MONTREAL, March 04, 2021 (GLOBE NEWSWIRE) -- Bombardier (TSX: BBD.B) today will host its virtual Investor Day, during which the company’s leadership team will provide its 2025 financial targets and market outlook, as well as highlight progress on the company’s actions to drive earnings growth and cash generation. These actions include capturing the value associated with progressing through the Global 7500 aircraft’s learning curve; delivering on the previously announced productivity and profitability initiative; executing on the company’s aftermarket growth strategy and deleveraging its balance sheet.
The company’s outlook assumes the continued successful roll-out of COVID-19 vaccines, a gradual lifting of international border restrictions and a continued economic recovery. This conservative outlook does not include the potential positive impact from the surge of new customers to private air travel following the onset of the global pandemic.
Balance Sheet Deleveraging
During the Investor Day presentations, the company will provide further details on its debt management strategy. Under its strategy, Bombardier intends to deploy the proceeds from the sale of Bombardier Transportation, prioritizing the pay down of near-term maturities with a focus on 2021 and 2022 tranches. The company is also considering various options to address other debt maturities in an opportunistic manner. The focus will be on clearing a minimum three-year maturity runway, providing the Company a clear path to execute its strategy.
Aftermarket Expansion
With respect to its aftermarket growth strategy, Bombardier will describe how past investments in expanding its worldwide services network and capabilities position the company to capture a greater share of a growing market and further diversify its overall revenues with more resilient and profitable aftermarket revenues. Specifically, the company expects to diversify its revenue mix by growing aftermarket services from ~18% of its revenues in 2020 to ~27% of its revenues by 20253.
Global 7500 Learning Curve
The company will also provide a program update on its flagship Global 7500 aircraft and explain that 2021 marks a significant milestone for the program as it transitions from negatively impacting earnings to being the biggest EBITDA contributor over the next five years. The company is nearing its 50th Global 7500 jet delivery and expects to achieve a 20% reduction in unit cost between the 50th and 100th delivery3.
Productivity and Profitability Initiative
Finally, during Investor Day, Bombardier will provide an update on its productivity and profitability initiative announced last month. The overall goal of this initiative is to make the company more efficient, agile and capable of delivering stronger financial performance under current market conditions, while also establishing a lower cost base for growth once the market recovers. Importantly, the company expects to achieve $400 million in recurring savings by 20233 through labor productivity improvements, reduced corporate costs and indirect spending, and by optimizing its manufacturing footprint.
Webcast Details
Bombardier’s Investor Day will begin at 9:00 a.m. (EST) and can be streamed live on Bombardier’s Investor Relations website: https://bombardier.com/en/investors/investor-events/2021/investor-day-2021
About Bombardier
Bombardier is a global leader in aviation, creating innovative and game-changing planes. Our products and services provide world-class experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montral, Canada, Bombardier is present in more than 12 countries including its production/engineering sites and its customer support network. The Corporation supports a worldwide fleet of approximately 4,900 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments and private individuals.
News and information is available at bombardier.com or follow us on Twitter @Bombardier.