AviTrader sponsorship ad

Bombardier confirms it remains on track to achieve its 2020 financial objectives

Bombardier has released its 2019 business unit guidance and confirmed that it remains on track to achieve its 2020 financial objectives. The 2019 guidance reflects the anticipated closing of the sale of both Business Aircraft’s flight and technical training activities and the Q Series aircraft program as of September 30, 2019.

For 2019, Bombardier is targeting revenues of US$18 billion or more, representing a year-over-year increase of approximately 10% over 2018 guidance. This growth is expected to be driven by: the entry-into-service of the Global 7500 aircraft, which is sold out through 2021; execution on Bombardier’s strong US$34-billion rail backlog, which covers more than 80% of Transportation’s targeted 2019 and 2020 revenues; and an increased focus on aftermarket services across the portfolio. Aftermarket revenues are estimated to grow from approximately US$3.5 billion in 2018 to approximately US$4.0 billion in 2020 as the Company continues to optimize its aftermarket and services operations, leveraging its large installed base which includes over 100,000 rail cars, more than 4,700 business jets and approximately 1,250 regional jets.

Profitability is anticipated to grow faster than the top line, and is expected to be driven by solid conversion on revenue growth and the strategic reshaping of Commercial Aircraft. EBITDA before special items is targeted to grow by approximately 30% over 2018 guidance to a range of US$1.65 billion to US$1.80 billion, while EBIT before special items is targeted to increase by approximately 20% over 2018 guidance to a range of US$1.15 billion to US$1.25 billion.

From a free cash flow perspective, 2019 is expected to mark the transition from a heavy investment cycle to a strong growth and cash generation cycle. Sustainable capital expenditures are projected to decrease to approximately US$800 million or less on an annualized basis, which represents a decrease of approximately 50% from the previous five-year average.

On a normalized basis, before one-time items, Bombardier estimates free cash flow in a range of US$250 million to US$500 million for 2019. One-time items that are expected to impact free cash flow in 2019 include; a US$250-million charge for the previously announced restructuring; and a working capital contingency of US$250 million largely associated with the intense ramp-up of the Global 7500 program. Free cash flow including these one-time items is targeted to be breakeven plus or minus US$250 million, resulting in an estimated cash on hand exceeding US$3.0 billion by year end.

Along with announcing its 2019 business unit guidance, Bombardier reaffirmed its 2020 objectives of revenues in excess of US$20 billion, EBITDA before special items over US$2.25 billion, EBIT before special items over US$1.6 billion and free cash flow between US$750 million and US$1 billion. In addition to generating strong cash flow from operations, Bombardier anticipates ending 2020 with strong liquidity, including more than US$3.5 billion of cash on hand and a significantly improved leverage ratio.

Friday April 26, 2024
IndiGo is introducing wide-body aircraft into its fleet with an order for A350-900 aircraft © Airbus
IndiGo, India’s leading airline, has finalised a firm order for 30 A350-900 aircraft, marking a significant expansion opportunity for IndiGo to broaden its network and connect various Indian metros to destinations worldwide. These aircraft will be equipp... Read More »
Friday April 26, 2024
American Airlines has posted a net loss of US$312 million for the first quarter © American Airlines
American Airlines (American) has achieved record first-quarter revenue of approximately US$12.6 billion. However, it reported a net loss of US$312 million. Excluding net special items, the net loss was US$226 million. Despite challenges, American Airlines Grou... Read More »
Friday April 26, 2024
Cassio 330 electric-hybrid aircraft © VoltAero
In a significant advancement for VoltAero’s Cassio e-aircraft family, the company has commenced certification testing for the five-seat Cassio 330’s parallel electric-hybrid powertrain. The powertrain, mounted on a ground-based test bench, incorpor... Read More »
Friday April 26, 2024
H175 helicopter in flight © Airbus Helicopters
GD Helicopter Finance (GDHF), a newly established helicopter leasing and finance firm headquartered in Dublin, Ireland, has finalised a deal with Airbus Helicopters and GDAT for up to 20 H175 helicopters. The agreement comprises ten firm orders and ten options... Read More »
Friday April 26, 2024
LTM has completed its first base maintenance on a Boeing 787 Dreamliner © LTM
Lufthansa Technik Malta (LTM) has achieved a significant milestone by successfully completing its inaugural base maintenance on a Boeing 787 Dreamliner. The completion of the C-check on LOT Polish Airlines‘ B787-9, registered as SP-LSC, follows closely a... Read More »
Friday April 26, 2024
Airbus
Airbus has unveiled its consolidated financial results for the first quarter ending March 31, 2024 (Q1 2024). The company reported robust performance across its commercial aircraft, helicopters, and defence and space divisions. Gross commercial aircraft orders... Read More »
Thursday April 25, 2024
Turkish Airlines will receive six Boeing 737 MAX 8 aircraft from CDB Aviation © AirTeamImages
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing (CDB Leasing), has signed new lease agreements for a fleet of seven additional narrow-body and wide-body aircraft with its existing customer, Turkish Airlines (Turkish), ... Read More »
Thursday April 25, 2024
Condor took delivery of its first A320neo at a ceremony in Toulouse, France © Airbus
Condor, a German leisure airline, has received its inaugural Airbus A320neo on lease from Avolon following a ceremony in Toulouse. This milestone marks the airline’s ongoing fleet modernisation, which already features the A330neo for long-haul routes. By... Read More »
Thursday April 25, 2024
IAG Cargo has transitioned its 160-strong ground vehicle fleet at London Heathrow from diesel to hydrotreated vegetable oil (HVO) © IAG Cargo
IAG Cargo, the cargo arm of International Airlines Group (IAG), has successfully transitioned its 160-strong ground vehicle fleet at London Heathrow from Diesel to hydrotreated vegetable oil (HVO). HVO, derived from plant waste and fully renewable materials, s... Read More »
Thursday April 25, 2024
AJW has acquired one B787-900 Dreamliner © AJW Group
In a new development, AJW Group, a globally renowned independent provider of aircraft component parts, repair, and supply chain solutions, has announced the acquisition of a Boeing 787-900 Dreamliner. AJW Group has solidified its position with the acquisition ... Read More »
Thursday April 25, 2024
IBA predicts that the engine CFM56-7B is seeing the highest market value change with an increase of around 20% from 2023 to 2024
Aviation market intelligence and advisory company IBA has revealed that with rising engine lease rates and market values showing double-digit growth, the engine sector is now a “lessors’ market”. The latest IBA analysis shows that engine leasing activity... Read More »
Thursday April 25, 2024
Boeing has posted a first-quarter loss of US$355 million
Boeing, on April 24, disclosed a US$355 million loss for the initial three months of the year, grappling with a quality dilemma stemming from a January 5 flight where a panel detached from one of its aircraft. The reported loss, though significant, was less se... Read More »
Wednesday April 24, 2024
Ascent AeroSystems all-weather coaxial helicopter drone © Robinson Helicopter Company
Robinson Helicopter Company (RHC) has completed the acquisition of Ascent AeroSystems, which now operates as a wholly owned subsidiary of Robinson Helicopter Company. This strategic move underscores Robinson’s commitment to advancing innovation, expediti... Read More »
Wednesday April 24, 2024
JetBlue
JetBlue, ‘New York’s Hometown Airline®’, has unveiled its financial performance for the first quarter ending March 31, 2024. The airline disclosed a net loss of US$716 million, representing a year-on-year revenue decline of 5.1% to US$2.2 billion. As of... Read More »
Wednesday April 24, 2024
Spirit AeroSystems Wichita, Kansas
Spirit AeroSystems has disclosed an agreement with Boeing, whereby the aerospace giant will furnish advance payments totalling US$425 million, according to REUTERS news agency. This agreement aims to assist Spirit in addressing challenges such as elevated inve... Read More »
Wednesday April 24, 2024
RTX
RTX has reported first-quarter sales of US$19.3 billion, marking a 12% increase over the previous year. GAAP EPS rose by 32% to US$1.28, which included various adjustments such as acquisition accounting adjustments, tax audit settlements, and gains related to ... Read More »
Wednesday April 24, 2024
The new five year support contract was signed during MRO Americas in Chicago © Fokker Services Group
During the MRO Americas event, Fokker Services America (a subsidiary of Fokker Services Group, FSG) and HAECO have signed a component service support agreement for a duration of five years. This agreement positions FSG to deliver exceptional component servicin... Read More »
Wednesday April 24, 2024
Codeshare flights between ANA and Air India to connect Japan and India will begin in May 2024© ANA
All Nippon Airways (ANA) and Air India, India’s national flag carrier, have formalised a commercial agreement signalling the commencement of a codeshare partnership facilitating connectivity between Japan and India. Commencing on May 23, this collaborati... Read More »
Tuesday April 23, 2024
Robins Hayes
Robin Hayes, the former CEO of JetBlue Airways, has been selected to succeed C. Jeffrey Knittel as Chairman and Chief Executive Officer of Airbus Americas, effective June 3, 2024. Hayes, with a wealth of experience in global aerospace leadership, will take the... Read More »
Tuesday April 23, 2024
Beechcraft King Air 260 Multi-Engine Training System (METS) T-54A for the U.S. Navy © Textron Aviation
Textron Aviation has supplied the first two of potentially 64 Multi-Engine Training System (METS) Beechcraft King Air 260 aircraft contracted by the Naval Air Systems Command (NAVAIR) on January 25, 2023, after a comprehensive competitive process. The Beechcra... Read More »
MRO Americas 2024

2023 MEDIA KIT

Aviation Media Pack

Learn more on how AviTrader can expand your market

Please contact

Tamar Jorssen
Vice President Sales & Marketing
+1.778.213.8543
[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada

Subscribe to the most widely accepted news source in the aviation industry!


Free Daily, Weekly and MRO Publications delivered to your Inbox!
News Alerts, Editorials, Marketplace, Executive Interviews +more

Select publications:

*we respect your privacy and AviTrader will not share your email address to any 3rd Parties.

Scroll to Top
AviTrader

FREE
VIEW