Bombardier’s predicted Q1 2021 results outpace Wall Street predictions

Canada’s Bombardier, which has recently streamlined its operations to concentrate solely on the production of luxury business jets, has released preliminary results ahead of the official release of the first quarter’s finances on May 6. While, according to IBES data from Refinitiv, analysts had projected first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at US$89 million, the planemaker expects that figure to be around US$123 million. In summary: Business jet revenues are expected to be US$1.3 billion, an increase of 18% year-over-year. EBIT and adjusted EBITDA from continuing operations are expected to be US$19 million and US$123 million, respectively.

Free cash flow usage from continuing operations is expected to be US$405 million including ~US$100 million of non-recurring cash items. Cash flows from operating activities (continuing operations) are expected to be US$372 million and net additions to PP&E and intangible assets (continuing operations) expected to be US$33 million. Expected pro-forma liquidity of US$2.6 billion remaining after ~US$2.4 billion is expected to be deployed toward balance sheet deleveraging year-to-date.

Business aircraft deliveries for the first quarter is expected to be 26 units, while the company remains on track to deliver an expected 110-120 business aircrafts in 2021. “The preliminary financial results we are sharing today validate the actions we have taken to reposition our business and reflect the progress we are making on our strategic priorities,” said Éric Martel, President and Chief Executive Officer of Bombardier. “The first quarter was a strong start to the year, with our cost reduction initiatives beginning to contribute to the bottom line, continued progress of our Global 7500 learning curve and robust demand supporting significant year-over-year margin expansion. Looking ahead, our markets are continuing to show signs of improvement and our plans and financial performance for the year remain on track.”

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