Bombardier Inc B Stock Price, News & Analysis

Bombardier's Board of Directors has approved a new normal course issuer bid (NCIB) for its Class B shares, set to commence in May 2023, subject to regulatory approval. This follows the early termination of the previous NCIB, which purchased the maximum allowed 880,000 shares. The new NCIB aims to buy up to 600,000 Class B shares, approximately 0.69% of the outstanding shares, with an expectation to cancel about 85,000 shares. The new NCIB will utilize various purchasing methods including open market transactions and private agreements. The specifics regarding the execution of this NCIB will be disclosed later.

Bombardier reported strong Q1 2023 revenues of $1.5 billion, a 17% year-over-year increase, bolstered by enhanced delivery mix and robust aftermarket revenues of $424 million. Adjusted EBITDA rose by 27% to $212 million, while reported net income surged to $302 million, yielding an adjusted EPS of $1.06. The company remains on track to meet its full-year delivery guidance of over 138 aircraft. Notably, Bombardier's debt reduction efforts are yielding results with approximately $400 million repaid this quarter, leading to a B2 credit rating upgrade from Moody's. The backlog stands stable at $14.8 billion, reflecting ongoing positive demand.

Bombardier Defense will showcase its aircraft solutions at the Army Aviation Mission Solutions Summit in Nashville, Tennessee, from April 26 to 28, 2023. The company will debut its virtual showroom, allowing customers to explore various configurations of the Challenger and Global aircraft families, including a Multi-Role Medevac Challenger 650, ISR-configured Global 6500, and VIP transport Global 8000.

This immersive experience aims to enhance customer engagement by providing 3-D models and a 360-degree view of the aircraft, showcasing Bombardier's customization capabilities for mission-specific needs. Vice President Steve Patrick emphasized the importance of this summit as a venue to demonstrate Bombardier's versatile aircraft, which are trusted by governments worldwide for various missions, including surveillance and transport.

Bombardier is scheduled to release its financial results for the first quarter of 2023 on April 27, 2023. This announcement will be accompanied by a webcast and conference call for investors and analysts at 8:00 a.m. ET. During this session, executives will discuss the company's performance for the quarter ending March 31, 2023.

Additionally, Bombardier will hold its Annual General Meeting of Shareholders the same day at 10:30 a.m. ET, which will be accessible to shareholders via a live webcast. Only registered shareholders and proxyholders will be able to vote and pose questions during the meeting.

Bombardier has received approvals from Transport Canada, EASA, and FAA for its Smart Link Plus system installations on Challenger and Global aircraft. Operators can now book installations across Bombardier's Service Centre network, enhancing operational efficiency through data-driven decisions. The Smart Link Plus system allows real-time monitoring and troubleshooting, significantly improving maintenance capabilities for in-service Challenger 300, 350, 3500, 605, and 650, as well as Global 5000, 6000, Express, and XRS models. The system was initially launched on the Global 7500 and is set to be included as standard on the new Global 8000. With continued expansion of its Service Centre network and the rollout of new products, Bombardier aims to enhance customer service and operational support.

On April 5, 2023, Bombardier announced a rating increase from Moody's, highlighting the company's significant progress in debt reduction, earnings growth, and free cash flow generation. This rating boost aligns with Bombardier's updated 2025 objectives presented at their recent Investor Day. The company's strategic plan from 2021 remains on track, focusing on reducing debt and improving financial performance. With a global fleet of approximately 5,000 aircraft and a strong customer support network, Bombardier is optimistic about its future. The company emphasizes its commitment to sustainable practices, aiming to utilize Sustainable Aviation Fuel (SAF) for all operations.

Bombardier hosted its 2023 Investor Day on March 23, showcasing significant progress toward its 2025 strategic objectives. The company now targets over $9 billion in annual revenue, exceeding previous estimates of $7.5 billion. Adjusted EBITDA expectations have been raised to above $1,625 million with an adjusted EBITDA margin of approximately 18%. Free cash flow is projected to surpass $900 million annually by 2025, while net leverage ratio objectives have improved to between 2.0x and 2.5x. Bombardier also reported a 23% revenue increase from 2020 to 2022, driven by growth in the aftermarket business. Future plans include expanding into Defense markets, aiming for over $1 billion in revenues by the decade's end.