Mr. Eric Martel reports

BOMBARDIER REPORTS SIGNIFICANT BACKLOG GROWTH ON 1.6 UNIT BOOK-TO-BILL, EXPANDED MARGINS AND SERVICE REVENUES INCREASE IN FIRST QUARTER OF 2024

Bombardier Inc. has released its financial results for the first quarter of 2024, marked by a robust increase in service revenues and order activity. The company sold 60 per cent more jets in the first quarter of 2024 compared with 2023, bringing backlog up to $14.9-billion. Bombardier's production plan remains on track to meet full-year 2024 delivery guidance.

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.

Highlights:

• Revenues of $1.3-billion for the first quarter reflect 13-per-cent year-over-year aftermarket growth and 20 aircraft deliveries, in line with production plan and full-year delivery guidance of 150 to 155 aircraft;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $205-million for the first quarter; adjusted EBITDA margin rose 140 basis points year over year to 16 per cent; reported EBIT (earnings before interest and taxes) for the first quarter was $144-million; adjusted EPS (earnings per share) positive at 36 cents for the first quarter, with diluted EPS at $1.02;
• Free cash flow usage of $387-million reflects expected working capital build in inventories supporting production ramp-up; reported cash flow usage from operating activities and net additions to PP&E (property, plant and equipment) and intangible assets were at $343-million and $44-million, respectively;
• Focus on deleveraging continued with $100-million debt redemption announced on March 14, 2024, and closed in April; available liquidity remained strong at $1.4-billion; cash and cash equivalents were $1.2-billion as at March 31, 2024;
• First quarter unit order intake up 60 per cent year over year, reflecting solid demand; backlog increased by $700-million since the beginning of the year to $14.9-billion on unit book-to-bill ratio of 1.6;
• Bombardier's new aircraft assembly centre in the Greater Toronto Area will play host to the company's 2024 investor day on May 1, 2024, preceding the site's inauguration ceremony taking place the same day.

"Our team came flying out of the gates in 2024 on soaring aircraft orders and service revenues. The unit book to bill of 1.6 and $700-million backlog increase are even more meaningful when you take stock of solid activity across traditional customers, fleets and new opportunities materializing for Bombardier Defense," said Eric Martel, president and chief executive officer of Bombardier. "Building our backlog, growing recurring income streams and retiring debt have all been staples of Bombardier's solid performance, and our first quarter of 2024 delivered on all three very positively. This level of focused execution continues to provide solid ground for our team and balance sheet to stand on."

Mr. Martel added: "I also want to commend the teams working hard to keep our delivery plan and profile on track toward our full-year guidance. We continue to be flexible and pro-active, all while keeping an eye on the bottom line and our commitments. On that front, achieving a 16-per-cent adjusted EBITDA margin for the quarter in this landscape is nothing short of exceptional and speaks to the tremendous collective effort to stay focused on our fundamentals and work to our plan."

Robust order intake and aftermarket revenues increase, profitability growth

Bombardier reported first quarter of 2024 revenues at $1.3-billion, down year over year compared with the same quarter last year due to the delivery profile. The company recorded 20 aircraft deliveries and remains on track to reach its planned guidance for 2024. The services business continued its upward trend by reaching revenues of $477-million, a 13-per-cent increase year over year. The company continued on its path to drive sustainable and profitable growth and closed the first quarter of 2024 with an adjusted EBITDA of $205-million. This resulted in an adjusted EBITDA margin of 16 per cent, up 140 basis points year over year, driven by strong conversion on incremental revenues and continued margin expansion on aircraft. The adjusted EBIT totalled $142-million in the first three months of the year, up 3 per cent from the same quarter last year. The adjusted EBIT margin rose by 160 basis points year over year, landing at 11.1 per cent. Adjusted EPS for the first quarter of 2024 was firmly positive at 36 cents.

Orders remained strong across Bombardier's portfolio of aircraft, recording a 60-per-cent increase compared with the same quarter last year. This sustained demand for Bombardier aircraft led to a vigorous unit book-to-bill ratio of 1.6. The backlog also remained healthy and increased by $700-million to $14.9-billion, continuing to provide significant operational predictability.

Progress on debt reduction continues, contributes to favourable positioning for future growth

Bombardier continued to make progress on debt reduction with a $100-million debt redemption announced on March 14, 2024, and closed on April 15, 2024, using cash from its balance sheet and helping the company remain ahead of plan on deleveraging. Earlier this month, Bombardier announced the successful closing of a new issuance of $750-million aggregate principal of senior notes due 2031, with a rate of 7.25 per cent per annum and sold at 99.75 per cent of par, the proceeds of which, together with cash on hand, will be used to repay existing outstanding debt.

Bombardier continues to pro-actively improve its balance sheet, providing a strong foundation for future growth. Bombardier will provide more information on its strategic pillars and path to future growth during its investor day event, to be held on May 1, 2024, at its new aircraft assembly centre in Toronto. The new ultramodern facility, which will be inaugurated later that day, demonstrates the company's commitment to continuously raising the bar through innovation and sustainability. The layout of the new facility is designed to improve processes and will allow for better and safer movement of material, personnel and aircraft.

About Bombardier Inc.

At Bombardier, the company designs, builds, modifies and maintains the world's best-performing aircraft for the world's most discerning people and businesses, governments, and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs.

For them, Bombardier is committed to pioneering the future of aviation -- innovating to make flying more reliable, efficient and sustainable. Bombardier is passionate about delivering unrivalled craftsmanship and care, giving its customers greater confidence and the elevated experience they deserve and expect, because people who shape the world will always need the most productive and responsible ways to move through it.

Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier's performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico.

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