Bombardier targets revenues of US$17.0bn to US$17.5bn for 2018

Bombardier has released its 2018 guidance and confirmed that its five-year turnaround plan remains on track. The Company also affirmed its 2017 guidance, as revised with the announcement of its third quarter 2017 results. For 2018, Bombardier is targeting revenues in the range of US$17.0bn to US$17.5bn which represents a year-over-year increase of approximately US$1.0bn over 2017 guidance, at the mid-point of the range. This growth is expected to be driven by the ramp-up of key projects at Bombardier Transportation and higher C Series aircraft deliveries.
With the Company’s transformation efforts driving stronger performance across the portfolio, EBITDA before special items for 2018 is anticipated to be in the range of US$1.15bn to US$1.25bn. For the same year, EBIT before special items is anticipated to be between US$800m and US$900m, representing an improvement of approximately 20% over 2017 guidance, at the mid-point of the range, assuming the adoption of IFRS 15 standards.
Bombardier is targeting to achieve free cash flow breakeven in 2018, plus or minus US$15m, mainly driven by improving working capital investments and lower development costs as the Company’s heavy investment cycle comes to an end with the Global 7000 expected to enter service in the second half of 2018. Breakeven free cash flow represents an improvement of approximately US$1.0bn over Bombardier’s 2017 guidance.
Over the next three years, the Company’s objective is to grow revenues by US$4.0bn, which represents a 7% compound annual growth rate. Over the same period, Bombardier’s objective is to more than double EBITDA before special items to more than US$2.25bn, and to achieve EBIT before special items in excess of 8%, or US$1.6bn. The Company also aims to deliver free cash flow of US$750m to US$1.0bn by 2020.
Following the closing of its C Series partnership with Airbus, Bombardier will deconsolidate the C Series program. While 2018 guidance assumes the continued consolidation by the Company of the C Series program for the entire year, 2020 objectives reflect the deconsolidation of the C Series program. Should the closing of the C Series partnership with Airbus occur before the end of 2018, the resulting deconsolidation will have an impact on the Company’s reported results.