Bombardier posts ‘solid’ third quarter
Bombardier’s business aircraft revenues are up 17% year-over-year (YoY) to $1.4bn driven by high deliveries of large aircraft. The firm published its results for third quarter (Q3) 2021 today, which confirm this year is significantly better than last, according to the firm’s president and CEO, Éric Martel.
“The Bombardier team once again delivered a solid quarter,” said Martel. “Our unit book-to-bill ratio remains very healthy, contributing to a significant increase to our backlog. This momentum has also translated to a solid increase in profitability, with adjusted EBITDA margin approaching 10% this quarter.”
During Q3 2021, Bombardier also redeemed debt maturities through December 2024, “a major milestone in its deleveraging plan” said the firm. Bombardier has reported a total debt reduction of approximately $3bn since the beginning of 2021. Pro-forma liquidity remains at $1.9bn.
Bombardier has also seen an increase of revenues by $76m from business aircraft services, mainly due to fleet flight hours surpassing 2019 levels.
The firm reported an adjusted EBITDA of $142m, representing a %69 YoY improvement of $58m. Reported EBIT from continuing operations for the quarter was $48 million.
Whilst, free cash flow of $100m from continuing operations represents an improvement of $747m YoY.
Towards the end of Q3 2021, Bombarder introduced the Challenger 3500. An updated version of the 350, the aircraft has a redesigned interior and the industry’s first voice-controlled cabin. A mock-up of the 3500 was on display at NBAA-BACE earlier this month and the Canadian OEM also has a 20 aircraft firm order. The 3500 is expected for entry into service in the second half of 2022.
“We are delivering consistently on what we set out to do, especially when it comes to deleveraging the balance sheet. Thanks to the hard work of our outstanding team, we cleared the debt maturity runway on plan,” added Martel. “As a fantastic finale to the quarter and at a great moment in time for our industry, we launched our new Challenger 3500 jet last month.”