Bombardier Inc. has disclosed robust fourth-quarter and full-year financial results for 2023, which exceeded the company’s guidance for the year.
Data shows that the manufacturer 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.
Let’s delve into the key highlights of the company’s performance and what lies ahead in 2024.
Bombardier 2023 in Review
“Our Global aircraft broke many speed records in 2023, but those were not the only records we set last year. Our stellar top- and bottom-line performance included the lowest leverage ratio in years,” said Éric Martel, president and chief executive officer, Bombardier.
“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.”
Record Revenue Growth
In 2023, Bombardier reported total revenues of $8 billion, marking a remarkable 16 per cent increase compared to the previous year.
This surge in revenue signifies the highest level since the company’s strategic refocus in 2021. A notable contributor to this achievement was the aftermarket revenue, which soared to an all-time high of $1.75 billion.
Record Earnings and Cash Generation
The company also witnessed a significant uptick in earnings, with adjusted EBITDA soaring 32 per cent to $1.23 billion.
This growth was attributed to increased deliveries, a stronger contribution from the Global 7500, and a robust performance in the aftermarket segment.
Furthermore, Bombardier reported a $257 million free cash flow generation from continuing operations, surpassing its 2023 guidance.
Bombardier remained committed to debt reduction in 2023, paying down $0.4 billion throughout the year.
This concerted effort led to a 28 per cent improvement in the adjusted net debt to adjusted EBITDA ratio compared to 2022, resulting in the lowest ratio in years.
Despite challenges, the company managed its production efficiently, achieving a solid full-year book-to-bill ratio of 1 and delivering 138 aircraft.
Looking Ahead: 2024 Outlook
Projected Deliveries and Revenue
In line with its upward trajectory, Bombardier aims to deliver 150 to 155 aircraft in 2024.
This increase, coupled with enhanced pricing strategies and the expansion of the aftermarket business, is expected to drive revenues to $8.4 billion to $8.6 billion for the year.
The company anticipates further improving profitability in 2024, with adjusted EBITDA projected to reach $1.30 billion to $1.35 billion, and adjusted EBIT estimated to be between $850 million and $900 million.
Free Cash Flow Generation
Bombardier remains focused on generating free cash flow, with expectations ranging from $100 million to $400 million.
This includes the necessary working capital to support increased deliveries and investments in growth opportunities. Additionally, net additions to PP&E and intangible assets are forecasted to be below $300 million.
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