Bombardier posts a $238m profit, exceeding expectations
Bombardier posted a profit of $238m in the last quarter (Q4) of 2021, swinging last year’s loss of $337m. The firm reported increased revenues, a rise in earnings before interest, tax, depreciation and amortisation (EBITDA) and a larger, more varied backlog.
Now focused solely on building business jets, Bombardier also said it is readying to increase the number of deliveries by another 15-20% by 2023.
Éric Martel, president and CEO , Bombardier, said: “Overall, the 2021 results are proof that our plan gave us both the structure and the agility to manage any outside obstacles and capitalise on a faster-than-expected industry recovery.”
Bombardier had six fewer deliveries in Q4 at 38 compared with 44 across the same period last year. This put business jet revenues down $500m to $1.7bn.
Adjusted EBITDA increased to $232m, mainly due to accretive margins on the Global 7500. Free cash flow of $314m was $48m higher than Q4 2020
Business jet revenues for the 2021 were up 7% year-over-year (YoY) at $6bn. That was helped by a 25% increase in aftermarket performance, which came in at $1.2bn.
The company reported a significant adjusted EBITDA increase, which more than tripled to $640m. The 2021 reported EBIT is at $241m.
Bombardier reported a 1.53 book-to-bill ratio for 2021, resulting in a $12.2bn backlog, increasing $1.5bn from the previous year. “The increased and more balanced backlog is the result of an increased demand, which, combined with healthy pricing, is giving us the predictability and resilience at exactly the right time,” said Martel.
The firm is forecasting it will outperform its 2021 results in the coming year, whilst also being on track to meet its 2025 objectives. Bombardier hopes to deliver more than 120 aircraft, exceed $6.5bn in revenues, increase adjusted EBITDA by 29% to over $825m and increase adjusted EBIT to more than $375m.
“While we still have much to do, we are now on firm ground and can look into the future with optimism,” Martel added.