Bombardier’s Latest Quarterly Report Shows Positive Results

Compared to where the company was a year ago, Canadian planemaker Bombardier is in a much better financial position. The company posted its third-quarter financials on November 2nd, showing that its strategy to focus solely on the private and business jet sector is paying off.

Huge improvements over Q3 2022

Comparing the same metrics from a year ago, Bombardier is doing significantly better. The company’s overall revenue for the quarter was up by a whopping 28%. The company attributes this result to higher deliveries and “continued momentum in aftermarket business.”

The company adds that its year-over-year operating profitability for the quarter shot up significantly. Indeed, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was up 36% to $285 million.

Photo: Bombardier

The ‘normalization’ of the industry

Providing more detail on its positive performance, Bombardier highlighted that the industry and economic environment have improved dramatically over the past few years. Moving further away from the devastation of the pandemic, private jet utilization increased by 7% in the United States and 8% in Europe compared to 2022.

Bombardier notes that the business aviation industry is “expected to remain stable” despite concerns over “geopolitical tensions and economic uncertainty.” The company says that sustained aircraft activity worldwide, combined with a strong and healthy backlog for the industry, should stabilize revenues in the coming years.

Photo: Bombardier

In the medium and long term, Bombardier expects growth to continue from what it calls “wealth creation.” It adds that growth will also be driven by a “structural shift in demand in business aviation towards safety, convenience, and privacy.”

Keenly focused on private jets

Bombardier is a significantly different company compared to just a few years ago. Before the pandemic, the Canadian firm had several programs and offerings that have since been sold off.

Photo: airBaltic

As highlighted by Aeroflap in 2021, the company emphasized that its attention would be sharply focused on the executive jet market.

While some might see this as the decline of a highly diversified transportation company, others may see this as a wise move to focus its efforts on one front rather than five.

What do you think about Bombardier’s current financial state and its moves to simplify its offerings? Share your thoughts by leaving a comment.

Sources: Aeroflap