Kerry Lynch from AIOnline – Reports
Bombardier is preparing for more than a 12 percent ramp-up in deliveries in 2023 to an anticipated 138 aircraft and forecasting revenues to increase by more than 10 percent, to $7.6 billion, company executives announced today while releasing its 2022 results. During a call with analysts, Bombardier president and CEO Éric Martel said the company is “operating in a sweet spot that allows us to remain predictable” and added that 2023 “looks to be a very good year ahead.”Martel said the production targets take into account potential risks with the supply chain and a potential recession, but he pointed out that its $14.8 billion backlog—which grew by $2.6 billion in 2022—is “super solid.”
“Now as we see the market stabilizing, we are not going to over-tweak our rates,” he said. “We are going to stick to the plan and ensure our production remains de-risked.”
He noted previous discussions about having a book-to-bill that settles in about 1:1. “That’s where we are at today.” Book-to-bill for all of 2022 was 1.4:1.
He added the supply chain is “getting better and better” and while still requiring increased attention, it is a “more manageable situation.” Martel said the year has started with resiliency with some additional growth in business in Asia. The company anticipates delivering 20 aircraft in the first quarter, it added.As for 2022, the company confirmed its preliminary results released last month that deliveries reached 123 business jets and revenues finished at $6.9 billion. Last year’s deliveries were three aircraft more than in 2021, while revenues were up by 14 percent year-over-year from just under $6.1 billion. Adjusted EBITDA soared to $930 million, a 45 percent increase.
The jump in earnings was a result of a mix of aircraft delivers that trended to the higher end of the portfolio, including 70 Globals, 50 Challengers, and three Learjet 75s in 2022, versus 66 Globals, 44 Challengers, and 10 Learjets a year earlier. Also propelling results was a 22 percent growth in aftermarket business to $1.5 billion.
Martel called the results a “resoundingly positive culmination of a strong year.”
Importantly, Bombardier continued to eliminate debt, repaying another $1.1 billion—marking a 15 percent reduction and bringing the tally to a 40 percent reduction since December 2020. The annual savings from last year’s debt reduction alone is $80 million, Bombardier estimated.