Bombardier ends first quarter with revenues down 12% YoY, $14bn in order backlog

Bombardier’s first quarter earnings report has revealed its revenues were down 12% YoY to $1.3bn and its net income for the quarter was down from $302 million in 2023’s first quarter to $110 million in this year’s quarter. Its adjusted earnings per share was down 70 cents from $1.06 to 36 cents YoY. The company said its decline in revenues were largely due to “lower large aircraft deliveries partly offset by higher medium aircraft deliveries and services revenues increased by $53 million year-over-year.” Its first quarter saw 12 medium business aircraft deliveries, up from eight in 2023, and its large business aircraft deliveries down from 14 in 2023 to eight in the first quarter. Despite the YoY decline in the first quarter of 2024, the company did end the quarter with $14.9bn in order backlog, up 5% YoY. It also ended the quarter with $1.18bn in cash and cash equivalents, as well as $1.4bn in available liquidity. Bombardier has no long-term debt due until June 2026 with $633 million in outstanding debt and $497 million in repayments due, placing its liquidity in a stronger position. “We believe our liquidity of $1.4bn is sufficient to execute our plan in the short-term,” the company said. “We currently anticipate that these resources will enable the development and upgrade of products and investments in [property, plant and equipment] to enhance our competitiveness and support our growth.” Its long-term debt at the end of the quarter stood at $5.6bn, remaining flat from the same period last year. The company is aiming to progress on its debt reduction. “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,” said Bombardier CEO and president Eric Martel. “This level of focused execution continues to provide solid ground for our team and balance sheet to stand on.” It recently completed the closing of its offering of $750 million aggregate principal amount of senior notes due 2031. The notes carry a coupon of 7.25% per annum and were sold at 99.75% of par. The net proceeds from the notes to finance the partial repayment of $497 million of senior notes due 2026 and $200 million of senior notes due 2027. Additionally, the company completed a partial repayment of $100 million of senior notes due 2027 using cash from its balance sheet. The company had unveiled its new logo ahead of its first quarter results, featuring the silhouette of a Bombardier Mach breaking the sound barrier. Martel said: “Our iconic company is looking forward with confidence and an innovative spirit, two notions captured elegantly in our new logo and brand evolution.” Bombardier will hold its investor day on May 1, 2024.