Bombardier reported today its financial results for the first quarter of 2024, marked by a robust increase in service revenues and order activity.
The company sold 60% more jets in the first quarter of 2024 compared to 2023, bringing backlog up to $14.9 billion. Bombardier’s production plan remains on track to meet full-year 2024 delivery guidance.
“Our team came flying out of the gates in 2024 on soaring aircraft orders and service revenues. The unit book-to-bill of 1.6 and $700 million backlog increase are even more meaningful when you take stock of solid activity across traditional customers, fleets and new opportunities materializing for Bombardier Defense,” said Éric Martel, President and Chief Executive Officer, Bombardier.
“Building our backlog, growing recurring income streams, and retiring debt have all been staples of Bombardier’s solid performance and our first quarter of 2024 delivered on all three very positively. This level of focused execution continues to provide solid ground for our team and balance sheet to stand on.”
Martel added, “I also want to commend the teams working hard to keep our delivery plan and profile on track toward our full-year guidance. We continue to be flexible and proactive, all while keeping an eye on the bottom line and our commitments. On that front, achieving a 16% adjusted EBITDA margin for the quarter in this landscape is nothing short of exceptional and speaks to the tremendous collective effort to stay focused on our fundamentals and work to our plan.”
Bombardier reported first quarter of 2024 revenues at $1.3 billion, down year-over-year compared to the same quarter last year due to the delivery profile. The company recorded 20 aircraft deliveries and remains on track to reach its planned guidance for 2024.
The Services business continued its upward trend by reaching revenues of $477 million, a 13% increase year-over-year. The company continued on its path to drive sustainable and profitable growth and closed the first quarter of 2024 with an adjusted EBITDA of $205 million. This resulted in an adjusted EBITDA margin of 16%, up 140 basis points year-over-year, driven by strong conversion on incremental revenues and continued margin expansion on aircraft.
The adjusted EBIT totaled $142 million in the first three months of the year, up 3% from the same quarter last year. The adjusted EBIT margin rose by 160 basis points year-over-year, landing at 11.1%. Adjusted EPS for the first quarter of 2024 was firmly positive at $0.36.
Orders remained strong across Bombardier’s portfolio of aircraft, recording a 60% increase compared to the same quarter last year. This sustained demand for Bombardier aircraft led to a vigorous unit book-to-bill of 1.6. The backlog also remained healthy and increased by $700 million to $14.9 billion, continuing to provide significant operational predictability.
Bombardier continued to make progress on debt reduction with a $100 million debt redemption announced on March 14th and closed on April 15th, 2024, using cash from its balance sheet and helping the company remain ahead of plan on deleveraging.
Earlier this month, Bombardier announced the successful closing of a new issuance of $750 million aggregate principal of Senior Notes due 2031, with a rate of 7.25% per annum and were sold at 99.75% of par, the proceeds of which, together with cash on hand, will be used to repay existing outstanding debt.
Bombardier continues to proactively improve its balance sheet, providing a strong foundation for future growth. Bombardier will provide more information on its strategic pillars and path to future growth during its Investor Day event, to be held on May 1st, 2024, at its new Aircraft Assembly Centre in Toronto.
The new ultra-modern facility, which will be inaugurated later that day, demonstrates the company’s commitment to continuously raising the bar through innovation and sustainability. The layout of the new facility is designed to improve processes and will allow for better and safer movement of material, personnel, and aircraft.
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