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Bombardier Inc. presented strong 2023 fourth quarter and full-year financial results which met or exceeded the company’s 2023 guidance.
Bombardier also unveiled its guidance for 2024, which reflects the company’s steady progress towards its long-term objectives.
“Our Globalaircraft broke many speed records in 2023, but those were not the only records we set last year. Our team came together to deliver the highest revenues and earnings, record aftermarket revenue, and the highest deliveries since we refocused our business in 2021. Our stellar top- and bottom-line performance included the lowest leverage ratio in years,” said Éric Martel, president and chief executive officer, Bombardier.
“I could not be prouder of our passionate and engaged teams around the world. All of us united to go above and beyond to make sure we kept – and often exceeded – our promises. Today, we are marching ahead with confidence: our 2024 guidance reflects the path of continuous growth we have been on for the past three years, and our steadfast commitment to achieving our long-term objectives.”
Record revenue growth
Bombardier reported total revenues of $8 billion for 2023, a 16 per cent increase compared to 2022 and the highest since the company refocused its business in 2021. A key element was the aftermarket revenue, which reached an all-time high of $1.75 billion.
After the significant 2022 expansion of Bombardier’s worldwide service network, 2023 was marked by the new or newly expanded service facilities coming online, fueling the company’s vibrant aftermarket business, which has now firmly established itself as a predictable and consistent source of revenue.
Record earnings, meaningful cash generation
Bombardier also reported a significant jump in earnings in 2023: adjusted EBITDA rose 32 per cent from last year to $1.23 billion, driven by increased deliveries, greater Global 7500contribution, and a higher aftermarket contribution. Full-year reported EBIT reached $793 million, while adjusted EBIT was $799 million.
Thanks in particular to Bombardier’s impressive performance in the fourth quarter, especially in terms of earnings growth and strong order intake, full-year free cash flowgeneration from continuing operations reached $257 million, beating the company’s 2023 guidance.
Cash flows from operating activities and net additions to PP&E and intangible assets for the full year were also significant at $623 million and $366 million respectively.
Bombardier continued to prioritize debt reduction in 2023, paying down $0.4 billion during the year, improving adjusted net debt to adjusted EBITDA ratio by 28 per cent when compared to 2022, and resulting in a 3.3 adjusted net debt to adjusted EBITDA ratio(2), the lowest in years.
Continued strong activity
Bombardier continued to manage its production in a disciplined and proactive manner and made the most of steady and strong demand. The company reported a solid full-year book-to-bill of 1, while the multi-year backlog stood strong at $14.2 billion. Bombardier also reached its target of 138 aircraft delivered in 2023, with a particularly active fourth quarter.
Bombardier also announced today its goals for 2024 with new guidance that projects a continuation of the company’s momentum towards its long-term objectives.
Bombardier anticipates delivering 150 to 155 aircraft. This increase in deliveries, along with better pricing and the expansion of the aftermarket business, will contribute to anticipated revenue increase that is set to reach between $8.4 billion and $8.6 billion in 2024.
The company also aims to improve profitability further, with adjusted EBITDA reaching between $1.30 billion and $1.35 billion, and adjusted EBITincreasing to between $850 million and $900 million.
On the free cash flow generation front, the company expects to generate between $100 million and $400 million, accounting for the working capital required to support the growth of deliveries and investments supporting previously announced growth opportunities. Net additions to PP&E and intangible assets are expected to go below $300 million.
This press release was prepared and distributed by Bombardier.