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02 June 2022

Bombardier

Author: Thomas J. Zoretich , Drawn From: Defense & Aerospace Companies Briefing

  • Burdened by heavy debt, Bombardier has sold its rail transportation business, its regional jet (CRJ) business, its aerostructures business, and its remaining interest in the A220 (CSeries).
  • As with other commercial aircraft manufacturers and suppliers, the company was adversely affected by the global COVID pandemic. Given the already challenging issues due to failed past strategies, the pandemic put downward pressure on sales and the ability to climb out of its steep financial hole.
  • The company has reoriented its strategy towards making profitable sales rather than securing market share. This cultural shift for Bombardier towards greater emphasis on financial performance is being reflected in increased financial disclosure as well.
  • Bombardier remains a market leader in business jets although it has been recently surpassed by Gulfstream.
  • Given the multiple issues that Bombardier faced in 2021, including debilitating debt, cost cutting, restructuring, divestment and the global pandemic, the company was able to make some financial improvement and partially stabilize its operation.
  • 2021 revenues totaled $6.1 billion, down 6% from $6.5 billion in 2020. EBIT down to $241 billion in 2021 from $912 billion in 2020, yielding a declining EBIT Margin from 14% in 2020 to 4% in 2021. As concerning as these numbers are they offer 

About the Author

Thomas J. Zoretich

Thomas J. Zoretich

Tom is Chief Economist and Director of Corporate Analysis at Teal Group. He provides strategic and market analysis for clients in commercial aerospace and defense, including major U.S. and European prime contractors. He writes and edits Teal Group's Defense and Aerospace Companies Briefing, which analyzes the performance, outlook, and strategies of 50 aerospace and defense companies in the United States, Europe, Asia and South America. In addition, he is co-author of Teal's annual World Military Unmanned Aerial Systems: Market Profile and Forecast and World Civil UAS Market Profile and Forecast.

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