LONDON – Bombardier, a leading Canadian aircraft manufacturer has reported good financial results for the second quarter of 2022.
Bombardier has always been a lean, thriving and efficient company with continuous aircraft orders, strong interest in their product line up, a healthy constant flow of cash, and one of the industry’s highest backlogs. The manufacturer reiterates its commitment to having brilliant customer service despite a busy quarter.
Éric Martel, President and Chief Executive Officer stated with enthusiasm, “It’s been a fantastic second quarter for us – strong demand for business jets has carried through and our team has converted opportunities to grow our backlog significantly. Our performance on free cash flow has demonstrated that we have set the right foundation to be cash positive and deliver on our commitments.”
“We have also strengthened our balance sheet to further enhance our resilience and predictability. Leading business indicators and market demand are still driving in a positive direction, giving us confidence that we can achieve our objectives.”
“Supply chain pressure is contributing to keeping our aircraft delivery ramp up at a conservative and steady pace, in line with our 2025 projections,” he concluded.
An amazing Quarter for Bombardier
The Canadian multi-national has a backlog order which increased by 37% year-on-year to $14.7 billion, which a unit book-to-bill of 1.8 for the 2nd quarter. These impressive figures show the outstanding performance that Bombardier has achieved with its marketing and sales strategy, and also its excellent products.
The company bagged $1.6 billion for the second quarter which translates to 28 aircraft deliveries to satisfied owners. This also translates to a 22% year-over-year aftermarket revenue worth $359 million.
In the previous quarter, the company experienced its continued expansion in its margin after an adjustment in EBIDTA of $201 million was made. The margin has risen over the years which represents a 41% year-over-year increase.
With a strong financial performance recorded in the first quarter of 2022, the company is also continuing to revise its 2022 free cash flow guidance to more than $515 million from $50 million due to a healthier financial performance and greater cash flow.
Bombardier has also noted that it will continue to deliver 120 jets, worth more than $6.5 billion with an already adjusted EBIT and EBITDA, with a worth of more than $375 million and greater than $825 million respectively.
Bombardier’s adjusted liquidity remains stronger than ever, with at least $1.8 billion. Within the total adjusted liquidity, the amount of cash and cash equivalents of $1.4 billion as well as $0.4 billion.
The company wiped out a total of $373 million of debt in the 2nd quarter of 2022. This has led Moody, a trusted global company in financial platform rating to upgrade the company’s credit rating.
Martel also commented on this matter: “Our ability to execute our plan was externally recognized, most notably with Moody’s upgrade to our credit rating. I am particularly proud of this achievement as it underscores that we are making the right financial decisions around order backlog, margin expansion, free cash flow generation, and debt repayment.”