Bombardier jet order backlog leads to smaller loss
MONTREAL Bombardier Inc on Thursday reported a smaller quarterly adjusted loss as the Montreal-based business jet maker improved margins on its flagship plane but delivered fewer aircraft.
Bombardier expects a lower earnings before interest, taxes, depreciation and amortization margin during the second quarter versus the first three months of the year.
Bombardier shares tumbled on the report, ending the day down 8.3 per cent at $1.21 in Toronto.
Corporate jet makers are reporting swelling order backlogs, as affluent passengers continue flying private during the pandemic. But any downturn or widening of the Ukraine war could hurt demand.
Chief executive Eric Martel told analysts Bombardier would look to reassess 2022 free cash flow guidance of greater than US$50 million later this year, after generating US$173 million from continuing operations during the first quarter. “We are clearly tracking well to our free cash flow guidance for 2022,” Martel said.
Bombardier used US$405 million in free cash during the first quarter of 2021. It said its backlog rose by US$1.3 billion to US$13.5 billion since the start of the year. Martel, who said the company is already considering a rise in production next year, told analysts “2024 looks good too” due to the backlog.
First-quarter revenue fell seven per cent to US$1.2 billion due to fewer plane deliveries compared with the first three months of 2021.
The company remains on track to meet full-year guidance of more than 120 deliveries, with secondand third-quarter deliveries to be flat year over year, followed by a strong fourth quarter. Adjusted EBITDA rose 36 per cent in the first quarter on higher profits from sales of its flagship Global 7500 jet and cost-cutting measures.
It reported an adjusted loss of three cents per share in the reported quarter, compared with a loss of seven cents per share, a year earlier.