Canadian planemaker Bombardier’s preliminary revenue and free cash flow results surpass analysts’ expectations amid the growing demand for business jets.
Montreal-based Bombardier now expects full-year revenue to come in at about US$6.9 billion, up from a prior outlook of about US$6.5 billion. In addition, the planemaker is taking steps to reduce the cost of its debt. Analysts on average expected the company to post annual revenue of US$6.56 billion, reported Reuters.
Planemakers globally struggled in 2022 to hike production amid supply chain and labor disruptions, as well as soaring inflation. However, Bombardier has managed to perform better than most. “Despite all the challenges that the supply chain is offering, we have been extremely proactive for the last two years and a half, managing the situation and we are looking forward with that confidence in terms of our deliveries,” said Eric Martel, CEO, Bombardier, in November 2022.
Following the announcement, Bombardier’s shares rose 4% in morning trade in Toronto. The company’s fourth-quarter and full-year 2022 results will be announced on Feb. 9.
Business jet makers have reported growing order backlogs due to persistent strong demand for private flying. The trend has benefited Bombardier, as its stock has risen about 31% in 2022, as has the stock of rivals Gulfstream, General Dynamics Corp and Textron Inc. However, private flying in North America is expected to slow down in 2023 after two years of record highs linked to the COVID-19 pandemic, according to WINGX’s forecast.
Bombardier is present in Mexico, where it manufactures aeronautical components and complex systems for the Challenger and Global business jets in Queretaro, including the rear fuselage of the Global 7500 business jet, its flagship aircraft. In May 2021, Bombardier celebrated its 15-year anniversary of operations in Queretaro with the completion of the 100th rear fuselage.
The business jet maker recently announced that it will increase production of aerospace parts at its manufacturing facilities in Queretaro, positioning Mexico as a strategic hub for the company. The planemaker highlighted the plant’s highly qualified workforce and state-of-the-art technology capacities.
Boeing, Airbus Hit Back Over Criticism of Delivery Delays
The world’s largest planemakers defended themselves from criticism over delivery delays, after a Boeing executive said that increasing production after COVID-19 lockdowns was “not as easy as an on/off switch,” as reported by Reuters.
During a major industry conference, aircraft leasing firms hammered planemakers over delays. While Steven Udvar-Hazy, Executive Chairman, Air Lease, said they had “grossly misjudged” output, AerCap, one of Airbus’ largest customers, called the firm’s production targets “very ambitious.”