Canadian private jet manufacturer Bombardier has seen its revenues rise to $1.5 billion during the first quarter of 2023.
This represents a 17% rise on the first quarter in 2022, when revenues of $1.2 billion were announced by the company.
Bombardier has said that the positive results were reflective of profits driven by stronger aircraft margins, mainly on large-cabin aircraft, and aftermarket growth.
According to Reuters, Bombardier delivered 22 business jets between January and March 2023, an increase of one compared to 2022.
However, the jets were in the mid-size and large-cabin range, so this has helped to increase profit margins.
The positive trend in deliveries has continued in the first quarter of 2023, with deliveries (excluding Learjet, which is no longer in production) up 22% year-over-year.
“Bombardier has delivered a very strong first quarter. Our robust performance adds to our extremely positive track record from the past two years and confirms we are on the right trajectory,” said Éric Martel, president and CEO of Bombardier
He added: “With a very healthy, positive adjusted net income, further debt reduction, continued margin expansion, and ramped up production to reach our guidance of more than 138 deliveries this year, we are forging ahead towards the upgraded 2025 targets we presented during our Investor Day last month.”
The company’s adjusted EBITDA margin rose 120 basis points year-over-year to 14.6% while the adjusted EBIT reached $138 million in the first quarter of 2023, up 89% compared to the same quarter last year.
The expected ramp-up in production to build inventory, as well as strategic investments, such as the new Global production facility at the Pearson airport in Toronto set to open at the end of 2023, have led to some predicted free cash flow usage this year.
Bombardier’s aftermarket business also continues its positive performance and has contributed to the company’s bottom line with $424 million in revenues in the first quarter of 2023, up 17% year-over-year.