Bombardier has released its financial results for the third quarter of 2021. The company is pleased with continued execution on its strategic initiatives, cash flow generation and order momentum driving the financial results of the quarter.
Business jet revenues of US$1.4 billion are up 17% year-over-year, propelled mainly by an improved delivery mix, with higher deliveries of large aircraft. The company has also seen an increase of revenues by US$76 million from business aircraft services. This is mainly due to increased fleet flight hours having now surpassed 2019 levels, a clear signal that the industry is on a strong recovery path from the global shock caused by the COVID-19 pandemic. Confidence levels within the industry are at a new all-time high, indicative of the rising vaccination levels and eased travel restrictions. In the U.S., business jet utilisation increased by 42.5%, year-over-year for the first eight months of the year. In Europe, business jet utilisation increased by 27.1% year-over-year in the first nine months of the year.
Bombardier reported an adjusted EBITDA of US$142 million, representing a year-over-year improvement of US$58 million or 69%. The company attributes this to an improved aircraft mix, continued progress on Global 7500 aircraft learning curve, and cost structure improvements. Reported EBIT from continuing operations for the quarter was US$48 million.
For the second consecutive quarter, the company is seeing an improved free cash flow (FCF) generation. FCF of US$100 million from continuing operations represents an improvement of US$747 million year-over-year. The positive result is mainly due to stronger order intake and better payment terms on new orders. Reported cash flows from operating activities – continuing operations for the quarter was US$156 million, and net additions to PP&E and intangible assets – continuing operations for the quarter were US$56 million (£1.00 = US$1.37 at time of publication).