(06 Aug 2021)
Bombardier has published its financial results for Q2
2021 and raised its full year guidance, confirming that aircraft
deliveries, revenues, profitability and cash usage are all
expected to outperform previous targets.
Business jet revenues during Q2 2021 climbed to
$1.5 billion, up 50% year-on-year, fueled by increases in both
aircraft deliveries and services.
Aircraft deliveries totaled 29
in Q2, up 45% year-on-year, reflecting strong demand for
Worldwide business jet utilization continued
to rise, nearly reaching pre-pandemic levels in North America and
Europe, buoying revenue contribution from services activities to
$295 million, up 29% year-on-year.
Aircraft sales equally
accelerated, reaching a unit book-to-bill ratio of approximately
1.8 for the quarter, further highlighting strong interest in
Adjusted EBITDA for the quarter was up $112
million year-on-year to $143 million, reflecting favourable
aircraft deliveries and mix, improved cost structure, disciplined
implementation of cost-reduction programs and consistent
progression through the Global 7500 aircraft’s learning curve.
addition, the increase was boosted by a higher contribution from
business aircraft services, mainly due to increased fleet flight
hours resulting from easing travel restrictions and progress on
vaccinations consistent with the increase in revenues. Reported
EBIT from continuing operations for the quarter was $36 million.
The second quarter notably saw strong free cash
flow (FCF) generation. The positive $91 million from continuing
operations FCF total for the quarter represents an improvement of
$841 million year-on-year and included a negative impact of
approximately $60 million in non-recurring cash items.
Pro-forma liquidity at end-Q2 2021 was ~$2.1
billion and pro-forma net debt was ~$5.3 billion. Over the
quarter, Bombardier successfully implemented a series of actions
to reduce net debt as well as pay out, or refinance, nearer-term
maturities, all as part of the company’s previously announced plan
to create debt maturity runway.
With $1 billion maturing in the
next three years, the company can more effectively focus on the
execution of its strategy, including learning curve progression
for the Global 7500 aircraft and other operational improvements,
and will continue managing debt in a pragmatic yet opportunistic
Progress on Strategic Priorities
While progress on the Global 7500 aircraft unit
costs and on overall recurring savings initiatives begin to yield
bottom line benefit, Bombardier remains focused on expanding its
service network and diversifying top-line revenue streams.
the second quarter, the Singapore Service Centre expansion project
completed the construction phase and the teams will now focus on
maintenance capacity ramp up to fully utilize the facility’s
As construction also progresses on new or expanded
facilities in Miami, USA, Melbourne, Australia and Biggin Hill,
U.K., Bombardier introduced its Certified Pre-owned Aircraft
program to further diversify customer offerings.
Bombardier will offer a “like-new” experience backed by a
one-year warranty and manufacturer-recommended aircraft
modifications and updates. This program will deepen Bombardier’s
involvement in the fast-moving pre-owned market, which is seeing
strong demand coupled with a supply shortage of high-quality,
“Bombardier’s raised guidance stems from
all-around solid execution in the first half of 2021, greater
confidence in market momentum, and our ability to accelerate
initiatives supporting our recurring savings objective,” said Éric
Martel, President and Chief Executive Officer, Bombardier. “Our
team’s concerted efforts have already supported stronger full year
margins and have allowed us to focus diligently on our priorities
of maturing the Global 7500 aircraft program, executing our
aftermarket growth strategy and deleveraging our balance sheet.”
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