Mr. Eric Martel reports

BOMBARDIER REPORTS IMPRESSIVE GROWTH IN REVENUES AND OPERATING PROFITABILITY IN THIRD QUARTER 2023, ON TOP OF SOLID CASH GENERATION AND BOOK-TO-BILL

Bombardier Inc. has released solid financial results for the third quarter of 2023, reflecting continued progress toward reaching its 2023 targets on all guided metrics.

Highlights:

• Third quarter 2023 revenues grew to $1.9-billion, an impressive 28 per cent year-over-year increase, driven by higher deliveries and continued momentum in aftermarket business that generated $414-million in revenue for the quarter, an 11-per-cent year-over-year increase.
• Year-over-year operating profitability for the quarter rose on favourable margin performance and higher aftermarket contributions, with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increasing by 36 per cent to $285-million and an adjusted EBITDA margin of 15.4 per cent. Third quarter 2023 reported EBIT (earnings before income taxes) reached $197-million.
• Increased adjusted EBITDA drove positive free cash flow generation of $80-million. Available liquidity stood strong at $1.2-billion. Reported cash flows from operating activities for the quarter were $179-million and net additions to PP&E and intangible assets for the quarter were $99-million. Cash and cash equivalents as at Sept. 30, 2023, were $1-billion.
• The third quarter of 2023 ended with a backlog of $14.7-billion and a unit book-to-bill of 1.1, reflecting a healthy demand environment.
• 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.

"Bombardier's third quarter results are nothing short of impressive, whether you look at margins, cash generation, overall revenues, order activity and more," said Eric Martel, president and chief executive officer of Bombardier.

"When we reshaped Bombardier, we set out to build a resilient business that performs in any marketplace. Today, our results demonstrate we are there," added Mr. Martel. "Quarter after quarter, Bombardier has delivered convincing results and we are well on our way to meet 2023 deliveries target and further increase delivery output in the future."

Strong deliveries and aftermarket growth drive remarkable revenue growth

Bombardier reported a revenue of $1.9-billion in the third quarter of 2023, an impressive 28-per-cent year-over-year increase, fuelled primarily by strong aircraft sales and aftermarket growth. The company delivered 31 aircraft in the third quarter of 2023, up six aircraft compared with the same quarter last year, bringing it to a total of 82 deliveries for the year. This included the delivery of the 150th Global 7500 aircraft, the industry flagship that continues to impress and contribute to improved margins for the company. The backlog remains strong at $14.7-billion, and the continued healthy demand resulted in a unit book-to-bill of 1.1 for the quarter. Over all, the company is on track to reach its guidance on deliveries for the year.

Revenues from Bombardier's aftermarket business continued on their positive trajectory in the third quarter of 2023 and grew 11 per cent year over year to $414-million. The company has been reaping benefits from the significant expansion of its service centre footprint in 2022 and remains focused on increasing its share of this growing market.

Increased operating profitability and solid cash flow

In terms of profitability, total adjusted EBITDA for the quarter reached $285-million, representing an adjusted EBITDA margin of 15.4 per cent and an impressive 100-basis-point margin expansion over the same quarter last year. This growth continues to be underpinned by improving operating margins, including diligent cost management, and growing the aftermarket business.

Adjusted EBIT totalled $193-million, a 54-per-cent year-over-year increase. Adjusted net income has also significantly improved to a gain of $80-million, compared with a loss of $2-million in the same quarter last year. Adjusted EPS came in at 73 cents for the quarter, an improvement compared with a 10-cent loss in the same quarter last year.

The 36-per-cent year-over-year increase in adjusted EBITDA on the back of more deliveries in the third quarter of 2023 and a growing aftermarket also contributed to $80-million in free cash flow the company generated in this quarter, in line with expectations to reach more than $250-million by the end of 2023.

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 greater 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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