Post by
retiredcf on Nov 07, 2024 10:03am
CIBC
Currently have a $134.00 target. GLTA
EQUITY RESEARCH
November 7, 2024 Flash Research
BOMBARDIER INC.
Q3 First Pass: EBITDA Ahead Of Expectations
Key Takeaway: Positive impact. BBD reported a solid Q3 beat led by record
revenue from its Services segment and a favourable aircraft mix. Adjusted
EBITDA came in at $307MM (our estimate $295MM/consensus of $288MM)
while adjusted EPS were $0.74 (our estimate $0.80/consensus $0.75). FCF
usage was $127MM, below our estimate of $25MM and versus consensus of
$67MM, though we note the company maintained its full-year guidance. The
company delivered 30 units versus our estimate of 31 units (consensus
30 units) with the book-to-bill ratio coming in at 1.0x. The company is hosting
a call at 8:00 a.m. ET.
Q3 Recap: Q3 revenue came in at $2.07B, up from $1.86B the prior year
and versus our estimate and consensus of $1.79B, driven by $528MM in
Services revenue (up $114MM Y/Y and a record level) and a favorable
aircraft mix. Adjusted EBITDA was $307MM, up from $285MM the year prior
and versus our estimate of $295MM (consensus $288MM). This represents
an adjusted EBITDA margin of 14.8%, versus our forecast of 16.5% and
consensus of 16.1%. Adjusted EBIT was $201MM, up from $193MM the year prior and versus our estimate of $201MM (consensus $190MM). Adjusted EPS were $0.74, up from $0.73 the year prior and versus our estimate of $0.80 (consensus $0.75). FCF usage was $127MM versus generation of $80MM the year prior and versus our estimate usage of $25MM (consensus of $67MM). The main variance versus our estimate stemmed from a higher work capital drag due to higher inventory build-up.
Net Debt Update & Liquidity Position: BBD ended Q3 with pro forma net
debt of $4.68B, which includes long-term debt of $5.55B net of $872MM in
cash and equivalents. This is higher than Q2/24’s pro forma net debt of
$4.53B. Net leverage ratio was 3.6x versus 3.5x last quarter; BBD is aiming
to lower its leverage ratio to 2.0x-2.5x by 2025. Pro forma liquidity at the end
of Q3 was $1.17B, down from $1.32B at the end of Q2. Subsequent to the
quarter, BBD increased the size of its revolving credit facility by $150MM.
Business Jet Performance: BBD delivered 30 business aircraft (13 medium
jets and 17 large jets) in the quarter versus our estimate of 31 units and 31
aircraft a year ago. Business aircraft backlog at the end of Q3 was $14.7B,
compared to $14.9B at the end of Q2. The book-to-bill ratio was 1.0x, in line
with Q2, and we view it positively as a sign that demand remains healthy.
On Track To Meet Full-year Guidance: BBD noted it remains on track to
meet its 2024 guidance, which includes delivery guidance of 150-155 units,
revenue of $8.4B-$8.6B, adjusted EBITDA of $1.3B-$1.35B, adjusted EBIT
of $850MM-$900MM, and FCF of $100MM-$400MM.
Conference Call Details: The company is hosting a call at 8:00 a.m. ET on
November 7. Dial-in numbers are 1-514-316-5035 or 1-416-764-8624
(Conference ID English: 45129850, Conference ID French: 51252976)
Comment by
marcrobert on Nov 07, 2024 1:49pm
with chump back, banking activity/growth is expected to pick up, and M&A should explode once they get rid of ftc clowns. I would expect that as M&A explodes, so will biz jet usage