Bombardier has delivered robust financial results for the fourth quarter and full year of 2023, surpassing its 2023 guidance. The company's total revenues for 2023 reached US$8 billion, a 16% increase compared to the previous year, marking the highest level since the strategic refocus in 2021. Notably, aftermarket revenue hit an all-time high at US$1.75 billion, driven by the expansion of Bombardier's global service network in 2022.
In 2023, adjusted EBITDA witnessed a significant surge of 32%, reaching US$1.23 billion, attributed to increased deliveries, a substantial contribution from the Global 7500 line, and higher aftermarket sales. Full year reported EBIT reached US$793 million, while adjusted EBIT stood at US$799 million.
Fuelled by a strong fourth-quarter performance, Bombardier exceeded its 2023 guidance for free cash flow generation from continuing operations, achieving US$257 million. Operating activities and net additions to PP&E and intangible assets for the year were also notable at US$623 million and US$366 million, respectively.
Throughout 2023, Bombardier prioritised debt reduction, paying down US$0.4 billion during the year. This effort resulted in a 28% improvement in the adjusted net debt to adjusted EBITDA ratio compared to 2022, reaching a historic low of 3.3.
The company maintained disciplined production management, reporting a solid full-year-book-to-bill ratio of 1, with a robust multi-year backlog standing at US$14.2 billion. Bombardier successfully achieved its goal of delivering 138 aircraft in 2023, with a particularly active fourth quarter.
Looking ahead to 2024, Bombardier is optimistic about sustaining its momentum towards long-term objectives. The company aims to deliver between 150 to 155 aircraft, contributing to an anticipated revenue increase ranging from US$8.4 billion to US$8.6 billion. Profitability is expected to improve further, with adjusted EBITDA projected between US$1.30 billion and US$1.35 billion, and adjusted EBIT forecasted to be in the range of US$850 million to US$900 million.
On the free cash flow front, Bombardier anticipates generating between US$100 million and US$400 million, factoring in working capital requirements to support delivery growth and investments in previously announced expansion opportunities. Net additions to PP&E and intangible assets are expected to be below US$300 million. (£1.00 = US$1.26 at time of publication).
