Bombardier third-quarter results beat on strong private jet demand
(Reuters) -Canada's Bombardier (OTC:BDRBF) reported third-quarter results on Thursday that beat analysts' estimates, helped by robust demand for pricier business jets and strength in its aftermarket business.
Demand for corporate jet makers is holding strong after the industry witnessed unprecedented orders during the pandemic when the wealthy sought out private flights due to public health concerns and commercial travel restrictions.
Prices for business jets have been on the uptick as the industry combats continued supply chain challenges and labour constraints, even as economic headwinds have raised concerns over demand flattening.
Last month, Cessna business jet maker Textron (NYSE:TXT) raised its annual profit outlook and said it expects higher deliveries in 2024 as the supply chain environment improves.
Bombardier's order backlog fell to $14.7 billion at the end of the third quarter, from $14.9 billion at the end of the second quarter.
The Montreal-based company generated $80 million in free cash, a metric closely watched by investors, in the third quarter, compared with $52 million a year earlier.
Revenue from Bombardier's aftermarket business, which provides maintenance services, rose 11% to $414 million.
Overall revenue increased 28% to $1.86 billion as the company delivered six more business jets in the quarter compared with a year earlier. Analysts were expecting revenue of $1.75 billion, according to LSEG data.
On an adjusted basis, Bombardier earned 73 cents per share, compared with estimates of 46 cents.
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