- News
- Nov 10, 2024
- 6 min read
Bombardier Deliveries Fall in Third Quarter, but Revenue Rises
Aircraft deliveries declined by 1 to 30, while revenue increased by 12%.
Bombardier delivered 1 fewer business jet in the third quarter, bringing the total to 30, but still recorded a 12% increase in revenue as its delivery volumes worldwide increased, pricing remained strong, and its services business continued to expand.
Announcing the company’s third-quarter results, Bombardier president and CEO Éric Martel cited the supply chain as the reason for the slight decline. But he stressed that the company remains on track to meet its forecast of 150–155 deliveries this year and has direct access to the materials needed to achieve that goal.
During the quarter, Bombardier delivered 13 super-midsize Challengers, compared with 16 in the same period a year earlier. However, the company also handed over 17 ultra-long-range Globals, up from 15 in the third quarter of 2023. In the first nine months, Bombardier delivered 99 aircraft (45 Challengers and 44 Globals), compared with 82 (39 Challengers and 43 Globals) in the same period last year.
Revenue for the quarter reached $2.073 billion, up from $1.856 billion a year earlier. This helped generate a profit of $117 million for the quarter, marking a notable turnaround from a loss of $37 million in the third quarter of 2023. Supporting these results was services revenue of $528 million, which exceeded the half-billion-dollar mark for the second consecutive quarter and put the aircraft manufacturer on track to reach its annual revenue target of $2 billion 1 year ahead of the planned 2025 date.
“Overall, we are successfully scaling up our extensive services expansion,” Martel said. “We are capturing more heavy maintenance volume and also gaining hourly customers.”
The growth in services revenue comes after Bombardier added 1 million square feet of service-center space in recent years. Martel said the company continues to assess where further growth may be needed, saying it sees needs globally. However, he pointed in particular to the U.S., the Middle East, and the Asia-Pacific region.
Turning to the fourth quarter, he noted that it is typically the busiest seasonally in terms of deliveries. “Except that we are still dealing with the same supply-chain headache as the rest of the industry. I am pleased to confirm that we are all ready,” Martel said.
Noting that he reviews operations daily, Martel added: “We have excellent visibility into all deliveries over the next 2 months. Our team has worked hard to ensure inventory is available and the completion sites are equipped to do what they do best when it comes to maintenance volumes.”
Delays are affecting fewer suppliers overall, he said, but each one is important to the production flow. Martel cited engines as an example of an area where difficulties persist.
He confirmed that Bombardier is on track for stable production over the next several years, as it is this year. The backlog grew to $14.7 billion at the end of the quarter from $14.2 billion a year earlier. But the book-to-bill ratio remains at the company’s 1:1 target.
“In terms of maintaining the book-to-bill pace, the market is well balanced and provides resilience,” Martel said. “Of course, that does not mean everything is excellent everywhere all at once. But, as they say, we continue to succeed because we focus on what we can control.”
He also noted that the company has expanded its international presence and continues to build up its defense business.
Bombardier executive vice president and CFO Bart Demosky was encouraged by the strength of pricing, which also contributed to revenue growth. This continues a post-Covid trend that appears to have persisted even 2 years later, he added.
Bombardier delivered 1 fewer business jet in the third quarter, bringing the total to 30, but still recorded a 12% increase in revenue as its delivery volumes worldwide increased, pricing remained strong, and its services business continued to expand.
Announcing the company’s third-quarter results, Bombardier president and CEO Éric Martel cited the supply chain as the reason for the slight decline. But he stressed that the company remains on track to meet its forecast of 150–155 deliveries this year and has direct access to the materials needed to achieve that goal.
During the quarter, Bombardier delivered 13 super-midsize Challengers, compared with 16 in the same period a year earlier. However, the company also handed over 17 ultra-long-range Globals, up from 15 in the third quarter of 2023. In the first nine months, Bombardier delivered 99 aircraft (45 Challengers and 44 Globals), compared with 82 (39 Challengers and 43 Globals) in the same period last year.
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Revenue for the quarter reached $2.073 billion, up from $1.856 billion a year earlier. This helped generate a profit of $117 million for the quarter, marking a notable turnaround from a loss of $37 million in the third quarter of 2023. Supporting these results was services revenue of $528 million, which exceeded the half-billion-dollar mark for the second consecutive quarter and put the aircraft manufacturer on track to reach its annual revenue target of $2 billion 1 year ahead of the planned 2025 date.
“Overall, we are successfully scaling up our extensive services expansion,” Martel said. “We are capturing more heavy maintenance volume and also gaining hourly customers.”
The growth in services revenue comes after Bombardier added 1 million square feet of service-center space in recent years. Martel said the company continues to assess where further growth may be needed, saying it sees needs globally. However, he pointed in particular to the U.S., the Middle East, and the Asia-Pacific region.
Turning to the fourth quarter, he noted that it is typically the busiest seasonally in terms of deliveries. “Except that we are still dealing with the same supply-chain headache as the rest of the industry. I am pleased to confirm that we are all ready,” Martel said.
Noting that he reviews operations daily, Martel added: “We have excellent visibility into all deliveries over the next 2 months. Our team has worked hard to ensure inventory is available and the completion sites are equipped to do what they do best when it comes to maintenance volumes.”
Delays are affecting fewer suppliers overall, he said, but each one is important to the production flow. Martel cited engines as an example of an area where difficulties persist.
He confirmed that Bombardier is on track for stable production over the next several years, as it is this year. The backlog grew to $14.7 billion at the end of the quarter from $14.2 billion a year earlier. But the book-to-bill ratio remains at the company’s 1:1 target.
“In terms of maintaining the book-to-bill pace, the market is well balanced and provides resilience,” Martel said. “Of course, that does not mean everything is excellent everywhere all at once. But, as they say, we continue to succeed because we focus on what we can control.”
He also noted that the company has expanded its international presence and continues to build up its defense business.
Bombardier executive vice president and CFO Bart Demosky was encouraged by the strength of pricing, which also contributed to revenue growth. This continues a post-Covid trend that appears to have persisted even 2 years later, he added.
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