- Revenues of $1.3 billion for the first quarter reflect 13% year-over-year aftermarket growth and 20 aircraft deliveries, in line with production plan and full year delivery guidance of 150 to 155 aircraft.
- Adjusted EBITDA of $205 million for the first quarter. Adjusted EBITDA margin rose 140 bps year-over-year to 16%. Reported EBIT for the first quarter was $144 million. Adjusted EPS positive at $0.36 for the first quarter, with diluted EPS at $1.02.
- Free cash flow usage of $387 million reflects expected working capital build in inventories supporting production ramp-up. Reported cash flow usage from operating activities and net additions to PP&E and intangible assets were at $343 million and $44 million respectively.
- Focus on deleveraging continued with $100 million debt redemption announced on March 14th and closed in April; available liquidity remained strong at $1.4 billion. Cash and cash equivalents were $1.2 billion as at March 31, 2024.
- First quarter unit order intake up 60% year-over-year reflecting solid demand; backlog increased by $700 million since the beginning of the year to $14.9 billion on unit book-to-bill of 1.6.
- Bombardier’s new Aircraft Assembly Centre in the Greater-Toronto Area will play host to the company’s 2024 Investor Day on May 1st, 2024, preceding the site’s inauguration ceremony taking place the same day.
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, April 25, 2024 (GLOBE NEWSWIRE) — Bombardier Inc. (TSX: BBD.B) reported today its financial results for the first quarter of 2024, marked by a robust increase in service revenues and order activity. The company sold 60% more jets in the first quarter of 2024 compared to 2023, bringing backlog up to $14.9 billion. Bombardier’s production plan remains on track to meet full-year 2024 delivery guidance.
“Our team came flying out of the gates in 2024 on soaring aircraft orders and service revenues. The unit book-to-bill of 1.6 and $700 million backlog increase are even more meaningful when you take stock of solid activity across traditional customers, fleets and new opportunities materializing for Bombardier Defense,” said Éric Martel, President and Chief Executive Officer, Bombardier. “Building our backlog, growing recurring income streams, and retiring debt have all been staples of Bombardier’s solid performance and our first quarter of 2024 delivered on all three very positively. This level of focused execution continues to provide solid ground for our team and balance sheet to stand on.”
Martel added, “I also want to commend the teams working hard to keep our delivery plan and profile on track toward our full-year guidance. We continue to be flexible and proactive, all while keeping an eye on the bottom line and our commitments. On that front, achieving a 16% adjusted EBITDA margin for the quarter in this landscape is nothing short of exceptional and speaks to the tremendous collective effort to stay focused on our fundamentals and work to our plan.”
Robust Order Intake and Aftermarket Revenues Increase, Profitability Growth
Bombardier reported first quarter of 2024 revenues at $1.3 billion, down year-over-year compared to the same quarter last year due to the delivery profile. The company recorded 20 aircraft deliveries and remains on track to reach its planned guidance for 2024(7). The Services business continued its upward trend by reaching revenues of $477 million, a 13% increase year-over-year. The company continued on its path to drive sustainable and profitable growth and closed the first quarter of 2024 with an adjusted EBITDA of $205 million. This resulted in an adjusted EBITDA margin of 16%, up 140 basis points year-over-year, driven by strong conversion on incremental revenues and continued margin expansion on aircraft. The adjusted EBIT totaled $142 million in the first three months of the year, up 3% from the same quarter last year. The adjusted EBIT margin rose by 160 basis points year-over-year, landing at 11.1%. Adjusted EPS for the first quarter of 2024 was firmly positive at $0.36.
Orders remained strong across Bombardier’s portfolio of aircraft, recording a 60% increase compared to the same quarter last year. This sustained demand for Bombardier aircraft led to a vigorous unit book-to-bill of 1.6. The backlog also remained healthy and increased by $700 million to $14.9 billion, continuing to provide significant operational predictability.
Progress on Debt Reduction Continues, Contributes to Favorable Positioning for Future Growth
Bombardier continued to make progress on debt reduction with a $100 million debt redemption announced on March 14th and closed on April 15th, 2024, using cash from its balance sheet and helping the company remain ahead of plan on deleveraging. Earlier this month, Bombardier announced the successful closing of a new issuance of $750 million aggregate principal of Senior Notes due 2031, with a rate of 7.25% per annum and were sold at 99.75% of par, the proceeds of which, together with cash on hand, will be used to repay existing outstanding debt.
Bombardier continues to proactively improve its balance sheet, providing a strong foundation for future growth. Bombardier will provide more information on its strategic pillars and path to future growth during its Investor Day event, to be held on May 1st, 2024, at its new Aircraft Assembly Centre in Toronto. The new ultra-modern facility, which will be inaugurated later that day, demonstrates the company’s commitment to continuously raising the bar through innovation and sustainability. The layout of the new facility is designed to improve processes and will allow for better and safer movement of material, personnel, and aircraft.
SELECTED RESULTS
Results of the quarter | |||||||||||||
Three-month periods ended March 31 | 2024 | 2023 | Variance | ||||||||||
Revenues | $ | 1,281 | $ | 1,453 | (12 | )% | |||||||
Adjusted EBITDA(1) | $ | 205 | $ | 212 | (3 | )% | |||||||
Adjusted EBITDA margin(2) | 16.0 | % | 14.6 | % | 140 bps | ||||||||
Adjusted EBIT(1)(3) | $ | 142 | $ | 138 | 3 | % | |||||||
Adjusted EBIT margin(2) | 11.1 | % | 9.5 | % | 160 bps | ||||||||
EBIT | $ | 144 | $ | 140 | 3 | % | |||||||
EBIT margin(4) | 11.2 | % | 9.6 | % | 160 bps | ||||||||
Net income | $ | 110 | $ | 302 | $ | (192 | ) | ||||||
Diluted EPS (in dollars)(5) | $ | 1.02 | $ | 2.98 | $ | (1.96 | ) | ||||||
Adjusted net income(1)(3) | $ | 44 | $ | 113 | $ | (69 | ) | ||||||
Adjusted EPS (in dollars)(2)(3) | $ | 0.36 | $ | 1.06 | $ | (0.70 | ) | ||||||
Cash flows from operating activities(5) | $ | (343 | ) | $ | (162 | ) | $ | (181 | ) | ||||
Net additions to PP&E and intangible assets | $ | (44 | ) | $ | (85 | ) | $ | 41 | |||||
Free cash flow usage(1) | $ | (387 | ) | $ | (247 | ) | $ | (140 | ) | ||||
As at | March 31, 2024 | December 31, 2023 | Variance | ||||||||||
Cash and cash equivalents | $ | 1,181 | $ | 1,594 | (26 | )% | |||||||
Available liquidity(1) | $ | 1,417 | $ | 1,845 | (23 | )% | |||||||
Order backlog (in billions of dollars)(6) | $ | 14.9 | $ | 14.2 | 5 | % |
About Bombardier
At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs.
For them, we are committed to pioneering the future of aviation—innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it.
Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico.
The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.