Bombardier swings to adjusted profitability in Q1 with increased high-end plane deliveries and strong demand for aftermarket services.

Bombardier's (BBD-B:TSX) Gives Positive Outlook on Demand

Bombardier Inc. News:

Bombardier reported a swing to adjusted profitability in the first quarter of the year, driven by an increased delivery of its high-end planes. The company generated quarterly revenue of $1.5 billion, an increase of 17% compared to the same period last year. The revenue growth was due to an improved delivery mix of more medium and large-cabin corporate jets, along with strong demand for its aftermarket services.

Adjusted net income was reported at $113 million, compared to a loss of $69 million a year ago. This marks a significant turnaround for the company, which has been facing challenges in recent years, including the sale of some of its business units and a debt restructuring plan.

The company’s positive results were primarily driven by an increase in deliveries of its more expensive planes, which helped to boost its overall revenue. Bombardier delivered 36 jets in the first quarter of the year, up from 29 planes during the same period last year. The company has also increased its production rate to meet growing demand from customers, which has contributed to higher working capital needs.

Bombardier reported negative free cash usage of $247 million during the quarter, which is a closely watched metric by investors. This is due to higher working capital needs to deliver more than 138 planes this year, up from 123 planes in 2022. However, the company generated $173 million in positive free cash during the same quarter a year earlier.

Despite the positive results, Bombardier continues to face challenges, including intense competition from rivals such as Gulfstream and Dassault Aviation. The company has been focusing on expanding its product offerings, including the recent launch of its Learjet 75 Liberty business jet, which is designed for customers who are looking for a more cost-effective option.

Bombardier’s positive results in the first quarter are a good sign for the company and its investors. The increased delivery of its higher-end planes and strong demand for its aftermarket services are positive indicators for the company’s future growth prospects.

Bombardier Inc Stock Forecast:

The average analyst target price for Bombardier Inc over the next 12 months is CAD 68.24, and the average analyst rating is Buy. Stock Target Advisor‘s analysis of the stock is Neutral, based on 4 positive and 4 negative signals. The last closing price for Bombardier Inc’s stock was CAD 64.54, which is a decrease of 7.43% over the past week, a decrease of 0.42% over the past month, and an increase of 106.53% over the last year.

BBD-B:CA Ratings by Stock Target Advisor

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