Bombardier Inc. announced solid fourth quarter and full-year 2024 financial results, closing out the company’s fourth consecutive year of sustained growth across all key metrics.
“Our team passionately and proudly executed our plan in 2024 at a very high level, growing revenue to meet guidance, growing deliveries, growing our backlog, meaningfully expanding our margins, and reaching a net leverage ratio of 2.9x,” said Éric Martel, President and Chief Executive Officer, Bombardier. “Four years ago, we outlined a bold vision for how we wanted to structure Bombardier for success. Our company has accomplished more than we set out to, including reaching our 2-billion-dollar service revenue ambition a full year ahead of schedule by rapidly elevating our customer experience and offerings. Whether in our operations, in the field or on our balance sheet, we have time and again demonstrated that we are strong and resilient.”
Strong Revenue Growth Driven by Impressive Services Performance
Bombardier reported total revenues of $8.7 billion for 2024, surpassing guidance with an 8% increase year-over-year, driven by a solid delivery mix and record services revenue. The company’s Services business continued its impressive performance with $2.04 billion in revenue, reaching the long-term objective outlined as part of the company’s 2021 Investor Day a full year in advance. Services revenues were up 16% from 2023, continuing its double-digit growth trend as all major network expansion projects are now fully operationalized.
Higher Deliveries and Order Activity Fuel Healthy Backlog
Bombardier continued to maintain a disciplined approach to its production, rounding out a particularly active fourth quarter of 2024 to reach total of 146 aircraft deliveries for the year, versus 138 in 2023. Backlog was up $200 million from 2023, reaching $14.4 billion as at December 31, 2024. The company also reported a full-year unit book-to-bill of 1.0, reflecting steady and strong demand.
Increased Profitability Continues to Support Deleveraging Efforts
Bombardier maintained its profitable growth trajectory for 2024. Adjusted net income saw a significant up-tick in 2024, reaching $547 million. Full-year adjusted EPS rose 31% year-over-year, up from $3.94 in 2023 to $5.16 in 2024. Diluted EPS was $3.40 for full-year 2024.
Adjusted EBITDA came in at $1.36 billion for 2024, representing 11% growth year-over-year, driven mainly by higher deliveries and an increased contribution from Services, partially offset by supply chain disruption costs. Full-year adjusted EBIT reached $915 million, up 15% from 2023.
The company reported free cash flow (FCF) generation of $232 million, ending the year in line with expectations. Contributing factors to the full-year FCF generation result included strong profitability, disciplined capital investments, inventory build to support production rates, higher supplier advances that offset lower customers advances, due to timing of progress payments. Cash flow from operating activities and net additions to PP&E and intangible assets were at $405 million and $173 million respectively for full-year 2024.
Bombardier continued its successful progress on de-leveraging with approximately $400 million in debt reduction in 2024, bringing the adjusted net debt to adjusted EBITDA ratio down from 3.3x in 2023 to 2.9x. Available liquidity was $2.1 billion as at December 31, 2024.
In 2024, approximately $635 million in annuities were purchased for certain pensioners and beneficiaries of the Bombardier pension plans registered in Québec, further strengthening the company’s balance sheet.
Update on 2025 Outlook
On February 1, 2025, the President of the United States issued three executive orders directing the United States to impose new tariffs on imports originating from Canada, Mexico and China. These orders call for additional 25% duty on imports into the United States of Canadian-origin and Mexican-origin products and 10% duty on Chinese-origin products, except for Canadian energy resources that are subject to an additional 10% duty. In light of the rapidly evolving schedule for tariff implementation and the effects they may have, Bombardier has elected to defer providing guidance and 2025 objectives, until the Corporation has had the opportunity to further assess the direct and indirect impacts to its business of such tariffs, retaliatory tariffs or other trade protectionist measures implemented as this situation develops. Bombardier’s long-term priorities and strategic orientation remain intact, including plans for continuing growth in its Defense and Services businesses and continued de-leveraging.