Bombardier reports solid Q3 results, strengthens liquidity position
OPUL Jets' Bombardier Global Express XRS will be its first jet to be fitted with the Starlink system. (Photocredit: OPUL Jets).
Canadian aerospace manufacturer Bombardier reported its financial results for the third quarter of 2024, highlighting robust performance across its business segments.
The company’s revenues for the three-month period ended September 30, 2024, increased by 11.7% year-over-year, reaching $2.1bn, driven by a 6.4% increase in manufacturing and other revenues, as well as a 27.5% rise in services revenues.
“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,” said Éric Martel, president and chief executive officer, Bombardier.
“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.”
During the quarter, the company delivered a total of 30 aircraft (13 medium and 17 large) with backlog reaching $14.7bn as of September 30, 2024, resulting in a unit book-to-bill of 1.0.
Overall, the company remains on track to meet its planned delivery guidance of between 150 to 155 aircraft in 2024. So far, during the first nine months of 2024, the company has delivered 89 aircraft, seven more than same period last year, including 45 medium and 44 large.
Net financing expense for the quarter decreased by 63.1% to $87m, down from $236m in the prior-year period. This was primarily due to a non-cash change in the fair value of embedded derivatives related to call options on the company’s long-term debt.
Bombardier reported net income from continuing operations of $117m for the third quarter of 2024, compared to a net loss of $37m in the prior-year period. Diluted earnings per share (EPS) from continuing operations for the third quarter was $1.09, compared to a loss of $0.47 per share in the same period last year.
For the nine-month period ended September 30, 2024, Bombardier’s net income from continuing operations was $246m, down slightly from $275m in the same period of 2023.
Loans and liquidity
The company’s available liquidity remained strong at approximately $1.2bn as of September 30, 2024, including $872m in cash and cash equivalents and $300m in undrawn committed secured revolving credit facility.
During the quarter, the company completed several debt refinancing transactions, including the issuance of $750m in Senior Notes due 2031 and $750m in Senior Notes due 2032. The proceeds were used to partially repay existing Senior Notes due in 2026 and 2027.
After the quarter end, the company further strengthened its liquidity position by upsizing its committed secured revolving credit facility from $300m to $450m, with the maturity extended from 2027 to 2029.
Looking ahead, the company does not have any significant long-term debt maturities until 2026, providing it with ample flexibility to execute its strategic plans. Management believes the current available liquidity is sufficient to fund product development, capital expenditures, and other financial requirements in the near future.
