- Jet maker Bombardier (TSX:BBD.A) delivers on growth in revenue, profitability and services in Q3 2024, extending its streak of positive net income to four straight quarters
- Management is confident about meeting full-year 2024 guidance
- Bombardier designs, builds, modifies and maintains a line of jets for people, businesses, governments and militaries around the world
- Bombardier stock has added 107.01 per cent year-over-year and 110.78 per cent since 2019
Jet maker Bombardier (TSX:BBD.A) delivers on growth in revenue, profitability and services in Q3 2024, extending its streak of positive net income to four straight quarters.
Revenue came in at US$2.1 billion, up by 12 per cent year-over-year (YoY), thanks to aftermarket growth and a strong delivery mix:
- Services revenue grew by 28 per cent YoY to a record US$528 million driven by a fully active expanded support network, trending above the company’s goal of US$2 billion in aftermarket revenues by 2025.
- The company completed 30 deliveries in Q3, ending the quarter with a backlog of US$14.7 billion and a unit book-to-bill of 1.
Net income was US$117 million, up from US$19 million in Q2, with adjusted net income of US$81 million, up by US$1 million YoY. Following from our report on Bombardier’s Q2 2024 results, the company has been profitable on a net income basis in five out of the past seven quarters, including four quarters in a row.
Adjusted earnings per share (EPS) were US$0.74, up from US$0.73 YoY, while diluted EPS came to US$1.09.
Adjusted EBITDA reached US$307 million, up by 8 per cent YoY, amounting to an adjusted EBITDA margin of 14.8 per cent. Adjusted EBIT was US$201 million, up by 4 per cent YoY.
Free cash flow usage came to US$127 million, enabling an investment in inventory of US$149 million. Reported cash flow usage from operating activities was US$81 million, with net additions to PP&E and intangible assets of US$46 million.
Liquidity at quarter end was US$1.2 billion, including cash and cash equivalents of US$900 million. The company also increased its revolving credit facility from US$300 million to US$450 million subsequent to quarter end.
Bombardier remains confident about reaching full-year 2024 guidance.
Leadership insights
“With a sustained increase in revenues, profitability and record aftermarket performance, Bombardier’s strong results this quarter are a testament to our long-term plan and our team’s ability to execute, meeting commitments week after week,” Éric Martel, Bombardier’s president and chief executive officer, said in a statement. “We have once again posted a healthy book-to-bill ratio, which in turn has maintained our backlog and predictability. This is all made possible by our second-to-none product portfolio and customer focus. As we enter the last months of the year, I am proud that our operations and service network continue to perform at a high level and are well-positioned to deliver on full-year guidance.”
“2024 is tracking to be another milestone year for Bombardier,” Martel added. “We have achieved more than 60 speed records on our Global 7500 program and the Global 8000 is now entering the production phase in parallel to certification activities. Our successful showing at NBAA-BACE this past October once again highlighted how Bombardier has set the standard in business aviation and our passionate people continue to push the boundaries of what is possible in our industry. All-in-all, we have delivered meaningful growth in our services business and continue to deepen relationships with customers, be they individuals, large companies or governments.”
About Bombardier
Bombardier designs, builds, modifies and maintains a line of jets for people, businesses, governments and militaries around the world. The company’s customers operate a fleet of about 5,000 aircraft supported by 10 service facilities across six countries.
Bombardier stock (TSX:BBD.A) last traded at C$107.50 per share. The stock has added 107.01 per cent year-over-year and 110.78 per cent since 2019.
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(Top photo of Bombardier’s Global 8000 aircraft: Bombardier)