Bombardier experienced a strong first quarter and is well on its way toward meeting its 2022 guidance, the company said this morning in its quarterly investor earnings call. The Canadian business jet manufacturer's $167 million in earnings before taxes, interest, depreciation, and amortization in the quarter represented a 36 percent rise over the same period a year ago.
“Our team has been able to build on our strong performance last year and our momentum from last year,” said president and CEO Éric Martel. “In this quarter, which was one of the best in our books, we’ve proven once more that we know how to make the most out of opportunities when they present themselves.”
The company delivered 21 jets during the quarter, including nine of its flagship Global 7500s and the final three Learjets, and is on track to exceed last year’s delivery total of 120 aircraft by the end of 2022. As it transitions from the Challenger 350 to the Challenger 3500, which is anticipated to enter service in September, the company expects deliveries in the second and third quarters to be static year-over-year, with a surge in the fourth quarter as 3500 production and deliveries ramp up. It is also actively monitoring the supply chain situation, sending its staff to suppliers for accurate assessments.
Bombardier has seen strong orders thus far for the year with a book-to-bill of 2.5:1. During the quarter, its backlog subsequently rose by $1.3 billion, to $13.5 billion. “That is a testament to the strength of our product portfolio, as well as our sales team’s ability to be responsive all around the world,” said Martel.
Further, he added that the company is becoming increasingly convinced that the current levels of business aircraft activity represent a step-change for the industry, rather than merely a post-pandemic bump. Martel noted that despite the situation in Ukraine, it continues to see strong demand and activity worldwide, including in Europe.
Among Bombardier’s 5,000 aircraft worldwide, fleet usage is up approximately 23 percent over pre-pandemic 2019 levels. That has led to a record quarter for its aftermarket service business, which generated $361 million—a 34 percent increase year-over-year.
The Montreal-based company recently quadrupled the size of its Singapore service center and is in the process of expanding its London and Miami facilities, which should be completed by year-end. Additionally, the company plans to open a new service location in Melbourne, Australia. “We are placing a lot of focus on supporting our customers close to their home bases,” said Martel.