Bombardier Reports Third Quarter 2019 Results

  • Consolidated revenues of $3.7 billion, representing 8% organic growth(1)
  • Consolidated adjusted EBITDA(2) and adjusted EBIT(2) of $255 million and $159 million, respectively; $143 million of reported EBIT
  • Free cash flow usage(2) of $682 million, supporting Global 7500 and Transportation ramp-up; $557 million operating cash flow usage
  • Clear roadmap to full year revenues, earnings(4) and free cash flow guidance supported by planned fourth quarter delivery schedules at Aviation and Transportation(3)

All amounts in this press release are in U.S. dollars unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated.

MONTRÉAL, Oct. 31, 2019 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today reported its third quarter 2019 financial results, highlighting continued progress on its turnaround.

Among its achievements in the third quarter, Bombardier obtained Transport Canada and European Aviation Safety Agency (EASA) certification for its new Global 5500 and Global 6500 aircraft, with the Global 6500 also entering service. Bombardier Transportation made steady progress addressing its challenging projects, while also growing and improving the quality of its backlog.

Bombardier’s consolidated revenues for the quarter were $3.7 billion, representing 8% organic growth year-over-year, driven mainly by a favourable delivery mix of large business aircraft and progress on rail projects. Order activity remained solid in the quarter, and the Company reported strong backlogs at Transportation and for business aircraft of $35.1 billion and $15.3 billion, respectively.

Consolidated adjusted EBITDA and adjusted EBIT for the quarter were $255 million and $159 million, respectively. Adjusted EBIT margin in Aviation was 6.0%, in line with expectations and driven by Global 7500 aircraft ramp-up and the dilutive effect of commercial aircraft activities. Adjusted EBIT margin in Transportation was 5.1%, reflecting a concentration of large, late-stage projects and planned investments in manufacturing and engineering capacity announced earlier this year. On a reported basis, EBIT for the quarter was $143 million.

Free cash flow usage was $682 million for the quarter, reflecting the intense ramp-up of the Global 7500 production and lower cash inflows associated with train deliveries and milestones payments that have moved into the fourth quarter. Cash flows usage from operating activities during the quarter was $557 million.

The Company continues to expect full-year free cash flow usage to be approximately $500 million, driven by seasonally strong fourth quarter cash flows, the acceleration of Global 7500 deliveries and the partial release of excess working capital at Transportation.(3) As we move beyond short-term challenges, Bombardier is positioned for 2020 earnings(3) growth and positive cash flow generation.(3)(5)

“We continue to make progress driving our turnaround,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “At Aviation, the recent certification of our new Global 5500 and Global 6500 aircraft, and the outstanding in-service performance of our new Global 7500, highlight the strength of our business jet franchise. At Transportation, we are turning the corner. We are making steady progress working through our legacy projects, giving us confidence in our ability to deliver stronger financial performance.”


Three-month periods ended September 30 2019 (6) 2018 Variance
Revenues $ 3,722 $ 3,643 2 %
Adjusted EBITDA $ 255 $ 333 (23 )%
Adjusted EBITDA margin(2) 6.9 % 9.1 % (220) bps
Adjusted EBIT $ 159 $ 271 (41 )%
Adjusted EBIT margin 4.3 % 7.4 % (310) bps
EBIT $ 143 $ 267 (46 )%
EBIT margin 3.8 % 7.3 % (350) bps
Net income (loss) $ (91 ) $ 149 nmf
Diluted EPS (in dollars) $ (0.06 ) $ 0.04 $ (0.10 )
Adjusted net income (loss)(2) $ (55 ) $ 167 nmf
Adjusted EPS (in dollars)(2) $ (0.04 ) $ 0.04 $ (0.08 )
Net additions to PP&E and intangible assets $ 125 $ 229 (45 )%
Cash flows from operating activities $ (557 ) $ (141 ) (295 )%
Free cash flow usage $ (682 ) $ (370 ) (84 )%
As at September 30, 2019
December 31, 2018 Variance
Available short-term capital resources(7) $ 3,010 $ 4,373 (31 )%
Order backlog (in billions of dollars)
Business aircraft $ 15.3 $ 14.3 7 %
Other aviation(8) $ 2.6 $ 4.3 (40 )%
Transportation $ 35.1 $ 34.5 2 %
Nine-month periods ended September 30 2019 (6) 2018 Variance
Revenues $ 11,552 $ 11,933 (3 )%
EBIT $ 1,198 $ 659 82 %
EBIT margin 10.4 % 5.5 % 490 bps
Adjusted EBIT $ 536 $ 743 (28 )%
Adjusted EBIT margin 4.6 % 6.2 % (160) bps
Adjusted EBITDA $ 833 $ 934 (11 )%
Adjusted EBITDA margin 7.2 % 7.8 % (60) bps
Net income $ 112 $ 263 (57 )%
Diluted EPS (in dollars) $ (0.02 ) $ 0.08 $ (0.10 )
Adjusted net income (loss) $ (224 ) $ 289 nmf
Adjusted EPS (in dollars) $ (0.16 ) $ 0.09 $ (0.25 )
Net additions to PP&E and intangible assets $ 402 $ 167 141 %
Cash flows from operating activities $ (1,753 ) $ (692 ) (153 )%
Free cash flow usage $ (2,155 ) $ (859 ) (151 )%


Following the strategic formation of Bombardier Aviation, effective July 1, 2019, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services are reported under Aviation. Prior periods have been restated to reflect this new reporting structure. The Corporation’s interest in Airbus Canada Limited Partnership (ACLP) is treated as a corporately held investment and therefore is not included in Aviation.


Results of the quarter
Three-month periods ended September 30 2019 (6) 2018 Variance
Revenues $ 1,558 $ 1,504 4 %
Aircraft deliveries (in units)
Business aircraft 31 31
Commercial aircraft (9) 6 5 1
Adjusted EBITDA $ 154 $ 166 (7 )%
Adjusted EBITDA margin 9.9 % 11.0 % (110) bps
Adjusted EBIT $ 93 $ 129 (28 )%
Adjusted EBIT margin 6.0 % 8.6 % (260) bps
EBIT $ 96 $ 132 (27 )%
EBIT margin 6.2 % 8.8 % (260) bps
Net additions to PP&E and intangible assets $ 87 $ 191 (54 )%
As at September 30, 2019
December 31, 2018
Order backlog (in billions of dollars)
Business aircraft $ 15.3 $ 14.3 7 %
Other aviation $ 2.6 $ 4.3 (40 )%
  • Revenues of $1.6 billion during the quarter reflect double-digit organic growth year-over-year (excluding the Q400 and training activities divestitures completed earlier this year), driven by the Global 7500, external aerostructures revenues and stronger aftermarket services.
  • Deliveries during the quarter totalled 37 aircraft, including 6 CRJ and 31 business aircraft. Revenue grew mainly because of a favourable mix of large business aircraft sales led by 2 Global 7500 deliveries and the entry into service of the first Global 6500 aircraft.
  • On September 24, 2019, the Global 5500 and Global 6500 aircraft were awarded Transport Canada Type Certification, followed by EASA certification. The Global 5500 and Global 6500 aircraft showcase the ingenuity of innovation by bringing value to customers with segment-leading ranges and reduced operating costs.
  • As the pace of deliveries accelerates into the fourth quarter, Aviation is on track to reach 175 to 180 aircraft deliveries for the full-year on revenues of approximately $8.0 billion(3). Production ramp-up of the Global 7500 continues to make steady progress with an estimated 10 to 15 aircraft deliveries in the fourth quarter(3).
  • Order momentum remained healthy during the quarter for business aircraft, with backlog stable at an  industry-leading $15.3 billion. For the first nine months, business aircraft backlog increased by $1.0 billion.
  • Adjusted EBIT margin for the third quarter was 6.0% (6.2% EBIT margin), in line with expectations as the ramp-up of the Global 7500 aircraft and the dilutive effect of commercial aircraft activities weigh on Aviation margins. Year-to-date, adjusted EBIT margin was 7.6% (21.6% reported EBIT margin), tracking to full year margin guidance of 7.0%.(3)


Results of the quarter
Three-month periods ended September 30 2019 (6) 2018 Variance
Revenues $ 2,175 $ 2,140 2 %
Order intake (in billions of dollars) $ 4.5 $ 1.9 137 %
Book-to-bill ratio(10) 2.1 0.9 1.2
Adjusted EBITDA (11) $ 144 $ 212 (32 )%
Adjusted EBITDA margin (11) 6.6 % 9.9 % (330) bps
Adjusted EBIT(11) $ 110 $ 187 (41 )%
Adjusted EBIT margin(11) 5.1 % 8.7 % (360) bps
EBIT(11) $ 88 $ 184 (52 )%
EBIT margin(11) 4.0 % 8.6 % (460) bps
Net additions to PP&E and intangible assets $ 48 $ 36 33 %
As at September 30, 2019
December 31, 2018
Order backlog (in billions of dollars) $ 35.1 $ 34.5 2 %
  • Transportation is gradually turning the corner on large, legacy projects as it makes progress against key project milestones.
    °  With deliveries increasing approximately 15% over the previous quarter, this progress positions the business to further accelerate the release of excess working capital starting in the fourth quarter and into 2020 and 2021.(3)
    °  To achieve this result, we are nearing completion of software testing and homologation for U.K. projects while completing production and we continue driving stronger in-service reliability in Switzerland and Germany to trigger customer acceptance of trains in operation.
    °  Longer term, the turnaround at Transportation is supported by the recent redeployment of resources, investments in additional capacity, and a strengthened management team, resting on a solid backlog and quality order intake. This drives our confidence in the long-term prospects of the business.
  • Revenues during the quarter totalled $2.2 billion, delivering 5% growth year-over-year, excluding currency translation, mainly coming from services. Transportation remains on track to the full year revenue guidance of approximately $8.75 billion,(3) assuming a 1.12 Euro to U.S. exchange rate.
  • Adjusted EBIT margin(3) for the quarter of 5.1% is in line with full year guidance of approximately 5.0%, reflecting a concentration of large, late-stage projects and includes the costs associated with planned investments in manufacturing and engineering capacity announced earlier this year. Reported EBIT margin for the quarter is 4.0%.
  • Backlog grew to $35.1 billion during the quarter, supported by $4.5 billion of order intake driving a book-to-bill ratio of 2.1. For the first nine months of the year, Transportation’s order intake was $8.1 billion, with a strong mix of high re-use projects, services and signalling orders as well as significant call-offs. Improving the backlog mix by replacing legacy projects with lower-risk projects is key to return to stronger financial performance.
    °  Highlighting the quarters’ order activity, Transportation is part of a consortium that was awarded a contract to supply and operate two monorail lines in Cairo, Egypt with its share valued at $2.64 billion. This award leverages Transportation’s INNOVIA monorail platform through an integrated offering of rolling stock and systems, signalling and services solutions. This project re-uses the platform operating in Sao Paulo, Brazil, since 2014 and currently under construction in Bangkok, Thailand and Wuhu, China.

About Bombardier
With over 68,000 employees, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries as well as a broad portfolio of products and services for the business aviation, commercial aviation and rail transportation markets. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at or follow us on Twitter @Bombardier.

Bombardier, Challenger, CRJ, CRJ900, Global, Global 5500, Global 6500, Global 7500, INNOVIA and Learjet are trademarks of Bombardier Inc. or its subsidiaries.

 For information

Jessica McDonald
Advisor, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481
Patrick Ghoche
Vice President, Corporate Strategy and Investor Relations
Bombardier Inc.
+514 861 5727

The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at

bps: basis points
nmf: information not meaningful
(1) Excluding divestitures and currency translation impact.
(2) Non-GAAP financial measures. Refer to the Caution regarding Non-GAAP financial measures below for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(3) See the forward-looking statements disclaimer at the end of this press release as well as the forward-looking statements section in Overview and the Guidance and forward-looking statements section in each reportable segment in the Corporation’s 2018 Financial Report for details regarding the assumptions on which the guidance is based.
(4) Defined as adjusted EBITDA and adjusted EBIT.
(5) Free cash flow target for 2020 excludes cash flow from the CRJ program, as well as payments associated with CRJ retained liabilities such as credit and residual value guarantees.
(6) Refer to Note 2 – Changes in accounting policies, to our interim consolidated financial statements, for the impact of the adoption of IFRS 16, Leases. Under the modified retrospective approach adopted by the Corporation, 2018 figures are not restated.
(7) Defined as cash and cash equivalents plus the amount available under our revolving credit facilities.
(8) Including 32 firm orders for CRJ900 as of September 30, 2019 and 45 firm orders and 4 options for CRJ900 as of December 31, 2018.
(9) On May 31, 2019, the Corporation completed the previously announced sale of the Q Series aircraft program assets, including aftermarket operations and assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited). 2 Q Series aircraft deliveries are included in comparative period of 2018.
(10) Ratio of new orders over revenues.
(11) Including share of income from joint ventures and associates amounting to $20 million for the three-month period ended September 30, 2019 ($22 million for the three-month period ended September 30, 2018).


This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures:

Non-GAAP financial measures
Adjusted EBIT EBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges and significant impairment charges and reversals.
Adjusted EBITDA Adjusted EBIT plus amortization and impairment charges on PP&E and intangible assets.
Adjusted net income (loss) Net income (loss) excluding special items, accretion on net retirement benefit obligations, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L and the related tax impacts of these items.
Adjusted EPS EPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements.
Free cash flow (usage) Cash flows from operating activities less net additions to PP&E and intangible assets.

Non-GAAP financial measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. The exclusion of certain items from non-GAAP performance measures does not imply that these items are necessarily non-recurring. Other entities in our industry may define the above measures differently than we do. In those cases, it may be difficult to compare the performance of those entities to ours based on these similarly-named non-GAAP measures.

Prior to the first quarter of fiscal year 2019, the Corporation reported non-GAAP measures labelled “EBIT before special items” and “EBITDA before special items”. Beginning in the first quarter of fiscal year 2019, the Corporation changed the label of these non-GAAP measures to “adjusted EBIT” and “adjusted EBITDA”, respectively, without making any change to the composition of these non-GAAP measures. The Corporation believes that this new label aligns better with broad market practice in its industry and better distinguishes these measures from the IFRS measurement “EBIT”.

Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS
Management uses adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS for purposes of evaluating underlying business performance. Management believes these non-GAAP earnings measures in addition to IFRS measures provide users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS exclude items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on these financial measures. Management believes these measures help users of MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.

Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.

Reconciliations of non-GAAP financial measures to the most comparable IFRS financial measures are provided in the tables hereafter, except for the following reconciliations:

  • adjusted EBIT to EBIT – see the Results of operations tables in the reporting segments and Consolidated results of operations section of the Corporation’s MD&A for the quarter ended September 30, 2019.
Reconciliation of segment to consolidated results
Three-month periods
ended September 30

Nine-month periods
ended September 30

(1) 2018
(1) 2018
Aviation $ 1,558 $ 1,504 $ 5,088 $ 5,182
Transportation 2,175 2,140 6,476 6,754
Corporate and Others (11 ) (1 ) (12 ) (3 )
$ 3,722 $ 3,643 $ 11,552 $ 11,933
Adjusted EBIT
Aviation $ 93 $ 129 $ 388 $ 288
Transportation 110 187 304 583

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