“We have been setting the foundations to become a more resilient and profitable business – in a nutshell, a good start [to the year],” said Eric Martel, president, Bombardier opening the company’s first-quarter results webcast.
Martel said recovery from the Covid-19 global pandemic was progressing: “Most market trends point to a gradual reopening and strong recovery.” Bombardier’s business jet revenues are up 18% year-on-year (YoY) totalling $1.3bn, largely driven by a mix of large-cabin aircraft deliveries, it said.
Business aircraft deliveries for the quarter totalled 26 units, on par with last year. Bombardier said it remains on plan for 110-120 deliveries this year. Stronger sales activity in the first quarter yielded a unit book-to-bill ratio above 1.0, which is expected to continue into the second quarter.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $123m, as operations for the quarter were up 43% YoY. Reported earnings before interest, tax, depreciation and amortisation (EBIT) from continuing operations for the quarter was $19m.
Free cash flow usage for the quarter totalled $405m, including approximately $100m of non-recurring cash items; an increase of $357m YoY.
The company’s first quarter report predicted revenues from business aircraft activities in 2021 to be better than 2020, based on a gradual economic recovery. The report stated: “Growth opportunities are expected to come from increasing market share in the large category and higher service revenues driven by increasing flight hours as well as an expansion of the global services network with major projects underway in Singapore, London, Melbourne and Miami.”
