Canadian business jet manufacturer Bombardier has shared details regarding the company’s performance in the second quarter of 2023.
Publishing its financial results on August 3, 2023, Bombardier announced that between April and June 2023, it delivered 29 private jets – one more aircraft than the same quarter last year.
Bombardier confirmed it now has a “solid line of sight to reach the overall 2023 guidance”.
The company also praised the aftermarket arm of the business, which generated $428 million in revenue, a 19% increase compared to the same quarter in 2022.
Overall, revenues in the second quarter of 2023 rose to $1.7 billion, up 8% year-over-year.
Éric Martel, president and CEO of Bombardier, said: “Bombardier delivered a very strong second quarter. Our team successfully navigated a highly dynamic business environment that saw sustained demand for new and pre-owned jets, as well as steady service growth, all while supply chain pressure persisted.”
The $222 million free cash flow usage in the second quarter of 2023 was in line with expectations.
It includes spending to support the completion of the new Global Aircraft Manufacturing Centre at Toronto Pearson Airport (YYZ), due to open this year, and working capital build to support higher deliveries in the second half of the year.
The company once more reported positive adjusted net income in the second quarter of 2023, in which it reached $80 million, compared to a loss of $38 million in the same quarter last year.
Total adjusted EBITDA for the quarter was $275 million, representing an adjusted EBITDA margin of 16.4% and a significant 350 basis point margin expansion over the same quarter last year.
Rising margins across all platforms, growth of aftermarket business and disciplined operations are driving these metrics forward.
The adjusted EBIT totaled $190 million, up 84% compared to the same period of 2022.
“We continue to progress on our positive trajectory by delivering remarkable growth in profitability, propelled by a strong adjusted EBITDA increase and margin expansion, as well as a positive adjusted net income and earnings per share. Thanks to our team’s tremendous work, we boosted our revenues this quarter by 8 % year-over-year, driven in part by an exceptional 19% year-over-year aftermarket revenue increase,” Martel added.