Deliveries of Bombardier's Global Jet Family are increasing.
Although Bombardier's first-quarter deliveries stayed flat year over year at 26 business jets, the company announced an 18 percent rise in business jet revenues thanks to a change in the mix to far more of its big, ultra-long-range models, including eight Global 7500s. The company's first earnings report as a pure-play business aviation company was released with the release of these quarterly results.
Photo From businessaircraft.bombardier.com
In the third quarter, Bombardier delivered 16 Globals, up from nine the year before. Two more Global 7500s were delivered in the first quarter of this year. Meanwhile, Challenger deliveries fell from 14 in the first quarter of 2020 to nine in the most recent quarter, while Learjet deliveries fell from three to one year over year as Bombardier prepares to phase out the product line by the end of the year.
The manufacturer is encouraged by the fact that EBITDA from continuing operations increased by 43% year over year to $123 million, thanks to increased deliveries of its top-of-the-line Globals as well as continued cost savings from Global 7500 production. Improvements in the cost structure of divestitures have helped with margins.
From the 50th to the 100th aircraft, Bombardier president and CEO Éric Martel stated that the company is on track to save 20% on the Global 7500 development programme. Given that certain parts, including the 100th wing shipset, have been assembled, he added that the company has a "strong line of sight" on those savings.
“In our first quarter as a pure-play business aviation company, Bombardier delivered solid financial performance,” Martel said. “This includes growth in business jet revenues, margin expansion, and significantly improved cash performance.”
Martel was also motivated by increased order activity, with the company's book-to-bill ratio reaching 1:1 during the period. However, the company's backlog, which dropped from $13.6 billion in the first quarter of 2020 to $10.4 billion at the end of March, must be rebuilt, according to e. Although the ramp-up of Global 7500 deliveries has contributed to the downturn, the pandemic has also had an impact. Order operation began slowly in January but picked up significantly in February and March, according to Martel, and this trend has continued into the second quarter.