The Canadian firm Bombardier has published its financial results for the first quarter of 2021 today, which show revenues from its business jets totalled $1.3 billion, an 18% year-on-year increase for the firm with total aircraft deliveries standing at 26 for the quarter.
Bombardier says its adjusted EBITDA for continuing operations in the quarter was $123 million, a 43% increase year-over-year, reflecting a favourable aircraft mix, progress on the Global 7500 aircraft learning curve, cost structure improvements and the divestitures of margin dilutive businesses. Adjusted EBIT for continuing operations was $29 million.
The business is still heavily in debt, however, following the sale of its transportation business, it has used $2.4 billion of available cash towards debt repayment, because of this it expects to reduce its annual cash interest costs by approximately $200 million versus its 2020, On February 19, 2021, Bombardier deployed $0.8 billion and completed the full repayment of its senior secured term loan with HPS Investment Partners, LLC. On April 19, 2021, Bombardier announced the expiration of its tender offer to purchase for cash certain of its outstanding Notes.
The company continues to consider various options to address other debt maturities in an opportunistic manner, with a focus on clearing a three-year runway providing the company with a path to execute its strategy.
“In our first quarter as a pure-play business aviation company, Bombardier delivered solid financial performance,” said Éric Martel, President and Chief Executive Officer, Bombardier. “This includes growth in business jet revenues, margin expansion and significantly improved cash performance.
With our solid performance in the first quarter, and our markets in recovery and key initiatives well underway, we remain confident in our ability to deliver on both our full-year financial guidance and longer-term objectives,”.
