Bombardier has reported a strong third quarter with solid revenue of $1.5bn and a 20% year-over-year aftermarket increase to $372 million mostly due to increased flight hours and expansion of Bombardier’s service centres in strategic locations around the world. Bombardier also reported that the full-year aircraft deliveries were on track with over 120 aircraft.
Éric Martel, President and Chief Executive Officer of Bombardier, said: “Our performance in the third quarter of 2022 demonstrated that our fundamentals are very strong, especially when it comes to profitability, free cash flow, liquidity, as well as continued and steady debt reduction from our balance sheet. We are progressing steadily and confidently toward our long-term objectives.”
Going ahead, Bombardier reported a positive free cash flow of $52 million from continuing operations for the third quarter of 2022, while the reported cash flow from operating activities for the quarter was $122 million and net additions to PP&E and intangible assets for the quarter were $70 million. Bombardier’s Adjusted EBITDA for the third quarter rose to $210 million, a 48% year-over-year improvement while the reported EBIT from continuing operations for the third quarter was $145 million.
“Our most recent service centre inauguration in Florida strongly emphasizes the important contribution of the growing aftermarket business to our bottom line,” said Martel. “With the addition and expansions this year of our service centres and one more inauguration event to come in the United Kingdom this month, we have increased our service centre footprint by no less than 1 million square feet.”
The company’s backlog rose to $15 bn in the third quarter of 2022, an increase of $300 million since the end of the second quarter of 2022.
Bombardier also announced a new 5-year committed secured revolving credit facility of $300 million subsequent to the quarter end. “This syndicated revolver is another significant step we have made to continue strengthening our balance sheet,” said Bart Demosky, Executive Vice President and Chief Financial Officer of Bombardier. “The incremental liquidity will further enhance our financial position and increase our operating flexibility.”
“While our team has certainly been opportunistic and made the most of the market momentum this quarter, we continue to focus on things we can control, which keeps us well-equipped to face any market conditions that may be ahead of us,” said Martel.
Bombardier also continued to pay off debt with cash from its balance sheet bringing year-to-date debt repayment to $873 million. Bombardier has now reduced more than $290 million of annualized interest cost for long-term debt compared to the annualized interest cost as of December 31, 2020