Mr. Eric Martel reports

BOMBARDIER 2023 RESULTS SET NEW HIGHS ON EARNINGS AND REVENUES, 2024 GUIDANCE REFLECTS FURTHER GROWTH

Bombardier Inc. has presented strong 2023 fourth quarter and full-year financial results, which met or exceeded the company's 2023 guidance. Bombardier also unveiled its guidance for 2024, which reflects the company's steady progress toward its long-term objectives.

Highlights:

• 2023 revenues of $8-billion, up 16 per cent year over year, driven by higher deliveries and record-setting business jet aftermarket revenues of $1.75-billion, up 16 per cent year over year;
• 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reflects significant 32 per cent year-over-year jump to $1.23-billion; full-year reported EBIT (earnings before interest and taxes) reached $793-million;
• Adjusted EPS (earnings per share) up 412 per cent year over year from 77 cents to $3.94; diluted EPS from continuing operations reached $4.70; net income from continuing operations and adjusted net income were $490-million and $416-million, respectively;
• Free cash flow generation from continuing operations met 2023 guidance at $257-million, while cash flows from operating activities and net additions to PP&E (property, plant and equipment) and intangible assets were at $623-million and $366-million, respectively;
• Full-year unit book to bill of 1 follows year-over-year delivery growth curve and reflects strong demand; backlog stood healthy at $14.2-billion;
• Rapid and meaningful improvement in adjusted net debt to adjusted EBITDA ratio, seeing 28-per-cent year-over-year reduction, from 4.6 times to 3.3 times; available liquidity remained strong at $1.8-billion; cash and cash equivalents were $1.6-billion as at Dec. 31, 2023;
• After meeting or exceeding its 2023 guidance, the company is again guiding for growth in 2024;
• 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.

"Our Global aircraft broke many speed records in 2023, but those were not the only records we set last year. Our team came together to deliver the highest revenues and earnings, record aftermarket revenue and the highest deliveries since we refocused our business in 2021. Our stellar top- and bottom-line performance included the lowest leverage ratio in years," said Eric Martel, president and chief executive officer of Bombardier. "I could not be prouder of our passionate and engaged teams around the world. All of us united to go above and beyond to make sure we kept -- and often exceeded -- our promises. Today, we are marching ahead with confidence; our 2024 guidance reflects the path of continuous growth we have been on for the past three years and our steadfast commitment to achieving our long-term objectives."

Record revenue growth marked by outstanding aftermarket performance

Bombardier reported total revenues of $8-billion for 2023, a 16-per-cent increase compared with 2022 and the highest since the company refocused its business in 2021. A key element was the aftermarket revenue, which reached an all-time high of $1.75-billion. After the significant 2022 expansion of Bombardier's worldwide service network, 2023 was marked by the new or newly expanded service facilities coming on line, fuelling the company's vibrant aftermarket business, which has now firmly established itself as a predictable and consistent source of revenue.

Record earnings, meaningful cash generation and continued deleveraging

Bombardier also reported a significant jump in earnings in 2023: adjusted EBITDA rose 32 per cent from last year to $1.23-billion, driven by increased deliveries, greater Global 7500 contribution and a higher aftermarket contribution. Full-year reported EBIT reached $793-million, while adjusted EBIT was $799-million.

Thanks in particular to Bombardier's impressive performance in the fourth quarter, especially in terms of earnings growth and strong order intake, full-year free cash flow generation from continuing operations reached $257-million, beating the company's 2023 guidance. Cash flows from operating activities and net additions to PP&E and intangible assets for the full year were also significant at $623-million and $366-million, respectively.

Bombardier continued to prioritize debt reduction in 2023, paying down $400-million during the year, improving adjusted net debt to adjusted EBITDA ratio by 28 per cent when compared with 2022 and resulting in an adjusted net debt to adjusted EBITDA ratio of 3.3, the lowest in years.

Continued strong activity on orders, deliveries and healthy backlog

Bombardier continued to manage its production in a disciplined and pro-active manner and made the most of steady and strong demand. The company reported a solid full-year book to bill of 1, while the multiyear backlog stood strong at $14.2-billion. Bombardier also reached its target of 138 aircraft delivered in 2023, with a particularly active fourth quarter.

2024 outlook

Bombardier also announced today its goals for 2024 with new guidance that projects a continuation of the company's momentum toward its long-term objectives.

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 more than 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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