Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Bombardier to Confirm 2025 Objectives Are on Track and Will Further Detail Growth Levers Through 2030 as Part of Investor Day 2024 By: Bombardier Inc. via GlobeNewswire May 01, 2024 at 06:30 AM EDT With an impressive turnaround plan in full gear, Bombardier maintains clear line of sight on meeting 2025 objectives Growth levers from 2025 to 2030 to focus on continuous product improvements and business segments with a high return-on-invested-capital (ROIC) Diversified revenue streams are building a foundation of resilience and long-term predictability Bombardier President and Chief Executive Officer, Éric Martel, and Executive Vice President and Chief Financial Officer, Bart Demosky, to provide webcast remarks, highlighting strategic initiatives, capital allocation plans and compelling valuation drivers Event hosted inside the company’s new Aircraft Assembly Centre in Toronto, which will be inaugurated later in the day MONTREAL, May 01, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (TSX: BBD.B) will host its Investor Day on May 1st, 2024, at its new state-of-the-art Aircraft Assembly Centre at Pearson Airport in Toronto. During the event – which will be webcast live – Bombardier’s executive leadership will review the company’s strong performance over the past three years and provide an in-depth look at how the company is set to meet its 2025 commitments. Éric Martel, President and Chief Executive Officer, and Bart Demosky, Executive Vice President and Chief Financial Officer, will be joined by members of Bombardier’s executive leadership team in Toronto to outline the company’s progress on several fronts, including the expansion of Bombardier Defense, growth in Services and in its pre-owned participation, as well as the company’s dedication to sustainability and operational excellence. They will also provide an update on how the company has positioned itself for growth through 2030 by building a resilient business, based on predictable and diversified revenue streams and supported by continued strategic investments. “Since starting our turnaround plan in 2020, our teams have delivered textbook-worthy results on all fronts, consistently meeting or surpassing many of our objectives. Bombardier is well on track to meet its 2025 objectives thanks to everyone’s collective focus on executing our plan flexibly, creatively and passionately,” said Martel. “As we now look toward the second half of what has already been a historic decade for the company, we are focused on creating even more value for shareholders by building on a predictable and resilient foundation. Bombardier will have room to grow organically, as well as to deploy capital strategically.” On final approach to 2025 objectives after benchmark performance Since the end of 2020, through to the end of 2023, Bombardier has recorded a 13% CAGR on revenues, which includes an impressive 21% CAGR for Services. Adjusted EBITDA(1) grew at a rate of 84% over this time frame with adjusted EBIDTA margin(2) growing by a factor of greater than 4 times to more than 15% in 2023. This well-rounded performance has put Bombardier on a clear path to achieve its stated 2025 objectives of more than $9 billion in revenues and more than $1.625 billion in adjusted EBITDA(1), with more than $900 million in free cash flow (FCF)(1) and a net leverage(2) ratio of 2.0x to 2.5x. “Bombardier’s ability to execute to plan has delivered year-after-year growth to be reckoned with, no matter what line of the financial statements you look at,” said Demosky. “Our team has diligently focused on every aspect of our business we control to deliver a company that is not only resilient but can avail itself to multiple paths to continued growth, in many varying market landscapes. We’ve effectively managed debt, enhanced our cost base, penetrated deeper into our addressable service market, grown our participation in defense and, most importantly, stand alone as the only OEM to meet delivery guidance the past 3 years.” (1)Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures.(2)Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures. Diversified revenue streams continue upward momentum with potential to reach 50% of total revenues by 2030 Bombardier’s revenues from its Services business stream have increased by approximately 77% since 2020, achieved through the expansion of the company’s service centre network and enhanced customer support offerings. This significant growth has been supported by the purposeful and methodical development of the company’s service structure—namely through workforce development, tooling and technology—all to efficiently operationalize the network. The company also continues to elevate its offerings by strategically developing key cloud and big data-based services programs, such as Smart Link Plus, to create new revenue paths that are built around enhancing Bombardier’s product experience. With these strong foundations in place, and a rapidly growing fleet of aircraft in service, the company is approximately one year ahead of its plan to meet the objective to grow its services revenue to $2 billion by 2025, and sees further growth potential, in the mid to high single digits annually through 2030. Bombardier also remains focused on growing its activities on the pre-owned market, which continues to represent a steady revenue stream. The company sees the potential to reach $500 million to $1 billion in revenues by 2030. To elevate its offer, Bombardier launched the Certified Pre-Owned program, a turnkey solution to buy pre-owned Learjet, Challenger and Global aircraft that meets the highest quality and safety standard. With this premium program, Bombardier created a new segment that continues to bring customers to the Bombardier family. The growth of Bombardier Defense also remains a key pillar for the company to continue on its upward trajectory, and over the past few years, Bombardier has made significant progress. The company’s defense portfolio now has the potential to reach revenues of $1 billion to $1.5 billion by 2030, further establishing its aircraft as future-proofed solutions to the world’s most demanding missions. Looking to the future with confidence, ambition and deployable capital Bombardier is now a more resilient business and is well positioned for long-term value creation, with several key growth levers at its disposal to help propel the business forward through 2030. The company’s industry-leading product portfolio is well positioned in the growing medium and large business jet categories and is poised to continue to be a significant revenue driver in the years ahead. Implementation of a disciplined and ROIC-focused capital allocation framework The company remains committed to further reducing debt levels and lower its interest costs while maintaining strong liquidity in the targeted range of $1 billion to $1.5 billion. After reaching its deleveraging objectives, the company will start looking at strategic ways to use its excess available liquidity, such as investing in its capital structure, inorganic growth opportunities and product lineup, all while maintaining an operational CAPEX investment of approximately $300 million annually. To that end, Bombardier is implementing a ROIC-focused approach as the company evaluates deployments beyond 2025. This approach builds on an established framework that has shown strong returns through multiple streams since 2021. “Over the past few years, we have made key investments in our business, for example with the introduction of the Bombardier Challenger 3500 and the Bombardier Global 8000 aircraft, set for entry into service in 2025,” added Demosky. “We have also invested in our Services business and expanded our network by nearly 1 million sq feet in 2022, and have grown our Defense business all while following a disciplined and return on invested capital framework. These targeted investments are paying off, and we plan to continue this approach to help us unlock further value while mitigating risks factors and pressure on the balance sheet.” Inauguration of Aircraft Assembly Centre at Pearson Airport in Toronto On May 1st, Bombardier will also proceed to the official inauguration of its state-of-the-art manufacturing centre at Pearson airport, where high-precision assembly work for the class-leading Bombardier Global family of aircraft will take place. The new world-class facility was designed with sustainability in mind, and boasts features that will reduce energy consumption by almost 60%. With this inauguration, Bombardier marks an important milestone and its firm commitment to continue to deliver the best business jets in the world. Martel concluded: “I also want to highlight that at the core of all our achievements lies our people. Their commitment and skill are unmatched and have helped propel us forward, ensuring we deliver the highest standards to our customers. Our new brand identity, which was unveiled last week, reinforces what we’ve always known to be true, that our people and our customers are at the centre of what we do.” Webcast details Bombardier’s 2024 Investor Day webcast will begin at 9:00 a.m. ET on May 1, 2024. Those wishing to attend the webcast are asked to sign up on this webpage (in English and in French). About Bombardier At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs. For them, we are committed to pioneering the future of aviation—innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it. Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico. For Information Bombardier’s Investor Day 2024 Presentation is available for download on the Investor Relations page on Bombardier’s website. For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim system visit bombardier.com. Follow us on X @Bombardier. Media Resources Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240-9649Mark Masluch Senior Director, Communications Bombardier +1 514 855-7167 FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, financial performance, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; customer value; expected demand for products and services; growth strategy; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and execution of orders in general; competitive position; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements, and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies, cost reduction and restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the ability to continue business growth and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; expectations regarding the availability of government assistance programs; the impact of new, or exacerbation of existing global health, geopolitical or military events on the foregoing and the effectiveness of our plans and measures in response thereto; and expectations regarding the strength of markets, economic downturns or recession, and inflationary and supply chain pressures. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, guidance, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release include the following material assumptions: growth of the business aviation market and the Corporation’s share of such market; proper identification and continued management of recurring cost saving; optimization of our real estate portfolio; and access to working capital facilities on market terms. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements - Assumptions section in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Given the impact of the changing circumstances surrounding new or continuing global health, geopolitical and military events, and the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is an inherently higher degree of uncertainty associated with the Corporation’s assumptions. Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: operational risks (such as risks related to business development and growth; order backlog; deployment and execution of our strategy, including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives; developing new products and services, including technological innovation and disruption; the certification of products and services; pressures on cash flows and capital expenditures, including due to seasonality and cyclicality; doing business with partners; product performance warranty and casualty claim losses; environmental, health and safety concerns and regulations; dependence on limited number of contracts, customers and suppliers, including supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems (including technology vulnerabilities, cybersecurity threats and privacy breaches); reliance on and protection of intellectual property rights; reputation risks; scrutiny and perception gaps regarding environmental, social and governance matters; adequacy of insurance coverage; risk management; and tax matters); financing risks (such as risks related to liquidity and access to capital markets; substantial debt and interest payment requirements, including execution of debt management and interest cost reduction strategies; restrictive and financial debt covenants; retirement benefit plan risk; exposure to credit risk; and availability of government support); risks related to regulatory and legal proceedings; risks associated with general economic conditions and disruptions, both regionally and globally, that may impact our sales and operations; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability and geopolitical tensions; financial and economic sanctions and export control limitations; global climate change; and force majeure events); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the first quarter ended March 31, 2024 and in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Any one or more of the foregoing factors may be exacerbated by new or continuing global health, geopolitical or military events, which may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this report and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Bombardier to Confirm 2025 Objectives Are on Track and Will Further Detail Growth Levers Through 2030 as Part of Investor Day 2024 By: Bombardier Inc. via GlobeNewswire May 01, 2024 at 06:30 AM EDT With an impressive turnaround plan in full gear, Bombardier maintains clear line of sight on meeting 2025 objectives Growth levers from 2025 to 2030 to focus on continuous product improvements and business segments with a high return-on-invested-capital (ROIC) Diversified revenue streams are building a foundation of resilience and long-term predictability Bombardier President and Chief Executive Officer, Éric Martel, and Executive Vice President and Chief Financial Officer, Bart Demosky, to provide webcast remarks, highlighting strategic initiatives, capital allocation plans and compelling valuation drivers Event hosted inside the company’s new Aircraft Assembly Centre in Toronto, which will be inaugurated later in the day MONTREAL, May 01, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (TSX: BBD.B) will host its Investor Day on May 1st, 2024, at its new state-of-the-art Aircraft Assembly Centre at Pearson Airport in Toronto. During the event – which will be webcast live – Bombardier’s executive leadership will review the company’s strong performance over the past three years and provide an in-depth look at how the company is set to meet its 2025 commitments. Éric Martel, President and Chief Executive Officer, and Bart Demosky, Executive Vice President and Chief Financial Officer, will be joined by members of Bombardier’s executive leadership team in Toronto to outline the company’s progress on several fronts, including the expansion of Bombardier Defense, growth in Services and in its pre-owned participation, as well as the company’s dedication to sustainability and operational excellence. They will also provide an update on how the company has positioned itself for growth through 2030 by building a resilient business, based on predictable and diversified revenue streams and supported by continued strategic investments. “Since starting our turnaround plan in 2020, our teams have delivered textbook-worthy results on all fronts, consistently meeting or surpassing many of our objectives. Bombardier is well on track to meet its 2025 objectives thanks to everyone’s collective focus on executing our plan flexibly, creatively and passionately,” said Martel. “As we now look toward the second half of what has already been a historic decade for the company, we are focused on creating even more value for shareholders by building on a predictable and resilient foundation. Bombardier will have room to grow organically, as well as to deploy capital strategically.” On final approach to 2025 objectives after benchmark performance Since the end of 2020, through to the end of 2023, Bombardier has recorded a 13% CAGR on revenues, which includes an impressive 21% CAGR for Services. Adjusted EBITDA(1) grew at a rate of 84% over this time frame with adjusted EBIDTA margin(2) growing by a factor of greater than 4 times to more than 15% in 2023. This well-rounded performance has put Bombardier on a clear path to achieve its stated 2025 objectives of more than $9 billion in revenues and more than $1.625 billion in adjusted EBITDA(1), with more than $900 million in free cash flow (FCF)(1) and a net leverage(2) ratio of 2.0x to 2.5x. “Bombardier’s ability to execute to plan has delivered year-after-year growth to be reckoned with, no matter what line of the financial statements you look at,” said Demosky. “Our team has diligently focused on every aspect of our business we control to deliver a company that is not only resilient but can avail itself to multiple paths to continued growth, in many varying market landscapes. We’ve effectively managed debt, enhanced our cost base, penetrated deeper into our addressable service market, grown our participation in defense and, most importantly, stand alone as the only OEM to meet delivery guidance the past 3 years.” (1)Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures.(2)Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures. Diversified revenue streams continue upward momentum with potential to reach 50% of total revenues by 2030 Bombardier’s revenues from its Services business stream have increased by approximately 77% since 2020, achieved through the expansion of the company’s service centre network and enhanced customer support offerings. This significant growth has been supported by the purposeful and methodical development of the company’s service structure—namely through workforce development, tooling and technology—all to efficiently operationalize the network. The company also continues to elevate its offerings by strategically developing key cloud and big data-based services programs, such as Smart Link Plus, to create new revenue paths that are built around enhancing Bombardier’s product experience. With these strong foundations in place, and a rapidly growing fleet of aircraft in service, the company is approximately one year ahead of its plan to meet the objective to grow its services revenue to $2 billion by 2025, and sees further growth potential, in the mid to high single digits annually through 2030. Bombardier also remains focused on growing its activities on the pre-owned market, which continues to represent a steady revenue stream. The company sees the potential to reach $500 million to $1 billion in revenues by 2030. To elevate its offer, Bombardier launched the Certified Pre-Owned program, a turnkey solution to buy pre-owned Learjet, Challenger and Global aircraft that meets the highest quality and safety standard. With this premium program, Bombardier created a new segment that continues to bring customers to the Bombardier family. The growth of Bombardier Defense also remains a key pillar for the company to continue on its upward trajectory, and over the past few years, Bombardier has made significant progress. The company’s defense portfolio now has the potential to reach revenues of $1 billion to $1.5 billion by 2030, further establishing its aircraft as future-proofed solutions to the world’s most demanding missions. Looking to the future with confidence, ambition and deployable capital Bombardier is now a more resilient business and is well positioned for long-term value creation, with several key growth levers at its disposal to help propel the business forward through 2030. The company’s industry-leading product portfolio is well positioned in the growing medium and large business jet categories and is poised to continue to be a significant revenue driver in the years ahead. Implementation of a disciplined and ROIC-focused capital allocation framework The company remains committed to further reducing debt levels and lower its interest costs while maintaining strong liquidity in the targeted range of $1 billion to $1.5 billion. After reaching its deleveraging objectives, the company will start looking at strategic ways to use its excess available liquidity, such as investing in its capital structure, inorganic growth opportunities and product lineup, all while maintaining an operational CAPEX investment of approximately $300 million annually. To that end, Bombardier is implementing a ROIC-focused approach as the company evaluates deployments beyond 2025. This approach builds on an established framework that has shown strong returns through multiple streams since 2021. “Over the past few years, we have made key investments in our business, for example with the introduction of the Bombardier Challenger 3500 and the Bombardier Global 8000 aircraft, set for entry into service in 2025,” added Demosky. “We have also invested in our Services business and expanded our network by nearly 1 million sq feet in 2022, and have grown our Defense business all while following a disciplined and return on invested capital framework. These targeted investments are paying off, and we plan to continue this approach to help us unlock further value while mitigating risks factors and pressure on the balance sheet.” Inauguration of Aircraft Assembly Centre at Pearson Airport in Toronto On May 1st, Bombardier will also proceed to the official inauguration of its state-of-the-art manufacturing centre at Pearson airport, where high-precision assembly work for the class-leading Bombardier Global family of aircraft will take place. The new world-class facility was designed with sustainability in mind, and boasts features that will reduce energy consumption by almost 60%. With this inauguration, Bombardier marks an important milestone and its firm commitment to continue to deliver the best business jets in the world. Martel concluded: “I also want to highlight that at the core of all our achievements lies our people. Their commitment and skill are unmatched and have helped propel us forward, ensuring we deliver the highest standards to our customers. Our new brand identity, which was unveiled last week, reinforces what we’ve always known to be true, that our people and our customers are at the centre of what we do.” Webcast details Bombardier’s 2024 Investor Day webcast will begin at 9:00 a.m. ET on May 1, 2024. Those wishing to attend the webcast are asked to sign up on this webpage (in English and in French). About Bombardier At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs. For them, we are committed to pioneering the future of aviation—innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it. Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico. For Information Bombardier’s Investor Day 2024 Presentation is available for download on the Investor Relations page on Bombardier’s website. For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim system visit bombardier.com. Follow us on X @Bombardier. Media Resources Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240-9649Mark Masluch Senior Director, Communications Bombardier +1 514 855-7167 FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, financial performance, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; customer value; expected demand for products and services; growth strategy; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and execution of orders in general; competitive position; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements, and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies, cost reduction and restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the ability to continue business growth and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; expectations regarding the availability of government assistance programs; the impact of new, or exacerbation of existing global health, geopolitical or military events on the foregoing and the effectiveness of our plans and measures in response thereto; and expectations regarding the strength of markets, economic downturns or recession, and inflationary and supply chain pressures. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, guidance, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release include the following material assumptions: growth of the business aviation market and the Corporation’s share of such market; proper identification and continued management of recurring cost saving; optimization of our real estate portfolio; and access to working capital facilities on market terms. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements - Assumptions section in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Given the impact of the changing circumstances surrounding new or continuing global health, geopolitical and military events, and the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is an inherently higher degree of uncertainty associated with the Corporation’s assumptions. Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: operational risks (such as risks related to business development and growth; order backlog; deployment and execution of our strategy, including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives; developing new products and services, including technological innovation and disruption; the certification of products and services; pressures on cash flows and capital expenditures, including due to seasonality and cyclicality; doing business with partners; product performance warranty and casualty claim losses; environmental, health and safety concerns and regulations; dependence on limited number of contracts, customers and suppliers, including supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems (including technology vulnerabilities, cybersecurity threats and privacy breaches); reliance on and protection of intellectual property rights; reputation risks; scrutiny and perception gaps regarding environmental, social and governance matters; adequacy of insurance coverage; risk management; and tax matters); financing risks (such as risks related to liquidity and access to capital markets; substantial debt and interest payment requirements, including execution of debt management and interest cost reduction strategies; restrictive and financial debt covenants; retirement benefit plan risk; exposure to credit risk; and availability of government support); risks related to regulatory and legal proceedings; risks associated with general economic conditions and disruptions, both regionally and globally, that may impact our sales and operations; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability and geopolitical tensions; financial and economic sanctions and export control limitations; global climate change; and force majeure events); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the first quarter ended March 31, 2024 and in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Any one or more of the foregoing factors may be exacerbated by new or continuing global health, geopolitical or military events, which may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this report and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
With an impressive turnaround plan in full gear, Bombardier maintains clear line of sight on meeting 2025 objectives Growth levers from 2025 to 2030 to focus on continuous product improvements and business segments with a high return-on-invested-capital (ROIC) Diversified revenue streams are building a foundation of resilience and long-term predictability Bombardier President and Chief Executive Officer, Éric Martel, and Executive Vice President and Chief Financial Officer, Bart Demosky, to provide webcast remarks, highlighting strategic initiatives, capital allocation plans and compelling valuation drivers Event hosted inside the company’s new Aircraft Assembly Centre in Toronto, which will be inaugurated later in the day MONTREAL, May 01, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (TSX: BBD.B) will host its Investor Day on May 1st, 2024, at its new state-of-the-art Aircraft Assembly Centre at Pearson Airport in Toronto. During the event – which will be webcast live – Bombardier’s executive leadership will review the company’s strong performance over the past three years and provide an in-depth look at how the company is set to meet its 2025 commitments. Éric Martel, President and Chief Executive Officer, and Bart Demosky, Executive Vice President and Chief Financial Officer, will be joined by members of Bombardier’s executive leadership team in Toronto to outline the company’s progress on several fronts, including the expansion of Bombardier Defense, growth in Services and in its pre-owned participation, as well as the company’s dedication to sustainability and operational excellence. They will also provide an update on how the company has positioned itself for growth through 2030 by building a resilient business, based on predictable and diversified revenue streams and supported by continued strategic investments. “Since starting our turnaround plan in 2020, our teams have delivered textbook-worthy results on all fronts, consistently meeting or surpassing many of our objectives. Bombardier is well on track to meet its 2025 objectives thanks to everyone’s collective focus on executing our plan flexibly, creatively and passionately,” said Martel. “As we now look toward the second half of what has already been a historic decade for the company, we are focused on creating even more value for shareholders by building on a predictable and resilient foundation. Bombardier will have room to grow organically, as well as to deploy capital strategically.” On final approach to 2025 objectives after benchmark performance Since the end of 2020, through to the end of 2023, Bombardier has recorded a 13% CAGR on revenues, which includes an impressive 21% CAGR for Services. Adjusted EBITDA(1) grew at a rate of 84% over this time frame with adjusted EBIDTA margin(2) growing by a factor of greater than 4 times to more than 15% in 2023. This well-rounded performance has put Bombardier on a clear path to achieve its stated 2025 objectives of more than $9 billion in revenues and more than $1.625 billion in adjusted EBITDA(1), with more than $900 million in free cash flow (FCF)(1) and a net leverage(2) ratio of 2.0x to 2.5x. “Bombardier’s ability to execute to plan has delivered year-after-year growth to be reckoned with, no matter what line of the financial statements you look at,” said Demosky. “Our team has diligently focused on every aspect of our business we control to deliver a company that is not only resilient but can avail itself to multiple paths to continued growth, in many varying market landscapes. We’ve effectively managed debt, enhanced our cost base, penetrated deeper into our addressable service market, grown our participation in defense and, most importantly, stand alone as the only OEM to meet delivery guidance the past 3 years.” (1)Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures.(2)Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures. Diversified revenue streams continue upward momentum with potential to reach 50% of total revenues by 2030 Bombardier’s revenues from its Services business stream have increased by approximately 77% since 2020, achieved through the expansion of the company’s service centre network and enhanced customer support offerings. This significant growth has been supported by the purposeful and methodical development of the company’s service structure—namely through workforce development, tooling and technology—all to efficiently operationalize the network. The company also continues to elevate its offerings by strategically developing key cloud and big data-based services programs, such as Smart Link Plus, to create new revenue paths that are built around enhancing Bombardier’s product experience. With these strong foundations in place, and a rapidly growing fleet of aircraft in service, the company is approximately one year ahead of its plan to meet the objective to grow its services revenue to $2 billion by 2025, and sees further growth potential, in the mid to high single digits annually through 2030. Bombardier also remains focused on growing its activities on the pre-owned market, which continues to represent a steady revenue stream. The company sees the potential to reach $500 million to $1 billion in revenues by 2030. To elevate its offer, Bombardier launched the Certified Pre-Owned program, a turnkey solution to buy pre-owned Learjet, Challenger and Global aircraft that meets the highest quality and safety standard. With this premium program, Bombardier created a new segment that continues to bring customers to the Bombardier family. The growth of Bombardier Defense also remains a key pillar for the company to continue on its upward trajectory, and over the past few years, Bombardier has made significant progress. The company’s defense portfolio now has the potential to reach revenues of $1 billion to $1.5 billion by 2030, further establishing its aircraft as future-proofed solutions to the world’s most demanding missions. Looking to the future with confidence, ambition and deployable capital Bombardier is now a more resilient business and is well positioned for long-term value creation, with several key growth levers at its disposal to help propel the business forward through 2030. The company’s industry-leading product portfolio is well positioned in the growing medium and large business jet categories and is poised to continue to be a significant revenue driver in the years ahead. Implementation of a disciplined and ROIC-focused capital allocation framework The company remains committed to further reducing debt levels and lower its interest costs while maintaining strong liquidity in the targeted range of $1 billion to $1.5 billion. After reaching its deleveraging objectives, the company will start looking at strategic ways to use its excess available liquidity, such as investing in its capital structure, inorganic growth opportunities and product lineup, all while maintaining an operational CAPEX investment of approximately $300 million annually. To that end, Bombardier is implementing a ROIC-focused approach as the company evaluates deployments beyond 2025. This approach builds on an established framework that has shown strong returns through multiple streams since 2021. “Over the past few years, we have made key investments in our business, for example with the introduction of the Bombardier Challenger 3500 and the Bombardier Global 8000 aircraft, set for entry into service in 2025,” added Demosky. “We have also invested in our Services business and expanded our network by nearly 1 million sq feet in 2022, and have grown our Defense business all while following a disciplined and return on invested capital framework. These targeted investments are paying off, and we plan to continue this approach to help us unlock further value while mitigating risks factors and pressure on the balance sheet.” Inauguration of Aircraft Assembly Centre at Pearson Airport in Toronto On May 1st, Bombardier will also proceed to the official inauguration of its state-of-the-art manufacturing centre at Pearson airport, where high-precision assembly work for the class-leading Bombardier Global family of aircraft will take place. The new world-class facility was designed with sustainability in mind, and boasts features that will reduce energy consumption by almost 60%. With this inauguration, Bombardier marks an important milestone and its firm commitment to continue to deliver the best business jets in the world. Martel concluded: “I also want to highlight that at the core of all our achievements lies our people. Their commitment and skill are unmatched and have helped propel us forward, ensuring we deliver the highest standards to our customers. Our new brand identity, which was unveiled last week, reinforces what we’ve always known to be true, that our people and our customers are at the centre of what we do.” Webcast details Bombardier’s 2024 Investor Day webcast will begin at 9:00 a.m. ET on May 1, 2024. Those wishing to attend the webcast are asked to sign up on this webpage (in English and in French). About Bombardier At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs. For them, we are committed to pioneering the future of aviation—innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it. Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico. For Information Bombardier’s Investor Day 2024 Presentation is available for download on the Investor Relations page on Bombardier’s website. For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim system visit bombardier.com. Follow us on X @Bombardier. Media Resources Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240-9649Mark Masluch Senior Director, Communications Bombardier +1 514 855-7167 FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, financial performance, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; customer value; expected demand for products and services; growth strategy; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and execution of orders in general; competitive position; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements, and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies, cost reduction and restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the ability to continue business growth and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; expectations regarding the availability of government assistance programs; the impact of new, or exacerbation of existing global health, geopolitical or military events on the foregoing and the effectiveness of our plans and measures in response thereto; and expectations regarding the strength of markets, economic downturns or recession, and inflationary and supply chain pressures. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, guidance, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release include the following material assumptions: growth of the business aviation market and the Corporation’s share of such market; proper identification and continued management of recurring cost saving; optimization of our real estate portfolio; and access to working capital facilities on market terms. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements - Assumptions section in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Given the impact of the changing circumstances surrounding new or continuing global health, geopolitical and military events, and the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is an inherently higher degree of uncertainty associated with the Corporation’s assumptions. Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: operational risks (such as risks related to business development and growth; order backlog; deployment and execution of our strategy, including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives; developing new products and services, including technological innovation and disruption; the certification of products and services; pressures on cash flows and capital expenditures, including due to seasonality and cyclicality; doing business with partners; product performance warranty and casualty claim losses; environmental, health and safety concerns and regulations; dependence on limited number of contracts, customers and suppliers, including supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems (including technology vulnerabilities, cybersecurity threats and privacy breaches); reliance on and protection of intellectual property rights; reputation risks; scrutiny and perception gaps regarding environmental, social and governance matters; adequacy of insurance coverage; risk management; and tax matters); financing risks (such as risks related to liquidity and access to capital markets; substantial debt and interest payment requirements, including execution of debt management and interest cost reduction strategies; restrictive and financial debt covenants; retirement benefit plan risk; exposure to credit risk; and availability of government support); risks related to regulatory and legal proceedings; risks associated with general economic conditions and disruptions, both regionally and globally, that may impact our sales and operations; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability and geopolitical tensions; financial and economic sanctions and export control limitations; global climate change; and force majeure events); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the first quarter ended March 31, 2024 and in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Any one or more of the foregoing factors may be exacerbated by new or continuing global health, geopolitical or military events, which may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this report and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.