Bombardier’s Strong Q2 2023 Performance: Deliveries and Revenues Surge
Canadian business jet manufacturer, Bombardier, recently unveiled its impressive performance for the second quarter of 2023. On August 3, 2023, the company reported delivering 29 private jets between April and June, surpassing last year’s figure by one aircraft.
The company expressed confidence in achieving its overall 2023 guidance, as it continues to show promising growth. One of the highlights of its success was the aftermarket arm of the business, which saw a remarkable 19% increase in revenue, reaching $428 million compared to the same quarter in 2022.
In terms of overall revenues, Bombardier reported a significant 8% year-over-year rise, totaling $1.7 billion in the second quarter of 2023. This success is attributed to rising margins across all platforms, as well as steady growth in the aftermarket business and disciplined operations.
Éric Martel, president and CEO of Bombardier, acknowledged the company’s outstanding performance, attributing it to the team’s efforts in navigating a dynamic business environment with sustained demand for new and pre-owned jets, and steady service growth despite ongoing supply chain pressures.
The company also reported a positive adjusted net income of $80 million in the second quarter of 2023, in contrast to a loss of $38 million in the same quarter last year. Total adjusted EBITDA for the quarter reached $275 million, indicating a significant 350 basis point margin expansion over the same period last year, with an adjusted EBIT of $190 million, marking an impressive 84% increase compared to 2022.
Part of the second-quarter cash flow, totaling $222 million, was allocated to support the completion of the new Global Aircraft Manufacturing Centre at Toronto Pearson Airport (YYZ), scheduled to open this year, and to build working capital to accommodate higher deliveries in the second half of the year.
With these outstanding financial results, Bombardier is clearly on a positive trajectory, achieving remarkable growth in profitability. The company’s commitment to excellence and the exceptional growth in aftermarket revenue of 19% year-over-year further bolster its position in the market.