- Bombardier (TSX:BBD.A) ended 2024 at a net profit, closing out its fourth consecutive year of growth across key metrics
- Adjusted EPS reached US$5.16, up by 31 per cent year-over-year
- Bombardier designs, builds, modifies and maintains a line of jets for individuals, businesses, governments and militaries around the world
- Bombardier stock has added 61.43 per cent year-over-year and 125.16 per cent since 2020
Bombardier (TSX:BBD.A) ended 2024 at a net profit, closing out its fourth consecutive year of growth across key metrics.
Revenue exceeded guidance and grew to US$8.7 billion, up by 8 per cent year-over-year (YoY) thanks to record service performance of more than US$2 billion, up by 16 per cent YoY, as well as 146 aircraft deliveries, up from 138 YoY.
Adjusted EBITDA grew by 11 per cent YoY to US$1.36 billion with a margin of 15.7 per cent and EBIT of US$878 million. Key drivers include higher deliveries and services demand, partially offset by supply chain disruption costs.
Net income and adjusted net income reached US$370 million and US$547 million, respectively. These translate to diluted EPS of US$3.40 and adjusted EPS of US$5.16, the latter up by 31 per cent YoY. Bombardier took in US$124 million in net income in Q4 2024, marking its fifth consecutive quarter of positive performance under the metric.
Free cash flow was US$232 million, in line with expectations, with cash flow from operating activities of US$405 million and net additions to PP&E and intangible assets of US$173 million. According to Thursday’s news release, contributing factors include “strong profitability, disciplined capital investments, inventory build to support production rates and higher supplier advances that offset lower customer advances due to timing of progress payments.”
Bombardier’s backlog hit US$14.4 billion as of December 31, 2024, representing a US$200 million increase YoY.
Debt fell by about US$400 million in 2024, strengthening the company’s balance sheet in tandem with the purchase of US$635 million in annuities for certain pension plans. Its adjusted net debt to adjusted EBITDA ratio fell from 3.3 times to 2.9 times YoY.
Liquidity ended the year at US$2.1 billion, including cash and cash equivalents of US$1.7 billion.
Bombardier will defer 2025 guidance until management gains clarity on U.S. President Donald Trump’s tariff measures affecting Canada, Mexico and China, though the company remains focused on previously announced growth initiatives in defense and services amid continued deleveraging.
Potential investors interested in continuing their due diligence can track the company’s progress as detailed in its 2023, 2022 and 2021 financial results.
Leadership insights
“Our team passionately and proudly executed our plan in 2024 at a very high level, growing revenue to meet guidance, growing deliveries, growing our backlog, meaningfully expanding our margins and reaching a net leverage ratio of 2.9x,” Éric Martel, Bombardier’s president and chief executive officer, said in a statement. “Four years ago, we outlined a bold vision for how we wanted to structure Bombardier for success. Our company has accomplished more than we set out to, including reaching our 2-billion-dollar service revenue ambition a full year ahead of schedule by rapidly elevating our customer experience and offerings. Whether in our operations, in the field or on our balance sheet, we have time and again demonstrated that we are strong and resilient.”
About Bombardier
Bombardier designs, builds, modifies and maintains a line of jets for individuals, businesses, governments and militaries around the world. The company’s customers operate a fleet of more than 5,100 aircraft supported by 10 service facilities across six countries. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico.
Bombardier stock (TSX:BBD.A) last traded at C$85.56 per share. The stock has added 61.43 per cent year-over-year and 125.16 per cent since 2020.
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(Top photo of Bombardier’s Challenger 3500 jet: Bombardier)
