Bombardier has reported revenues of US$1.9 billion in the third quarter 2023, a 28% year-over-year increase, fuelled primarily by strong aircraft sales and aftermarket growth. The company delivered 31 aircraft in the third quarter 2023, up six aircraft compared to the same quarter last year, bringing it to a total of 82 deliveries for the year. This included the delivery of the 150th Global 7500 aircraft, the industry flagship that continues to impress and contribute to improved margins for the company. The backlog remains strong at US$14.7 billion and the continued healthy demand resulted in a unit book-to-bill of 1.1 for the quarter. Overall, the company is on track to reach its guidance on deliveries for the year.
Revenues from Bombardier’s aftermarket business continued on their positive trajectory in the third quarter 2023 and grew 11% year-over-year to US$414 million. The company has been reaping benefits from the significant expansion of its service centre footprint in 2022 and remains focused on increasing its share of this growing market.
In terms of profitability, total adjusted EBITDA for the quarter reached US$285 million, representing an adjusted EBITDA margin of 15.4% and 100 basis points margin expansion over the same quarter last year. This growth continues to be underpinned by improving operating margins, including diligent cost management and growing the aftermarket business.
Adjusted EBIT totalled US$193 million, a 54% year-over-year increase. Adjusted net income has also significantly improved to a gain of US$80 million compared with a loss of US$2 million in the same quarter last year. Adjusted EPS came in at US$0.73 for the quarter, an improvement compared with a US$0.10 loss in the same quarter last year.
The 36% year-over-year increase in adjusted EBITDA on the back of more deliveries in the third quarter 2023 and a growing aftermarket also contributed to US$80 million in free cash flow the company generated in this quarter, in line with expectations to reach more than US$250 million by the end of 2023. (£1.00 = US$1.21 at time of publication).