Bombardier revenues rise to $1.5bn
Bombardier’s revenue rose 17% to $1.5bn in the first quarter (Q1) of the year, up from $1.2bn in Q1 2022, according to the OEM’s most recent accounts.
The sale of new and preowned jets contributed $1bn towards the growth in revenue, with the majority of the remaining revenue coming from $424m in aftermarket services. The firm said its strategy to have aftermarket revenues of $2bn by 2025 is on track, having increased its aftermarket revenues by more than 50% since 2020.
Adjusted EBITDA also increased by almost 30%, from $167m in Q1 last year to $212m this year. While the company made a loss in Q1 2022 of $287m, it turned a profit this quarter, with net income of $302m.
The OEM used up $247m in cash flow to build inventories for 2023 deliveries, as well as investment to complete its new facility at Toronto Pearson International Airport. Despite this, its available cash and equivalents remained strong at $1.1bn compared with $1.3bn at the end of 2022, while backlog remained steady at $14.8bn.
Since the end of 2022, Bombardier cleared $401m of debt, reducing it to $5.6bn. Aircraft deliveries for the year ahead are on track to meet or exceed 138 aircraft.
In the accounts, Bombardier said it expects the business aviation industry to remain stable in the short term, driven by a strong backlog of around two years for the industry that should stabilise revenues. While market uncertainty and increasing interest rates could affect order levels in the short term, the company said it still expects growth due to the rise in the number of high-net-worth individuals and the ongoing network constraints of the airlines.
Bombardier Q1 results – at a glance
- Revenue up 17% to $1.5bn
- Adjusted EBITDA up 37% to $212m
- Net income $302m
- Cash and equivalents $1.2bn
- Available liquidity $1.4bn
- Backlog $14.8bn