“Bombardier delivered a very strong second quarter. Our team successfully navigated a highly dynamic business environment that saw sustained demand for new and pre-owned jets, as well as steady service growth, all while supply chain pressure persisted,” said รric Martel, President and Chief Executive Officer, Bombardier. “We continue to progress on our positive trajectory by delivering remarkable growth in profitability, propelled by a strong adjusted EBITDA increase and margin expansion, as well as a positive adjusted net income and earnings per share. Thanks to our team’s tremendous work, we boosted our revenues this quarter by 8 % year-over-year, driven in part by an exceptional 19% year-over-year aftermarket revenue increase."
Key highlights
Second quarter 2023 revenues rise to $1.7 billion, up 8% year-over-year, reflecting 29 deliveries and 19% year-over-year aftermarket revenue increase to $428 million.Year-over-year profitability grows on favorable margin performance across platforms, and higher contributions from aftermarket, with adjusted EBITDA increasing by 37% to $275 million; adjusted EBITDA margin up 350 basis points to 16.4%. Second quarter 2023 reported EBIT was $245 million. Positive reported net income(3) and adjusted net income reach $10 million and $80 million respectively.Free cash flow usage at $222 million includes planned working capital investments to support higher deliveries, the completion of the new Global Aircraft Manufacturing Centre at the Toronto Pearson Airport, and non-recurring cash flow items of $104 million. Available liquidity stands strong at $1.2 billion as at June 30, 2023, including $0.9 billion of cash and cash equivalents. Reported cash flow usage from operating activities for the quarter was $134 million and net additions to PP&E and intangible assets for the quarter were $88 million.Second quarter of 2023 ended with a backlog at $14.9 billion, reflecting expected demand profile at a unit book-to-bill of 1.1 times.Credit rating upgrade from S&P Global Ratings in May 2023 further underscores Bombardier's successful financial discipline, performance, and proactive debt management.
Strong deliveries and continued solid aftermarket performance drive revenue growth
Bombardier reported $1.7 billion in revenues, an 8% year-over-year increase, driven by strong deliveries and higher aftermarket revenues. With 29 deliveries, Bombardier delivered one more aircraft than the same quarter last year and has a solid line of sight to reach the overall 2023 guidance of greater than 138 deliveries. The company’s aftermarket business continued its stellar performance in the second quarter 2023, generating $428 million in revenue, an impressive 19% increase compared to the same quarter last year.
