April 25, 2019

Bombardier Provides Preliminary First Quarter 2019 Financial Results, Updates 2019 Guidance

First Quarter 2019 Consolidated Performance(1)

  • Revenues expected to be ~$3.5B; driven lower by timing of aircraft deliveries, slower project ramp up at Transportation, and unfavourable currency translation
  • Adjusted EBITDA(2) and adjusted EBIT(2) expected to be ~$265M and ~$170M, respectively, due to lower revenues and revised cost estimates on Transportation projects
  • Free cash flow usage(2) expected to be ~$1.0B, supporting working capital investments

2019 Guidance(3) Update

  • Consolidated revenue guidance now expected to be ~$1.0B lower at ~$17.0B, representing ~10% growth year over year, excluding currency effects and divestitures
  • Aerospace businesses on track; Consolidated revenue guidance changed mainly due to revised Transportation outlook
  • Consolidated adjusted EBITDA expectations reduced from $1.65-1.80B to $1.50-1.65B, representing a ~20% increase year over year
  • Consolidated adjusted EBIT expectations reduced from $1.15-1.25B to $1.0-1.15B
  • Consolidated free cash flow guidance remains unchanged at breakeven ±$250M
  • Business Aircraft still expected to deliver 150-155 aircraft; Commercial Aircraft deliveries now expected to be 30 vs 35 aircraft as the sale of the Q400 is now anticipated to close mid-year 
  • Transportation revenue expectations revised from ~$9.5B to ~$8.75B, and adjusted EBIT margin from ~9% to ~8%

All amounts in this press release are in U.S. dollars, and all amounts in the tables are in millions of U.S. dollars, unless otherwise indicated.

Bombardier (TSX: BBD.B) announced today preliminary financial results for the first quarter of 2019 and provided updates to its full year revenue and earnings outlook.

First quarter 2019 adjusted EBITDA and adjusted EBIT are expected to be approximately $265 million and $170 million, respectively, on revenues of approximately $3.5 billion. Free cash flow usage in the first quarter is anticipated to be approximately $1.0 billion, supporting the intense ramp-up of key rail projects and Global 7500 aircraft deliveries in the second half of the year.

Preliminary Business Segment Results for the first quarter ended March 31, 2019

  Revenues Adjusted EBIT
Business Aircraft ~$970 ~$74
Commercial Aircraft ~$240 ~$22
Aerostructures and Engineering Services ~$470 ~$66
Transportation ~$2,100 ~$83
Corporate and Elimination ~$(280) ~$(75)
Consolidated ~$3,500 ~$170

“We had a soft first quarter driven by the timing of aircraft deliveries, foreign exchange headwind and a slower production ramp-up at Transportation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We expect to recover and meet our aircraft delivery and financial performance targets for the year in our aerospace businesses. At Transportation, we are adjusting our 2019 guidance to reflect both changes to our production ramp up and cost pressure from a few challenging legacy projects as we continue to drive our transformation.”

Business Aircraft deliveries for the quarter totaled 24 aircraft (2 light, 14 medium, and 8 large jets) with a strong revenue book-to-bill(4) of 1.6 contributing to an industry-leading $14.9 billion backlog. With expected deliveries more heavily weighted to the second half of the year, Business Aircraft’s full year guidance remains unchanged, with revenues of approximately $6.25 billion on 150-155 aircraft deliveries, and an adjusted EBIT margin of approximately 7.5%.

Commercial Aircraft delivered 4 aircraft (3 CRJs and 1 Q400) during the first quarter while recording orders for 16 aircraft. Commercial Aircraft’s expected deliveries for the year are lowered to approximately 30 aircraft as a result of the closing of the Q400 divestiture, which is now expected mid-year. Revenue guidance for the year is correspondingly adjusted to approximately $1.15 billion, with no change to adjusted EBIT estimates (loss of approximately $125 million). 

Aerostructures and Engineering Services guidance remains unchanged for the year, as the integration of the Global 7500 wing operations is progressing on plan, with revenues ranging between $2.25 billion and $2.50 billion, and approximately 7.5% adjusted EBIT margin.

At Transportation, revenues for the first quarter are expected to be 11% lower year over year.  Excluding the negative currency impact, revenues for the quarter are expected to be down 5% year over year. These lower revenues reflect a slower production ramp-up on certain large projects as the Company better synchronizes its production output to customer requirements and delivery schedules. While negatively impacting revenue recognition, these changes will result in more efficient working capital and inventory management.

Bombardier now expects Transportation’s revenues to be $750 million lower than its original full-year guidance, at approximately $8.75 billion. This reduction is driven by approximately $500 million from slower production ramp-up, which defers revenues, and approximately $250 million of unfavourable currency impact at current rates.(5) On a constant currency basis, Transportation’s revised 2019 revenue guidance reflects approximately 3.5% growth over 2018.

Adjusted EBIT margins at Transportation in the first quarter are expected to be approximately 4%, reflecting the cost absorption impact of lower revenues and revised cost estimates on certain late stage contracts. The ongoing phasing out of challenging legacy projects and delivery ramp-up are expected to support Transportation’s return to normalized levels. Accordingly, Transportation’s adjusted EBIT margin guidance for the full year is revised from approximately 9% to approximately 8%.

Transportation ended the quarter with a backlog of approximately $33.8 billion. Book-to-bill for the quarter was 0.8 and is expected to improve throughout the year based on a strong pipeline of opportunities.

2019 Guidance by Business Segment

  Revenues Adjusted EBIT
  Updated Guidance Original Guidance Variation Updated Guidance Original Guidance Variation
Business Aircraft ~$6,250 ~$6,250 No Change ~7.5% ~7.5% No Change
Commercial Aircraft ~$1,150 ~$1,400 $(250) ~$(125) ~$(125) No Change
Aerostructures and Engineering Services $2,250-2,500 $2,250-2,500 No Change ~7.5% 7.5% No Change
Transportation ~$8,750 ~$9,500 $(750) ~8.0% ~9.0% (100) bps
Consolidated ~$17,000 ≥$18,000 $(1,000) $1,000-1,150 $1,150-1,250 $(100-150)

Consolidated 2019 Guidance

Bombardier’s consolidated revenue guidance for 2019 has been adjusted to reflect revised expectations at Transportation and Commercial Aircraft. Full year revenues are now expected to be approximately $17.0 billion, approximately $1.0 billion lower than originally anticipated. Year over year, the revised guidance represents approximately 10% organic growth over 2018, excluding currency effects and divestitures.

The revenue guidance change is driven by a combination of (i) approximately $250 million in lower revenues from the earlier than anticipated closing of the sale of Business Aircraft’s training activities and the Q400 program – which is now expected to close mid-year; and (ii) approximately $750 million in lower revenues at Transportation, driven by our production ramp-up adjustments and unfavourable currency impact.  

While earnings expectations across the aerospace businesses are unchanged, Transportation’s adjusted EBIT guidance is reduced by approximately $150 million for the year. As a result, the Company now expects to report full year consolidated adjusted EBITDA of $1.50-1.65 billion, implying growth of almost 20% year over year. Consolidated adjusted EBIT guidance is also revised, and is now expected at $1.0-1.15 billion.

Free cash flow guidance for the full year remains unchanged, at breakeven plus or minus $250 million, as Global 7500 aircraft and key Transportation project deliveries are expected to accelerate in the second half of the year

“The transformation of our aerospace businesses remains fully on track as we begin the fourth year of our turnaround plan. The major risks have been retired, our growth programs are in service and our aftermarket strategy is well underway,” continued Bellemare. “At Transportation, we’ve strengthened our order book, refreshed our portfolio, streamlined our footprint and the team is optimizing our operations to execute on the backlog ahead of us. While this process presents challenges, the business fundamentals and growth potential at Transportation remain very strong.”

Bombardier will release its complete first quarter 2019 financial results on Thursday May 2, 2019, before markets open and host a conference call for investors and analysts at 8:00 am EDT that same day.

bps: basis points

  1. Reflects the adoption of IFRS 16, Leases, effective January 1, 2019, using the modified retrospective approach. Refer to the Accounting and reporting developments section in Other in the Corporation’s MD&A of the financial report for the year ended December 31, 2018 for further information on the adoption of IFRS 16.
  2. Non-GAAP financial measures. See Caution regarding non-GAAP measures at the end of this press release. Prior to the first quarter of fiscal year 2019, the Corporation reported non-GAAP measures labeled “EBIT before special items” and “EBITDA before special items”. Beginning in the first quarter of fiscal year 2019, the Corporation changed the label of these non-GAAP measures to "adjusted EBIT" and "adjusted EBITDA", respectively, without making any change to the composition of these non-GAAP measures. The Corporation believes that this new label aligns better with broad market practice in its industry and better distinguishes these measures from the IFRS measurement "EBIT" and “EBITDA”.
  3. See the forward-looking statements disclaimer.
  4. Ratio of new orders over revenues.
  5. Assuming foreign exchange rates remain stable at approximately 1.12 for the conversion of the amounts in euros to U.S. dollars.

About Bombardier

With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier, CRJ, Global 7500 and Q400 are trademarks of Bombardier Inc. or its subsidiaries.

For Information

Simon Letendre
Manager, Media Relations and Public Affairs
Bombardier Inc.
+1 514 861 9481
Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
+1 514 861 5727


This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s objectives, anticipations and guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; growth strategy, including in the business aircraft aftermarket business; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; expectations regarding working capital recovery across Transportation legacy projects; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation’s business and operations; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies and restructuring initiatives and anticipated costs, intended benefits and timing thereof; the expected objectives and financial targets underlying our transformation plan and the timing and progress in execution thereof, including the anticipated business transition to growth cycle and cash generation; expectations and objectives regarding debt repayments, expectations and timing regarding an opportunistic redemption of CDPQ’s investment in BT Holdco; intentions and objectives for the Corporation’s programs, including the focus on returning to profitability and exploration of strategic options for the CRJ Series program; the funding and liquidity of C Series Aircraft Limited Partnership (CSALP); and the expected impact and intended benefits of the Corporation’s partnership with Airbus and investment in CSALP and the realization of intended benefits of the Corporation’s acquisition of Triumph’s Global 7500 wing manufacturing operations and assets. As it relates to the strategic actions and proposed sale of the Q Series aircraft program (the Pending Transaction), this press release also contains forward-looking statements with respect to: the expected terms, conditions, and timing for completion thereof; the respective anticipated proceeds and use thereof and/or consideration therefor, related costs and expenses, as well as the anticipated benefits of such actions and transactions and their expected impact on the Corporation’s guidance and targets; and the fact that closing of these transactions will be conditioned on certain events occurring, including the receipt of necessary regulatory approval.                                              

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Corporation’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release in relation to the Pending Transaction discussed herein include the following material assumptions: the satisfaction of all conditions of closing and the successful completion of such strategic actions and transaction within the anticipated timeframe, including receipt of regulatory approvals. For additional information with respect to the other assumptions underlying the forward-looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections in Overview and in each reportable segment’s section in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with “Brexit”, the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure events or global climate change), operational risks (such as risks related to developing new products and services; development of new business and awarding of new contracts; book-to-bill ratio and order backlog; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution, including challenges associated with certain Transportation’s legacy projects and the release of working capital therefrom; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; risks associated with our ability to successfully implement and execute our strategy, transformation plan, productivity enhancements, operational efficiencies and restructuring initiatives; doing business with partners; risks associated with the Corporation’s partnership with Airbus and investment in CSALP; risks associated with the Corporation’s ability to continue with our funding plan of CSALP and to fund, if required, the cash shortfalls; risks associated with the Corporation’s ability to successfully integrate our acquisition of Triumph’s Global 7500 wing manufacturing operations and assets; inadequacy of cash planning and management and project funding; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018. With respect to the Pending Transaction discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to receive or delay in receiving regulatory approvals, or otherwise satisfy the conditions to the completion of such strategic actions and transactions or delay in completing and uncertainty regarding the length of time required to complete such strategic actions and transactions, and the funds and benefits thereof not being available to the Corporation in the time frame anticipated or at all; alternate sources of funding that would be used to replace the anticipated proceeds and savings from such strategic actions and transaction, as the case may be, may not be available when needed, or on desirable terms. Accordingly, there can be no assurance that the Pending Transaction will occur or that the anticipated benefits will be realized in their entirety, in part or at all. There can also be no assurance as to the completion, the form, or the timing of any BT Holdco buy-back. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in the Corporation’s forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.


The Global 5500, Global 6500, Global 8000 and CRJ550 aircraft are currently under development, and as such are subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may change without notice and are subject to certain operating rules, assumptions and other conditions. This document does not constitute an offer, commitment, representation, guarantee or warranty of any kind.


Non-GAAP financial measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. The exclusion of certain items from non-GAAP performance measures does not imply that these items are necessarily non-recurring. Other entities in the Corporation’s industry may define these measures differently than we do. In those cases, it may be difficult to compare the performance of those entities to ours based on these similarly-named non-GAAP measures.

Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides readers with enhanced understanding of the Corporation’s results and related trends and increases the transparency and clarity of the core results of the Corporation’s business. For definitions of Non-GAAP financial measures and reconciliations to the most comparable IFRS measures, refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and each reporting segments’ Analysis of results sections in in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.