- Solid third quarter revenues of $1.5 billion include a 20% year-over-year aftermarket increase to $372 million; full-year deliveries on track for more than 120 aircraft(1).
- Adjusted EBITDA(2) for the third quarter rose to $210 million, a 48% year-over-year improvement. Adjusted EBITDA margin(3) rose 460 bps year-over-year to 14.4%. Reported EBITfrom continuing operations for the third quarter was $145 million.
- Positive free cash flow(2) generation of $52 million from continuing operations for the third quarter of 2022, in line with raised cash flow guidance announced in August 2022(1). Reported cash flow from operating activities for the quarter was $122 million and net additions to PP&E and intangible assets for the quarter were $70 million.
- Backlog has grown by $300 million to $15 billion since the end of second quarter; the third quarter unit book-to-bill(4) of 1.3 reflects strong order activity.
- Further successful debt reduction of $100 million(5) through cash on balance sheet brings year-to-date debt repayment to $873 million(5); adjusted liquidity(2) stands strong at approximately $1.7 billion with cash and cash equivalents of $1.3 billion as at September 30, 2022.
- Further strengthened the liquidity position through a 5-year committed secured revolving credit facility of $300 million subsequent to the quarter end.
3 November 2022 – Bombardier (TSX: BBD.B) announced today its financial results for the third quarter of 2022, marked by solid revenues, a significant improvement in adjusted EBITDA(2), continued positive free cash flow(2) generation and a growing backlog that reflects strong order activity. The company also continued to reduce debt, with a further $100 million(5) reduction through cash on balance sheet. Order activity continued to be strong, marked with an increase in backlog and a unit book-to-bill(4) of 1.3.
“Our performance in the third quarter of 2022 demonstrated that our fundamentals are very strong, especially when it comes to profitability, free cash flow(2), liquidity, as well as continued and steady debt reduction from our balance sheet. We are progressing steadily and confidently toward our long-term objectives,” said Éric Martel, President and Chief Executive Officer of Bombardier.
Solid Financial Performance from Operations in Third Quarter of 2022
Revenues were at $1.5 billion in the third quarter of 2022, with full-year deliveries on track for more than 120 aircraft(1). These include a 20% year-over-year increase in aftermarket revenues, which rose to $372 million, thanks to increase in flight hours, but also to the expansion of Bombardier’s service centres in strategic locations around the world.
“Our most recent service centre inauguration in Florida strongly emphasizes the important contribution of the growing aftermarket business to our bottom line,” said Martel. “With the addition and expansions this year of our service centres and one more inauguration event to come in the United Kingdom this month, we have increased our service centre footprint by no less than 1 million square feet.”
The company has also seen an impressive margin expansion over the quarter, with adjusted EBITDA(2) rising to $210 million, which represents a 48% year-over-year improvement. Adjusted EBITDA margins(3) rose 460 bps year-over-year, from 9.8% to 14.4%. The main drivers behind this are the margin expansion of the Global 7500, as well as continued progress on cost structure.
Backlog rose to $15 billion in the third quarter of 2022, an increase by $300 million since the end of the second quarter 2022.
“While our team has certainly been opportunistic and made the most of the market momentum this quarter, we continue to focus on things we can control, which keeps us well equipped to face any market conditions that may be ahead of us,” said Martel.
Continued Liquidity Improvement
Free cash flow(2) was at $52 million in the third quarter of 2022, on track to meet the revised guidance(1) of greater than $515 million for the year announced in the previous quarter.
The company also announced a new 5-year committed secured revolving credit facility of $300 million subsequent to the quarter end. “This syndicated revolver is another significant step we have made to continue strengthening our balance sheet,” said Bart Demosky, Executive Vice President and Chief Financial Officer of Bombardier. “The incremental liquidity will further enhance our financial position and increase our operating flexibility.”
Accelerated Deleveraging and Lowered Cost of Debt
Bombardier also continued to pay off debt with cash from balance sheet, delivering on another important and continued strategic priority for the company, which brings year-to-date debt repayment to $873 million(5). Bombardier has now reduced more than $290 million of annualized interest cost for long-term debt compared to the annualized interest cost as at December 31, 2020, exceeding its 2025 targeted interest cost reduction announced on the Investor Day on March 4, 2021 of more than $250 million.
(1) Refer to the Corporation’s financial report for the second quarter ended June 30, 2022 for more details on the updated guidance for 2022, and see the forward-looking statements disclaimer of this press release.
(2) Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section of the Management Discussion and Analysis (MD&A) of the Corporation’s financial report for the quarter ended September 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(3) Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section of the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(4) Defined as net new aircraft orders in units over aircraft deliveries in units.
(5) Includes $8 million repaid in October 2022.
bps: basis points
Bombardier is a global leader in aviation, focused on designing, manufacturing, and servicing the world’s most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance, and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in special-mission roles.
Headquartered in Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China, and Australia.
For corporate news and information, including Bombardier’s Environmental, Social and Governance report, visit bombardier.com.
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