- Bombardier (TSX:BBD.B) has released value-accretive Q3 2023 earnings results highlighted by substantial growth in revenue, operating profitability and cash generation
- The company reported US$1.9 billion in Q3 revenue, which is up by 28 per cent year-over-year because of strong aircraft sales and aftermarket growth
- Adjusted net income for the quarter was US$80 million, up from a loss of US$2 million year-over-year
- Bombardier stock (TSX:BBD.B) is up by 9.27 per cent, trading at C$49.29 per share as of 9:37 am ET
Bombardier (TSX:BBD.B) has released value-accretive Q3 2023 earnings results highlighted by substantial growth in revenue, operating profitability and cash generation.
Key drivers behind Q3 revenue growth
The company reported US$1.9 billion in Q3 2023 revenue, which is up by 28 per cent year-over-year because of strong aircraft sales and aftermarket growth. The company delivered 31 aircraft in the quarter, up by six aircraft year-over-year, increasing total deliveries to 82 for the year, including its 150th Global 7500 aircraft.
Revenue from Bombardier’s aftermarket business grew by 11 per cent year-over-year to US$414 million, bolstered by ongoing expansion of the company’s service centre footprint.
The private jet provider’s backlog stands at US$14.7 billion, with a unit book-to-bill of 1.1 for the quarter indicating strong demand. The unit book-to-bill figure captures net new aircraft orders in units over aircraft deliveries in units.
Key drivers behind operating profitability growth and solid cash flow
Total adjusted EBITDA for Q3 was US$285 million, up by 36 per cent year-over-year, with an adjusted EBITDA margin of 15.4 per cent, up by 1 per cent year-over-year, because of increased deliveries, cost management measures and growing aftermarket demand. Adjusted EBIT reached US$193 million, up by 54 per cent year-over-year.
Bombardier yielded adjusted net income of US$80 million, up from a loss of US$2 million year-over-year, with adjusted Q3 earnings per share of US$0.73, up from a US$0.10 loss year-over-year.
The company ended the quarter with US$80 million in free cash flow and expects to reach more than US$250 million by the end of 2023.
Available liquidity was US$1.2 billion at quarter’s end, with cash and cash equivalents of US$1 billion as of Sept. 30, 2023.
Management expects to achieve its 2023 delivery target of at least 138 jets.
“When we reshaped Bombardier, we set out to build a resilient business that performs in any marketplace,” Éric Martel, president and chief executive officer of Bombardier, said in a statement. “Today, our results demonstrate we are there. Quarter after quarter, Bombardier has delivered convincing results and we are well on our way to meet the 2023 deliveries target and further increase delivery output in the future.”
The news follows a profitable Q2 2023 marked by sustained demand for services, as well as new and pre-owned jets.
Select financial results
Source: Bombardier. Amounts are in US$ millions except per share amounts, unless otherwise indicated.
Montreal-based Bombardier is a global aviation company focused on the design, manufacturing and servicing of business jets. It has approximately 5,000 aircraft in service across multinational corporations, charter and fractional ownership providers, governments and private individuals. Bombardier aircraft are also used in government and military special-mission roles across the world.
Bombardier stock (TSX:BBD.B) is up by 9.27 per cent trading at C$49.29 per share as of 9:37 am ET. The stock has added approximately 25 per cent year-over-year, but has lost about 40 per cent over the past five years.
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