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.

• Adjusted EBITDA reached $307 million (14.8% margin), up 8% year-over-year.

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

• Adjusted net income was $81 million, with adjusted EPS of $0.74, both nearly flat year-over-year.

• Backlog stood at $14.7 billion as of September 30, 2024, with a unit book-to-bill ratio of 1.0.

Financial highlights

• Revenues increased 12% year-over-year to $2.1 billion in Q3 2024.

• Services revenue grew 28% year-over-year to a record $528 million.

• Adjusted EBIT was $201 million (9.7% margin); adjusted EBITDA margin was 14.8%, both slightly down year-over-year.

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

• Free cash flow usage was $127 million, reflecting inventory build and CapEx investments.

Outlook and guidance

• On track to meet full-year 2024 guidance across all metrics, with Q4 expected to be very active for deliveries.

• Free cash flow generation expected to be strong in Q4, driven by inventory reversal and EBITDA.

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

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