
- 2023 revenues of $8 billion, up 16% year-over-year, driven by higher deliveries and record-setting business jet aftermarket revenues of $1.75 billion, up 16% year-over-year.
- 2023 adjusted EBITDA reflects significant 32% year-over-year jump to $1.23 billion. Full year reported EBIT reached $793 million.
- Adjusted EPS up 412% year-over-year from $0.77 to $3.94. Diluted EPS from continuing operations reached $4.70. Net income from continuing operations and adjusted net income were $490 million and $416 million respectively.
- Free cash flow generation from continuing operations met 2023 guidance at $257 million, while cash flows from operating activities and net additions to PP&E and intangible assets were at $623 million and $366 million respectively.
- Full-year unit book-to-bill of 1 follows year-over-year delivery growth curve, reflects strong demand. Backlog stood healthy at $14.2 billion.
- Rapid and meaningful improvement in adjusted net debt to adjusted EBITDA ratio, seeing 28% year-over-year reduction, from 4.6x to 3.3x. Available liquidity remained strong at $1.8 billion; cash and cash equivalents were $1.6 billion as at December 31, 2023.
- After meeting or exceeding its 2023 guidance, the company is again guiding for growth in 2024.
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, Feb. 08, 2024 (GLOBE NEWSWIRE) — Bombardier Inc. (TSX: BBD.B) today presented strong 2023 fourth quarter and full-year financial results which met or exceeded the company’s 2023 guidance. Bombardier also unveiled its guidance for 2024, which reflects the company’s steady progress towards its long-term objectives.
“Our Global aircraft broke many speed records in 2023, but those were not the only records we set last year. Our team came together to deliver the highest revenues and earnings, record aftermarket revenue, and the highest deliveries since we refocused our business in 2021. Our stellar top- and bottom-line performance included the lowest leverage ratio in years,” said Éric Martel, President and Chief Executive Officer, Bombardier. “I could not be prouder of our passionate and engaged teams around the world. All of us united to go above and beyond to make sure we kept – and often exceeded – our promises. Today, we are marching ahead with confidence: our 2024 guidance reflects the path of continuous growth we have been on for the past three years, and our steadfast commitment to achieving our long-term objectives.”
Record revenue growth marked by outstanding aftermarket performance
Bombardier reported total revenues of $8 billion for 2023, a 16% increase compared to 2022 and the highest since the company refocused its business in 2021. A key element was the aftermarket revenue, which reached an all-time high of $1.75 billion. After the significant 2022 expansion of Bombardier’s worldwide service network, 2023 was marked by the new or newly expanded service facilities coming online, fueling the company’s vibrant aftermarket business, which has now firmly established itself as a predictable and consistent source of revenue.
Record earnings, meaningful cash generation and continued deleveraging
Bombardier also reported a significant jump in earnings in 2023: adjusted EBITDA rose 32% from last year to $1.23 billion, driven by increased deliveries, greater Global 7500 contribution, and a higher aftermarket contribution. Full-year reported EBIT reached $793 million, while adjusted EBIT was $799 million.
Thanks in particular to Bombardier’s impressive performance in the fourth quarter, especially in terms of earnings growth and strong order intake, full-year free cash flow generation from continuing operations reached $257 million, beating the company’s 2023 guidance. Cash flows from operating activities and net additions to PP&E and intangible assets for the full year were also significant at $623 million and $366 million respectively.
Bombardier continued to prioritize debt reduction in 2023, paying down $0.4 billion during the year, improving adjusted net debt to adjusted EBITDA ratio(2) by 28% when compared to 2022, and resulting in a 3.3 adjusted net debt to adjusted EBITDA ratio, the lowest in years.
Continued strong activity on orders, deliveries and healthy backlog
Bombardier continued to manage its production in a disciplined and proactive manner and made the most of steady and strong demand. The company reported a solid full-year book-to-bill of 1, while the multi-year backlog stood strong at $14.2 billion. Bombardier also reached its target of 138 aircraft delivered in 2023, with a particularly active fourth quarter.
2024 Outlook
Bombardier also announced today its goals for 2024 with new guidance that projects a continuation of the company’s momentum towards its long-term objectives.
2024 Guidance | ||
2023 Full-Year Results | 2024 Guidance | |
Aircraft deliveries (in units) | 138 | 150 – 155 |
Revenues | 8.0 billion | $8.4 billion – $8.6 billion |
Adjusted EBITDA | $1.23 billion | $1.30 billion – $1.35 billion |
Adjusted EBIT | $799 million | $850 million – $900 million |
Free cash flow | $257 million | $100 million – 400 million |
Bombardier anticipates delivering 150 to 155 aircraft. This increase in deliveries, along with better pricing and the expansion of the aftermarket business, will contribute to anticipated revenue increase that is set to reach between $8.4 billion and $8.6 billion in 2024. The company also aims to improve profitability further, with adjusted EBITDA reaching between $1.30 billion and $1.35 billion, and adjusted EBIT increasing to between $850 million and $900 million. On the free cash flow generation front, the company expects to generate between $100 million and $400 million, accounting for the working capital required to support the growth of deliveries and investments supporting previously announced growth opportunities. Net additions to PP&E and intangible assets are expected to go below $300 million.
SELECTED RESULTS | |||||||||||||
For the fiscal years ended December 31 | 2023 | 2022 | Variance | ||||||||||
Revenues | $ | 8,046 | $ | 6,913 | 16 | % | |||||||
Adjusted EBITDA | $ | 1,230 | $ | 930 | 32 | % | |||||||
Adjusted EBITDA margin | 15.3 | % | 13.5 | % | 180 bps | ||||||||
Adjusted EBIT | $ | 799 | $ | 515 | 55 | % | |||||||
Adjusted EBIT margin | 9.9 | % | 7.4 | % | 250 bps | ||||||||
EBIT | $ | 793 | $ | 538 | 47 | % | |||||||
EBIT margin | 9.9 | % | 7.8 | % | 210 bps | ||||||||
Net income (loss) from continuing operations | $ | 490 | $ | (128 | ) | $ | 618 | ||||||
Net income (loss) from discontinued operations | $ | (45 | ) | $ | (20 | ) | $ | (25 | ) | ||||
Net income (loss) | $ | 445 | $ | (148 | ) | $ | 593 | ||||||
Diluted EPS from continuing operations (in dollars) | $ | 4.70 | $ | (1.67 | ) | $ | 6.37 | ||||||
Diluted EPS from discontinued operations (in dollars) | $ | (0.46 | ) | $ | (0.21 | ) | $ | (0.25 | ) | ||||
$ | 4.24 | $ | (1.88 | ) | $ | 6.12 | |||||||
Adjusted net income | $ | 416 | $ | 104 | $ | 312 | |||||||
Adjusted EPS (in dollars) | $ | 3.94 | $ | 0.77 | $ | 3.17 | |||||||
Cash flows from operating activities | $ | 623 | $ | 1,072 | $ | (449 | ) | ||||||
Net additions to PP&E and intangible assets | $ | 366 | $ | 337 | $ | 29 | |||||||
Free cash flow | $ | 257 | $ | 735 | $ | (478 | ) | ||||||
As at December 31 | 2023 | 2022 | Variance | ||||||||||
Cash and cash equivalents | $ | 1,594 | $ | 1,291 | 23 | % | |||||||
Available liquidity | $ | 1,845 | $ | 1,499 | $ | 346 | |||||||
Order backlog (in billions of dollars) | $ | 14.2 | $ | 14.8 | (4 | )% |
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 more than 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.