Proactive Investors - Bombardier (TSX:BBDb) shares have taken flight after the Montreal, Canada-based business jet manufacturer announced it is targeting revenue of US$9bln in 2025, up from US$7.5bln.
The company said on Thursday that it was updating its 2025 objectives “based on strong business execution and confidence in business fundamentals.”
It increased its 2025 target for adjusted earnings for interest, taxes, depreciation and amortization (EBITDA) to US$1.625bn from US$1.5bn.
Bombardier said it expects to generate significant free cash flow in the coming years, forecasting $900mln by 2025, compared to its previous expectation of about $500mln.
Bombardier Defense is also set to grow to a greater than $1bln business by the second half of the decade, the company noted.
The jet maker grew its revenues by 23% to $6.9bln in 2022. It has also taken actions to reduce its total net debt by $4.5bln in 2022, a 45% reduction when compared to 2020.
“In 2021, we laid the foundation for a stronger, more resilient and predictable Bombardier by 2025. Halfway down the road, we can say we are delivering on that promise,” Bombardier CEO Éric Marte said in a statement.
“While we are carefully monitoring the current market situation, we know that we have all the ingredients in place to remain a driving force in the industry.”
Bombardier’s Toronto-listed shares had added 7.2% at C$66.25, while its US-listed shares were up 6.5% at US$48 shortly after the opening bell in New York on Thursday.
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