Montreal-based planemaker Bombardier reported an Q1 adjusted loss of $69mn, narrowing from a loss of $173mn in Q1 2021. This was on the back of a 36% YoY jump in its adjusted EBITDA of $167mn that the company attributed to “Global 7500 margin expansion, execution of cost reduction plan and higher contributions from aftermarket.” Adjusted EBITDA margin improved to 13.4% vs. 9.2% in Q1 2021. Revenues however were 7% lower to $1.25bn largely due to lower aircraft deliveries of 21 vs. 26 in Q1 2021. The lower deliveries were partially offset by a 34% jump in aftermarket service revenues. Its unit book-to-bill (orderbook-to-deliveries) stood at 2.5x with its backlog rising by $1.3bn to $13.5bn since the start of 2022.
 Free cash flow from continuing operations was also strong at $173mn vs. -$405mn in Q1 2021 on the back of a $388mn net change in non-cash balances. Bombardier attributed this mainly to an increase in contract liabilities from advances on aerospace programs and a decrease in other financial assets from change in fair value of call options on its long-term debt. During the quarter, the company completed the partial redemption of its senior notes due 2024 and 2025 worth $400mn. The redemption was funded by cash and cash equivalents that currently stand at $1.4bn.
Bombardier’s 6% 2028s traded 0.4 points higher to 86.6 to yield 9.03%.
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