Easing supply chain pressures should allow Bombardier to begin ramping up production of Global aircraft this year, enabling increased deliveries of the large-cabin business jet family in 2025.
Total shipments in 2024, including of Challenger-series jets, are forecast to be in the 150-155-aircraft range, the Canadian airframer says, up on the 138 units handed over in 2023. These were split between 75 large and 63 medium aircraft – up on respective figures of 70 and 50 in 2022.
However, Global deliveries will be “stable” year on year, chief financial officer Bart Demosky told analysts on 8 February, before growing again in 2025.
This year, growth will be driven by the super-midsize Challenger family, in particular the 3500, which “stole the show” in 2023, says chief executive Eric Martel.
He says the company “has everything in place” to hit its 2024 targets, but notes that the delivery profile is “largely set by the pace we receive parts from the suppliers”.
“We are playing the cards we are dealt rather than planning an ideal production schedule,” says Martel.
Deliveries in 2024 will be “heavily skewed” to the fourth quarter, adds Demosky, with working capital expended across the year to build up inventory.
“The profile is not ideal, but it does reflect the supply chain’s ability to deliver,” he adds.
While not naming specific programmes, Martel says production has been slowed in some cases “giving our suppliers a chance to catch up”. That should permit output to “reaccelerate”, supporting higher deliveries in 2025.
Although the worst of the supply chain disruption is now behind it, Bombardier continues to see “turbulence” and remains “highly focused” on monitoring and supporting its suppliers.
“I can’t declare that everyone is on schedule but some of the significant suppliers are in catch-up mode,” says Martel, noting that the “majority are back on track”.
Development of the ultra-long-range Global 8000 remains on schedule for 2025 entry into service, he adds.
Bombardier achieved a book-to-bill ratio of 1 in 2023 and expects to see a similarly strong order performance this year.
Revenues were $8 billion for 2023 with adjusted EBIT of $799 million. The airframer is guiding for sales of $8.4-8.6 billion this year, generating adjusted EBIT of $850-900 million.
Contributing to the strong performance last year was the company’s newly established defence unit, which delivered aircraft to the US Air Force and Saab for their respective BACN and GlobalEye programmes.
In addition, the unit obtained an order late in the year from the US Army for a Global 6500 to serve as a prototype for the service’s High Accuracy Detection and Exploitation System.
Including two options, the contract marks the first time the army has selected a large business jet for intelligence, surveillance and reconnaissance missions, Bombardier notes.
Established in 2022, Wichita, Kansas-based Bombardier Defense is expected to be delivering revenues of over $1 billion by the second half of the decade.
