Bombardier (BBD-B) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 12% year-over-year to $2.1 billion, driven by record $528 million in Services revenue and a favorable aircraft delivery mix of 30 units, maintaining a book-to-bill ratio of one.

• Adjusted EBITDA reached $307 million (14.8% margin), up 8% year-over-year, with adjusted net income of $81 million and adjusted EPS of $0.74.

• Net income from continuing operations was $117 million, reversing a $37 million loss in Q3 2023.

• Backlog stood at $14.7 billion as of September 30, 2024, up 4% year-over-year.

• Recognized in the TSX 30 for the second consecutive year, reflecting sustained performance.

Financial highlights

• Consolidated revenues reached $2.1 billion, up 12% year-over-year, with Services revenue hitting a record $528 million, a 28% increase.

• Adjusted EBIT was $201 million (9.7% margin), and adjusted EBITDA margin was 14.8%, both slightly down year-over-year due to non-recurring costs.

• Free cash flow usage was $127 million, including $149 million in inventory investments and $46 million in CapEx.

• Ended the quarter with $1.2 billion in liquidity, including $872 million in cash and cash equivalents.

• Diluted EPS from continuing operations was $1.09, up from $(0.47) in Q3 2023.

Outlook and guidance

• On track to meet full-year 2024 guidance across all metrics, expecting a very active Q4 for deliveries and continued strong aftermarket performance.

• Aftermarket revenues are trending above the $2 billion target for 2025.

• Production rates for Globals and Challengers expected to remain stable into 2025, with annual deliveries around 150+ units.

• Free cash flow expected to show double-digit CAGR through 2025, supported by EBITDA growth and efficient capital deployment.