Bombardier Q4 Revenue Falls 24%

Bombardier (TSE: BBD.B) delivered fewer business jets in the fourth quarter of 2021, but its cost-cutting efforts and increased margins helped it post an adjusted profit. The acceleration of deliveries is expected to accelerate in 2023.

Revenues & Profit

Business aircraft revenues reached $1.7 billion during the fourth quarter ended December 31, 2021, down 24% compared to the same period of 2020.

The aircraft manufacturer company delivered 38 aircraft during the last three months of its fiscal year. This is six fewer deliveries than in the same period last year.

However, the Montreal-based company reported a profit of $80 million ($0.03 per share) for the quarter, compared to a loss of$475 million ($0.20 per share) in Q4 2020.

For the full Fiscal Year 2021, Bombardier generated $6.085 billion in revenue, down 6% from FY 2020.

CEO Commentary

Bombardier president and CEO Éric Martel said, “The words that best sum up 2021 for Bombardier are planning, execution and prudence. Today, the word that also comes to mind is pride. Everyone at Bombardier can be proud of what we achieved as we set out to execute the plan we outlined in March 2021. Overall, the 2021 results are proof that our plan gave us both the structure and the agility to manage any outside obstacles and capitalize on a faster-than-expected industry recovery.”

2022 Outlook

Outlook for 2022 is expected to outperform 2021 and is on track to meet 2025 targets.

Bombardier expects to deliver over 120 units, exceeding $6.5 billion in revenue, increasing adjusted EBITDA by 29% versus to 2021 to reach over $825 million, growing adjusted EBIT to over $375 million, and achieving over $50 million of positive free cash flow.

Wall Street’s Take

On February 2, RBC Capital analyst Walter Spracklin kept a Buy rating on BBD.B, with a price target of C$2.25. This implies 27.1% upside potential.

Overall, consensus on the Street is that BBD.B is a Moderate Buy based on two Buys and one Sell. The average Bombardier price target of C$2.03 implies 14.6% upside potential to current levels.

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