Bombardier reports solid financial and operational performance for 2017

Bombardier has reported its fourth quarter and full year 2017 results, highlighting solid financial and operational performance across the company. In 2017, Bombardier’s full-year EBIT before special items grew 57% year-over-year, from $427m to US$672m, while EBITDA before special items reached close to US$1bn. Full year EBIT margins exceeded guidance at Transportation, Business Aircraft and Aerostructures. Before special items, EBIT margins were 8.4% at Transportation and Business Aircraft; and 10.0% at Aerostructures. Consolidated revenues for the year were US$16.2bn, in line with its guidance.
Free cash flow performance for 2017 was better than guidance by more than US$200m, with a usage of US$786m. This over performance allowed Bombardier to end the year with a US$3.1bn cash balance and well positioned to achieve cash flow breakeven in 2018, a key objective of the Company’s turnaround plan.
Business Aircraft’s 2017 financial performance met or exceeded guidance delivering 140 aircraft. Revenues were US$5.0bn with EBIT margins before special items of 8.4%.
For the fourth quarter, deliveries reached 44 units, including a strong mix of Challenger and Global family aircraft, representing 29 and 13 deliveries respectively.
Commercial Aircraft’s financial performance for 2017 was marked by the continued production ramp-up of the C Series aircraft program. As announced in the third quarter financial results, engine delivery delays from Pratt & Whitney impacted the C Series aircraft deliveries, particularly in the fourth quarter. While revenues reached US$2.4bn, in line with its guidance, the EBIT loss before special items at US$377m compared favorably relative to expectations.