Bombardier Reports Positive Adjusted Net Income, Grows Revenues and Expands Profit Margins in First Quarter of 2023

• Bombardier reports first quarter 2023 revenues of $1.5 billion, up 17% year-over-year, driven by improved delivery mix and continued strong aftermarket revenues of $424 million; aircraft deliveries on track towards full-year guidance of greater than 138.
• Adjusted EBITDA rose to $212 million, up 27% year-over-year thanks to stronger aircraft margins and aftermarket growth, reported EBIT reached $140 million. Reported net income and adjusted net income surged to $302 million and $113 million respectively. First quarter 2023 adjusted Earnings per share (EPS) turns positive at $1.06 and diluted EPS of $2.98.
• Free cash flow usage of $247 million driven by working capital build in inventories for 2023 deliveries and continued investments supporting completion of a new facility at Toronto Pearson International Airport. Available liquidity stands strong at $1.4 billion at quarter end. Reported cash flow usage from operating activities for the quarter was $162 million and net additions to PP&E and intangible assets for the quarter were $85 million. Cash and cash equivalents as at March 31, 2023 were $1.1 billion.
• First quarter of 2023 ended with stable backlog at $14.8 billion, reflecting steady demand profile and unit book-to-bill of 0.9.
• First quarter 2023 marked by continued strong progress on debt reduction with a repayment of approximately $400 million from cash on balance sheet; market confidence with Moody’s Investors Service upgrade of Bombardier’s corporate family and Senior unsecured notes rating to B2; outlook maintained as stable.

_{All amounts are in U.S. dollars, unless otherwise indicated.}

MONTRÉAL, April 27, 2023 (GLOBE NEWSWIRE) — Bombardier (BBD.B TO) reported today its financial results for the first quarter of 2023, reflecting continued progress on all business fundamentals and performance on track toward reaching 2023 full-year guidance.

“Bombardier has delivered a very strong first quarter,” said Éric Martel, President and Chief Executive Officer, Bombardier. “Our robust performance adds to our extremely positive track record from the past two years and confirms we are on the right trajectory. With a very healthy, positive adjusted net income, further debt reduction, continued margin expansion, and ramped up production to reach our guidance of more than 138 deliveries this year, we are forging ahead towards the upgraded 2025 targets we presented during our Investor Day last month.”

Positive Net Income and Continued Robust Performance on Business Fundamentals Mark First Quarter of 2023
Bombardier reported a strong start to 2023, with first quarter revenues up 17% year-over-year at $1.5 billion, compared to $1.2 billion in the same quarter last year. The positive trend was reflected in profitability, with adjusted EBITDA up 27%, driven by stronger aircraft margins, mainly on large-cabin aircraft, and aftermarket growth. Adjusted EBITDA margin rose 120 basis points year-over-year to 14.6%. The adjusted EBIT totaled $138 million in the first quarter of 2023, up 89% compared to the same quarter last year. The company also reported the adjusted net income of $113 million, compared with a $69 million loss over the same period last year. First quarter of 2023 adjusted EPS was $1.06 compared to a loss of $0.80 per share for the same quarter of 2022.

The positive trend in deliveries has continued in the first quarter of 2023, with deliveries (excluding Learjet, which is no longer in production) up 22% year-over-year. This is consistent with the company’s overall guidance of increasing deliveries by more than 15% in 2023. The backlog remained stable at $14.8 billion, while the unit book-to-bill was at 0.9.

The expected ramp up in production to build inventory, as well as strategic investments, such as the new Global production facility at the Pearson airport in Toronto set to open at the end of 2023, have led to some predicted free cash flow usage this year, as well as a higher CAPEX spend and the payment related to the incentive-based compensation plan for employees across Bombardier’s sites.

Bombardier’s aftermarket business continues its positive performance and contribution to the company’s bottom line with $424 million in revenues in the first quarter of 2023, up 17% year-over-year.

Steady Progress on Debt Reduction Contributes to Increased Market Confidence
The company also continued to execute on debt reduction, one of its key promises since restructuring in 2020. Bombardier has successfully repaid approximately $400 million of debt in the first quarter of 2023, which played a major role in the recent upgrade of Bombardier’s corporate family and Senior unsecured notes rating to B2 by Moody’s Investors Service. With available liquidity very strong at $1.4 billion, towards the upper end of the targeted range shared during its Investor Day in March, the company will remain opportunistic with the debt capital markets in the future.

About Bombardier

Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise. 

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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.

Bombardier Defense to Debut Virtual & Interactive Showroom at the 2023 Army Aviation Mission Solutions Summit

• Bombardier Defense will present its wide range of solutions for critical missions at the Summit held in Nashville, Tennessee from April 26 to 28, 2023
• Virtual showroom enables customers and partners to view the solution-oriented customization services offered on the Challenger and Global families of aircraft
• Aircraft available for virtual visits include a Multi-Role and Medevac Challenger 650, ISR-configured Global 6500 and VIP transport Global 8000

MONTRÉAL, April 24, 2023 (GLOBE NEWSWIRE) — Bombardier Defense is set to debut its virtual and interactive showroom at the upcoming 2023 Army Aviation Mission Solutions Summit, hosted by the Army Aviation Association of America (AAAA). This fully immersive showroom enables customers to view 3-D models of its aircraft, allowing a hands-on experience of the solution-oriented services Bombardier Defense can deliver. This new service will allow users to look at various aircraft configurations, as well as envision how Bombardier’s Challenger and Global aircraft can respond to the most demanding missions.

The virtual showroom contains 4 aircraft configurations: a Global 8000 for VIP transportation, a Global 6500 modified for Airborne ISR (Intelligence, Surveillance, and Reconnaissance), and a Multi-Role and Medevac Challenger 650. This immersive experience will allow customers to explore the real life-sized layout of each plane, and fully appreciate the payload capabilities available. This tool also allows a 360^o view of the exterior, and to explore the customizations Bombardier Defense offers on missionized aircraft.

“As one of the largest gatherings of the U.S. Defense aviation community, the Army Aviation Mission Solutions Summit is the perfect venue for Bombardier to present its wide array of solutions and debut its virtual showroom. It will be a useful tool to help our mission system providers and government customers to appreciate the full potential of our aircraft,” said Steve Patrick, Vice President, Bombardier Defense. “Bombardier Defense has a well-rounded choice of aircraft that can support a full range of missions. We are proud to have our aircraft in service with the US Government, as well as partners and allies around the world.”

Bombardier’s Challenger and Global aircraft families represent the ideal solution for the full spectrum of surveillance missions, maritime patrol, electronic warfare, search and rescue, VIP transportation, and more. Trusted by Governments around the world, the Challenger and Global aircraft are the optimal solution for military use, thanks to their industry-leading capabilities and undisputed performance. Bombardier has a proven track record for building aircraft with exceptional endurance, while offering unparalleled reliability and low operating costs compared to other aircraft in their class.

About Bombardier

Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise. 

For corporate news and information, including Bombardier’s Environmental, Social and Governance report, visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. 

Bombardier Achieves Regulatory Approvals for Installation of Smart Link Plus System on In-Service Challenger and Global Aircraft

• Bombardier has achieved Transport Canada (TC), European Union Aviation Safety Agency (EASA) and Federal Aviation Administration (FAA) approval for Challenger and Global Smart Link Plus system installations
• Challenger and Global aircraft operators can now book Smart Link Plus system installations across the entire Bombardier Service Centre network
• Smart Link Plus system enables operators to make data-driven decisions in real time, maximizing operational efficiency

MONTREAL, April 19, 2023 (GLOBE NEWSWIRE) — Bombardier today announced major advancements in its comprehensive *Smart Link Plus connected aircraft system with several key regulatory approvals. The company has recently achieved essential TC, EASA and FAA approvals for almost its entire fleet of Challenger and Global aircraft. With these approvals, operators of all in-service Challenger 300, Challenger 350, Challenger 3500, Challenger 605 and Challenger 650, as well as Global 5000, Global 6000, Global Express and Global XRS aircraft will be able to install the innovative Smart Link Plus aircraft health management system on their business jets.

Smart Link Plus is an advanced health monitoring system that collects crucial aircraft data, enabling flight and maintenance crews to quickly prioritize and proactively troubleshoot essential in-flight alerts, increasing an aircraft’s operational efficiency. Aircraft operators can effectively track, troubleshoot and dispatch a technician based on information received from the system, enabling them to make detailed maintenance decisions quickly and efficiently.

“The Smart Link Plus system is fundamentally changing the way Bombardier supports its customers,” said Paul Sislian, Executive Vice President, Aftermarket Services & Strategy, Bombardier. “With Smart Link Plus, customers can make concrete maintenance decisions in real time – significantly enhancing the efficiency of their operations.”

The Smart Link Plus connected aircraft system was first introduced on the Bombardier flagship Global 7500 aircraft and customers continue to benefit from its advanced data-driven capabilities. Now, a strong majority of current Global 7500 aircraft customers have enrolled in the Smart Link Plus service, and Bombardier has been gradually expanding the program to offer retrofit options to its in-service fleet of Challenger and Global aircraft. The Smart Link Plus system will also be installed on all new Global 8000 aircraft as a standard feature.

With Smart Link Plus, ground crews can also use the program’s remote parameter display to independently monitor an aircraft while in-flight to assist in finding the root cause of potential issues. While in-flight, the Smart Link Plus service automatically sends ground crews takeoff, landing and in-flight fault notifications together with contextual data, allowing the flight crew to focus on other tasks. Full flight data is automatically transmitted and accessible once the aircraft has landed. Access to full aircraft systems data provides additional information required to troubleshoot more complex faults.

Aircraft data is also displayed in an intuitive, user-friendly Bombardier application (myMaintenance App) and is available anytime, anywhere on any personal electronic device. Additionally, Bombardier’s 24/7 Customer Response Centre (CRC) and dedicated team of experts and specialists can support troubleshooting efforts using the myMaintenance App and mobilize additional support as required.

With the recent growth and comprehensive expansion of Bombardier’s worldwide Service Centre network, the introduction of several exciting new products and services, and the latest developments in the Smart Link Plus system, Bombardier continues to build on its commitment to provide customers with the best service experience in the industry today.

Bombardier is working to finalize all regulatory approvals for operators of Challenger 604 and Global 5500 and Global 6500 aircraft. Approvals are expected from late 2023 through early 2024.

About Bombardier

Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise.  

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com.

*Smart Link Plus is under development and subject to change. Certain conditions apply for Smart Link Plus program enrollment and to obtain the free Smart Link Plus box. Installation costs apply. For aircraft eligibility or other considerations, customers can contact Bombardier. Bombardier, Challenger, Challenger 300, Challenger 350, Challenger 604, Challenger 605, Challenger 650, Challenger 3500, Global, Global 5000, Global 5500, Global 6000, Global 6500, Global Express, Global XRS, Global 7500 and Global 8000 are registered or unregistered trademarks of Bombardier Inc. or its subsidiaries.

Statement from Bart Demosky, Executive Vice President and CFO, Bombardier, on Moody’s Ratings Upgrade to B2

MONTRÉAL, April 05, 2023 (GLOBE NEWSWIRE) — All of us at Bombardier are very pleased with Moody’s rating increase, announced yesterday. It represents another affirmation of the meaningful progress we have made so far, particularly on debt reduction, earnings, and positive free cash flow generation, and is in line with the updated 2025 objectives we presented just last month during our Investor Day 2023 (the recording of the webcast is available here).

Our performance so far is giving us great momentum in our continued efforts to further reduce our debt and net leverage, which remains a top priority in repairing our balance sheet and improved financial performance. Thanks to our steadfast execution of the strategic plan announced in 2021, all of Bombardier’s strategic priorities are on track or ahead of plan, and we are looking to the future with optimism.

About Bombardier

Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise.

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com.

Bombardier Updates 2025 Strategic Objectives to Reflect Strong Performance and Solid Business Fundamentals

MONTRÉAL, March 23, 2023 (GLOBE NEWSWIRE) — Bombardier (BBD-B.TO) will host its 2023 Investor Day this morning. Éric Martel, Bombardier’s President and CEO, along with Paul Sislian, Executive Vice President, Aftermarket Services & Strategy, and Bart Demosky, Executive Vice President and Chief Financial Officer, will present an overview of the company’s solid progress made and new opportunities for diversified growth.

“In 2021, we laid the foundation for a stronger, more resilient and predictable Bombardier by 2025. Halfway down the road, we can say we are delivering on that promise,” said Martel. “All of Bombardier’s strategic priorities are on track or ahead of plan. We are therefore proud to announce today that we are confidently raising the bar. The future is bright for Bombardier. While we are carefully monitoring the current market situation, we know that we have all the ingredients in place to remain a driving force in the industry. Our financial performance allows us to secure our vision for the future, and enable our exceptional, dedicated and passionate teams to lead the way toward more sustainable aviation.”

Updated 2025 objectives reflect strong execution and confidence in business fundamentals

Based on strong business execution and fundamentals, Bombardier will announce today that it is updating its 2025 objectives⁽¹⁾. The company is now targeting more than $9 billion in annual revenue by 2025, with an adjusted EBITDA⁽²⁾ of more than $1,625 million, and a healthy adjusted EBITDA margin⁽³⁾ of approximately 18%. Bombardier also expects to generate significant free cash flow⁽²⁾ in the coming years, to the tune of more than $900 million per year by 2025 and will continue to de-lever its business, now expecting to reach a net leverage ratio⁽³⁾⁽⁴⁾ in the range of 2.0x to 2.5x.

	Initial 2025 objectives(1)	Updated 2025 objectives(1)
Revenues	~$7.5 billion	˃$9 billion
Adjusted EBITDA(2)	~$1,500 million	˃$1,625 million
Adjusted EBITDA margin(3)	~20%	~18%
Free cash flow(2)	>$500 million	>$900 million
Net leverage ratio(3)(4)	~3.0x	2.0x – 2.5x

Consistent progress on all key objectives since 2020

Between 2020 and 2022, Bombardier’s revenues⁽⁵⁾ grew 23%, to $6.9 billion. The expanded aftermarket business was an important contributor, with revenues increasing by more than 50% in the same period. The company more than quadrupled its profitability to $930 million in adjusted EBITDA⁽²⁾, and generated $835 million in free cash flow⁽²⁾ over the last two years. In terms of deleveraging, Bombardier kept up its opportunistic and proactive approach and has reduced its total debt by $4.5 billion, when including this year’s debt-related transactions, a 45% reduction compared to 2020. This also resulted in credit rating upgrades from both S&P and Moody’s in 2022.

Stronger balance sheet and robust cash generation

Bombardier will continue to focus on strengthening its balance sheet, optimizing its liquidity requirements, and improving its leverage level. The company is revising its net leverage ratio⁽³⁾⁽⁴⁾ objective to a range of 2.0x – 2.5x by 2025, from the previous approximately 3.0x target, which would be approaching investment grade credit levels.

On the back of improved business fundamentals, Bombardier now expects to generate more than $900 million per year in free cash flow⁽²⁾ by 2025. As its leaders will explain during Investor Day, this gives Bombardier ample flexibility and sets it up for significant capital allocation optionality in the future.

Maintaining the leadership position in the industry

With continued strong demand in the medium and large business jet categories, Bombardier is well positioned with its industry-leading Challenger and Global platforms. Over the past two years, the company introduced the new Global 8000, an evolution of the industry flagship Global 7500 aircraft, further solidifying Bombardier’s leadership position in the large jet segment. Bombardier also upgraded its best-selling Challenger 300 family with the Challenger 3500, an addition that has maintained Bombardier as the leader of the super mid-size market. Thanks to its outstanding portfolio, Bombardier had the highest number of deliveries among business jet manufacturers for the last two years, as reported by the General Aviation Manufacturers Association (GAMA).

Bombardier maintains its strong focus on sustainability and takes concrete steps to manufacture and service aircraft with the smallest possible environmental impact on the path toward its goal of a 25% reduction in greenhouse gas emissions by 2025, relative to 2019 levels. This has been a clear priority for its research and development teams through programs like the EcoJet research project, unveiled in 2022, and was also behind the company’s decision to cover all its flight operations with sustainable aviation fuel (SAF), using the Book and Claim system, from 2023 onwards.

Bombardier Defense set to grow to a greater than $1 billion business in the second half of the decade⁽¹⁾

In 2022, Bombardier strategically reinforced its specialized aircraft business by establishing Bombardier Defense in Wichita, KS. Since then, the company has been leveraging its longstanding and well-recognized expertise in specialized aircraft, the unique advantages of its Challenger and Global platforms, as well as its technical capabilities, world-class flight test center, and engineering know-how to increasingly stand out in the Defense market.

Considering that Defense programs are long to operationalize, Bombardier has been preparing its infrastructures to enhance its participation in the segment for the long run. With the demand for right-sized, flexible aircraft solutions on the rise, the company is well positioned to compete and win this market, and anticipates tripling its revenues from defense sales and services to more than $1 billion in the second half of the decade⁽¹⁾.

Aftermarket and Certified Pre-owned businesses continue to drive growth and diversification

Bombardier has invested significantly into its aftermarket business since 2020, and it has played an important role in the diversification of its revenues. The company’s service footprint has grown by close to one million square feet of new capacity worldwide, and its Aftermarket team has added more than 250 skilled technicians to its ranks. The strategy is working: Bombardier has increased aftermarket revenues more than 50% since 2020, and is on track to meet its goal of $2 billion by 2025, with clear opportunity for growth beyond that point⁽¹⁾. Bombardier’s Certified Pre-owned program, launched in 2021, has proven to be a successful addition to the company’s aftermarket offering, and will continue to play an important role in revenue growth and further diversification.

Webcast details

Bombardier’s 2023 virtual Investor Day will begin at 9 a.m. (ET) on March 23, 2023. After the presentation, the leadership team will be available to answer questions from analysts and institutional investors. The link to the webcast, as well as the Investor Day presentations, are available here.

About Bombardier

Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise.

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on Twitter @Bombardier.

Bombardier, Learjet, Challenger, Challenger 300, Challenger 3500, Global, Global 7500, and Global 8000 are registered trademarks of Bombardier Inc. or its subsidiaries.

Bombardier takes top spot for business jet production globally

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Bombardier Confirms Outstanding Overperformance for 2022 and Guides for Continued Growth in 2023

• 2023 targets reflect third consecutive year of steady growth, with anticipated >138 aircraft deliveries, >$7.6 billion in revenues, >$1,125 million in adjusted EBITDA, >$695 million in adjusted EBIT, and generating >$250 million in free cash flow.​
• 2022 reported revenues for the year of $6.9 billion, up 14% year-over-year, driven by higher deliveries, a favorable aircraft mix and aftermarket reaching a new full-year peak of $1.5 billion in revenues, up 22% year-over-year.​
• 2022 adjusted EBITDA rose 45% from last year to $930 million, driven by increased Global 7500 contribution, cost structure improvements, higher aftermarket contribution and a better aircraft mix. Full year reported EBIT is at $538 million.​ Solid overall performance and fundamentals yield a positive adjusted EPS of $0.74 and diluted EPS from continuing operations of $(1.67).
• Strong free cash flow generation of $735 million from continuing operations for 2022, representing an improvement of $635 million year-over-year, driven by earnings growth and strong order intake. Cash flows from operating activities for the full year were $1.1 billion and net additions to PP&E and intangible assets for the full year were $337 million. Adjusted available liquidity stands strong at $1.9 billion; cash and cash equivalents were $1.3 billion as of December 31, 2022.​
• Backlog reached $14.8 billion at year end, representing a $2.6 billion increase
  year-over-year and a reflection of continued strong order intake and a steady demand profile. Full year unit book-to-bill reached 1.4.
• The company will provide a strategic progress update during its virtual Investor Day on March 23, 2023.

All amounts in this press release are in U.S. dollars, unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.

MONTRÉAL, Feb. 09, 2023 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) unveiled today its fourth quarter and full-year 2022 financial results, confirming an outstanding financial performance that exceeded guidance. The company also presented its 2023 guidance and announced that it will provide a further update on the execution toward its 2025 strategic objectives at a virtual Investor Day on March 23, 2023.

“The 2022 results we are presenting today are a resoundingly positive culmination of a strong year, and a testament to the team’s effort to execute in the fourth quarter. We exceeded commitments across the board, be it on deliveries, our growing aftermarket business and profitability,” said Éric Martel, Bombardier’s President and Chief Executive Officer. “We are also proud of the fantastic job our team did on deleveraging, with $1.1 billion dollars of debt retired in 2022 thanks to cash from our balance sheet and operations. This puts us ahead of our plan and gives us the flexibility to be even more proactive and opportunistic going forward.”

2022 Results Beat Guidance on Key Metrics

Bombardier exceeded its year-end targets on all guided metrics, beating the numbers presented in August 2022 when the company updated its 2022 guidance. The company reported $6.9 billion in revenues, an increase of 14% year-over-year. The increase comes on the back of higher deliveries and a favourable aircraft mix, but also a significant contribution from aftermarket services, which grew 22% year-over-year to reach $1.5 billion in 2022.

In terms of profitability, the company reported an adjusted EBITDA of $930 million, a 45% increase year-over-year and well over the guidance of greater than $825 million. The growing contribution of the Global 7500, cost structure improvements, higher aftermarket contribution and a better aircraft mix were among the key factors in this substantial increase. The company also beat guidance on the full-year reported EBIT, which was at $538 million.

The earnings growth, along with the strong order intake, drew an impressive performance on free cash flow generation of $735 million from continuing operations for 2022, which exceeded the updated 2022 guidance and represents a significant improvement of $635 million year-over-year.

The company made the most of the strong demand and competitive product portfolio, and avoided pitfalls related to the pressures on the supply chain to deliver 123 aircraft, 49 of which were delivered in the fourth quarter of 2022. The healthy backlog, which increased $2.6 billion year-over-year to reach $14.8 billion, and a 1.4 full-year unit book-to-bill, reflect continued favourable medium- and long-term industry fundamentals and confirm that Bombardier has the right product mix to continue being the leading force in its categories.

The strong performance allowed the company to overperform on another key strategic objective: debt reduction. Over the course of 2022, Bombardier repaid $1.1 billion of debt with cash from balance sheet and operations. The drop in interest costs coming from debt reduction, along with rapid growth in profitability and the recognition of significant tax attributes on balance sheet also led to positive EPS.

2023 Outlook

Bombardier also unveiled today its outlook on guided metrics for 2023. Revenues are expected to be greater than $7.6 billion, driven mainly by increase in deliveries, which are expected to be greater than 138 units. The continued and steady growth of aftermarket services, which the company continued to ramp up in 2022 through a significant expansion of the service centre network and recruitment of skilled technicians, is also to be an important driver in 2023.

The company expects to continue outpacing revenue growth as it expands its margins. An increase in adjusted EBITDA to greater than $1,125 million is expected, representing a 21% increase versus 2022, driven by margin conversion of the incremental revenues, positive tailwinds from the Global 7500 pricing and the near completion of the company’s cost reduction plan. Adjusted EBIT is expected to grow to greater than $695 million, an increase of 36% year-over-year.

Bombardier also expects continued positive free cash flow generation, which is expected to be greater than $250 million​ in 2023, including one-time payments related to residual value guarantees estimated at approximately $125 million, and net additions to PP&E and intangible assets around $350 million.

2023 Guidance

	2022 Full-Year Results	2023 Guidance
Aircraft deliveries (in units)	123	>138
Revenues	$6.9B	> $7.6B
Adjusted EBITDA(2)	$930M	> $1,125M
Adjusted EBIT(2)	$512M	> $695M
Free cash flow(2)	$735M	> $250M

About Bombardier

Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise. 

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on Twitter @Bombardier.  

Bombardier, Global, Global 7500, Challenger, Learjet and Smart Services are registered or unregistered trademarks of Bombardier Inc. or its subsidiaries.

Bombardier CEO Éric Martel Evolves Leadership Team Structure as Part of Forward-Looking Growth Strategy, Building on Company Momentum

• Jean-Christophe Gallagher appointed Executive Vice President, Aircraft Sales and Bombardier Defense
• Paul Sislian appointed Executive Vice President of Bombardier Aftermarket Services & Strategy
• David Murray appointed Executive Vice President, Manufacturing, IT and Bombardier Operational Excellence System
• Eric Filion joins Bombardier to the newly created role of Executive Vice President, Programs and Supply Chain
• Michel Ouellette will lead Engineering and Product Development until planned retirement later in 2023, following a 33-year, successful career

MONTREAL, Feb. 06, 2023 (GLOBE NEWSWIRE) — Bombardier today announced a leadership team evolution that will focus on carrying forward the company’s positive momentum toward executing long-term growth and optimization strategies in the key areas of defense, services, continuous product improvement and next-generation manufacturing practices.

“Bombardier has successfully embarked on its journey as a company focused on its world-class business jet portfolio. As we continue to meet or exceed targets, it is the right time to thoughtfully reshape key leadership functions to ensure the solid foundation we have set fully carries our momentum well into the future,” said Éric Martel, President and CEO, Bombardier. “Our leadership team members are talented and have delivered on commitments time and again these past years, and this new alignment will further build upon the foundations they have successfully set for Bombardier.”

As part the leadership structure evolution, the following alignments and appointments will take effect on February 20, and all other existing Bombardier leadership team members will continue in their roles:

Jean-Christophe Gallagher is appointed Executive Vice President, Aircraft Sales & Bombardier Defense. Gallagher will lead all aspects of Bombardier’s growing defense business as its product offering and customer base expand. Gallagher will also oversee the talented Sales team led by Peter Likoray, Senior Vice President, New Aircraft Sales. Under Peter’s leadership, Bombardier has grown its backlog and built local roots across the world. Peter will continue to deepen his and his team’s passion for crafting unique experiences for Bombardier customers as they match their discerning needs to the company’s exceptional portfolio.

Paul Sislian is appointed Executive Vice President, Bombardier Aftermarket Services & Strategy. Having spent 15 years optimizing and leading Bombardier’s business jet manufacturing facilities and processes, Sislian will now carry forward and accelerate the division’s strategic growth journey that saw Bombardier inaugurate four newly built or expanded maintenance facilities around the world in 2022.

All aerostructures, assembly and completions activities will be led by David Murray, who will add these responsibilities to his current mandates and is appointed to the role of Executive Vice President, Manufacturing, IT and Bombardier Operational Excellence System (BOE). The alignment of these three functions will enable a new focus on availing teams of next-generation digital technologies to further enhance Bombardier core processes.

Éric Filion is appointed to the new role of Executive Vice President, Programs and Supply Chain. In this capacity, Filion will oversee all Bombardier supplier relationships and lead continuous, competitive improvement efforts for all in-production Bombardier aircraft. Filion previously held operations and program leadership positions at Bombardier, including oversight of the Challenger aircraft production facility. Most recently he served as Executive Vice President, Chief Operating and Customer Experience Officer for Hydro-Québec. Filion will join Bombardier on February 20, 2023.

Finally, Michel Ouellette will lead Engineering and Product Development as the group’s Executive Vice President. After a 33-year career at Bombardier that culminated in the successful certification of the Global 7500 jet and subsequent launch of the performance-leading Global 8000 flagship aircraft, Ouellette is set to retire at the end of June 2023.

“Michel’s contributions to Bombardier can certainly be enumerated at great length, and their positive and lasting impact on our people, our products and our company is simply immeasurable,” said Martel. “On behalf of everyone at Bombardier whose lives Michel has touched, I want to sincerely thank him for his leadership and passion—and wish him all the best in his next chapter. I also look forward to continuing collaborating in the months ahead, as we press forward with exciting projects.”

About Bombardier
Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise.  

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com.

Bombardier, Global, Global 7500, Global 8000 and Challenger are registered or unregistered trademarks of Bombardier Inc. or its subsidiaries.

Bombardier Announces Preliminary Full-Year 2022 Financial Results

MONTRÉAL, Jan. 17, 2023 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today unveiled preliminary 2022 financial results, highlighting areas for which it expects to exceed full-year guidance. The company will release its fourth quarter and full-year 2022 results as scheduled on February 9, 2023, and will also hold a live webcast and conference call for investors at 8:00 a.m. EST that same day. The webcast and relevant financial charts will be available at ir.bombardier.com.

Preliminary full-year 2022 results⁽¹⁾

Continuing operations only	Expected Results for 12-month period ended December 31, 2022	Updated 2022 Full-Year Guidance(2)
Aircraft deliveries (in units)	123	>120
Revenues	~ $6.9 billion	> $6.5 billion
Adjusted EBITDA(3)	~ $930 million	> $825 million
Adjusted EBIT(3)	~ $510 million	> $375 million
EBIT	~ $535 million	n/a
Free cash flow(3)	~ $735 million	> $515 million
Cash flows from operating activities	~ $1,070 million	n/a
Net additions to PP&E and intangible assets	~ $335 million	n/a

Preliminary full year results on non-guided metrics include a full-year 2022 unit book-to-bill⁽⁴⁾ of ~ 1.4, year-over-year order backlog growth to ~ $14.8 billion, and adjusted liquidity⁽³⁾ of ~ $1.7 billion. Adjusted liquidity at year-end includes cash and cash equivalents of ~ $1.3 billion plus certain restricted cash supporting various bank guarantees of ~ $0.4 billion. Adjusted liquidity excludes the secured revolver facility previously announced in November 2022, which remains undrawn.

_{(1) See the forward-looking statements disclaimer hereinafter.
(2) An update to 2022 full-year Guidance was announced in Bombardier’s second quarter 2022 financial results press release dated August 4, 2022.
(3) 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 Caution regarding Non-GAAP financial measures section hereinafter 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.}

The selected preliminary and unaudited full-year 2022 financial results included in this press release are an estimate and are based on information available as of January 16, 2023, and management’s initial review of operating results for the year ended December 31, 2022. These preliminary results are subject to further changes upon completion of Bombardier’s standard year-end closing procedures. The preliminary information herein is subject to revision as the company prepares its annual financial statements, and as Bombardier’s independent auditors conduct their year-end audit thereof. This update should not be viewed as a substitute for Bombardier’s full audited annual results and does not present all necessary information for an understanding of Bombardier’s financial condition as of the date of this release, or its results of operations for the year ended December 31, 2022. As Bombardier completes its year-end financial close process and finalizes its financial statements for the year ended December 31, 2022, it is possible that Bombardier may identify items that require it to make adjustments to the preliminary financial results set forth herein above and those changes could be material. The preliminary expected financial information set forth herein above constitutes forward-looking statements, upon which you should not place undue reliance because they may prove to be materially inaccurate. Bombardier does not intend to update such financial information prior to release of its final fourth quarter and full-year 2022 results scheduled for February 9, 2023.

About Bombardier

Bombardier (BBD-B.TO) 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 government and military special-mission roles leveraging Bombardier Defense’s proven expertise.  

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on Twitter @Bombardier.   

Bombardier, Learjet, Challenger and Global are registered or unregistered trademarks of Bombardier Inc. or its subsidiaries.

Statement from Éric Martel, President and Chief Executive Officer, Bombardier

MONTRÉAL, Dec. 21, 2022 (GLOBE NEWSWIRE) — Today’s geopolitical landscape is complex, and countries around the world are developing technologies to defend their borders and sovereignty in the face of emerging threats. In Canada, we can be proud that our aerospace clusters and industries have developed products and tools that not only compete on the world defense stage, they shine thanks to our talented workforce. A key example, one I would hope all Canadians know about, are the made-in-Canada Global series aircraft currently flying government missions on behalf of allied nations.

This year alone, Bombardier has sold and delivered Global series aircraft to multiple governments, armed forces and special mission integrators for a variety of surveillance and other missions. Over the last decade, Global series aircraft have been evaluated and chosen in the U.S., U.K. Germany, Sweden, and many more countries—having established an excellent track record.

As President and CEO of Bombardier, I want to publicly share my concern that Canada, which is facing an important choice about the airborne surveillance of its vast borders, may be considering awarding a sole-source contract directly to Boeing.

With special mission equipment getting smaller and smaller as technology progresses, we at Bombardier firmly believe that the Global 6500 aircraft will be the right-sized solution and will respond to Canada’s needs, thanks to its:

• Longer range offering, endurance and proven reliability.
• Next-generation engines and a leading aerodynamic profile that contributes to excellent operating costs and, more importantly, a lower carbon footprint.

A Canadian Multi-Mission Aircraft (CMMA) tender, open to diverse proposals, would be an opportunity for Canada to re-think its surveillance capabilities. A Canadian-built option should, and must, be considered on equal footing with those of foreign companies who have, in the past, directly, attacked our home-grown aircraft programs.

Canada has the skills, the industrial footprint and the technological capabilities to succeed in this sphere and become more than an exporter of technology. This is the ultimate opportunity for Canadians to look to the skies and proudly trust a Canadian-built aircraft to defend our borders and support our allies.

On behalf of its more than 10,000 talented employees in Ontario and Quebec, Bombardier and its growing Defense team, along with its skilled partners, would be proud to put forward a made-in-Canada solution to compete in a Canadian Multi-Mission Aircraft (CMMA) tender, should Canada give us the opportunity to do so. 

About Bombardier

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. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com.