Bombardier, the Canadian business jet manufacturer, announced on Thursday a decline in net income for the fourth quarter. Despite this, the company exceeded revenue expectations and outlined its goals to deliver more aircraft and generate increased revenue in 2024.
Q4 Financial Performance
For the fourth quarter, Bombardier reported a net income of $215 million, or $2.11 per share. This is a decrease from $241 million, or $2.40 per share, during the same quarter the previous year. However, adjusted earnings, which exclude exceptional and other one-off costs, were $1.37 per share. Analysts had predicted a decline to $1.09 per share.
Additionally, revenue rose to $3.06 billion, surpassing analyst expectations of a more modest increase to $2.87 billion.
Outlook for 2024
Looking ahead to 2024, Bombardier has set ambitious targets. After delivering 138 aircraft in 2023, the company anticipates delivering between 150 and 155 aircraft in 2024. This achievement is expected to generate $8.4 billion to $8.6 billion in revenue, representing an increase from the $8 billion recorded in 2023.
Furthermore, Bombardier expects adjusted earnings before interest, taxes, depreciation, and amortization to be higher in 2024 compared to 2023. The projected range is between $1.3 billion and $1.35 billion, up from $1.23 billion.
In terms of free cash flow, Bombardier provided a wide range for 2024, potentially exceeding or falling below the $257 million generated in 2023. The company aims to achieve free cash flow between $100 million and $400 million in 2024.
Bombardier attributed the anticipated revenue increase to the higher delivery volume, improved pricing, and the expansion of the aftermarket business.
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