Bombardier Inc. (TSX: BBD.B) will host its Investor Day on May 1st,
2024, at its new state-of-the-art Aircraft Assembly Centre at
Pearson Airport in Toronto. During the event – which will be
webcast live – Bombardier’s executive leadership will review the
company’s strong performance over the past three years and provide
an in-depth look at how the company is set to meet its 2025
commitments.
Éric Martel, President and Chief Executive Officer, and Bart
Demosky, Executive Vice President and Chief Financial Officer, will
be joined by members of Bombardier’s executive leadership team in
Toronto to outline the company’s progress on several fronts,
including the expansion of Bombardier Defense, growth in Services
and in its pre-owned participation, as well as the company’s
dedication to sustainability and operational excellence. They will
also provide an update on how the company has positioned itself for
growth through 2030 by building a resilient business, based on
predictable and diversified revenue streams and supported by
continued strategic investments.
“Since starting our turnaround plan in 2020, our teams have
delivered textbook-worthy results on all fronts, consistently
meeting or surpassing many of our objectives. Bombardier is well on
track to meet its 2025 objectives thanks to everyone’s collective
focus on executing our plan flexibly, creatively and passionately,”
said Martel. “As we now look toward the second half of what has
already been a historic decade for the company, we are focused on
creating even more value for shareholders by building on a
predictable and resilient foundation. Bombardier will have room to
grow organically, as well as to deploy capital strategically.”
On final approach to 2025 objectives after benchmark
performance
Since the end of 2020, through to the end of 2023, Bombardier
has recorded a 13% CAGR on revenues, which includes an impressive
21% CAGR for Services. Adjusted EBITDA(1) grew at a rate of 84%
over this time frame with adjusted EBIDTA margin(2) growing by a
factor of greater than 4 times to more than 15% in 2023. This
well-rounded performance has put Bombardier on a clear path to
achieve its stated 2025 objectives of more than $9 billion in
revenues and more than $1.625 billion in adjusted EBITDA(1), with
more than $900 million in free cash flow (FCF)(1) and a net
leverage(2) ratio of 2.0x to 2.5x.
“Bombardier’s ability to execute to plan has delivered
year-after-year growth to be reckoned with, no matter what line of
the financial statements you look at,” said Demosky. “Our team has
diligently focused on every aspect of our business we control to
deliver a company that is not only resilient but can avail itself
to multiple paths to continued growth, in many varying market
landscapes. We’ve effectively managed debt, enhanced our cost base,
penetrated deeper into our addressable service market, grown our
participation in defense and, most importantly, stand alone as the
only OEM to meet delivery guidance the past 3 years.”
(1) |
Non-GAAP financial measure. A non-GAAP financial measure is not a
standardized financial measure under the financial reporting
framework used to prepare our financial statements and might not be
comparable to similar financial measures used by other issuers.
Refer to the Non-GAAP and other financial measures section in the
Management Discussion & Analysis of the Corporation’s financial
report for the year ended December 31, 2023 ("MD&A") for
definitions of these metrics and reconciliations to the most
comparable IFRS measures. |
(2) |
Non-GAAP financial ratio. A
non-GAAP financial ratio is not a standardized financial measure
under the financial reporting framework used to prepare our
financial statements and might not be comparable to similar
financial measures used by other issuers. Refer to the Non-GAAP and
other financial measures section in the Management Discussion &
Analysis of the Corporation’s financial report for the year ended
December 31, 2023 ("MD&A") for definitions of these metrics and
reconciliations to the most comparable IFRS measures. |
Diversified revenue streams continue upward momentum
with potential to reach 50% of total revenues by 2030
Bombardier’s revenues from its Services business stream have
increased by approximately 77% since 2020, achieved through the
expansion of the company’s service centre network and enhanced
customer support offerings. This significant growth has been
supported by the purposeful and methodical development of the
company’s service structure—namely through workforce development,
tooling and technology—all to efficiently operationalize the
network. The company also continues to elevate its offerings by
strategically developing key cloud and big data-based services
programs, such as Smart Link Plus, to create new revenue paths that
are built around enhancing Bombardier’s product experience. With
these strong foundations in place, and a rapidly growing fleet of
aircraft in service, the company is approximately one year ahead of
its plan to meet the objective to grow its services revenue to $2
billion by 2025, and sees further growth potential, in the mid to
high single digits annually through 2030.
Bombardier also remains focused on growing its activities on the
pre-owned market, which continues to represent a steady revenue
stream. The company sees the potential to reach $500 million to $1
billion in revenues by 2030. To elevate its offer, Bombardier
launched the Certified Pre-Owned program, a turnkey solution to buy
pre-owned Learjet, Challenger and Global aircraft that meets the
highest quality and safety standard. With this premium program,
Bombardier created a new segment that continues to bring customers
to the Bombardier family.
The growth of Bombardier Defense also remains a key pillar for
the company to continue on its upward trajectory, and over the past
few years, Bombardier has made significant progress. The company’s
defense portfolio now has the potential to reach revenues of $1
billion to $1.5 billion by 2030, further establishing its aircraft
as future-proofed solutions to the world’s most demanding
missions.
Looking to the future with confidence, ambition and
deployable capital
Bombardier is now a more resilient business and is well
positioned for long-term value creation, with several key growth
levers at its disposal to help propel the business forward through
2030. The company’s industry-leading product portfolio is well
positioned in the growing medium and large business jet categories
and is poised to continue to be a significant revenue driver in the
years ahead.
Implementation of a disciplined and ROIC-focused capital
allocation framework
The company remains committed to further reducing debt levels
and lower its interest costs while maintaining strong liquidity in
the targeted range of $1 billion to $1.5 billion. After reaching
its deleveraging objectives, the company will start looking at
strategic ways to use its excess available liquidity, such as
investing in its capital structure, inorganic growth opportunities
and product lineup, all while maintaining an operational CAPEX
investment of approximately $300 million annually. To that end,
Bombardier is implementing a ROIC-focused approach as the company
evaluates deployments beyond 2025. This approach builds on an
established framework that has shown strong returns through
multiple streams since 2021.
“Over the past few years, we have made key investments in our
business, for example with the introduction of the Bombardier
Challenger 3500 and the Bombardier Global 8000 aircraft, set for
entry into service in 2025,” added Demosky. “We have also invested
in our Services business and expanded our network by nearly 1
million sq feet in 2022, and have grown our Defense business all
while following a disciplined and return on invested capital
framework. These targeted investments are paying off, and we plan
to continue this approach to help us unlock further value while
mitigating risks factors and pressure on the balance sheet.”
Inauguration of Aircraft Assembly Centre at Pearson
Airport in Toronto
On May 1st, Bombardier will also proceed to the official
inauguration of its state-of-the-art manufacturing centre at
Pearson airport, where high-precision assembly work for the
class-leading Bombardier Global family of aircraft will take place.
The new world-class facility was designed with sustainability in
mind, and boasts features that will reduce energy consumption by
almost 60%. With this inauguration, Bombardier marks an important
milestone and its firm commitment to continue to deliver the best
business jets in the world.
Martel concluded: “I also want to highlight that at the core of
all our achievements lies our people. Their commitment and skill
are unmatched and have helped propel us forward, ensuring we
deliver the highest standards to our customers. Our new brand
identity, which was unveiled last week, reinforces what we’ve
always known to be true, that our people and our customers are at
the centre of what we do.”
Webcast details
Bombardier’s 2024 Investor Day webcast will begin at 9:00 a.m.
ET on May 1, 2024. Those wishing to attend the webcast are asked to
sign up on this webpage (in English and in French).
About Bombardier
At Bombardier (BBD-B.TO), we design, build, modify and maintain
the world’s best-performing aircraft for the world’s most
discerning people and businesses, governments and militaries. That
means not simply exceeding standards, but understanding customers
well enough to anticipate their unspoken needs.
For them, we are committed to pioneering the future of
aviation—innovating to make flying more reliable, efficient and
sustainable. And we are passionate about delivering unrivaled
craftsmanship and care, giving our customers greater confidence and
the elevated experience they deserve and expect. Because people who
shape the world will always need the most productive and
responsible ways to move through it.
Bombardier customers operate a fleet of approximately 5,000
aircraft, supported by a vast network of Bombardier team members
worldwide and 10 service facilities across six countries.
Bombardier’s performance-leading jets are proudly manufactured in
aerostructure, assembly and completion facilities in Canada, the
United States and Mexico.
For Information
Bombardier’s Investor Day 2024 Presentation is available
for download on the Investor Relations page on Bombardier’s
website. For corporate news and information, including
Bombardier’s Environmental, Social and Governance report, as well
as the company’s plans to cover all its flight operations with a
Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim
system visit bombardier.com. Follow us on X @Bombardier.
Media Resources
Francis Richer de La Flèche Vice President, Financial Planning
and Investor Relations Bombardier +1 514 240-9649 |
Mark Masluch Senior Director,
Communications Bombardier +1 514
855-7167 |
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