MONTREAL – Steady demand for private jets, and the maintenance they require, helped push earnings and revenue higher at Bombardier Inc. last quarter.
The company said Thursday that its earnings amounted to US$117 million, compared with a loss of US$37 million a year earlier, as its revenue rose 12 per cent, boosted by growth in its services business.
Bombardier saw revenue for the maintenance and repair side of the business increase 28 per cent to US$528 million, to make up about a quarter of revenue, as the company has been working to boost its aftermarket side.
The company has more than doubled the segment since launching a strategy to grow the segment about five years ago, and is looking at expanding capacity further.
“This is growing so fast around the globe that every single region right now, we have things in consideration,” chief executive Éric Martel told a conference call to discuss the company’s latest results.
Bombardier’s push further into services has seen it grow from around 33 per cent of market share to approaching 50 per cent, he said.
The company’s growing number of aircraft in operation, adding about 100 net per year, also creates the potential for more business on the service side.
“The trend moving forward is this business is going continue to grow for us significantly.”
More potential on the service side comes as Bombardier has been able to maintain the same level of order backlog as a year earlier, with demand steady in most areas outside of Europe, Martel said.
While there have been some concerns about a slowdown after the pandemic-fuelled jump in demand, he said he’s not seeing that.
“A lot of people were concerned that that new normal was not going to stay. But I’m telling you after two years, post COVID, it’s sticking.”
The jump in demand for private jets has also led to a 46 per cent jump in emissions between 2019 and 2023, a study out Thursday said.
Emissions from private aviation produced at least 15.6 million tonnes of carbon dioxide, the study published in Communications Earth & Environment found, with extensive travel for leisure as part of the growth.
Bombardier said it would have to take a closer look at the data before responding. It noted that it is reducing emissions from its own use of jets through participation in a sustainable aviation fuel credit system.
Martel said the U.S. market, which the emissions study noted was where 68.7 per cent of aircraft are registered, remains positive.
“The whole election, you know, was creating a bit of a uncertainty. I think having clarity on the results yesterday is probably a positive for us to complete the quarter, and to engage into next year.”
Bombardier reported revenue of US$2.07 billion, up from US$1.86 billion a year earlier.
The aircraft maker, which keeps its books in U.S. dollars, says its profit amounted to US$1.09 per diluted share for the quarter ended Sept. 30 compared with a loss of 47 cents US per diluted share in the same quarter last year.
On an adjusted basis, Bombardier says it earned 74 cents US per share in its latest quarter compared with an adjusted profit of 73 cents US per share in the same quarter last year.
Analysts on average had expected the company to earn 73 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
Companies in this story: (TSX:BBD.B)
