A significant shift is underway at Bombardier, marked by a determined effort to reshape its financial future. The company announced plans to proactively address its debt, initiating a US$500 million repayment of senior notes well before their 2028 maturity date.
This isn’t an isolated move; it’s part of a larger, strategic overhaul. Since December 2020, Bombardier has successfully reduced its long-term debt by an impressive US$5.5 billion. This aggressive debt reduction is already yielding substantial benefits, with annualized interest cost savings exceeding US$409 million.
Bart Demosky, Bombardier’s chief financial officer, emphasized that this proactive financial management is central to the company’s ongoing turnaround. He stated the company remains firmly on course to achieve its ambitious long-term deleveraging goals.
The company’s financial targets center around achieving an adjusted net debt to adjusted EBITDA ratio between two and 2.5 – a key indicator of financial health and stability. This focused approach signals a commitment to strengthening its balance sheet and securing future growth.
Recent successes are bolstering this strategy. Bombardier recently secured a substantial contract worth $753 million to supply six Global 6500 jets to the Canadian federal government. These aircraft will replace the Royal Canadian Air Force’s aging Challenger fleet, used for transporting dignitaries including the Prime Minister and Governor General.
While first quarter profits reported at $44 million represent a decrease from the $110 million earned during the same period last year, the company’s focus remains steadfast on long-term financial stability and strategic growth initiatives. The debt repayment and new government contract demonstrate a clear path forward.
