Canadian aircraft manufacturer Bombardier has recorded impressive financial performance figures as profitability increases with year-on-year revenue growth continuing. This perhaps demonstrates that business aviation is continuing in popularity and demand.
Bombardier – 2023 In Numbers
In the second quarter of 2023, revenues rose to $1.7 billion increasing by 8% year-over-year. Bombardier witnessed 29 aircraft deliveries and a 19% year-over-year after-revenue increase to $428 million, which reflects why revenues in 2023 have risen to impressive levels.
Moreover, year-over-year profitability grew across all business units, and higher contributions from the aftermarket with adjusted EBITDA increasing by 37% to $275 million, with an adjusted EBITDA margin up to 350 basis points to 16.4%.
In the second quarter of this year, 2023 reported an EBIT of $245 million.
Bombardier’s free cash flow usage stood strongly at $222 million, including planned working capital investments to aid the company’s higher number of deliveries and the inauguration of the new Toronto Global Aircraft Manufacturing Centre, at Toronto Pearson Airport.
This means that the non-recurring cash flow items stood at $104 million. Bombardier’s available liquidity stood at $1.2 billion as of June 30, 2023, including $0.9 billion of cash and cash equivalents. Bombardier reported a cash flow usage from operating activities for the quarter at $134 million.
No surprise here as demands for private aviation increased exponentially. This year’s second quarter of 2023 they ended with a considerable backlog, at $14.9 billion.
All in all, Bombardier’s financial results in the second quarter of 2023 signaled that the company is on track toward its financial goals for 2023.
Éric Martel, President, and Chief Executive Officer, Bombardier proudly commented on Bombardier’s financial results: “Bombardier delivered a very strong second quarter.”
“Our team successfully navigated a highly dynamic business environment that saw sustained demand for new and pre-owned jets, as well as steady service growth, all while supply chain pressure persisted.”
“We continue to progress on our positive trajectory by delivering remarkable growth in profitability, propelled by a strong adjusted EBITDA increase and margin expansion, as well as a positive adjusted net income and earnings per share.”
“Thanks to our team’s tremendous work, we boosted our revenues this quarter by 8 % year-over-year, driven in part by an exceptional 19% year-over-year aftermarket revenue increase.”
Private Jet Demand is Still High
The Canadian airplane maker reported strong deliveries and healthy aftermarket sales performance. With $1.7 billion in revenues generated and an 8% year-over-year increase, businesses are looking brighter than ever.
Bombardier handed over one more aircraft than in the same quarter of last year, which is set to reach its delivery target this year, of more than 138 handovers.
Bombardier’s impressive figures reflect the entire sentiment of the corporate aviation industry. New backlog orders imply individuals are replacing their current jet or an increase in first-time buyers means the popularity of business aviation is still healthy and alive.
Aftersales market being healthy also means current owners and operators are still seeing the importance of business aviation in times of opposition towards the industry, namely in the domains of environment and times of economic inequalities.