In This Article:
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Total Revenue: $8.7 billion, an 8% year-over-year increase.
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Service Revenue: $2.04 billion, a 16% increase from the previous year.
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Backlog: Increased to $14.4 billion with a book-to-bill ratio of 1.
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Adjusted EBITDA: $1.36 billion, an 11% year-over-year increase.
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Adjusted EBITDA Margin: 15.7%, a 40 basis point increase from the previous year.
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Adjusted Net Income: $547 million, a 31% increase from the previous year.
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Adjusted Earnings Per Share: $5.16, a 31% increase.
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Free Cash Flow: $232 million for the full year.
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Net Leverage Ratio: 2.9 times, achieving the target one year early.
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Debt Reduction: Gross debt reduced by 48% since 2020.
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Capital Expenditure: $173 million, more than half reduction from 2023.
Release Date: February 06, 2025
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) achieved $2 billion in service revenue a year ahead of schedule, doubling the business in less than five years.
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The company reported a 15.7% adjusted EBITDA margin for 2024, with a significant increase in profitability metrics.
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Bombardier Inc (BDRAF) reduced its net leverage to 2.9 times, achieving its target a year early.
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The company saw an 8% year-over-year increase in total revenue, reaching $8.7 billion, surpassing its guidance range.
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Bombardier Inc (BDRAF) maintained a strong order backlog of $14.4 billion, reflecting a solid demand for its products and services.
Negative Points
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The threat of tariffs has created uncertainty, preventing Bombardier Inc (BDRAF) from providing guidance for 2025.
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Supply chain pressures and cost headwinds have increased, causing missed deliveries and a 50 basis point drag on EBITDA margins.
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The company faces potential challenges from geopolitical factors, particularly related to US tariffs.
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There is a risk of prolonged tariff impacts, which could affect Bombardier Inc (BDRAF)'s financial performance and delivery schedules.
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Despite strong performance, the company acknowledges ongoing macroeconomic uncertainties that could impact future operations.
Q & A Highlights
Q: You mentioned being well-positioned to meet 2025 guidance before the potential tariffs. Is the decision not to provide an outlook due to market changes or just prudence given the tariff backdrop? A: Eric Martel, President and CEO: We are still geared up to meet the 2025 objectives. However, due to the executive order on tariffs, we must be responsible and not provide guidance. The market activity is actually higher than last year, but the tariff threat is a risk we cannot control. We are prepared with contingency plans for various scenarios.