- Bombardier (TSX:BBD.A) is reporting financial results for Q1 2024 highlighted by significant increases in service revenue and order activity
- The company sold 60 per cent more jets year-over-year, increasing its backlog by US$700 million to a healthy US$14.9 billion
- Adjusted earnings per share came in positive at US$0.36, compared with diluted EPS of US$1.02
- Bombardier designs, builds, modifies and maintains a growing portfolio of business jets and defense aircraft
- Bombardier stock has given back 16.02 per cent year-over-year, but only 6.01 per cent over the past five years
Bombardier (TSX:BBD.A) on Thursday is reporting financial results for Q1 2024 highlighted by significant increases in service revenue and order activity.
Revenue for Q1 2024 came in at US$1.3 billion, which is down year-over-year because of the timing of deliveries. The company delivered 20 aircraft for the quarter, in line with full-year delivery guidance of 150-155 aircraft.
Aftermarket services added to its upward momentum, pulling in C$477 million in revenue, a 13 per cent increase year-over-year.
Adjusted EBITDA for the quarter was US$205 million, resulting in an adjusted EBITDA margin of 16 per cent, up 1.4 per cent year-over-year, thanks to strong conversion on incremental revenues and continued aircraft margin expansion.
Adjusted EBIT totalled US$142 million, up by 3 per cent year-over-year, with an adjusted EBIT margin of 11.1 per cent, which is up by 1.6 per cent year-over-year. Reported EBIT was US$144 million.
Free cash flow usage amounted to US$387 million, reflecting expected working capital build in inventories to support a ramp-up in production. Reported cash flow usage from operating activities was US$343 million, while net additions to property, plant and equipment and intangible assets came in at US$44 million.
Order activity increased by 60 per cent year-over-year, backed by strong demand across the company’s aircraft portfolio. It posted a unit book-to-bill of 1.6 and increased its backlog by US$700 million to a healthy US$14.9 billion, keeping it on track to meet full-year 2024 delivery guidance.
In terms of leverage control, Bombardier closed a US$100 million debt redemption on April 15, using cash from its balance sheet. It also closed a new issuance of US$750 million in senior notes due 2031 yielding 7.25 per cent per year, which were sold at 99.75 per cent of par, with proceeds to go towards repaying existing debt.
Available liquidity ended the quarter at US$1.4 billion, including cash and cash equivalents of US$1.2 billion.
Adjusted earnings per share (EPS) came in positive at US$0.36, compared with diluted EPS of US$1.02.
Investors can expect more information on Bombardier’s strategic plan for future growth at its Investor Day event on May 1 at the company’s new Aircraft Assembly Centre in Toronto.
Continue your due diligence by reading Bombardier’s full Q1 2024 financial results.
Management insights
“Our team came flying out of the gates in 2024 on soaring aircraft orders and service revenues. The unit book-to-bill of 1.6 and US$700 million backlog increase are even more meaningful when you take stock of solid activity across traditional customers, fleets and new opportunities materializing for Bombardier Defense,” Éric Martel, Bombardier’s president and chief executive officer, said in a statement. “Building our backlog, growing recurring income streams, and retiring debt have all been staples of Bombardier’s solid performance, and our first quarter of 2024 delivered on all three very positively. This level of focused execution continues to provide solid ground for our team and balance sheet to stand on.”
“I also want to commend the teams working hard to keep our delivery plan and profile on track toward our full-year guidance,” Martel added. “We continue to be flexible and proactive, all while keeping an eye on the bottom line and our commitments. On that front, achieving a 16 per cent adjusted EBITDA margin for the quarter in this landscape is nothing short of exceptional and speaks to the tremendous collective effort to stay focused on our fundamentals and work to our plan.”
About Bombardier
Bombardier designs, builds, modifies and maintains a growing portfolio of business jets and defense aircraft. The company operates manufacturing facilities in Canada, Mexico and the United States, while supporting approximately 5,000 aircraft for its global customer base through 10 service facilities across six countries.
Bombardier Inc. stock (TSX:BBD.A) last traded at C$56.63 per share. The stock has given back 16.02 per cent year-over-year, but only 6.01 per cent over the past five years.
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