Mr. Eric Martel reports

BOMBARDIER SIGNIFICANTLY INCREASES PROFITABILITY IN SECOND QUARTER 2023 AS YEAR-OVER-YEAR REVENUE GROWTH CONTINUES

Bombardier Inc. has released its financial results for the second quarter of 2023, signalling continued progress on all business fundamentals and performance on track toward reaching 2023 full-year guidance. All amounts in this press release are in United States dollars, unless otherwise indicated.

"Bombardier delivered a very strong second quarter. Our team successfully navigated a highly dynamic business environment that saw sustained demand for new and preowned jets, as well as steady service growth, all while supply chain pressure persisted," said Eric Martel, president and chief executive officer, Bombardier. "We continue to progress on our positive trajectory by delivering remarkable growth in profitability, propelled by a strong adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] increase and margin expansion, as well as a positive adjusted net income and earnings per share. Thanks to our team's tremendous work, we boosted our revenues this quarter by 8 per cent year over year, driven in part by an exceptional 19-per-cent year-over-year aftermarket revenue increase."

Strong deliveries and continued solid aftermarket performance drive revenue growth

Bombardier reported $1.7-billion in revenues, an 8-per-cent year-over-year increase, driven by strong deliveries and higher aftermarket revenues. With 29 deliveries, Bombardier delivered one more aircraft than the same quarter last year and has a solid line of sight to reach the overall 2023 guidance of greater than 138 deliveries. The company's aftermarket business continued its stellar performance in the second quarter 2023, generating $428-million in revenue, an impressive 19-per-cent increase compared with the same quarter last year.

Backlog rose to $14.9-billion in the second quarter of 2023, an increase of $100-million since the end of the previous quarter, supported by a unit book-to-bill ratio of 1.1.

Impressive profitability and margin expansion

Total adjusted EBITDA for the quarter was $275-million, representing an adjusted EBITDA margin of 16.4 per cent and a significant 350-basis-point margin expansion over the same quarter last year. Rising margins across all platforms, growth of aftermarket business and disciplined operations are driving these metrics forward. The adjusted EBIT totalled $190-million, up 84 per cent compared with the same period of 2022.

The company once more reported positive adjusted net income in the second quarter of 2023; it reached $80-million, compared with a loss of $38-million in the same quarter last year. Reported net income was $10-million. The adjusted earnings per share was positive as well, at 72 cents.

The $222-million free cash flow usage in the second quarter of 2023 was in line with expectations. It includes the non-recurring payments of $104-million on residual value guarantees to the now divested commercial aviation business, capital expenditure spending to support the completion of the new Global aircraft manufacturing centre at Toronto Pearson Airport, set to open this year, and working capital build to support higher deliveries in the second half of the year.

About Bombardier Inc.

Bombardier is a global leader in aviation, focused on designing, manufacturing and servicing the world's most exceptional business jets. Bombardier's Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in government and military special-mission roles leveraging Bombardier Defense's proven expertise.

Headquartered in Montreal, Que., Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company's robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the United Arab Emirates, Singapore, China and Australia.

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