Bombardier Achieves Robust Results with Continued Growth
Bombardier's Record-Breaking Financial Performance
Bombardier saw continued strength in its financial results, reporting solid revenues of $8.7 billion for the fiscal year. A remarkable 8% growth year-over-year is attributed to the successful delivery of 146 aircraft as well as a record $2.04 billion in services revenue.
Service Revenue Driving Growth
The surge in service performance has played a crucial role in Bombardier's growth, with the Services division achieving a revenue milestone a year ahead of its target. This impressive increase of 16% from the previous year showcases the company's dedication to enhancing customer experience and expanding its service offerings.
Production and Delivery Achievements
In 2024, Bombardier executed a disciplined production strategy with total aircraft deliveries increasing from 138 to 146 units. This disciplined approach helped solidify a backlog of $14.4 billion, representing a $200 million improvement over the previous year. Furthermore, the company achieved a unit book-to-bill of 1.0, highlighting a stable and robust demand for its aircraft.
Improving Profitability and Cash Flow
Adjusted net income rose significantly to $547 million, marking a 31% year-over-year increase in adjusted earnings per share, reaching $5.16. With an adjusted EBITDA of $1.36 billion and an EBITDA margin of 15.7%, Bombardier maintained a profitable growth trajectory despite supply chain costs. Free cash flow generation is reported at $232 million, aligning with the company's goals for sustainable cash generation.
Strengthening the Balance Sheet
Continuing efforts towards de-leveraging, Bombardier has reduced its net debt by approximately $400 million, bringing the adjusted net debt to adjusted EBITDA ratio down from 3.3x to 2.9x. Additionally, available liquidity stands at $2.1 billion, ensuring the company is well-positioned to handle future challenges and capitalize on growth opportunities.
Outlook Amidst Market Changes
In light of potential new tariffs and rapidly changing market conditions, Bombardier has decided to pause its guidance for fiscal year projections for 2025. However, the company’s strategic orientation focusing on growth in its Services and Defense businesses remains intact, demonstrating resilience in the face of uncertainty.
Innovations and Future Aspirations
As Bombardier continues to innovate in the aviation sector, the focus on sustainability has become paramount. The introduction of Sustainable Aviation Fuel (SAF) reflects the company's commitment to minimizing environmental impact while enhancing operational efficiency.
Company Overview
Bombardier (TSX: BBD.B) is a global leader in business aviation, dedicated to designing and manufacturing high-performance aircraft tailored to meet the needs of its distinguished clientele. With over 5,100 aircraft under its support, Bombardier is focusing on enhancing its service network with ten maintenance facilities positioned strategically across six countries.
Frequently Asked Questions
What were Bombardier's total revenues in 2024?
Bombardier reported total revenues of $8.7 billion in 2024, reflecting an 8% increase over the previous year.
How did the services sector perform in 2024?
The services sector achieved a record revenue of $2.04 billion, exceeding previous performance milestones and contributing significantly to overall revenue growth.
What is Bombardier's adjusted EBITDA for the year?
Bombardier reported an adjusted EBITDA of $1.36 billion, indicating an 11% year-over-year increase and an EBITDA margin of 15.7%.
How many aircraft did Bombardier deliver in 2024?
In 2024, Bombardier delivered a total of 146 aircraft, up from 138 in 2023, thanks to disciplined production strategies.
What steps is Bombardier taking to improve its balance sheet?
Bombardier has successfully reduced its net debt by approximately $400 million and is focused on maintaining a strong liquidity position of $2.1 billion.
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