• 2023 revenues of $8 billion, up 16% year-over-year, driven by higher deliveries and record-setting business jet aftermarket revenues of $1.75 billion, up 16% year-over-year. ​
  

• 2023 adjusted EBITDA⁽¹⁾ reflects significant 32% year-over-year jump to $1.23 billion. Full year reported EBIT reached $793 million.
  

• Adjusted EPS⁽²⁾ up 412% year-over-year from $0.77 to $3.94. Diluted EPS from continuing operations reached $4.70. Net income from continuing operations and adjusted net income⁽¹⁾ were $490 million and $416 million respectively.
  

• Free cash flow⁽¹⁾ generation from continuing operations met 2023 guidance at $257 million, while cash flows from operating activities and net additions to PP&E and intangible assets were at $623 million and $366 million respectively.​
  

• Full-year unit book-to-bill⁽³⁾ of 1 follows year-over-year delivery growth curve, reflects strong demand. Backlog⁽⁴⁾ stood healthy at $14.2 billion. ​
  

• Rapid and meaningful improvement in adjusted net debt to adjusted EBITDA ratio⁽²⁾, seeing 28% year-over-year reduction, from 4.6x to 3.3x. Available liquidity⁽¹⁾ remained strong at $1.8 billion; cash and cash equivalents were $1.6 billion as at December 31, 2023. ​
  

• After meeting or exceeding its 2023 guidance, the company is again guiding for growth in 2024⁽⁵⁾.
  

_{All amounts in this press release are in U.S. dollars, unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.}

MONTRÉAL, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (TSX: BBD.B) today presented strong 2023 fourth quarter and full-year financial results which met or exceeded the company’s 2023 guidance. Bombardier also unveiled its guidance for 2024, which reflects the company’s steady progress towards its long-term objectives.

“Our Global aircraft broke many speed records in 2023, but those were not the only records we set last year. Our team came together to deliver the highest revenues and earnings, record aftermarket revenue, and the highest deliveries since we refocused our business in 2021. Our stellar top- and bottom-line performance included the lowest leverage ratio in years,” said Éric Martel, President and Chief Executive Officer, Bombardier. “I could not be prouder of our passionate and engaged teams around the world. All of us united to go above and beyond to make sure we kept – and often exceeded – our promises. Today, we are marching ahead with confidence: our 2024 guidance reflects the path of continuous growth we have been on for the past three years, and our steadfast commitment to achieving our long-term objectives.”

Record revenue growth marked by outstanding aftermarket performance

Bombardier reported total revenues of $8 billion for 2023, a 16% increase compared to 2022 and the highest since the company refocused its business in 2021. A key element was the aftermarket revenue, which reached an all-time high of $1.75 billion. After the significant 2022 expansion of Bombardier’s worldwide service network, 2023 was marked by the new or newly expanded service facilities coming online, fueling the company’s vibrant aftermarket business, which has now firmly established itself as a predictable and consistent source of revenue.

Record earnings, meaningful cash generation and continued deleveraging

Bombardier also reported a significant jump in earnings in 2023: adjusted EBITDA⁽¹⁾ rose 32% from last year to $1.23 billion, driven by increased deliveries, greater Global 7500 contribution, and a higher aftermarket contribution. Full-year reported EBIT reached $793 million, while adjusted EBIT⁽¹⁾ was $799 million.

Thanks in particular to Bombardier’s impressive performance in the fourth quarter, especially in terms of earnings growth and strong order intake, full-year free cash flow⁽¹⁾ generation from continuing operations reached $257 million, beating the company’s 2023 guidance. Cash flows from operating activities and net additions to PP&E and intangible assets for the full year were also significant at $623 million and $366 million respectively.

Bombardier continued to prioritize debt reduction in 2023, paying down $0.4 billion during the year, improving adjusted net debt to adjusted EBITDA ratio⁽²⁾ by 28% when compared to 2022, and resulting in a 3.3 adjusted net debt to adjusted EBITDA ratio⁽²⁾, the lowest in years.

Continued strong activity on orders, deliveries and healthy backlog

Bombardier continued to manage its production in a disciplined and proactive manner and made the most of steady and strong demand. The company reported a solid full-year book-to-bill⁽³⁾ of 1, while the multi-year backlog⁽⁴⁾ stood strong at $14.2 billion. Bombardier also reached its target of 138 aircraft delivered in 2023, with a particularly active fourth quarter.

2024 Outlook⁽⁵⁾

Bombardier also announced today its goals for 2024 with new guidance that projects a continuation of the company’s momentum towards its long-term objectives.

Bombardier anticipates delivering 150 to 155 aircraft. This increase in deliveries, along with better pricing and the expansion of the aftermarket business, will contribute to anticipated revenue increase that is set to reach between $8.4 billion and $8.6 billion in 2024. The company also aims to improve profitability further, with adjusted EBITDA⁽¹⁾ reaching between $1.30 billion and $1.35 billion, and adjusted EBIT⁽¹⁾ increasing to between $850 million and $900 million. On the free cash flow⁽¹⁾ generation front, the company expects to generate between $100 million and $400 million, accounting for the working capital required to support the growth of deliveries and investments supporting previously announced growth opportunities. Net additions to PP&E and intangible assets are expected to go below $300 million.

About Bombardier

Bombardier (BBD-B.TO) is a global leader in aviation, focused on designing, manufacturing, and servicing the world's most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance, and reliability. Bombardier has a worldwide fleet of more than 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in government and military special-mission roles leveraging Bombardier Defense’s proven expertise.

Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China and Australia.

For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on X (Twitter) @Bombardier.

_{Bombardier, Global, Global 7500, Challenger and Learjet are registered trademarks of Bombardier Inc. or its subsidiaries.}

For information

The Management’s Discussion and Analysis and the Consolidated Financial Statements are available at ir.bombardier.com.

CAUTION REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES

This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP and other financial measures:

Non-GAAP and other financial measures are measures mainly derived from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare our financial statements. Therefore, these might not be comparable to similar non-GAAP and other financial measures used by other issuers. The exclusion of certain items from non-GAAP or other financial measures does not imply that these items are necessarily non-recurring.

Adjusted EBIT
Adjusted EBIT is defined as the EBIT excluding certain items which do not reflect the Corporations core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include restructuring charges⁽¹⁾⁽²⁾, (gain) loss related to disposal of business⁽¹⁾⁽³⁾, impairment and program termination⁽¹⁾⁽⁴⁾, certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases⁽¹⁾, and non-commercial legal claims⁽¹⁾. Management uses adjusted EBIT for purposes of evaluating underlying business performance. Management believes presentation of this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.

Adjusted EBITDA
Adjusted EBITDA is defined as the EBIT excluding restructuring charges⁽¹⁾⁽²⁾, (gain) loss related to disposal of business⁽¹⁾⁽³⁾, impairment and program termination⁽¹⁾⁽⁴⁾, certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases⁽¹⁾, and non-commercial legal claims⁽¹⁾, amortization charges on PP&E and intangible assets. Management uses adjusted EBITDA for purposes of evaluating underlying business performance. Management believes this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business, since it excludes the effects of items that are usually associated with investing or financing activities and items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.

Adjusted net income (loss)
Adjusted net income (loss) is defined as the net income (loss) from continuing operations adjusted for certain specific items that are significant but are not, based on management’s judgment, reflective of the Corporation’s underlying operations. These include adjustments related to restructuring charges⁽¹⁾⁽²⁾, (gain) loss related to disposal of business⁽¹⁾⁽³⁾, impairment and program termination⁽¹⁾⁽⁴⁾, certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases⁽¹⁾, non-commercial legal claims⁽¹⁾, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items. Management uses adjusted net income (loss) for purposes of evaluating underlying business performance. Management believes this non-GAAP earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted net income (loss) excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.

Free cash flow (usage)
Free cash flow (usage) is defined as cash flows from operating activities - continued operations less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow (usage) as a measure to assess both business performance and overall liquidity generation.

Available liquidity
This measure was previously referred to as available short-term capital resources from continuing operations. Available liquidity is defined as cash and cash equivalents plus undrawn amounts under credit facilities. Management believes that this non-GAAP financial measure provides investors with an important perspective on the Corporation’s ability to meet expected liquidity requirements, including the support of product development initiatives and to ensure financial flexibility. This measure does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.

Adjusted EPS
Adjusted EPS is defined as the adjusted net income (loss) attributable to equity shareholders of Bombardier Inc.,divided by the weighted-average diluted number of common shares for the period. Management uses adjusted EPS for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EPS excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.

Adjusted EBIT margin
Adjusted EBIT margin is defined as the adjusted EBIT expressed as a percentage of total revenues. Management uses adjusted EBIT margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBIT margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.

Adjusted EBITDA margin
Adjusted EBITDA margin is defined as the adjusted EBITDA expressed as a percentage of total revenues. Management uses adjusted EBITDA margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBITDA margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.

Adjusted net debt to adjusted EBITDA ratio
Management uses adjusted net debt to adjusted EBITDA ratio as a useful credit measure for purposes of measuring the Corporation’s ability to service its debt and other long-term obligations. This non-GAAP financial ratio does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.