Bombardier C Series Secures Airbus Partnership, Raises Full-Year Outlook

Bombardier Inc. reported its third quarter 2017 results, detailing a significant strategic partnership with Airbus to advance the C Series aircraft program. The agreement with Airbus is described by the company as a pivotal step to ensure the C Series' long-term commercial success and unlock value for stakeholders.

The manufacturer now forecasts its full-year earnings before interest, taxes, and special items (EBIT) to be at least $630 million, the higher end of its previous guidance. However, the company noted that engine delivery delays will reduce the expected number of C Series aircraft deliveries for the year to between 20 and 22. Full-year consolidated revenues are projected to be approximately $16.3 billion, with free cash flow usage around $1 billion.

In the third quarter, Bombardier reported revenues of $3.8 billion, and EBIT before special items nearly doubled to $165 million compared to the prior year. The Transportation division saw a 20% revenue increase year-over-year, accompanied by margin improvements. The Business Aircraft segment also achieved margin expansion through enhanced productivity and efficiency.

Additionally, Bombardier announced a letter of intent (LOI) from a European customer for up to 61 C Series aircraft, including 31 firm orders. The company also confirmed that the certification process for its Global 7000 ultra-long-range business jet is progressing on schedule, with entry into service anticipated in the second half of 2018.