Bombardier (BBD-B) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in 2024, with revenues rising 8% to $8.67B and surpassing service revenue and leverage targets, supported by credit rating upgrades.

• Delivered 146 aircraft in 2024, up from 138 in 2023, with no cancellations and healthy pre-owned inventory.

• Diversified revenue streams with significant growth in services and defense, reducing reliance on traditional deliveries.

• Developed contingency plans for potential U.S. tariffs, withholding 2025 guidance in some reports due to ongoing uncertainty.

• Order backlog reached $14.4B at year-end, a 1% increase from the prior year.

Financial highlights

• Total revenue reached $8.7B, up 8% year-over-year and above guidance.

• Adjusted EBITDA was $1.36B, up 11% year-over-year, with a 15.7% margin.

• Adjusted net income rose 31% to $547M; adjusted EPS also up 31% to $5.16.

• Free cash flow for 2024 was $232M, in line with guidance and slightly down from $257M in 2023.

• Q4 2024 revenues were $3.1B, with adjusted EBITDA of $513M and adjusted EPS of $3.01.

Outlook and guidance

• FY 2025 revenue guidance is $8.4B–$8.6B, with aircraft deliveries expected between 150–155 units.

• Adjusted EBITDA guidance for 2025 is $1.3B–$1.35B; adjusted EBIT guidance is $850M–$900M.

• Free cash flow for 2025 is projected between $100M and $400M.

• Some reports note no formal 2025 guidance due to tariff uncertainty, despite strong Q1 activity and robust backlog.

• Management remains confident in meeting objectives if external risks do not materialize.