Bombardier boosts orders even as global demand for jets softens

Under the wing of a new logo, Bombardier Inc. said it lengthened its order book last quarter even as global demand for business jets idles.

The company grew its firstquarter backlog by five per cent year-over-year to $14.9 billion US. Its book-to-bill — the ratio of orders received to deliveries billed, a key indicator of nearterm demand for a company’s products — jumped to 1.6.

The upbeat figures stood in contrast with a year-over-year revenue drop of 12 per cent to $1.28 billion US in the quarter ended March 31, a total that fell below analysts’ expectations.

The decrease resulted partly from lower than expected plane deliveries in the quarter — 20 versus 22 a year earlier — but CEO Éric Martel said the number aligned with Bombardier’s production plan of 150 to 155 jets this year. Last year, roughly 40 per cent of its new jets landed with clients in the final quarter.

“We are seeing a lot of activity around the Global family,” he said, referring to the larger of the two plane series churned out by the Montreal-based company — Challenger is the other, after Bombardier delivered the last of its smaller but world-renowned Learjets in 2022.

Bombardier burned through 57 per cent more cash last quarter than in the year prior, spending $387 million US to support a production ramp-up.

“While we continue to require more working capital investment in the near term, we will be well placed in the second half of the year and well beyond,” Martel told analysts on a conference call Thursday.

Bombardier’s shares rose $4.74 or eight per cent to $61.74 by day’s end.

Martel’s remarks came one day after the 82-year-old company unveiled a new logo to mark its shift from an erstwhile giant of rail and commercial aviation to a pure-play business jet outfit.

“We went from a large industrial footprint with many businesses to a streamlined space that’s leaner, greener, and ultramodern,” said Martel.

Dubbed the Bombardier Mach, the black-and-white symbol features a stylized silhouette of an aircraft breaking the sound barrier.