Bombardier has presented its fourth-quarter and full-year 2021 results and provided 2022 guidance. Bombardier reported increased revenues, a major rise in EBITDA and an increased and more diversified backlog, among other positive indicators. The positive trend is set to continue in 2022.
In the fourth quarter, the company had six fewer deliveries for a total of 38 compared to 44 from the same period last year, mainly due to a more evenly distributed delivery profile on the Global 7500 throughout the rest of the year. Resulting business jet revenues were down US$0.5 billion to US$1.7 billion. Adjusted EBITDA increased meaningfully from US$(1) million to US$232 million, driven by higher margins from business aircraft manufacturing and services, mainly due to accretive margins on the Global 7500, reflecting learning curve improvements and execution of the cost reduction plan. Free cash flow of US$314 million was US$48 million higher from the same period last year.
Business jet revenues for the full year were up 7% year-over-year at US$6 billion. This was largely due to higher deliveries, a favorable aircraft mix and strong aftermarket performance at US$1.2 billion, up 25% compared to last year.
The company reported a significant adjusted EBITDA increase, which more than tripled to US$640 million. The increase is a result of a better aircraft mix, combined with the progress on the Global 7500 aircraft learning curve, but also the improvements in the cost structure and higher aftermarket contributions. The 2021 reported EBIT is at US$241 million.
The 2021 free cash flow generation of US$100 million from continuing operations represents an improvement of US$2 billion year-over-year, thanks to earnings growth and a strong order intake. Net additions to PP&E and intangible assets from continuing operations for the full year were US$232 million. Adjusted liquidity stands strong at US$2.1 billion, and cash and cash equivalents were US$1.7 billion as of December 31, 2021. (£1.00 = US$1.36 at time of publication).
