Bombardier, Canada’s leading aircraft manufacturer, announced that NetJets, a major customer, had placed an order for 12 Challenger 3500 business jets. The initial order was worth $326.4 million and could reach $6 billion if NetJets decides to exercise its option for all 232 jets. In preparation for its investor day presentation, Bombardier stated that it was on track to achieve its revenue goals by 2025, with revenue expected to surpass $9 billion.
The company also reported being one year ahead of its objective to increase services revenue to $2 billion by 2025. Bombardier has set a goal to increase its revenue share from aftermarket, defense, and pre-owned businesses to around 50% of annual revenue by 2030, up from 31% in 2023. During the investor day presentation, Bombardier revealed that it will not be announcing any major new capital investment programs such as a new clean sheet design, addressing concerns of investors. This strategic approach was revealed at the investor day presentation and led to a significant increase in Bombardier’s shares by 6%.
Bombardier’s commitment to meeting its financial goals and maximizing its revenue share from key sectors showcases a strong performance trajectory moving forward. This focus on return on invested capital will allow the company to deploy resources beyond 2025 in a more efficient manner. As Desjardins analyst Benoit Poirier mentioned in his analysis of the company’s strategic approach during the investor day presentation, “This is an excellent news for investors who were concerned about Bombardier’s ability to generate returns on their investments.” Overall, this announcement is a positive development for both Bombardier and the aviation industry as a whole as it signals continued growth and success in the future years ahead.
