Canadian private jet manufacturer Bombardier has seen its revenues rise to $1.5 billion in the course of the first quarter of 2023.
This represents a 17% rise on the primary quarter in 2022, when revenues of $1.2 billion were announced by the corporate.
Bombardier has said that the positive results were reflective of profits driven by stronger aircraft margins, mainly on large-cabin aircraft, and aftermarket growth.
In line with Reuters, Bombardier delivered 22 business jets between January and March 2023, a rise of 1 in comparison with 2022.
Nevertheless, the jets were within the mid-size and large-cabin range, so this has helped to extend profit margins.
The positive trend in deliveries has continued in the primary quarter of 2023, with deliveries (excluding Learjet, which is not any longer in production) up 22% year-over-year.
“Bombardier has delivered a really strong first quarter. Our robust performance adds to our extremely positive track record from the past two years and confirms we’re on the proper trajectory,” said Éric Martel, president and CEO of Bombardier
He added: “With a really healthy, positive adjusted net income, further debt reduction, continued margin expansion, and ramped up production to succeed in our guidance of greater than 138 deliveries this 12 months, we’re forging ahead towards the upgraded 2025 targets we presented during our Investor Day last month.”
The corporate’s adjusted EBITDA margin rose 120 basis points year-over-year to 14.6% while the adjusted EBIT reached $138 million in the primary quarter of 2023, up 89% in comparison with the identical quarter last 12 months.
The expected ramp-up in production to construct inventory, in addition to strategic investments, reminiscent of the brand new Global production facility on the Pearson airport in Toronto set to open at the top of 2023, have led to some predicted free money flow usage this 12 months.
Bombardier’s aftermarket business also continues its positive performance and has contributed to the corporate’s bottom line with $424 million in revenues in the primary quarter of 2023, up 17% year-over-year.