Bombardier says its preliminary 2022 financial results suggest revenue last year totalled about US$6.9 billion as the company delivered 123 aircraft. A Bombardier plant is seen in Montreal on Thursday, February 11, 2021. THE CANADIAN PRESS/Paul Chiasson
MONTREAL – Bombardier is set to beat its own financial results expectations for 2022, the company said Tuesday as it released preliminary results.
The aircraft maker said key factors like revenue, earnings, and especially free cash flow will come in ahead of what it had guided earlier last year.
Bombardier, which reports in U.S. dollars, initially expected free cash flow of around US$50 million for the year but increased its guidance to US$515 million last August. It now expects free cash flow of US$735 million.
When it increased the cash flow guidance last August, the company said the amount had increased because of stronger working capital performance and increased interest cost savings from accelerated deleveraging.
Revenue of US$6.9 billion will be ahead of the more than US$6.5 billion it had previously guided, while the 123 aircraft it delivered compares with the more than 120 it had guided.
It said preliminary results point to adjusted earnings before interest, taxes, depreciation and amortization of about US$930 million for the year compared with its guidance for more than US$825 million.
The COVID-19 pandemic led to a surge in demand for business jets as flight cancellations, wariness of exposure to the virus and surging wealth among the ultra-rich helped boost interest.
Bombardier is expected to release its full financial results for its fourth quarter and all of 2022 on Feb. 9.
This report by The Canadian Press was first published Jan. 17, 2023.
Companies in this story: (TSX:BBD.B)
