Industrial giant says situation is fluid as it releases fourth-quarter and year-end results
as chief executive officer five years ago and found a heavily indebted company still in the throes of crisis. Now, as he sets one of Canada ’s industrial giants back on course, he’s staring at yet another mess in the making.
“We need to exercise caution until we see how this all unfolds,” Mr. Martel told analysts on a call Thursday. “ caution doesn’t mean hitting the brakes. We continue to see favourable market conditions.” Since Mr. Martel started, Bombardier has boosted annual adjusted earnings before interest, taxes, depreciation and amortization to US$1.36-billion from US$200-million, while EBITDA margins are up to 15.7 per cent from 3.5 per cent, figures released Thursday show.
Industry data show the top five business-jet makers today enjoy an order backlog worth US$50-billion at last count, up from US$27.3-billion in 2020. Bombardier might see any damage limited by a few factors. Its jets are equipped with engines and parts made by U.S. companies, such as GE Aerospace and Honeywell, Desjardins Capital Markets analyst Benoît Poirier said in a recent note. The company also makes some of its big structural pieces in the United States, such as the wings for its Global 7500 jet, further complicating any straightforward application of tariffs.
Regardless of what the future might hold, Mr. Martel expressed confidence that the company can weather the storm even as it prepares for different scenarios. The company had available liquidity of US$2.1-billion at the end of the year, a sizable base of customers outside the United States, and a US$2-billion service business that won’t be affected by any import taxes.
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