Bombardier confirms what had become an open secret by raising the targets of its recovery plan which should culminate in two years. While rivals are working on new aircraft, the Quebec aircraft manufacturer says it has “a lot of flexibility” and “significant options” to deploy it.
“All the progress made on the strategic priorities is (in line with) or ahead of our plan,” said the president and CEO of the Quebec aircraft manufacturer, Éric Martel, Thursday, in a press release. It is with confidence that we raise the bar. »
The Quebec multinational offered an update on its objectives as part of its investor day. Along with revenues, which are expected to reach US9 billion — 20% more than expected — Bombardier also expects to post higher adjusted operating profit and generate more cash.
As part of its refocusing on business aviation, the Montreal-based company is increasingly turning to the defense sector. The proof: she estimates that this division will be able to post a turnover of 1 billion US by the end of the decade. A sign that Bombardier takes things seriously, a specially dedicated division was created last year.
After beating expectations in the fourth quarter, which ended Dec. 31, many analysts expected Bombardier to raise its financial targets. Walter Spracklin of RBC Capital Markets was among this group.
“The key message will be that the transformation will not stop in 2025,” the analyst wrote in a report released on Tuesday.
Domestically, Bombardier is pushing for a formal tender for a multi-billion dollar contract to replace surveillance aircraft for the Canadian Armed Forces. The company fears that Boeing will win the agreement by mutual agreement.
