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Bombardier Reports Growing Backlog, Reduced Debt for Q3

Bombardier Reports Growing Backlog, Reduced Debt for Q3

Bombardier reported 25 aircraft deliveries and US$1.5 billion in revenue for the third quarter of 2022. The business jet manufacturer has also reported a growing backlog of orders and reduced its overall debt.

The earnings, which are even from the same three-month period a year ago, come from a 20% year-over-year increase in aftermarket revenue, which has risen to US$372 million as a result of an increase in flight hours and Bombardier’s newly opened service centers.

The backlog has grown by US$300 million to US$15 billion from the second quarter. The book-to-bill ratio, meaning the units of net new aircraft orders over aircraft deliveries, reached 1.3:1 for the third quarter, and indicates strong order activity, according to Bombardier.

Despite the earnings from the company’s expanded network in places such as Florida and Singapore, Bombardier’s revenue was also offset by a decrease in manufacturing revenues of US$50 million year-over-year mainly due to lower deliveries of large aircraft.

The company has reduced US$100 million of debt through cash on the balance sheet, bringing year-to-date debt repayment to US$873 million and shaving off nearly US$500 million from the beginning of the year to US$4.5 billion.

“Our performance in the third quarter of 2022 demonstrated that our fundamentals are very strong, especially when it comes to profitability, free cash flow, liquidity, as well as continued and steady debt reduction from our balance sheet. We are progressing steadily and confidently toward our long-term objectives,” said Éric Martel, President and Chief Executive Officer, Bombardier.

The Canadian manufacturer anticipated full-year deliveries of more than 120 aircraft and at least 47 deliveries for the fourth quarter.