Bombardier (BBD-B) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 12% year-over-year to $2.1 billion, driven by record $528 million in Services and robust aircraft sales, with 30 aircraft delivered and a book-to-bill ratio of one.

• Adjusted EBITDA reached $307 million (14.8% margin), and adjusted EBIT was $201 million (9.7% margin); net income from continuing operations was $117 million, reversing a $37 million loss last year.

• Adjusted net income was $81 million ($0.74 EPS), nearly flat year-over-year.

• Free cash flow usage was $127 million, reflecting $149 million in inventory investments and $46 million in CapEx.

• Order backlog increased to $14.7 billion, with a unit book-to-bill of 1.0 for the quarter.

Financial highlights

• Revenues for Q3 2024: $2,073 million, up from $1,856 million in Q3 2023; nine-month revenues: $5,557 million, up from $4,984 million.

• Service revenues hit a record $528 million, a 28% increase year-over-year.

• Adjusted EBITDA for Q3: $307 million (14.8% margin); adjusted EBIT: $201 million (9.7% margin); net income from continuing operations: $117 million.

• Adjusted EPS for Q3: $0.74; diluted EPS: $1.09.

• Available liquidity at quarter-end: $1.2 billion, with cash and cash equivalents at $872 million.

Outlook and guidance

• On track to meet full-year 2024 guidance across all metrics, expecting a very active Q4 for deliveries and continued strong aftermarket performance.

• Anticipates even stronger free cash flow in Q4, driven by higher deliveries and aftermarket growth.

• Production rates for Globals and Challengers expected to remain stable into 2025, with annual deliveries around 150+ units.

• Free cash flow expected to show double-digit CAGR through 2025, supported by EBITDA growth and efficient capital deployment.

• Targeting adjusted net debt to adjusted EBITDA ratio of 2x–2.5x by 2025, with adjusted EBITDA goal above $1.625 billion.