Bombardier updated its 2025 financial objectives on the back of improved business performance despite supply chain issues and global economic headwinds.
The Canadian business jet manufacturer is targeting more than USD$9 billion in annual revenue by 2025 – a 20% increase from its previous target of USD$7.5 billion, with a new adjusted EBITA target of over $1.63 billion and an adjusted EBITDA margin of 18%.
“All of Bombardier’s strategic priorities are on track or ahead of plan. We are therefore proud to announce today that we are confidently raising the bar. The future is bright for Bombardier,” said Éric Martel, President and CEO, Bombardier during the company’s 2023 Investor Day.
Bombardier is also expecting greater annual free cash flow of more than USD$900 million by 2025. The manufacturer is aiming to continue its efforts to deleverage, and has revised its target net leverage ratio to 2.0x – 2.5x by 2025, compared to its previous forecast of 3.0x.
Debt reduction continues to be the focus for Bombardier, whose total debt has been reduced by USD$4.5 billion – a 45% reduction – compared to 2020. The company announced the redemption of USD$500 million of 7.5% senior notes due in 2025 earlier this month.
Bombardier has seen also seen strong top-line growth since 2020, with revenue increasing by 23% to USD$6.9 billion by the 2022 financial year end, and has almost quadrupled its profitability to USD$930 million in adjusted EBITDA over the same period.
Revenue diversification will play a significant role in Bombardier achieving its revised 2025 targets. Revenues of Bombardier Defence, the company’s specialized aircraft division based in Wichita, Kansas, are forecast to triple to more than USD$1 billion by 2025. The manufacturer’s aftermarket business is also set for significant growth, with Bombardier increasing aftermarket revenues by 50% in 2020, and on track to reach USD$2 billion in revenue by 2025.