Bombardier Reports 11% Revenue Growth in Q3 Driven by Services

Canadian aerospace manufacturer Bombardier announced an 11% increase in its third-quarter revenue, driven by heightened demand in its aftermarket services and a rise in aircraft deliveries. The company reported revenue of $2.31 billion for the quarter ending September 30, 2023, compared to $2.07 billion in the same period last year. This growth reflects a robust demand for private flying, which is not only expanding the order books for new aircraft but also boosting sales for parts and repair services.

The Montreal-based company delivered 34 aircraft during the quarter, up from 30 aircraft a year ago. Bombardier has reiterated its broader target of handing over over 150 planes to customers by the end of the year. The increase in deliveries is complemented by a 12% rise in services revenue, which CEO Eric Martel highlighted as a sign of a “consistently full and expanding” service network, particularly in the Middle East and the United States.

Regulatory Developments and Market Position

Bombardier is currently awaiting validation from U.S. and European regulators for its flagship Global 8000 business jet, which was recently certified by Canada’s transport authority. This aircraft, priced at US$83 million, is poised to be the fastest civilian plane since the Concorde and will compete directly with General Dynamics’ Gulfstream Aerospace when it enters service later this year.

Despite ongoing trade tensions between Canada and the United States, Bombardier has successfully exported its planes to the U.S., adhering to the USMCA trade agreement. This compliance has allowed the company to maintain a strong foothold in the world’s largest market for business jets.

On an adjusted basis, Bombardier reported earnings of $1.21 per share for the quarter, a significant increase from 74 cents per share a year earlier. The company’s growth trajectory appears solid as it capitalizes on both the rising demand for business jets and its strategic expansion in the aftermarket services sector.

Reporting by Allison Lampert in Montreal and Aatreyee Dasgupta in Bangalore; Editing by Shailesh Kuber, Reuters.