- Second quarter 2024 aircraft deliveries reached 39 units and total revenues climbed to $2.2 billion, with Services contributing $507 million, reflecting year-over-year growth of 34%, 32% and 18%, respectively.
- Adjusted EBITDA(1) of $335 million for the second quarter was up 22% year-over-year, and adjusted EBITDA margin(2) was 15.2%. Reported EBIT for the second quarter was $191 million. Adjusted EPS(2) was positive at $1.04 for the second quarter, with diluted EPS(3) at $0.12.
- Free cash flow usage(1) of $68 million represented a $154 million improvement compared to the same quarter of 2023. Reported cash flow usage from operating activities and net additions to PP&E and intangible assets were $31 million and $37 million, respectively.
- Backlog(4) as at June 30, 2024 was $14.9 billion on unit book-to-bill(5) of 1.0, reflecting consistent demand.
- Available liquidity(1) remained strong at $1.3 billion; cash and cash equivalents were $1.0 billion as at June 30, 2024.
All amounts are in U.S. dollars, unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated.
Montreal, Canada. 25 July 2024. Bombardier Inc. (TSX: BBD.B) today reported strong financial results for the second quarter of 2024. With significant, double-digit growth year over year across key metrics including deliveries, revenues, services and profitability, the company is on pace to meet 2024 full-year guidance(6).
“The entire Bombardier team is consistently performing at an extremely high level. As the company enters the fourth year of our journey centered on business aviation, our being able to post double-digit growth year-over-year underscores our focused business model, the strength of our plan and the team’s unwavering ability to execute,” said Éric Martel, President and Chief Executive Officer, Bombardier. “We continue to demonstrate our unique expertise and ingenuity when it comes to maintaining the industry’s strongest track record for managing the supply chain. I am proud that we have, time and again, proven our agility, resilience and ability to thrive in all environments we face, which has kept us on track to meet full-year guidance(6).”
Higher Deliveries and Impressive Increase in Services Drive Revenue Growth
Revenues for the second quarter of 2024 rose to $2.2 billion, up 32% year-over-year, driven by higher aircraft deliveries and a steady increase in services revenue. Aircraft deliveries reached 39 units in the quarter, representing a 34% increase year-over-year, or ten additional aircraft when compared to the same quarter last year. With its very strong delivery performance this quarter, Bombardier has clear line of sight to reach its full-year guidance(6) of between 150 to 155 aircraft.
Martel added, “As the market for business aviation remains strong around the world, we are well positioned to meet demand with our impressive product lineup and our growing Services and Defense streams. The thoughtful diversification of our portfolio has allowed us to make an important step change in how we perform, and by maintaining a strong focus on quality throughout our production processes, we are able to cultivate new opportunities and chart a clear path forward.”
The company’s Services business continued its solid performance as it fully operationalizes its recently expanded network. Services contributed $507 million to total revenues, representing an impressive increase of 18% year-over-year. The Services business continues its remarkable growth streak and is well on its way to achieving run rates that support the company’s objective of reaching $2 billion in revenues by 2025(6).
Bombardier saw sustained demand in multiple key regions, as well as a healthy mix throughout its portfolio of aircraft both for business jet customers, as well as for defense and medevac solutions. Backlog(4) reached $14.9 billion at the end of the second quarter of 2024, fueled by a strong order intake that yielded a unit book-to-bill(5) of 1.0.
Expanded Profitability Reflects Solid Operational Execution
Bombardier continued its profitable growth trajectory in the second quarter of 2024, with an adjusted EBITDA(1) of $335 million, up 22% year-over-year, driven by a healthy delivery mix and strong Services business. The adjusted EBITDA margin(2) was 15.2% this quarter, down 120 basis points year-over-year. Adjusted EBIT(1) for the second quarter of 2024 was $216 million, a 14% increase from the same quarter last year. The adjusted EBIT margin(2) was down by 150 basis points year-over-year. Adjusted EPS(2) for the second quarter came in at $1.04, compared to $0.72 in the same quarter last year.
Free cash flow usage(1) of $68 million for the quarter was in line with expectations, an improvement of $154 million when compared with second quarter of 2023. Reported cash flow usage from operating activities and net additions to PP&E and intangible assets were at $31 million and $37 million, respectively.
(1) Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the Management Discussion & Analysis for the quarter ended June 30, 2024 (Q2-2024 MD&A) for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(2) Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the Q2-2024 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(3) Only from continuing operations.
(4) Represents order backlog for both manufacturing and services.
(5) Defined as net new aircraft orders in units over aircraft deliveries in units.
(6) Forward-looking statement. See the forward-looking statements disclaimer herein and see the forward-looking statements assumptions on which the 2024 guidance is based in the Corporation’s financial report for the fiscal year ended December 31, 2023.
SELECTED RESULTS
| Results of the quarter | |||||||||||||
| Three-month periods ended June 30 | 2024 | 2023 | Variance | ||||||||||
| Revenues | $ | 2,203 | $ | 1,675 | 32 | % | |||||||
| Adjusted EBITDA(1) | $ | 335 | $ | 275 | 22 | % | |||||||
| Adjusted EBITDA margin(2) | 15.2 | % | 16.4 | % | (120) bps | ||||||||
| Adjusted EBIT(1) | $ | 216 | $ | 190 | 14 | % | |||||||
| Adjusted EBIT margin(2) | 9.8 | % | 11.3 | % | (150) bps | ||||||||
| EBIT | $ | 191 | $ | 245 | (22) % | ||||||||
| EBIT margin(3) | 8.7 | % | 14.6 | % | (590) bps | ||||||||
| Net income (loss) from continuing operations | $ | 19 | $ | 10 | $ | 9 | |||||||
| Net income (loss) from discontinued operations(4) | $ | — | $ | (45 | ) | $ | 45 | ||||||
| Net income (loss) | $ | 19 | $ | (35 | ) | $ | 54 | ||||||
| Diluted EPS from continuing operations (in dollars) | $ | 0.12 | $ | 0.03 | $ | 0.09 | |||||||
| Diluted EPS from discontinued operations (in dollars)(4) | $ | 0.00 | $ | (0.47 | ) | $ | 0.47 | ||||||
| $ | 0.12 | $ | (0.44 | ) | $ | 0.56 | |||||||
| Adjusted net income(1) | $ | 111 | $ | 80 | $ | 31 | |||||||
| Adjusted EPS (in dollars)(2) | $ | 1.04 | $ | 0.72 | $ | 0.32 | |||||||
| Cash flows from operating activities(5) | $ | (31 | ) | $ | (134 | ) | $ | 103 | |||||
| Net additions to PP&E and intangible assets | $ | (37 | ) | $ | (88 | ) | $ | 51 | |||||
| Free cash flow (usage)(1) | $ | (68 | ) | $ | (222 | ) | $ | 154 | |||||
| As at | June 30, 2024 | December 31, 2023 | Variance | ||||||||||
| Cash and cash equivalents | $ | 1,016 | $ | 1,594 | (36) % | ||||||||
| Available liquidity(1) | $ | 1,316 | $ | 1,845 | (29) % | ||||||||
| Order backlog (in billions of dollars)(6) | $ | 14.9 | $ | 14.2 | 5 | % | |||||||
bps: basis points
(1) Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures section of this press release and the Non-GAAP and other financial measures in the Q2-2024 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(2) Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures section of this press release and the Non-GAAP and other financial measures in the Q2-2024 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(3) Supplementary financial measure. Refer to the section entitled Caution regarding Non-GAAP and other financial measures of this press release and the Non-GAAP and other financial measures in the Q2-2024 MD&A for definitions of these metrics.
(4) Discontinued operations are related to the sale of the Transportation business. The expenses recorded in discontinued operations for the three-month period ended June 30, 2023 principally relate to change in estimates of a provision for professional fees.
(5) Only from continuing operations.
(6) Represents order backlog for both manufacturing and services.
