Bombardier Inc (BDRAF) Q3 2024 Earnings Call Highlights: Strong Service Revenue Growth Amid ...
In This Article:
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Service Revenue: $528 million, a 28% year-over-year growth.
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Total Revenue: $2.1 billion, representing 12% year-over-year growth.
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Adjusted EBITDA: $307 million, an 8% increase from the same quarter last year.
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Adjusted EBITDA Margin: 14.8%, slightly down from 15.4% in Q3 2023.
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Adjusted EBIT: $201 million, a 4% increase from the third quarter last year.
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Adjusted Net Income: $81 million, or $0.74 earnings per share.
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Free Cash Flow: $127 million cash usage in the quarter.
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Liquidity: $1.2 billion, excluding a $150 million increase in secured revolver.
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Aircraft Deliveries: 30 units delivered in the quarter.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bombardier Inc (BDRAF) reported a record $528 million in service revenue for the quarter, marking a 28% year-over-year growth.
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The company achieved a book-to-bill ratio of 1, indicating balanced order activity and deliveries.
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Bombardier Inc (BDRAF) has been recognized as part of the TSX30 list for the second consecutive year, highlighting its strong performance.
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The Global 8000 aircraft is set to be the fastest civilian aircraft since the Concorde, with production already underway.
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The company ended the quarter with $1.2 billion in liquidity, excluding a $150 million increase in its secured revolving credit facility.
Negative Points
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Bombardier Inc (BDRAF) continues to face supply chain challenges, particularly with engines and APUs, impacting delivery schedules.
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The adjusted EBITDA margin decreased slightly to 14.8% from 15.4% in the same quarter last year, partly due to supply chain disruptions and cost inflation.
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There were nonrecurring costs in the quarter, including expenses linked to share-based compensation programs due to a strong stock price increase.
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Free cash flow usage in the quarter was $127 million, driven by investments in inventory and capital expenditures.
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The company is still working through geopolitical tensions and supply chain issues, which could pose risks to future operations.
Q & A Highlights
Q: Where do you see any potential need for capacity expansion in your aftermarket services business? Would you be more inclined to tuck-in or organically add that capacity? A: Eric Martel, President and CEO, mentioned that Bombardier is actively developing its strategic plan for aftermarket expansion. The U.S. and Middle East are key areas for potential growth. The company has already expanded in Singapore and plans to continue growing its capacity globally to support increasing demand.