With Glowing Hearts, We See Thee Rise
Bombardier, the Canadian company that set out to build snowmobiles in 1934 and today presides over a $25-billion Aerospace empire, has posted strong financial results for the second quarter of 2022.
Rapacious demand for Bombardier’s Global Express and Challenger series business jets in conjunction with strong aftermarket performance, robust free cash-flow generation, and one of the industry’s most extensive order backlogs buoyed the company’s profitability metrics across the proverbial board.
Bombardier president and CEO Eric Martel remarked: "It’s been a fantastic second quarter for us – strong demand for business jets has carried through and our team has converted opportunities to grow our backlog significantly. Our performance on free cash flow has demonstrated that we have set the right foundation to be cash positive and deliver on our commitments. We have also strengthened our balance sheet to further enhance our resilience and predictability."
Bombardier's order backlog rose by 37% to $14.7-billion, with a second-quarter unit book-to-bill of 1.8—indicating continued high demand and strong order intake. Revenues of $1.6-billion for the second quarter reflect 28 aircraft deliveries and a 22% year-over-year aftermarket revenue increase to $359-million.
The second quarter of 2022 also saw Bombardier continue its margin expansion and reach an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $201-million. The figure represents a 41% year-over-year increase.
Following the strong performance in the first half of 2022, Bombardier is revising its original 2022 free cash flow guidance to greater than $515-million [from greater than $50 million].
To the subject of debt-reduction, Bombardier—using cash on hand—paid its creditors $373-million in the second quarter of 2022, thereby bringing the company’s year-to-date debt repayment to $773-million.
During the EBACE unveiling of its Global 8000, Bombardier announced that it expects the new, ultra-long-range jet to enter service in 2025. Barring any eleventh-hour legerdemain on the parts of Gulfstream or Dassault, the Global 8000 looks to take up the mantel of world’s fastest, longest-range, purpose-built business aircraft.
Meanwhile, the flight-testing and certification campaigns of Bombardier’s Challenger 3500 continue apace, with the launch customer’s aircraft on track for delivery before year’s end.