptional 19% year-over-year aftermarket revenue increase.”
Strong deliveries and continued solid aftermarket performance drive revenue growth
Bombardier reported $1.7 billion in revenues, an 8% year-over-year increase, driven by strong deliveries and higher aftermarket revenues. With 29 deliveries, Bombardier delivered one more aircraft than the same quarter last year and has a solid line of sight to reach the overall 2023 guidance of greater than 138 deliveries. The company’s aftermarket business continued its stellar performance in the second quarter 2023, generating $428 million in revenue, an impressive 19% increase compared to the same quarter last year.
Backlog rose to $14.9 billion in the second quarter of 2023, an increase of $0.1 billion since the end of the previous quarter, supported by a 1.1x unit book-to-bill.
Impressive profitability and margin expansion
Total adjusted EBITDA for the quarter was $275 million, representing an adjusted EBITDA margin of 16.4% and a significant 350 basis point margin expansion over the same quarter last year. Rising margins across all platforms, growth of aftermarket business and disciplined operations are driving these metrics forward. The adjusted EBIT totaled $190 million, up 84% compared with the same period of 2022.
The company once more reported positive adjusted net income in second quarter 2023; it reached $80 million, compared to a loss of $38 million in the same quarter last year. Reported net income was $10 million. The adjusted EPS was positive as well, at $0.72.
The $222 million free cash flow usage in second quarter 2023 was in line with expectations. It includes the non-recurring payments of $104 million on residual value guarantees to the now divested commercial aviation business, CAPEX spending to support the completion of the new Global Aircraft Manufacturing Centre at the Toronto Pearson Airport, set to open this year, and working capital build to support higher deliveries in the second half of the year.
| Three-month periods ended June 30 | 2023 | 2022 | Variance | ||||||
| Revenues | $ | 1,675 | $ | 1,557 | 8 | % | |||
| Adjusted EBITDA | $ | 275 | $ | 201 | 37 | % | |||
| Adjusted EBITDA margin | 16.4 | % | 12.9 | % | 350 bps | ||||
| Adjusted EBIT | $ | 190 | $ | 103 | 84 | % | |||
| Adjusted EBIT margin | 11.3 | % | 6.6 | % | 470 bps | ||||
| EBIT | $ | 245 | $ | 101 | 143 | % | |||
| EBIT margin | 14.6 | % | 6.5 | % | 810 bps | ||||
| Net income (loss) from continuing operations | $ | 10 | $ | (109 | ) | nmf | |||
| Net income (loss) from discontinued operations | $ | (45 | ) | $ | (20 | ) | (125 | )% | |
| Net income (loss) | $ | (35 | ) | $ | (129 | ) | 73 | % | |
| Diluted EPS from continuing operations (in dollars) | $ | 0.03 | $ | (1.22 | ) | $ | 1.25 | ||
| Diluted EPS from discontinued operations (in dollars) | $ | (0.47 | ) | $ | (0.21 | ) | $ | (0.26 | ) |
| $ | (0.44 | ) | $ | (1.43 | ) | $ | 0.99 | ||
| Adjusted net income (loss) | $ | 80 | $ | (38 | ) | nmf | |||
| Adjusted EPS (in dollars) | $ | 0.72 | $ | (0.48 | ) | $ | 1.20 | ||
| Cash flows from operating activities | $ | (134 | ) | $ | 422 | $ | (556 | ) | |
| Net additions to PP&E and intangible assets | $ | 88 | $ | 81 | $ | 7 | |||
| Free cash flow (usage) | $ | (222 | ) | $ | 341 | $ | (563 | ) | |
| As at | June 30, 2023 | December 31, 2022 | Variance | ||||||
| Cash and cash equivalents | $ | 883 | $ | 1,291 | (32 | )% | |||
| Available liquidity | $ | 1,175 | $ | 1,499 | (22 | )% | |||
| Order backlog (in billions of dollars) | $ | 14.9 | $ | 14.8 | 1 | % | |||
out 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.