Canadian aerospace powerhouse Bombardier has delivered a stellar financial performance for the first quarter of 2024, surpassing analyst expectations and demonstrating robust growth across key business segments.
The Montreal-based aircraft manufacturer reported revenue of US$1.3 billion for the quarter ending March 31, significantly exceeding the US$1.2 billion forecast by industry analysts. This impressive result represents a substantial increase from the same period last year, highlighting the company's continued momentum in the aerospace sector.
Services Division Drives Growth
A major contributor to Bombardier's strong performance was its rapidly expanding services business. The company's aviation services segment saw remarkable growth, with revenue increasing by an impressive 26% year-over-year. This surge in service-related income underscores Bombardier's successful strategy to diversify its revenue streams beyond aircraft manufacturing.
Increased Aircraft Deliveries
The company also reported healthy growth in its core manufacturing operations. Bombardier delivered 20 business jets during the quarter, up from 18 aircraft in the same period last year. This increase in deliveries reflects sustained demand for luxury private aircraft despite broader economic uncertainties.
Financial Health Strengthens
Beyond the revenue beat, Bombardier demonstrated improved financial discipline. The company reported a significant reduction in its free cash flow usage, burning through only US$21 million compared to US$317 million during the first quarter of 2023. This improvement indicates better working capital management and operational efficiency.
Looking ahead, Bombardier maintains its positive outlook for the full year, reaffirming its 2024 guidance that projects revenue of approximately US$6.9 billion and free cash flow generation of US$100 million to US$200 million.
