Full Year 2024 Bombardier Inc Earnings Call

February 6, 2025

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Mr. Classes: Please be advised that this call is being recorded at this time I'd like to turn the discussion over to Mr. Classes, because you see the Lafleche Vice President F. P N E and Investor Relations for bone biopsy. Please go ahead Sir.

Mr. Lafleche: Please be advised that this call is being recorded at this time I'd like to turn the discussion over to Mr. Classes, because you see the Lafleche Vice President S. P N E and Investor Relations for bone biopsy. Please go ahead Sir.

Mr. Classes: Good morning, everyone and welcome to <unk> earnings call for the fourth quarter and full year ended December 31 2024.

Speaker Change: Good morning, everyone and welcome to <unk> earnings call for the fourth quarter and full year ended December 31 2024.

Mr. Classes: I wish to remind you that during the course of this call we may make projections or other forward looking statements regarding future events or the financial component.

Speaker Change: I wish to remind you that during the course of this call we may make projections or other forward looking statements regarding future events or the financial.

Mr. Classes: <unk> of the Corporation.

Speaker Change: Formats of the Corporation.

Speaker Change: Or is that actual events or results may differ materially from these statements for additional information on forward looking statements and underlying assumptions. Please refer to the MD&A and making this cautionary statement on behalf of each speaker on this call with me today is our president and Chief Executive Officer and.

Or is that actual events or results may differ materially from these statements for additional information on forward looking statements and underlying assumptions. Please refer to the MD&A.

Speaker Change: Making this cautionary statement on behalf of each speaker on this call with me today is our president and Chief Executive Officer.

Good morning

Speaker Change: And our executive Vice President and Chief Financial Officer, Arthur Muskie to review, our operations and financial results for the fourth quarter and full year ended December 31, 2024, I would now like to turn it over to discuss intuitive AAM.

Speaker Change: And our executive Vice President and Chief Financial Officer, or the Muskie to review our operations and financial results for the fourth quarter and full year ended December 31, 2024, I would now like to turn it over to discuss Intuit, Inc.

Aam's equal crosses the Bolshoi Gabe gave you that <unk>.

Speaker Change: Aam's equal crosses the Bolshoi Gabe gave you that <unk>.

Speaker Change: Good morning, everyone and thank you for joining us today.

Speaker Change: Every time, we gather in this forum to reflect on our full year. My first thought is with the team behind the numbers to all of you listening to the call from Canada. The U S. Mexico and further abroad. Thank you for what you accomplished in 2024.

Speaker Change: Every time, we gather in this firm to reflect on our full year. My first stop is with the team behind the numbers to all of you listening to the call from Canada. The U S. Mexico and further abroad. Thank you for what you accomplished in 2024.

Speaker Change: Before we deep dive on our solid 2024 results.

Before we deep dive on our solid 2024 results.

Speaker Change: We must take the time to address the uncertainty created by the threat of tariffs.

Speaker Change: I am very disappointed.

Speaker Change: We can't guide 2025 today.

Speaker Change: We can't guide 2025 today in.

In the past four years Bombardier has created such a strong track record of meeting.

Speaker Change: In the past four years Bombardier has created such a strong track record of meeting, but also exceeding commitment the team and I were well prepare to confirm our 2025 objectives.

Speaker Change: But also exceeding commitment the team and I were well prepare to confirm our 2025 objectives.

Speaker Change: But in light of the current tariffs threat not providing guidance is the most responsible and transparent things for us to do.

Speaker Change: As I said, we have built the business on meeting our commitments and we need to exercise caution until we see how this all unfolds.

Speaker Change: There is a lot at stake for our industry.

Speaker Change: The General Aviation manufacturer Association Gamma.

Speaker Change: <unk> represents OEM and suppliers alike was clear in their message and I would like to quoted directly.

Speaker Change: Given the global nature of the aviation manufacturing industry.

Speaker Change: These proposed tariffs as well as potential reciprocating tariffs could add an enormous impact with many unintended consequences on the industry.

Speaker Change: To put a bombardier lens on this.

To put a bombardier lens on this.

Speaker Change: We have more than 2800 U S based supplier across 47 states and are creating tens of thousands of jobs in the United States.

Speaker Change: The vast majority of our platforms are made up of more U S parts and systems than any other country.

Speaker Change: As an example, we have concentrated our Bombardier defense work in Wichita, Kansas. We are also building major components and structure in the U S.

Speaker Change: As an example, we have concentrated our Bombardier defense work in Wichita, Kansas. We are also building major components and structure in the U S. The most notable being the wing of the global 7500 in Texas.

Speaker Change: The most notable being the wing of the global 7500 in Texas.

Speaker Change: We also own five service centers in five different states over the years <unk> has created a reciprocal three balance with the U S that can be demonstrated where both we and the U S have an equal win.

Speaker Change: Okay.

Speaker Change: Every one of the table must focus on policies and measures that protect the economy value of the integrated aerospace industry.

Speaker Change: Everyone at the table, we must focus on policies and measures that protect the economy value of the integrated aerospace industry.

Speaker Change: This industry has been billed through decades of collaboration.

Speaker Change: Any pivot will not happen overnight and I am convinced it would not benefit anyone in the long run.

Speaker Change: So as we enter 2025 with caution let me be very clear.

Speaker Change: Caution doesn't mean at all anything.

Speaker Change: Caution doesn't mean at all.

Speaker Change: Anything that breaks.

Speaker Change: I think the brakes.

Speaker Change: We continue to see favorable market conditions across business aviation.

Speaker Change: Light hours on Bombardier products are extremely high.

Speaker Change: Slide hours on Bombardier products are extremely high.

Speaker Change: Pre owned inventories remain in a very LP low range.

Speaker Change: Most importantly demand for new aircraft is solid.

Most importantly demand for new aircraft is solid orders continue to come in from around the world and we have observed more activity versus the same period last year.

Speaker Change: Orders continue to come in from around the World and we have observed more activity versus the same period last year.

This includes a fair share from the U S.

Speaker Change: This includes a fair share from the U S.

Also worth nothing no thing, we have not seen cancellations.

Speaker Change: Also worth nothing no thing, we have not seen cancellations.

Speaker Change: Our teams are very engaged with customers in parallel we have live love solid contingency plans for multiple scenarios should we face immediate complication for U S deliveries.

Speaker Change: Our teams are very engaged with customers in parallel we have they've loved solid contingency plans for multiple scenarios should we face immediate complication for U S deliveries.

Speaker Change: All of the scenarios. We studied are allowing time not to be forced to act rapidly.

Speaker Change: All scenarios, we studied are allowing time not to be forced to act rapidly.

Speaker Change: If we do end up facing this I am conferred by the fact that we are not the same company that we were in 2020 or even in 2021 and could navigate through any kind of challenges we have a solidly growing services business that is <unk>.

Speaker Change: If we do end up facing this.

Speaker Change: Im conferred by the fact that we are not the same company that we were in 2020 or even in 2021 and could navigate through any kind of challenges. We have a solidly growing services business that is continuing to recruit talent in places like Texas.

Speaker Change: <unk> to recruit talent in places like Texas, Kansas, Arizona, Florida, Washington, DC, California, and connected our defense business is following the path as well.

Lenses, Arizona, Florida, Washington, DC, California and connecting.

Speaker Change: Our defense business is following the path as well.

Speaker Change: Our backlog as well diverse diversified with a solid proportion of large aircrafts set for delivery in international markets I also need to mention or reinforce credit and more solid balance sheet.

Speaker Change: All of this said the U S does remain our core customer and shareholder base. Our focus is on finding solution with a long term view should diary of disrupt our ability to perform to the level of our ambition in the short term.

Speaker Change: But until such a scenario presents itself, we will continue to cautiously press forward. This year based on the fundamentals.

Speaker Change: <unk> built.

Speaker Change: On that note, let me provide some comments on our exceptional achievement in 2024.

Speaker Change: For a fourth year in a row, we grew our company in line with our plan.

Speaker Change: We have also reached our ambitions of $2 billion in service revenue a full year ahead of schedule.

Speaker Change: To put that in perspective.

Speaker Change: To put that in perspective, we double a high margin billion dollar business in less than five year and we did it organically.

Speaker Change: Double a high margin billion dollar business in less than five year, and we did it organically.

Speaker Change: We did it through careful network expansion and by offering services and support our customers through the value. It's.

Speaker Change: We did it through careful network expansion and by offering services and support our customer through lead value.

Speaker Change: It's not just impressive in the aerospace industry. It is a big accomplishment period.

Speaker Change: I am very proud of the services team.

Speaker Change: Im very proud of the services team.

Speaker Change: This was a worldwide effort that balanced rapid growth with enhancing customer satisfaction.

Speaker Change: We succeeded on both fronts and customer voted US number one in service satisfaction and the most recent annual survey published by Aviation International News.

Speaker Change: In 2021, we also set out to achieve a leverage ratio of three by 2025.

We are already ahead of that to date at two nine times and we have momentum deferred to improve further.

Speaker Change: We are already ahead of that to date at two nine times and we have momentum to FERC to improve further.

Speaker Change: Adding to this both Moody's and S&P global ratings upgraded our company created the reading again in 2024.

Speaker Change: Adding to this both Moody's and S&P global ratings upgraded our company created reading again in 2024.

Speaker Change: All of this is a testament to our performance as well as to Barnes and his team's expert and ling of maturities and repayments.

Speaker Change: All of this is a testament to our performance as well as two barks and his team's expert and ling of maturities and repayments.

Speaker Change: Overall it has been very successful approach, we demonstrated by being a port and a stick and <unk> focus delivers tremendous results.

Speaker Change: Overall it has been very successful approach, we demonstrate in being a partner stick and IPO focus delivers tremendous results.

Speaker Change: It has also provided us with a much more stable footing when faced with uncertainty.

Speaker Change: It has also provided us with a much more stable footing when faced with uncertainty bar.

Speaker Change: <unk> will of course cover more on that topic when you deep dives on the financial results in just a moment.

Speaker Change: There are many key wins behind our solid financial performance, the extend well beyond our debt management and historic.

Speaker Change: There are many key wins behind our solid financial performance, the extend well beyond our debt management and historic services growth.

Speaker Change: Services growth.

Speaker Change: Our product for example continue to lead the market.

Speaker Change: It seems like not the month wind by last year without the global 7500, setting a speed record.

Speaker Change: As we reached 200 planes in service, we also announced surpassing 75 city pair speed records. What is even more impressive is that we are not flying empty planes around to chase marketing headlines a lot of these records were set by our demonstration team with customers.

Speaker Change: Board as part of routine missions.

Speaker Change: On top of that operators joined in and contributed to record setting legs as part of their day to day missions.

Speaker Change: The global 8000 is poised to carry the torch into the future.

Speaker Change: It is selling well into the farthest reaches of our backlog in skyline.

Speaker Change: We are on track for our first unit to enter service by the end of this year upon receiving all certifications.

Speaker Change: Our face cut in approach reduces risk and see some global 7500 delivered in early 2026. So we can carefully manage our customer commitment and ask.

Speaker Change: In parallel we are finalizing the upgrade package for global 7500 customer, which will allow them to access the globally thousands remarkable top speed of <unk> 94, and cabin pressure altitude of 2900 feet at an operating altitude of 41000 feet.

Speaker Change: Our challenger aircrafts also continues to lead categories. The challenger 3500 set a record as the fastest platform to reach 100 deliveries in its class that challenge of 650 is also performed very well. It has been known for a long time as a reliable and spacious performance.

Speaker Change: Our challenger aircrafts also continue to lead categories. The challenger 3500 set a record as the fastest platform to reach 100 deliveries in its class that challenge is $6 50 is also performed very well. It has been known for a long time as a reliable and spacious performance.

Speaker Change: I wanted to highlight two campaigns from 2024 first we celebrated its down selection with the finished border guard, adding another nations to Bombardier is defense growing map of operators.

Speaker Change: I wanted to highlight two campaigns from 2024 first we celebrated its down selection with the Finnish border guard, adding another nations to Bombardier is defense growing map of operators.

Speaker Change: It is important to note that the challenge of $6 50 continued to prove itself as an effective the thrill and surveillance aircraft in many countries. Its capabilities are certainly applicable to the current borders civilians requirement in North America.

Speaker Change: It was also chosen closer to home in Quebec.

Speaker Change: And it's probably manufactured in the government will use the aircraft to expand the capabilities of its vital air ambulance service.

Speaker Change: And it's probably be manufactured in the government will use the aircraft to expand the capabilities of its vital air ambulance service.

Speaker Change: The Bombardier defense team in Wichita also celebrated two important milestone that reflects our ability to tailor products to mission needs, giving customer right sized and highly flexible solutions.

Speaker Change: The Bombardier defense team in Wichita also celebrated two important milestone that it reflects our ability to tailor products to mission needs, giving customer right sized and highly flexible solutions.

Speaker Change: To start we celebrated the first flight of the <unk> program for the German Air Force a few months later, we delivered the first aircraft to the U S Army as part of the <unk> program. These programs are based on our global 6000, 6500 platform, which will strategically fly high above regulatory area.

To start we celebrated the first flight of the <unk> program for the German Air Force.

Speaker Change: A few months later, we delivered the first aircraft to the U S Army as part of the <unk> program. These programs are based on our global 6000, 6500 platform, which will strategically fly high above regular air traffic or.

Speaker Change: First, we celebrated its down selection with the Finnish Border Guard adding another nation to Bombardier's defense growing map of operators.

Speaker Change: It's important to note that the Challenger 650 continues to prove itself as an effective patrol and surveillance aircraft in many countries. Its capabilities are certainly applicable to the current border surveillance requirement in North America.

Speaker Change: Traffic or.

Speaker Change: Our businesses are product and our people are all performing at a high level.

Speaker Change: If the last two or three years at felt like Bombardier had.

Speaker Change: Corner, then I can describe 2024 as the year bombora.

Speaker Change: It was also chosen closer to home in Quebec, the province it is proudly manufactured in. The government will use the aircraft to expand the capabilities of its vital air ambulance service.

Speaker Change: Fully turned the page.

Speaker Change: We positively resolve key litigation that has help us look forward in some cases these outcomes held set momentum and our plan to deploy capital throughout our existing product and services lineup with a mindset of high return on investment as we outlined in our Investor day.

Speaker Change: We positively resolve key litigation that has helped US look forward in some cases these outcomes held set momentum and our plan to deploy capital throughout our existing product and services lineup with a mindset of high return on investment as we outlined in our Investor day.

Speaker Change: The Bombardier Defense Team in Wichita also celebrated two important milestones that reflect our ability to tailor products to mission needs, giving customers right-sized and highly flexible solutions.

Speaker Change: Our team is hard at work focusing on continuous improvement our customer will feel and appreciate and other key investments behind US is our greater Toronto area facility in Ontario, which is clearly illustrated in our Capex figure.

Speaker Change: Our team is hard at work focusing on continuous improvement our customer will feel and appreciate and other key investment behind US is our greater Toronto area facility in Ontario, which is clearly illustrated in our Capex figure.

Speaker Change: To start, we celebrated the first flight of the Pegasus program for the German Air Force.

Speaker Change: A few months later, we delivered the first aircraft to the U.S. Army as part of the 80s program. These programs are based on our global 6,000 and 6,500 platform, which will strategically fly high above regular air traffic.

Speaker Change: Last year, we cut our capex by more than half versus 2023, reaching $173 million that site quickly lived up to its purpose as the most advanced production facility in the industry.

Speaker Change: Our businesses, our products, and our people are all performing at a high level.

Speaker Change: If the last two or three years have felt like Bombardier had turned a corner, then I can describe 2024 as the year Bombardier fully turned the page.

To quote a popular turn of phrase it's leaner, but it's also greener.

Speaker Change: The quota popular turn of phrase it's leaner, but it's also greener.

Speaker Change: It was a pleasure for me to take part in the inauguration day and welcome the investment community as well as our 2000 employees and their families.

Speaker Change: We positively resolve key litigation that has helped us look forward.

Speaker Change: In some cases, these outcomes help set momentum in our plan to deploy capital throughout our existing product and services lineup, with a mindset of high return on investment as we outline in our investor day.

Speaker Change: It was also our first major events since turning the page to start a new chapter of <unk> history with a refresh breath.

Speaker Change: Also our first major events since turning the page to start a new chapter of <unk> history with a refresh breath.

Speaker Change: If there was ever a year to create a new logo that embodies facing forward. This was the year, our new brand and represent the accumulation of elimination of a successful journey, we began in 2021.

Speaker Change: Our team is hard at work focusing on continuous improvements our customer will feel and appreciate. Another key investment behind us is our Greater Toronto Area Facility in Ontario, which is clearly illustrated in our CAPEX figure.

Speaker Change: During the last four years, we face and overcame a lot of obstacles, we have come a long way by focusing on what we control. This approach will help us through continuing supply chain challenges and macro economic uncertainty.

Speaker Change: Last year we cut our capex by more than half versus 2023 reaching 173 million. The site quickly lived up to its purpose as the most advanced production facility in the industry.

Speaker Change: Our 2024 results illustrate that we are fundamentally different company that can perform in many ways.

Speaker Change: To quote a popular turn of phrase, it's leaner but it's also greener. It was a pleasure for me to take part in the Inauguration Day and welcome the investment community as well as our 2,000 employees and their families.

The top line is no longer so closely tied to swings in traditional deliveries, we have grown our service and defense businesses to bring a very strategic diversity to our company that said, we did grow deliveries year over year to now reach a volume where we are stable and comfortable.

Speaker Change: The top line is no longer so closely tied to swings in traditional deliveries, we have grown our service and defense businesses to bring a very strategic diversity to our company that said, we did grow deliveries year over year to now reach a volume where we are stable and comfortable.

Speaker Change: It was also our first major event since turning the page to start a new chapter of Bombardier's history with a refreshed breath.

Speaker Change: If there was ever a year to create a new logo that embodies facing forward, this was the year. Our new brand represents the culmination of a successful journey we began in 2021.

Speaker Change: The team of maintaining stability.

Speaker Change: The team of maintaining stability as also translated to our orders. Thanks to the hard work of our sales team has done all around the world.

Speaker Change: As also translated to our orders thanks to the hard work of our sales team has done all around the world.

Speaker Change: Through our order activity, we have kept our backlog LTE delivering a book to bill of around one or higher. This includes the solid book to Bill performance of one and 2024 and a backlog increase of $200 million.

Speaker Change: During the last four years, we faced and overcame a lot of obstacles. We have come a long way by focusing on what we control. This approach will help us through continuing supply chain challenges and macroeconomic uncertainty.

Speaker Change: Versus 2023.

Speaker Change: We are also focused on high margin growth with historic step change over the last four years in 2024, we finished with a 15, 7% adjusted EBITDA margin.

Speaker Change: Our 2024 results illustrate that we are a fundamentally different company that can perform in many ways.

Speaker Change: The amazing work, we have done to clean up our balance sheet is also paying off.

Speaker Change: Supply chain will remain a very sharp focus as it continues to introduce pressure across our operations. It certainly was true in the four quarter last year.

Speaker Change: Supply chain will remain a very sharp focus as it continues to introduce pressure across our operations. It certainly was true in the fourth quarter last year.

Speaker Change: Our teams have done a lot to mitigate risk and be successful involve upstream.

Speaker Change: The team of maintaining stability has also translated to our orders, thanks to the hard work of our sales team has done all around the world.

Speaker Change: That said supply chain will still be facing fact will still be a pacing factor for our delivery profile as we manage inventory rebuild the supply chain challenges are not worse than last year. So we will continue to be very aggressive in defying and fixing these challenges.

Speaker Change: To our order activity, we have kept our backlog LT delivering a book-to-bill of around 1 or higher. This includes the solid book-to-bill performance of 1 in 2024 and a backlog increase of 200 million dollars versus 2023.

Speaker Change: Overall, we are no strangers to executing our plan successfully and complex environments.

Speaker Change: Rangers to executing our plan successfully and complex environments.

Speaker Change: I've done it in the past four years better than others.

Speaker Change: I've done it in the past four years veteran and others are historic turnaround is complete and the company is structurally where we need to be for the mid and the long term.

Speaker Change: We have also focused on high margin growth with a historic step change over the last four years. In 2024, we finished with a 15.7% adjusted EBITDA margin.

Speaker Change: Our historic turnaround is complete and the company is structurally where we need to be for the mid and the long term.

Speaker Change: With that I'd like to pass the floor to Mark to speak to 2024 results in detail and also provide more color on how we're thinking about 2025 mark over to you.

Speaker Change: The amazing work we have done to clean up our balance sheet is also paying off.

Speaker Change: Supply chain will remain a very sharp focus as it continues to introduce pressure across our operations. It certainly was true in the fourth quarter last year. Our teams have done a lot to mitigate risk and be successful involved upstream.

Mark: Thank you, Eric and good morning, everyone.

Mark: 2024 was another banner year for Bombardier as we once again made significant improvements to our financial performance.

Speaker Change: 2024 was another banner year for Bombardier as we once again made significant improvements to our financial performance and our resilience.

Speaker Change: That said, supply chain will still be a pacing factor for our delivery profile as we manage inventory build. The supply chain challenges are not worse than last year, so we will continue to be very aggressive in identifying and fixing these challenges.

Mark: And our resilience.

Speaker Change: Now resilience as a term we have often used over the past four years and this is not by accident.

Mark: Our resilience as a term we have often used over the past four years and this is not by accident.

Mark: Our management team is known all along with being able to adapt and react to opportunities as well as challenges or sudden changes is key to the long term success of our business.

Speaker Change: Our management team is known all along being able to adapt and react to opportunities as well as challenges or sudden changes is key to the long term success of our business. This is why it has been a priority for us to build a company that is resilient and that can perform in the face of both opportunity and uncertainty.

Speaker Change: Overall, we are no strangers to executing our plans successfully in complex environments.

Mark: This is why it has been a priority for us to build a company that is resilient and that can perform in the face of both opportunity and uncertainty and.

Speaker Change: We have done it in the past four years better than others.

Speaker Change: Our historic turnaround is complete and the company is structurally where we need to be for the mid and the long term.

Speaker Change: And we believe we have done just that.

Mark: And we believe we have done just that.

Mark: This is evident when looking at our debt metrics for our focus on debt reduction since 2020 has brought our gross debt down by 48% and our net leverage to two nine times.

Speaker Change: This is evident when looking at our debt metrics for our focus on debt reduction since 2020 has brought our gross debt down by 48% and our net leverage to two nine times.

Speaker Change: With that, I'd like to pass the floor to Bart to speak to 2024 results in detail and also provide more color on how we're thinking about 2025. Bart, over to you.

Mark: We've also diversified our topline by adding nearly one 5 billion in annual services defense and pre owned revenues over the same period the.

Speaker Change: We've also diversified our topline by adding nearly one 5 billion of annual services defense and pre owned revenues over the same period the.

Bart: Thank you, Eric, and good morning, everyone. 2024 was another banner year for Bombardier, as we once again made significant improvements to our financial performance and our resilience.

Mark: The services business in particular has more than doubled in four years and it provides a recurring and steady stream of income and cash flows, which adds more predictability and certainty to our financial performance.

Speaker Change: The services business in particular has more than doubled in four years and it provides a recurring and steady stream of income and cash flows, which adds more predictability and certainty to our financial performance.

Bart: Now resilience is a term we have often used over the past four years and this is not by accident.

Bart: Our management team has known all along that being able to adapt and react to opportunities, as well as challenges or sudden changes, is key to the long-term success of our business.

Mark: The executive orders announced on February one by the United States. However have added uncertainty to our business, which makes it difficult for us to provide you with guidance today.

Speaker Change: The executive orders announced on February one by the United States. However have added uncertainty to our business, which makes it difficult for us to provide you with guidance today.

Speaker Change: Our management team has taken great pride over the past four years and providing you with annual guidance that is continuously raise the bar on performance and which we have met or exceeded with almost no exception.

Bart: This is why it has been a priority for us to build a company that is resilient and that can perform in the face of both opportunity and uncertainty.

Mark: Our management team has taken great pride over the past four years and providing you with annual guidance that is continuously raise the bar on performance and which we have met or exceeded with almost no exception.

And we believe we have done just that.

Bart: This is evident when looking at our debt metrics, where our focus on debt reduction since 2020 has brought our gross debt down by 48% and our net leverage to 2.9 times.

Mark: We plan to raise the bar again this year.

Speaker Change: We planned to raise the bar again this year.

Speaker Change: But unfortunately at this time, we lack the clarity to tell our investors exactly what will be happening.

Bart: We've also diversified our top line by adding nearly $1.5 billion to the annual services, defense, and pre-owned revenues over the same period. The services business in particular has more than doubled in four years.

Speaker Change: But make no mistake our company is moving forward with both confidence and purpose. We've built a business, which is highly profitable and structurally capable of delivering significant repeatable and growing earnings and free cash flows.

Speaker Change: But make no mistake, our company is moving forward with both confidence and purpose.

Speaker Change: Built a business, which is highly profitable and structurally capable of delivering significant repeatable and growing earnings and free cash flows.

Bart: and it provides a recurring and steady stream of income and cash flows, which adds more predictability and certainty to our financial performance.

Speaker Change: The key to our success has been and focusing on the things that we control and the things that we control have been delivering results, which are well ahead of our original plan.

Bart: The executive orders announced on February 1st by the United States, however, have added uncertainty to our business, which makes it difficult for us to provide you with guidance today.

Speaker Change: Now I'll speak a bit more in a moment of boats. This year 2025 after going over our 24 results, which are which were obviously very solid.

Bart: Our management team has taken great pride over the past four years in providing you with annual guidance that has continuously raised the bar on performance, and which we have met or exceeded with almost no exception.

Speaker Change: In 2004, we saw year over year growth in deliveries revenues and profitability. Our balance sheet has also improved with gross debt net debt and net leverage all reducing while overall available liquidity increased I am, particularly proud of our ability to bring our net leverage down to below three times.

We planned to raise the bar again this year.

Bart: But, unfortunately at this time, we lack the clarity to tell our investors exactly what will be happening.

Speaker Change: Finishing the year at two nine times.

Bart: But make no mistake, our company is moving forward with both confidence and purpose.

Speaker Change: When our management team spoke to investors for the first time in 2021, our objective was to bring that leverage down to approximately three times by the end of 'twenty five and we've achieved this one year early.

Bart: We've built a business which is highly profitable and structurally capable of delivering significant, repeatable, and growing earnings and free cash flows.

Speaker Change: This focus on debt reduction is also reflected in our credit rating, where we moved up another notch in 'twenty four as a result of increases from both S&P and Moodys <unk>.

Speaker Change: This focus on debt reduction is also reflected in our credit rating, where we moved up another notch in 'twenty four as a result of increases from both S&P and Moody's dealer.

Bart: The key to our success has been in focusing on the things that we control, and the things that we control have been delivering results which are well ahead of our original plan.

Speaker Change: Deleveraging will remain the number one use of excess liquidity in 2025.

Bart: Now I'll speak a bit more in a moment about this year, 2025, after going over our 24 results, which were obviously very solid.

Speaker Change: On the back of this progress I am also very proud to share that we've seen a material shift in our investor base with many new institutional investors, becoming shareholders. Our IR program has been very active we've literally held thousands of investor meetings since 2021 and more than 400 in the past year alone.

Speaker Change: On the back of this progress I am also very proud to share that we've seen a material shift in our investor base with many new institutional investors becoming shareholders are.

Bart: In 24, we saw year-over-year growth in deliveries, revenues, and in profitability. Our balance sheet has also improved, with gross debt, net debt, and net leverage all reducing, while overall available liquidity increased.

Speaker Change: Our IR program has been very active we've literally held thousands of investor meetings since 2021 and more than 400 in the past year alone. Many in the U S where the majority of our shareholders holders are located.

Bart: I am particularly proud of our ability to bring our net leverage down to below 3x, finishing the year at 2.9x.

Speaker Change: Many in the U S where the majority of our shareholders holders are located.

Speaker Change: We will continue to be very active on this front and I am very fond of the relationships our team and I have built with so many of our investors in the past years.

Speaker Change: We will continue to be very active on this front and I'm very fond of the relationships our team and I have built with so many of our investors in the past years.

Bart: When our management team spoke to investors for the first time in 2021, our objective was to bring net leverage down to approximately three times by the end of 2025.

Speaker Change: Now with that said, let's turn to our financial performance in more detail starting with revenues.

Speaker Change: Now with that said, let's turn to our financial performance in more detail starting with revenues for.

and we've achieved this one year early.

Speaker Change: For the year, we are pleased to report solid top line performance. Our total revenue came in at $8 7 billion ahead of our guidance range of eight 4% to $8 6 billion.

Speaker Change: For the year, we are pleased to report a solid top line performance. Our total revenue came in at $8 7 billion ahead of our guidance range of eight 4% to $8 6 billion. This represents a year over year increase of 8%.

Bart: This focus on debt reduction is also reflected in our credit rating, where we moved up another notch in 2024 as a result of increases from both S&P and Moody's.

Speaker Change: This represents a year over year increase of 8%.

Bart: De-leveraging will remain the number one use of excess liquidity in 2025.

Speaker Change: Our aircraft manufacturing and other revenues saw a $331 million year over year increase largely driven by eight additional deliveries higher defense revenues and stronger pricing across the board.

Bart: On the back of this progress, I am also very proud to share that we've seen a material shift in our investor base, with many new institutional investors becoming shareholders.

Our IR program has been very active.

Speaker Change: Our services business has delivered another double digit growth year, surpassing the $2 billion revenue, Mark and setting a new record of $2.04 billion.

Speaker Change: Our services business has delivered another double digit growth year. So.

Bart: We've literally held thousands of investor meetings since 2021, and more than 400 in the past year alone. Many in the U.S., where the majority of our shareholders are located.

Speaker Change: Passing the $2 billion revenue, Mark and setting a new record of 2.04 billion.

Speaker Change: This represents an impressive 16% increase compared to last year, reflecting the effectiveness of our expansion strategy and the strengthening of our market position with our share now reaching around 50%.

Bart: We will continue to be very active on this front, and I am very fond of the relationships our team and I have built with so many of our investors in the past years.

Bart: Now with that said, let's turn to our financial performance in more detail, starting with revenues.

Speaker Change: We also continue to have strong visibility in our topline going forward.

Bart: For the year, we are pleased to report a solid top-line performance. Our total revenue came in at $8.7 billion, ahead of our guidance range of $8.4 to $8.6 billion. This represents a year-over-year increase of 8%.

Speaker Change: In 24, our backlog increased to $14 4 billion on the back of a one times book to Bill, reflecting a strong demand for our products and services.

Speaker Change: The backlog for defense is also increasing as we won several campaigns in 2024, which gives us visibility into the continued growth of this business.

Bart: Our aircraft manufacturing and other revenues saw a $331 million year-over-year increase, largely driven by eight additional deliveries, higher defense revenues, and stronger pricing across the board.

Speaker Change: Shifting to profitability adjusted EBITDA totaled 136 billion also beating the higher end of our guidance range and representing an 11% year over year increase.

Speaker Change: Shifting to profitability adjusted EBITDA totaled $1 36 billion also beating the higher end of our guidance range and representing an 11% year over year increase.

Our services business has delivered another double-digit growth year.

Bart: surpassing the $2 billion revenue mark and setting a new record of $2.04 billion.

Speaker Change: Our adjusted EBITDA margin was 15, 7%.

Speaker Change: Our adjusted EBITDA margin was 16, 7%, which is an increase of 40 basis points compared to the previous year.

Which is an increase of 40 basis points compared to the previous year.

Bart: This represents an impressive 16% increase compared to last year, reflecting the effectiveness of our expansion strategy and the strengthening of our market position, with our share now reaching around 50%.

Speaker Change: In the fourth quarter, our adjusted EBITDA margin reached 16 at 5%, a 150 basis point improvement versus the same quarter in 'twenty, three and making it the highest margin quarter that Bombardier has delivered since we launched our turnaround plan in 2021.

Speaker Change: In the fourth quarter, our adjusted EBITDA margin reached 16, and a 5% or 150 basis point improvement versus the same quarter in 'twenty, three and making it the highest margin quarter that Bombardier has delivered since we launched our turnaround plan in 2021.

Bart: We also continue to have strong visibility in our top line going forward.

Bart: In 24, our backlog increased to $14.4 billion on the back of a one-time spoke-to-bill, reflecting a strong demand for our products and services.

Speaker Change: Year over year, the significant increase in adjusted EBITDA is largely attributed to strong conversion of incremental revenues, most notably in our services business. We've executed this while supply chain pressures and cost headwinds have increased which has cost us a few missed deliveries and associated EBITDA in 'twenty four.

Bart: The backlog for defense is also increasing, as we won several campaigns in 2024, which gives us visibility into the continued growth of this business.

Speaker Change: And created more than 50 basis points drag on EBITDA margins for the year.

Bart: Shifting to profitability, adjusted EBITDA totaled $1.36 billion, also beating the higher end of our guidance range and representing an 11% year-over-year increase.

Speaker Change: Turning to our other profitability metrics, our adjusted EBIT for the year also surpassed our guidance and finished at $915 million up 15% from the $799 million reported last year.

Bart: Our adjusted EBITDA margin was 15.7%, which is an increase of 40 basis points compared to the previous year.

Speaker Change: Our adjusted net income was $547 million, a remarkable 31% increase from the previous year, highlighting the benefit of our tax attributes as our profits continue to grow.

Speaker Change: Our adjusted net income was $547 million.

Speaker Change: Remarkable 31% increase from the previous year, highlighting the benefit of our tax attributes as our profits continue to grow.

Speaker Change: Our adjusted earnings per share is also up by an impressive 31% or $1 22.

Bart: Year over year, the significant increase in adjusted EBITDA is largely attributed to strong conversion of incremental revenues, most notably in our services business.

Speaker Change: And stands at $5 16 at year end.

Speaker Change: I believe these impressive improvements in year over year profitability simply speak for themselves.

Speaker Change: Believe these impressive improvements in year over year profitability simply speak for themselves.

Bart: We've executed this while supply chain pressures and cost headwinds have increased, which has cost us a few missed deliveries and associated EBITDA in 2024, and created more than 50 basis points dragged on EBITDA margins for the year.

Speaker Change: Moving on to cash our free cash flow for the fourth quarter was $814 million, which translates into a full year free cash generation of $232 million in line with the midpoint of our guidance range.

Bart: Turning to our other profitability metrics, our adjusted EBIT for the year also surpassed our guidance.

Speaker Change: We delivered 57 aircraft in Q4, which resulted in a $559 million release in inventory.

Bart: and finished at $915 million, up 15% from the $799 million reported last year.

Speaker Change: For the full year 2024 inventory increased by $261 million.

Speaker Change: Full year 2024 inventory increased by $261 million.

Bart: Our adjusted net income was $547 million, a remarkable 31% increase from the previous year, highlighting the benefit of our tax attributes as our profits continue to grow.

Speaker Change: Supplier advances increased by $385 million in Q4 and $362 million for the full year as we received additional supplier contributions, which will be applied towards future product development in a manner consistent with what we shared at our last Investor day.

Bart: Our adjusted earnings per share is also up by an impressive 31%, or $1.22, and stands at $5.16 at year-end.

Speaker Change: In the fourth quarter. We also saw a reduction in customer advances of $584 million and our full year reduction of $353 million, which is attributable to a couple of factors.

Bart: I believe these impressive improvements in year-over-year profitability simply speak for themselves.

First we had a normal Q4 unwinding of customer advances as we delivered a higher number of aircrafts than new orders added to the backlog.

Speaker Change: First we had a normal Q4 unwinding of customer advances as we delivered a higher number of aircraft than new orders added to the backlog.

Bart: Moving on to cash, our free cash flow for the fourth quarter was $814 million, which translates into a full-year free cash generation of $232 million, in line with the midpoint of our guidance range.

Speaker Change: Throughout 2024, we took a conservative approach to selling eight global 8000 physicians keeping a buffer between the expected entry into service date of the aircraft and the first customer deliveries.

Throughout 2024, we took a conservative approach to selling eight global 8000 physicians keeping a buffer between the expected entry into service date of the aircraft and the first customer deliveries.

Bart: We delivered 57 aircraft in Q4, which resulted in a $559 million release in inventory.

For the full year 2024, inventory increased by 261 million.

Speaker Change: This was done purposefully to avoid issues, we've seen across our industry around being late to customer commitments.

Bart: Supplier advances increased by $385 million in Q4, and $362 million for the full year as we received additional supplier contributions, which will be applied towards future product development in a manner consistent with what we shared at our last Investor Day.

Speaker Change: The financial impact of this is that we received fewer progress payments than would have been typical on those aircrafts since the aircraft delivery dates are further out.

Speaker Change: Financial impact of this is that we received fewer progress payments than would have been typical on those aircrafts since the aircraft delivery dates are further out.

Speaker Change: That said, we've made excellent progress on the development of the global 8000 over the past year and as we speak today. We are confident we will meet our entry into service date of Q4 2025.

Bart: In the fourth quarter, we also saw a reduction in customer advances of $584 million and a full year reduction of $353 million, which is attributable to a couple of factors.

Speaker Change: Which means that the production cut and will happen in early 2006, and we will not need to buffer. We had initially planned which creates a potential upside for us.

Speaker Change: Which means that the production cut and will happen in early 'twenty six and we will not need to buffer. We had initially planned which creates a potential upside for us.

Speaker Change: If we take a step back and look at working capital as a whole our approach has been to match inventory and customer deposit levels for.

Speaker Change: If we take a step back and look at working capital as a whole our approach has been to match inventory and customer deposit levels.

Bart: Second, throughout 2024, we took a conservative approach to selling global 8,000 positions.

Speaker Change: For the last few years, we've had higher advances than inventories as we've been ramping up our production.

Bart: keeping a buffer between the expected entry into service date of the aircraft and the first customer deliveries.

Speaker Change: As of 2024, we're right at the levels, we want to be with our customer advances totaling $3 9 billion against inventories of $4 billion.

Bart: This was done purposefully to avoid issues we've seen across our industry around being late to customer commitments.

Speaker Change: On the balance sheet, we've continued to prioritize strengthening our financial position and deleveraging we.

Speaker Change: We successfully reduced our debt total debt by approximately $400 million over the past 12 months, including a $300 million repayment closed this January.

Speaker Change: We successfully reduced our debt total debt by approximately $400 million over the past 12 months, including a $300 million repayment closed. This January while also refinancing and extending maturities at lower coupon rates.

Bart: That said, we've made excellent progress on the development of the Global 8000 over the past year, and as we speak today, we are confident we will meet our entry into service date of Q4 2025.

Speaker Change: While also refinancing and extending maturities at lower coupon rates.

Speaker Change: In addition, we have been proactive in managing and Derisking, our pension plan liabilities, having purchased approximately $635 million in annuities in 2024 for certain pension plans.

Speaker Change: In addition, we've been proactive in managing and Derisking, our pension plan liabilities, having purchased approximately $635 million in annuities in 2024 for certain pension plans, bringing.

Bart: which means that the production cut-in will happen in early 2026 and we will not need the buffer we had initially planned, which creates a potential upside for us.

Bart: If we take a step back and look at working capital as a whole, our approach has been to match inventory and customer deposit levels.

Speaker Change: Bringing the total risk transfer to more than $1 billion since 2020.

Speaker Change: Looking ahead at the weeks and months to come.

Bart: For the last few years, we've had higher advances than inventories as we've been ramping up our production.

Speaker Change: We are going to continue focusing on the things that we control.

Bart: As of 2024, we are right at the levels we want to be, with our customer advantages totaling $3.9 billion against inventories of $4 billion.

Speaker Change: To that end, we will be focused on capturing opportunities that may materialize for what we see as a very strong market fundamentals for business Jets.

Bart: On the balance sheet, we continue to prioritize strengthening our financial position and deleveraging.

Speaker Change: While we expect continued challenges from our supply chain debt repayment will remain our number one priority.

Bart: We've successfully reduced our debt, total debt, by approximately $400 million over the past 12 months.

Speaker Change: While tariff uncertainty is expected this year, our focus will remain on executing our long term strategies to diversify our top line by growing our services revenues at a mid to high single digit CAGR and growing defense revenues, 3% to five times.

Bart: including a $300 million repayment closed this January while also refinancing and extending maturities at lower coupon rates.

Bart: In addition, we've been proactive in managing and de-risking our pension plan liabilities.

Speaker Change: So to conclude 2024 has been a year of significant achievements. We have built a strong foundation from Bombardier and we are ready to face any challenge that comes our way.

Speaker Change: To conclude 2024 has been a year of significant achievements. We have built a strong foundation from Bombardier and we are ready to face any challenge that comes our way.

Bart: having purchased approximately $635 million in annuities in 2024 for certain pension plans.

Speaker Change: We will continue to be transparent on any developments, we see regarding the geopolitical landscape and we are committed to continue creating significant long term value for all of our stakeholders.

Bart: bringing the total risk transfer to more than $1 billion since 2020.

Looking ahead at the weeks and months to come.

Bart: We are going to continue focusing on the things that we control.

Speaker Change: So with that.

Francis: Let me turn it back over to Francis and we can begin the Q&A practice.

Speaker Change: Thanks, Mark I'd like to remind you that the minority Investor Relations team is available following the call to answer any questions that you may have for the question period. Please limit yourself to one question and one follow up with that we will open it up for questions. Operator, Thank you Sir.

Francis: Thanks, Mark I'd like to remind you that the minority Investor Relations team is available following the call in and they're coming to answer any questions that you may have for the question period. Please limit yourself to one question and one follow up with that we will open it up for questions. Operator, Thank you Sir.

Bart: While we expect continued challenges from our supply chain, debt repayment will remain our number one priority.

Bart: While tariff uncertainty is expected this year, our focus will remain on executing our long-term strategies to diversify our top line by growing our services revenues at a mid to high single-digit CAGR and growing defense revenues three to five times.

Speaker Change: Ladies and gentlemen, if you do have any questions. Please press star followed by one on your Touchtone phone you will hear a tone prompt acknowledging your request.

Francis: Ladies and gentlemen, if you do have any questions. Please press star followed by one on you touched on the phone you will hear as friedhelm prompt acknowledging your request.

Speaker Change: I would like to withdraw from the question queue. Please press star followed by two and if you're using a speakerphone you will need to lift the handset first before pressing any key.

Francis: I would like to withdraw from the question queue. Please press star followed by two and if you're using a speakerphone you will need to lift the handset first before pressing any key.

To conclude, 2024 has been a year of significant achievements.

Bart: We have built a strong foundation from both RDA and we are ready to face any challenge that comes our way.

Speaker Change: And as stated we ask that you. Please limit yourself to one question and one follow up. Please go ahead and press Star one now if you have any questions.

Francis: And as stated we ask that you. Please limit yourself to one question and one follow up. Please go ahead and press Star one now if you have any questions.

Bart: We will continue to be transparent on any developments we see regarding the geopolitical landscape And we are committed to continue creating significant long-term values for all of our stakeholders

Speaker Change: Your first question will come from James Maverick Mcgarrigle.

Speaker Change: Your first question will come from James Maverick Mcgarrigle at RBC capital markets. Please go ahead.

RBC capital markets. Please go ahead.

Bart: So with that, let me turn it back over to Francis and we can begin the Q&A. Francis. Thanks Bart. I'd like to remind you that the Bamardi Investor Relations team is available following the call in the coming days to answer any questions that you may have.

Speaker Change: Appreciate you having me on.

Speaker Change: Just wanted to ask you made a comment in the prepared remarks, Dan Youre well positioned to meet you too.

Speaker Change: 25 guidance before the announcement regarding the potential tariffs.

Speaker Change: 125 guidance before the announcement regarding the potential tariffs.

Speaker Change: It does not provide an outlook given something youre seeing specifically in the market right now.

Speaker Change: For the question period, please limit yourself to one question and one follow-up. With that, we will open it up for questions. Operator? Thank you, sir. Ladies and gentlemen, if you do have any questions...

Speaker Change: Example are you seeing.

Speaker Change: Customers that switch away or is that you're just being totally prudent given.

Speaker Change: Customers switch away or is that you're just being totally prudent given.

Speaker Change: please press star followed by one on your touchtone phone. You will hear a three-tone prompt acknowledging your request. And if you would like to withdraw from the question queue, please press star followed by two. And if you're using a speakerphone, you will need to lift the handset first before pressing any keys.

Speaker Change: <unk>.

Speaker Change: The backdrop right now with regards to Derek.

Speaker Change: The backdrop right now with regard to the tariff.

Speaker Change: Hey, James Thanks for the question that's.

Speaker Change: That's the right question to ask actually.

Speaker Change: At <unk>.

Speaker Change: Actually we are still good.

Speaker Change: Actually we are still geared.

Speaker Change: Geared up to meet the 2025 objective we have.

Speaker Change: Geared up to meet the 2025 objective we filmed.

Speaker Change: And as stated, we ask that you please limit yourself to one question and one follow-up. Please go ahead and press star 1 now if you have any questions.

Speaker Change: Met that we've shared before.

Speaker Change: Met that we showed before.

Speaker Change: But this being said you know we have to be responsible and they'll provide guidance. This morning in a sense that it's not related to the market and what we are observing I said that earlier that you know.

Speaker Change: But this being said you know.

Speaker Change: We have to be responsible and look provide guidance. This morning in a sense that it's not related to the market and what we are observing I said that earlier that.

Speaker Change: Your first questions will come from James McGarrigle at RBC Capital Markets. Please go ahead.

Hey, uh, appreciate you having me on and...

Speaker Change: Actually the level of activity in Q1 at this time is actually even higher than a year ago, including in the U S. So it's really related to.

Speaker Change: I just wanted to ask, you made a comment in the prepared remarks saying, you know, you're well-positioned.

Speaker Change: the announcement regarding the potential tariff. So, you know, your decision not to provide an outlook, is that given, you know, something you're seeing specifically in the market right now?

Speaker Change: The executive order that was signed by the President last week.

Speaker Change: You realize that we cannot ignore that.

Speaker Change: you know as an example you know are you seeing uh customers uh switch away or is that you know you just being totally prudent given uh you know the the um the the backdrop right now with regards to tariff?

Speaker Change: There was a time, where it could have kicked in already know it has been postponed so of course this could affect the landscape moving forward in the year.

Speaker Change: We are still you know.

Speaker Change: We are still.

Speaker Change: Hey James, thanks for the question. That's the right question to ask, actually. You know, actually, we are still, you know, geared up to the 2025 objective we've shared before.

Speaker Change: Evaluating this and that we were reading this is it's a lower risk, but it's still a risk and something that I do not control Bart do not control. The team here does not control. So we're going to face that as I said earlier I think we are well equipped as an organization for a lead to go through.

Speaker Change: Evaluating this and we were reading this is it's a lower risk, but it's still a risk and something that I do not control Bart do not control. The team here does not control. So we're going to face that as I said earlier I think we're well equipped as an organization for a lead to go through.

Speaker Change: But this being said, you know, we have to be responsible and not provide guidance this morning in a sense that it's not related to the market and what we are observing. I said that earlier that you know, actually the level of activity in Q1 at this time is actually even higher than a year ago, including in the U.S.

Speaker Change: That kind of situation than we've ever been because of the strength of our balance sheet because of the diversity of our portfolio right now with services being a bigger share international is also having quite a bit of weight. So.

Speaker Change: Don't get me wrong. The U S market is still very important for us, but probably has less significant than a few years ago. So all this to say that.

Speaker Change: Don't get me wrong. The U S market is still very important for us, but probably has less significant than a few years ago.

Speaker Change: So it's really related to, you know, the executive order that was signed by the president last week.

Speaker Change: So all this to say that.

Speaker Change: So we are still.

Speaker Change: We are still.

Speaker Change: you realize that we cannot ignore that you know you know there was a time where tariffs could have kicked in already now it's being postponed so of course this could affect the landscape moving forward in the year

Speaker Change: <unk> planning and the way we're working it out right now in terms of number of deliveries in terms of our.

Speaker Change: Planning and the way we're working it out right now in terms of number of deliveries in terms of our of our objective.

Speaker Change: Our objective to deliver what we said before but at the same time, there is an obstacle or potential obstacles that could be there that we're going to have to understand better when its happening if ever. It is happening. So I think this is where we are and we are running full steam here right now to deliver.

Speaker Change: To deliver what we said before but at the same time, there is an obstacle or potential obstacles that could be there that we're going to have to understand better when its happening if ever it is happening.

Speaker Change: We are still, you know, evaluating this, you know, and the way we're reading this is it's a it's a lower risk but it's still a risk.

Speaker Change: and something that I do not control, BARC do not control, the team here does not control.

Speaker Change: So I think this is where we are and we are running full steam here right now to deliver what we said before as we did for the last four years, but there is one thing I don't control. So we'll see how the situation evolves, but we are ready to face that also and we have developed multiple scenarios in the <unk>.

Speaker Change: So we're going to phase that. As I said earlier, I think we're well.

Speaker Change: Over what we said before as we did for the last four years.

Speaker Change: There's one thing I don't control. So we'll see how the situation evolves, but we are ready to face that also and they are.

Speaker Change: go through that kind of situation than we've ever been because of the strength of our balance sheet, because of the diversity of our portfolio right now with services being a bigger share. International is also having quite a bit of weight. So...

Speaker Change: Multiple scenarios in the last couple of months working very diligently at being ready if ever this is happening.

Speaker Change: Last couple of months.

Speaker Change: We're working very diligently at being ready if ever this is happening.

Speaker Change: You know, don't get me wrong, the U.S. market is still very important for us, but probably has less significance than a few years ago.

Speaker Change: I appreciate the color and just a quick follow up you mentioned you are planning for various scenarios. So.

Speaker Change: I appreciate the color and just a quick follow up you mentioned youre planning for various scenarios. So.

Speaker Change: So, all this to say that, you know, we are still, you know, planning and the way we're working it out right now in terms of number of deliveries, in terms of our objective, you know, to deliver what we said before.

Speaker Change: In the event of a worst case scenario would you say that the 25% tariff.

Speaker Change: In the event of a worst case scenario would you say.

Speaker Change: That's a 25% tariff.

Speaker Change: Speak to what your contingency plan is then.

Speaker Change: What your contingency plan is then.

Speaker Change: How quickly you can execute on that.

Speaker Change: Would that be potentially expanding the finishing facility.

Speaker Change: In Kansas.

Speaker Change: But at the same time, you know, there's an obstacle, a potential obstacle that could be there that we're going to have to understand better when it's happening, if ever it's happening.

Speaker Change: Any color you can provide there and after that I'll turn the line over thank you.

Speaker Change: Yes, no great question again.

Speaker Change: Yes, great question again.

Speaker Change: You know I think our team enough to know that we are prepared to face. It we diligently work on multiple scenarios. We didn't know until last week. When 25 was kind of the number to work with because there is two things right now that will impact the significance of our action versus the level of theories.

Speaker Change: You know I think our team enough to know that we are prepared to face. It we diligently work on multiple scenarios. We didn't know until last week. When 25, what's kind of the number to work with because there is two things right now that will impact the significance of our action versus the level of tariffs and.

Speaker Change: So I think this is where we are and and you know We are running full steam here right now to deliver what we said before as we did for the last four years

Speaker Change: But there's one thing I don't control. So we'll see how the situation evolves

Speaker Change: But we are ready to face that also, and we've developed multiple scenarios in the last couple of months, working very diligently at being ready if ever this is happening.

Speaker Change: And the second thing is the duration.

Speaker Change: The second thing is the duration.

Speaker Change: But in all of the scenario we've had of course in those situations. You are cash is king and Thats. The one thing we focus on and making sure that we were going to have scenarios that you know.

Speaker Change: But you know in all of the scenario we've had of course in those situations youre.

Speaker Change: Your cash is king and Thats. The one thing we focus on and making sure that we were going to have scenarios that you know.

Speaker Change: I appreciate the call. Here's a quick follow-up. You mentioned you're planning for various scenarios, so

Speaker Change: in the event of a worst case scenario, just say that's a 25% tariff.

Speaker Change: Make this company Cape.

Speaker Change: Capable of going through any scenario and I can tell you I can reassure you that any possible scenario. We're in a good place to do that of course, you know the good news too is the scenario with <unk>, it's not like when it's an application that we have to act. The next day because the big question will remain how long is it going.

Speaker Change: Can you speak to what your contingency plan is then, you know, how quickly you can execute on that? And, you know, would that be potentially, you know, expanding the finishing facility in Kansas or, you know, any call you can provide there. And after that, I'll turn the line over. Thank you.

Yeah, no, great question again.

Speaker Change: You know, I think you know our team enough to know that we are prepared to face it. You know, we diligently work on multiple scenarios. We didn't know until last week when 25 was kind of the number to work with because there is two things right now that will impact.

Speaker Change: Alas if ever.

Lasse: To lasse if ever.

Speaker Change: It's implemented and.

Speaker Change: It's implemented.

Speaker Change: In those situations.

Speaker Change: In any of those situation we need to.

Any of those situation that we need to.

Speaker Change: The next day, we still last time, and we will monitor and we will see at some point, we may have to face a decision.

Speaker Change: the significance of our action. First is the level of tariff and the second thing is the duration.

Speaker Change: To adjust rates or things like that but the reality is that it's not going to be like a crisis overnight, we're going to have time to monitor and see how the situation evolves and maybe never have to do it. So so that's what we're all hoping for of course and keep the path of growth.

Speaker Change: But, you know, in all the scenario we've had, of course...

in those situations.

Speaker Change: Your cash is king, you know, and that's the one thing we focus on and Making sure you know that we were going to have scenarios that you know

Speaker Change: make this company capable of going through any scenario and I can tell you I can reassure you that any possible scenario we're in a good place to do that.

We've been showing in the last four years and just continue to deliver our plan.

Speaker Change: We've been showing in the last four years and just continue to deliver our plan.

Speaker Change: Thank you.

Speaker Change: Of course, you know, the good news, too, is the scenario we've developed.

Speaker Change: Next question will be from Kevin Chiang CIBC. Please go ahead.

Speaker Change: Next question will be from Kevin Chiang of CIBC. Please go ahead.

Speaker Change: It's not like when it's an application we have to act the next day.

Kevin Chiang: Hi, excuse me hi, good morning, everybody.

Because the big question will remain...

Speaker Change: Bart you mentioned.

Speaker Change: The positive contribution of free cash flow from the supplier increases supplier contributions in the fourth quarter.

Speaker Change: In any of those situations, we need to hack the next day, we still have time, and we'll monitor and we'll see. At some point, we may have to face a decision.

Speaker Change: Just wondering if you could.

Speaker Change: Wondering if you could.

Speaker Change: Maybe comment on what if any impact of Honeywell agreement might have had on supplier contributions if you're able to.

Speaker Change: <unk>.

Speaker Change: Pes auto for Us and should we think about that.

Speaker Change: you know, to adjust rates or things like that, but the reality is that it's not going to be like a crisis overnight. You know, we're going to have time to monitor, see how the situation evolves.

Speaker Change: Pes auto for Us and should we think about that.

Speaker Change: Potential tailwind if it was one in Q4.

Speaker Change: That might be a tailwind in 2025 four for free cash flow.

Kevin Chiang: Yes, good morning, Kevin and thanks for the question.

Speaker Change: Yes, good morning, Kevin and thanks for the question.

Speaker Change: and maybe never have to do it. So that's what we're all hoping for, of course, and keep the path of growth that, you know, we've been showing in the last four years and just continue to deliver our plan.

Speaker Change: Just to step back a moment, we had a long standing.

Speaker Change: Disagreement with Honeywell.

Speaker Change: Disagreeing with Honeywell.

Speaker Change: That we managed to settle in a very positive and constructive way.

Speaker Change: That we managed to settle in a very positive and constructive way in.

Thank you.

Speaker Change: In 2024, both for the short term and for the long term for our company, which is important to note.

Speaker Change: Next question will be from Kevin Chang at CIBC, please go ahead.

Speaker Change: If you look at the numbers in our financials Youll see a higher supplier advances I did mentioned those in my prepared comments now those were offset by by lower customer advances, which I also mentioned due to our global 8000 entry into service risk management strategy and those those two amounts were rough.

Speaker Change: Even so if you look at the overall performance of the company and our free cash flow coming in at $232 million, that's really driven by the performance of the business. So that's a that's in my view a good number as we look forward.

Speaker Change: In my view, a good number as we look forward.

Speaker Change: We now have.

Speaker Change: Yeah, good morning, Kevin, and thanks for the question. Just to step back a moment, you know, we had a longstanding

Customer or a supplier of patents is available to us to help us invest in program developments, particularly we've talked about derivative aircraft and making investments to continuously improve our aircraft keep them as competitive as can be and to stay ahead of the market and thats, where we will be directing those efforts. So this will help us finance.

Speaker Change: Customer or supplier advances available to us to help us invest in program development, particularly we've talked about derivative aircraft and making investments to continuously improve our aircraft keep them as competitive as can be and to stay ahead of the market and thats, where we will be directing those efforts. So this will help us finance.

Speaker Change: disagreement with Honeywell that we we managed to settle in a very positive and constructive way in in 2024 both for the short term and for the long term for our company which is important to note

Speaker Change: That and which we believe will keep high.

Speaker Change: That and which we believe will keep.

Speaker Change: If you look at the numbers in our financials, you'll see higher supplier advances. I did mention those.

Speaker Change: High demand for our aircraft and our ability to not only sustain but.

Speaker Change: Essentially grow margins over time, so we think there's multiple benefits that will come out of it.

Speaker Change: Potentially grow margins over time, so we think there's multiple benefits that will come out of that account.

in my prepared comments.

Speaker Change: Now, those were offset by lower customer advances, which I also mentioned.

Okay. That's helpful color.

Speaker Change: That's helpful color.

Speaker Change: Maybe if I could just follow on on James his line of questioning around <unk>.

due to our global 8,000 entry into service risk management

Speaker Change: Maybe if I could just follow on on James his line of questioning around.

Speaker Change: I understand it's.

Speaker Change: Obviously I understand it's.

Speaker Change: So if you look at the overall performance of the company and our free cash flow coming in at $232 million, that's really driven by the performance of the business. So that's, in my view, a good number.

Speaker Change: Unpredictable now with the tariff situation, but.

Speaker Change: Unpredictable now with the tariff situation, but I guess when you think of your planning to kind of achieve your 2025 guidance and I can see why you pulled it because of all of this uncertainty, but if I think about where you see the biggest risk is it primarily a working capital uncertainty caused these tariffs make it difficult to plan for inventory management.

Speaker Change: I guess when you think of your planning to kind of achieve your 2025 guidance and I can see why you pulled it because of all of this uncertainty, but if I think about where you see the biggest risk is it primarily a working capital uncertainty.

Speaker Change: As we look forward, we now have customer or supplier advances available to us.

Speaker Change: These tariffs make it difficult to plan for inventory management.

to help us invest in program development.

Speaker Change: It impacts the cadence of orders.

Speaker Change: particularly, you know, we've talked about derivative aircraft and making investments to continuously improve our aircraft, keep them as competitive as can be and to stay ahead of the market. And that's where we'll be directing those efforts. So this will help us.

Speaker Change: So.

Speaker Change: So it's a cost of goods sold and potentially.

Speaker Change: Cost of goods sold and potentially.

Speaker Change: Our free cash flow issue as you think of it to the working capital lines or or do you actually see risks to deliveries.

Speaker Change: Free cash flow issue as you think of it to the working capital lines or or do you actually see risks to deliveries.

Speaker Change: And the cadence of those you have a multiyear backlog, but do you see potentially customer shifting that.

Speaker Change: On the cadence of those you have a multiyear backlog, but do you see potentially customer shifting that.

Speaker Change: finance that and which we believe will keep, you know, high demand for our aircraft and our ability to not only sustain but potentially grow margins over time. So we think there's multiple benefits that will come out of the care.

Speaker Change: Due to the risk of tariffs.

Kevin Chiang: Well, Kevin you've covered the full gamut.

Kevin Chiang: Well, Kevin you've covered the full gamut of.

Kevin Chiang: Maybe it's all of you maybe it's all of the above yes, I was wondering about.

Speaker Change: Maybe it's all of you maybe it's all of the above yes, I was wondering about.

Kevin Chiang: Yes.

Kevin Chiang: And I think that.

Kevin Chiang: <unk>.

Kevin Chiang: Really the challenge is we don't know.

Kevin Chiang: The challenge is we don't know.

Kevin Chiang: We take obviously, giving our guidance very seriously we have been very careful over.

Kevin Chiang: Obviously, giving our guidance very seriously we have been very careful.

Kevin Chiang: Over the past four years to make sure that we provide guidance.

Kevin Chiang: That is not only believable, but achievable and in most cases something that we can exceed so that we're performing at a high level.

Kevin Chiang: For everyone Who's invested in our company. This is simply a complex and rapidly evolving situation. I mean, if you just look at what happened between Saturday last weekend and Monday of this week I think the direction changed four times. So that's probably a better day to say exactly.

Kevin Chiang: For everyone, who has invested in our company. This is simply a complex and rapidly evolving situation. I mean, if you just look at what happened between Saturday last weekend and Monday of this week I think the direction changed four times, so it's probably a bidder.

Maybe it impacts, you know, the cadence of orders.

Speaker Change: And so it's a cost of goods sold and potentially a free cash flow issue, as you think of it through the working capital lens, or do you actually see risk to deliveries and the cadence of those? You know, you have a multi-year backlog, but do you see potentially customers shifting that due to the risk of tariffs?

Kevin Chiang: To say exactly what the outcomes would be but as Eric mentioned, we have looked through all of the things. You. Just described we have a plan to deal with every single one of them.

Speaker Change: <unk>, what the outcomes would be but as Eric mentioned, we have looked through all of the things. You. Just described we have a plan to deal with every single one of them.

Speaker Change: Well, Kevin, you've covered the full gamut. Maybe it's all of the above, maybe it's all of the above. Yeah, that's pretty much the answer. I think that really the challenge is we don't know.

Kevin Chiang: Those are outcomes that actually occur and we're very comfortable.

Speaker Change: Those are outcomes that actually occur and we're very comfortable.

Kevin Chiang: We will have a path forward that will keep us on track over the short term.

Speaker Change: We will have a path forward that will keep us on track over the short term.

You know, we take, obviously, giving our guidance very seriously.

Kevin Chiang: I think reasonably it's reasonable to think that tariffs are not something that will be around over the long term.

Speaker Change: I think reasonably it's reasonable to think that tariffs are not something that will be around over the long term.

We've been very careful over the past four years.

Speaker Change: to make sure that we provide guidance that is not only believable, but achievable.

Kevin Chiang: I appreciate the color. Thank you very much I'll turn it over.

Speaker Change: I appreciate the color. Thank you very much I'll turn it over.

Kevin Chiang: Okay. Thank you.

Speaker Change: Okay. Thank you.

Kevin Chiang: Thanks, Kevin next question will be from Sam Hoffman at Jpmorgan. Please go ahead.

Speaker Change: Thanks, Kevin next question will be from Sam Hoffman at Jpmorgan. Please go ahead.

and in most cases, something that we can exceed.

Speaker Change: so that we're performing at a high level for everyone who's invested in our company.

Sam Hoffman: Oh, thanks, very much and good morning.

Speaker Change: This is simply a complex and rapidly evolving situation. I mean, if you just look at what happened between Saturday of last weekend and Monday of this week, I think the direction changed four times.

Speaker Change: Good morning.

Good morning.

Kevin Chiang: Yes.

Speaker Change: Yes.

Speaker Change: Just to follow up a little bit on on that question is there.

Speaker Change: At what point given that we could have.

Speaker Change: So it's probably a bit early today to say exactly what the outcomes would be, but as Eric mentioned

Speaker Change: Uncertainty remaining here for a while.

Speaker Change: At what point.

Speaker Change: Do you need to kind of if we were to think about that.

Speaker Change: Do you need to kind of if we were to think about.

Speaker Change: We have looked through all of the things you just described. We have a plan to deal with every single one of them, if those are outcomes that actually occur. And we're very comfortable that we will have a path forward that will keep us on track.

Speaker Change: The deliveries that were expected for next year's revenue that was expected for next year.

Speaker Change: Do you need to kind of communicate with the supply chain.

Speaker Change: Do you need to kind of communicate with the supply chain about that in order to have that have that opportunity.

Speaker Change: That in order to have that have that opportunity.

Speaker Change: over the short term, and I think it's reasonable to think that tariffs are not something that will be around over the long term.

Speaker Change: I think.

Speaker Change: This is a great question, let me give you a bit of color. So I.

Speaker Change: I appreciate the call, Liza. Thank you very much. I'll turn it over.

Speaker Change: I think right now as I said things in Q1 are working normally.

Okay, thank you. Thanks Kevin.

Speaker Change: Despite all of this situation.

Speaker Change: We are in a good place and we have a good level of activity actually even slightly better than a year ago at the same time.

and J.P. Morgan. Please go ahead.

Thanks very much and good morning.

Speaker Change: As I said earlier, if this is becoming reality.

Speaker Change: Good morning, Seth. I guess just to follow up a little bit on on that question, is there, you know, at what point, given that we could have uncertainty remaining here for a while, you know, at what point,

Speaker Change: And again you know.

Speaker Change: And again, you know, we still believe here as a management team that common sense will prevail.

Speaker Change: We still believe here as a management team that common sense will prevail.

Speaker Change: And because this is this is going to hurt as much on the side of the border than the other side of the border if ever it.

Speaker Change: And because this is this is going to hurt as much on this side of the border than the other side of the border if ever it.

Speaker Change: Do you need to kind of, if we were to think about the deliveries that were expected for next year, the revenue that was expected for next year, do you need to kind of communicate with the supply chain about that in order to have that opportunity?

Speaker Change: So we do believe that at some point, where common sense will prevail that this is going to go away and things will be back to normal that's what we believe.

Speaker Change: So we do believe that at some point common sense will prevail that this is going to go away and things will be back to normal that's what we believe.

Speaker Change: But this may change, so, but what I need to say is that it's becoming a reality we have time to react.

Speaker Change: But this may change, so, but what I need to say is that if it if it's becoming a reality.

Speaker Change: I think you know this is a this is a great question and let me give you a bit of color so

Speaker Change: We have time to react in case, we've put priority on making sure we're going to preserve as much liquidity of this cut for this company as possible. So thats been our guiding our north star.

Speaker Change: We've put priority on making sure we're going to preserve as much liquidity of this cut for this company as possible. So thats been our guiding our north star.

Speaker Change: I think right now, as I said, things in Q1 are working normally, despite all this situation.

Speaker Change: In developing these scenarios, but we're not going to be forced to make a decision like overnight because as I said earlier. There is a question of the level of diarrhea that influence our reaction, but also the duration. So I don't want to be put into a situation, where I react and two days later it goes away.

Speaker Change: In developing these scenarios, but we're not going to be forced to make a decision like overnight because as I said earlier. There is a question of the level of tariff that influence our reaction, but also the duration. So I don't want to be put into a situation where I react and two days later it goes away we saw over the weekend <unk>.

Speaker Change: You know, we are in a good place and we have a good level of activity, actually even slightly better than a year ago at the same time.

As I said earlier, if this is becoming reality...

Speaker Change: And again, you know, we still believe here as a management team that common sense will prevail.

Speaker Change: Over the weekend, how fast this could go away and come back.

Speaker Change: This could go away and come back off or whatever so I think it's time to to be comp, but eventually of course.

Speaker Change: And, you know, because this is going to hurt as much on this side of the border than the other side of the border, if ever it takes place. So we do believe that at some point, you know, common sense will prevail that this is going to go away and things will be back to normal. That's what we believe.

Speaker Change: Whatever so I think it's time to to become but eventually of course.

Speaker Change: If it's a 25% if it is a long duration at some point, yes, we're going to have to take action, but as Mark just said we are.

Speaker Change: If it's a 25% if its a long duration at some point, yes, we're going to have to take action, but as Mark just said we are extremely.

Speaker Change: Extremely prepare into detail if ever.

Speaker Change: But you know this may change so but what I need to say is that if it if it's becoming a reality

Speaker Change: Extremely prepare in the detail if ever this is necessary to pull the trigger on these scenarios, but again, we still believe and hopefully you won't have to do that.

Speaker Change: As necessary to pull the trigger on these scenarios, but again, we still believe and hopefully you won't have to do that.

Speaker Change: Alright, great. Thank you and then separate question beyond tariffs at just thinking about services growth longer term longer term.

Speaker Change: Alright, great. Thank you and then sorry.

Speaker Change: Great question beyond tariffs at just thinking about services growth longer term longer term.

in developing these scenarios.

Speaker Change: but we're not going to be forced to make a decision like overnight.

Speaker Change: Once you've kind of built out.

Speaker Change: Yes.

Speaker Change: Because as I said earlier, there's a question of the level of tariff that influences our reaction, but also the duration. So I don't want to be put into a situation where I react and two days later it goes away. We saw over the weekend how fast this could go away and come back or whatever.

Speaker Change: The infrastructure, we see kind of in the report the kind of flattish profile for flight hours.

The infrastructure, we see kind of in the report that kind of flattish profile for flight hours.

Speaker Change: There is probably price.

Speaker Change: Sure.

Speaker Change: But is there room to have consistent increases in scope I guess, how do you think about in an environment, where it seems like.

Speaker Change: I think it's time to to be calm but eventually of course you know if it's a 25% if it's a long duration at some point yes we're going to have to to take action but as Bart just said we are

Flight hours across the industry are pretty flattish how do you think about long term services growth.

Speaker Change: Flight hours across the industry are pretty flattish how do you think about long term services growth.

Speaker Change: We are in an amazing position bombard C, especially when you look at the flight hours or flight hours on our product global Challenger are growing as you know we're focused on those business. So first of all our fleet is growing so we have more airplanes to take care of and this is going to grow between.

We are in an amazing position Bombardier special when you look at the flight hours or flight hours on our product global Challenger are growing as you know we're focused on those business. So first of all our fleet is growing so we have more airplanes to take care of and this is going to grow between.

Speaker Change: extremely prepared in the detail if ever this is necessary to pull the trigger on on these scenarios but again we still believe and hopefully you won't have to do that.

Speaker Change: Now in 2030.

Speaker Change: Now in 2030, and we're going to have also.

Speaker Change: And we're going to have also.

Speaker Change: Great, great, thank you. And then a separate question beyond tariffs, just thinking about services growth longer term,

Speaker Change: More activity in a sense that the market is growing in a sense that theres going to be we're going to start to do maintenance on global 7500, which we have barely start to date and other portfolio. So the maturity of our of our thing is as important.

Speaker Change: you know, once you've kind of built out the, you know, the infrastructure, we see kind of in the report, the kind of flight edge profile for flight hours.

Speaker Change: No.

Speaker Change: And we have the fleet, operator, or a significant piece as you know for us.

Speaker Change: And as you know.

Speaker Change: So they're the big Winter if you look at the fleet operator, when I look at the hours that the fleet operator, we're flying in 19.

Speaker Change: They are the big Winter if you look at the fleet operator, when I look at the hours that the fleet operator, we're flying in 19.

Speaker Change: Dave increase between.

Speaker Change: We are in an amazing position, Bombardier especially. When you look at the flight hours, our flight hours on our product Global Challenger are growing. As you know, we're focused on those businesses. So first of all, our fleet

Speaker Change: 19% and 24 by 57%. This is a very significant number of hours and as you know we own a lot of it and these guys aren't flying a couple of hundred hours a year Theyre flying a 1000 hours per airplane on average. So this is all going to translate into maintenance eventually so that path.

Speaker Change: 19% and 24 by 57%. This is a very significant number of hours and as you know we own a lot of it and these guys are not flying a couple of hundred hours a year Theyre flying a 1000 hours per airplane on average. So this is all going to translate into maintenance eventually so that path of growth.

Speaker Change: is growing, so we have more airplanes to take care of, and this is going to grow between now and 2030. And we're going to have also...

Speaker Change: Growth has been significant I know there was a lot of cyclical people a few years ago, where we said we're going to go from 1 billion to $2 billion.

Speaker Change: <unk> has been significant I know there was a lot of skeptical people a few years ago, where we said we're going to go from 1 billion to $2 billion.

Speaker Change: more activity in a sense that the market is growing in a sense that there's going to be we're going to start to do maintenance on global 7,500 which we have barely start today and and other portfolios so the maturity of our of our thing is is is important

Speaker Change: Guess, what we've done it in the year, a year faster than expected, but actually right now when I look in front of us we see.

Speaker Change: What we've done it in the year, a year faster than expected, but actually right now when I look in front of us we see.

Speaker Change: Very significant growth still to get to 2030, so so by what because of what I said earlier, but also as us gaining and gaining more and more market share of that growing market.

Speaker Change: So, and you know, we have the fleet operator are a significant piece, as you know, for us. And, and as you know, said they're the big winner. If you look at the fleet operator, when I look at the hours that the fleet operator were flying in 19.

Speaker Change: Great. Okay. Thanks very much.

Speaker Change: Great great. Thanks very much.

Speaker Change: Thanks, Beth Thank you said.

Beth: Thanks, Beth Thank you said.

Speaker Change: Next question will be from Carnett Gupta at Scotia Bank. Please go ahead.

They've increased between 19% and 24% by 57%.

Carnett Gupta: Thanks, and good morning, everyone. Congrats on a great.

Speaker Change: Thanks, and good morning, everyone congrats signing on grid.

Speaker Change: This is a very significant number of hours, and as you know, we own a lot of it, and these guys are not flying a couple of hundred hours a year, they're flying a thousand hours per airplane on average. So this is all going to translate into maintenance eventually.

Speaker Change: Here in light of what Youre seeing today.

Speaker Change: But my question Alethia, and they've got a lot of those on this tariff situation not necessarily what you're thinking about tariffs and all that but.

Speaker Change: The uncertainty is paramount because I don't think I think nobody knows the answer is that brought down but I think you're close to customers like some of the kind of key customers. I guess you talk to them you meet them go to events and all of that.

The uncertainty is Paramount I don't think I think nobody knows the answer is that I think about them.

Speaker Change: So that path of growth has been significant. I know there was a lot of skeptical people a few years ago when we said we're going to go from a billion to two billion. But you know, guess what? We've done it in a year faster than expected.

Speaker Change: I think you're close to customers right. Some of the kind of key customers I guess, you talked to them you meet them bordry events and all that.

Speaker Change: What I would be thinking in a heartbeat communicating to you what do they plan to do.

Speaker Change: What is the thinking in a heartbeat communicating to you what do they plan to do.

Speaker Change: But actually, right now, when I look in front of us, we see, you know, very significant growth still, you know, to get to 2030. So, because of what I said earlier, but also us gaining and gaining more and more market share of that growing market.

Speaker Change: Especially in the U S guys on there I think I don't know probably account for half of your backlog or something but.

Speaker Change: Especially the U S guys on their bid I don't currently account for half of your backlog or something but.

Speaker Change: How are the conversations with those guys because that would be on the big data analytics.

The reality and I will be very transparent.

Speaker Change: The reality and I'll be very transparent.

Great. Great. Thanks very much.

Speaker Change: Our customer are usually very sophisticated people very knowledgeable about markets.

Speaker Change: Thanks, Seth. Thank you, Seth. Next question will be from Karnad Gupta at Scotiabank. Please go ahead.

Speaker Change: And economy.

Speaker Change: And the economy.

Speaker Change: They see this as a very low risk of it happening so when I talk to them.

Karnad Gupta: Thanks and good morning everyone. Congrats on great results here in light of what you're seeing clearly today. But my question Aliki, I want to build on...

Speaker Change: Vast majority if not all of them are saying.

Speaker Change: If ever it happen, it's not going to last very long.

Speaker Change: And I'm on the same opinion as I said, but at the end of that they were are not predictable word I don't know when this is this is why this morning, we decided not to provide guidance.

Speaker Change: And I'm on the same opinion as I said, but at the end of the day, we are not predictable word I don't know when this is this is why this morning, we decided not to provide guidance.

Speaker Change: this type of situation, not so much what you think about tariffs and all that, but the, the uncertainty is paramount, right. I'm like I think nobody knows the answer, as you said Eric about, but Eric you're close to

Speaker Change: But I think the if you do risk assessment.

Speaker Change: customers, right? Some of the kind of, you know, key customers, I guess. You talk to them, you meet them, you know, go to events and all that. What are they thinking? You know, how are they communicating to you? What do they plan to do? You know, I think especially the U.S. guys, I'm like, I think they, I don't know, probably account for half of your backup or something. But

Speaker Change: I've been talking to a lot of customer in the last two months since this came up and we.

Speaker Change: I've been talking to a lot of customer in the last two months. Since this came up and we have been in Washington, All over this meeting <unk> of people with myself and with our team.

Speaker Change: We've been in Washington, all over this meeting <unk> of people with myself and with our team.

Speaker Change: To make sure that people understand that first of all we have a significant a significant amount of work in the United States I said earlier 2800 supplier, we're creating tens of thousands of jobs in the U S. So again, everybody believe including our customary that common sense will prevail.

Speaker Change: How are the conversations with those guys? Because at the end of the day, that's what matters.

Speaker Change: You know, the reality, and I'll be very transparent, you know that our customers are usually very sophisticated people, very knowledgeable about market.

Speaker Change: and economy, and they see this as a very low risk of happening. So when I talk to them, the vast majority, if not all of them, are saying, you know, if ever it happened, it's not going to last very long.

Speaker Change: And that this is not going to be enforced but.

And that this is not going to be enforced but.

Speaker Change: This is still there as a trend right now and we need to manage accordingly.

Speaker Change: This is still there as a threat right now and we need to manage accordingly.

Speaker Change: Alright that makes sense, thanks, and if I can.

Speaker Change: Follow up question on pre owned market I think you alluded to that it seems like pre owned market still is.

Speaker Change: Follow up question on pre owned market I think you alluded to that it seems like pre owned market still is pretty supportive up new jet orders.

Speaker Change: And I'm of the same opinion, as I said, but at the end of the day, we are in a not predictable world, I don't know, and this is why this morning, you know, we decided not to provide guidance.

Speaker Change: Supportive of new <unk> inventory levels as a percentage of the market is obviously be bonding diamonds I don't know.

Speaker Change: Inventory levels as a percentage of the market is honestly be bonding Diana I don't know.

Speaker Change: But I think the if you do risk assessment and I'm, you know, I've been talking to a lot of customer in the last two months since this came up and we've been in Washington, you know, all over this meeting hundreds of people, you know, with myself and with our team.

Speaker Change: It's something of a rescue see down the road, maybe not today, perhaps but any thoughts on like the pre owned market looking for the products you are making right now.

Speaker Change: Something of a rescue see down the road, maybe not today, perhaps but any thoughts on like the pre owned market looking for the products you are making right now.

Speaker Change: Yes.

Speaker Change: The level of especially on the Bombardier product. If you look at the overall went up a bit but on the <unk> product has been.

Speaker Change: The level, especially on the Bombardier product if you look at the overall it went up a bit but on the <unk> product has been.

Speaker Change: to make sure that people understand that first of all, we have a significant, a significant amount of work in the United States. I said earlier, 2,800 suppliers, we're creating tens of thousands of jobs in the U.S.

Speaker Change: Very low actually it went down in some cases so.

Speaker Change: Very little actually it went down in some cases so.

Speaker Change: We are.

Speaker Change: Well positioned I think challenger went down in the last month or something like that in the last quarter and.

Speaker Change: So, again, everybody believes, including our customers, that common sense will prevail and that this is not going to be enforced, but, you know, this is still there as a threat right now and we need to manage accordingly.

Speaker Change: The global is fairly stable. So there's not that many airplanes up for sale right now and when they are on the market they turned fairly fast.

Speaker Change: Global is fairly stable. So there's not that many airplanes up for sale right now and when they are on the market they turned fairly fast.

Speaker Change: I don't see any reason right now that the hours of flying out there the market momentum as I said.

Speaker Change: All right, that makes sense. Thanks. And if I can follow up with a question on pre-owned market, I think you alluded to that, that it seems like pre-owned market still is pretty supportive.

Speaker Change: Despite the threat.

Speaker Change: The tariff threat.

Activity is remaining pretty solid.

Speaker Change: of New Jettors. The inventory level, 10% of the market is obviously rebounding and I don't know if that's something of a risk you see down the road maybe, not today perhaps, but any thoughts on like how's the pre-owned market looking for the products you are making right now?

Speaker Change: Activity is remaining pretty solid.

Speaker Change: And all around the world and I think it's because of our customer assessing that this is a threat as.

Speaker Change: Good chance to disappear so I don't see like a spark in the in the pre owned inventory right now.

Speaker Change: Good chance that is appear so I don't see like a spark in the in the pre owned inventory right now.

Speaker Change: Yeah, you know the the level especially on the Bombardier product if you look at the overall it went up a bit but on the Bombardier product it's been

Speaker Change: And because our assessment of the of the threat I think we're going to be still in a very.

It's very low, actually. It went down in some cases.

Speaker Change: In a very optimal market.

Speaker Change: In 2025.

Speaker Change: Alright, thanks for the ounces and it really calls for a common sense for Tonight. Thank you. Thank you Sir.

Speaker Change: Alright, thanks for the answers on it really calls for a common sense for Tonight. Thank you. Thank you Sir.

Speaker Change: Next question will be from Ben <unk>.

Speaker Change: Bank capital markets. Please go ahead.

Speaker Change: Yes. Thanks good.

Speaker Change: Yes. Thanks.

Speaker Change: Everyone.

Speaker Change: I don't see any reason right now that the hours of flying out of the air, the market momentum, as I said, you know, despite the threat.

Speaker Change: Just on the working cap.

Speaker Change: Working capital I appreciate the color on on the well and the impact on the global 8000 would it be possible to get more granularity around the impact of contract liabilities. It like it looks like it's been a drag of around $350 million U S. This year and also wondering about whether the miss delivery.

Speaker Change: Working capital I appreciate the color on on the well and the impact on the global 8000 would it be possible to.

Speaker Change: the tariff threat, you know, the activity is remaining pretty solid in all around the world. And I think, you know, it's because of our customer, you know, assessing that, you know, this is a threat that has good chance to disappear.

Speaker Change: Get more granularity around the impact of contract liabilities. It like it looks like it's been a drag of around 350 million U S. This year and also wondering about whether the miss deliveries versus consensus could also be.

Speaker Change: <unk> versus consensus could also be.

Speaker Change: So, I don't see like a spark in the pre-owned inventory right now and, you know, because our assessment of the threat, I think we're going to be still in a very optimal market in 2025.

Speaker Change: A contributor to the free cash flow and I'm curious to see what kind of assumption in terms of working cap, we should be looking for in 2025 in light of the supply chain environment.

Speaker Change: Contributor to the free cash flow.

Speaker Change: I'm curious to see what kind of assumption in terms of working capital we should be looking for in 2025 in light of the supply chain environment.

Speaker Change: Yes, good morning <unk>.

Speaker Change: Great questions. Thank you.

Speaker Change: Right. Well, thanks for the answers and I really hope for a common sense. Thank you. Thank you, sir.

Speaker Change: The 350 or so million that you referred to you saw on the in the financials, what that actually is a reduction in customer advances in 2024.

Speaker Change: The 350 or so million that you referred to you saw in the in the financials, what that actually is a reduction in customer advances in 2024.

Speaker Change: Next question will be from Benoit Poirier at Desjardins Capital Markets. Please go ahead.

Speaker Change: Described a little bit earlier, where the primarily came from.

Speaker Change: And it's from a risk management strategy that we deployed throughout the year, where we took a conservative approach to selling our global eight thousands to keep a buffer on availability just in case, we encountered any of the other similar challenges some of our peers have had is had been bringing aircraft or.

Speaker Change: It is into entry into service.

Speaker Change: Lives into entry into service.

Speaker Change: And so that's really where that came from.

Benoit Poirier: to the free cash low miss. And I'm curious to see what kind of assumption in terms of working cap, we should be looking for in 2025 in light of this supply chain environment. Thanks.

Speaker Change: So we had.

Speaker Change: And that reduction in customer advances was approximately the same.

Speaker Change: As the dollar value of the higher supplier advances that we received that we talked about earlier with the Honeywell question. So when you think of it in those two with those two dollar amounts they really offset so those are awash.

Speaker Change: As the dollar value of the higher supplier advances that we received that we talked about earlier with the Honeywell questions. So when you think of it in those two with those two dollar amounts they really offset so those are awash what that means is that our underlying business performed as we had planned and expected.

Speaker Change: Yeah, good morning, Benoit. Great questions, thank you. The $350 or so million that you referred to, you saw in the financials,

Speaker Change: What that actually is, is a reduction in customer advances in 2024.

Speaker Change: That means is that our underlying business performed as we had planned and expected and our operating cash flows.

Speaker Change: And our operating cash flows.

Speaker Change: I described a little bit earlier where that primarily came from.

Speaker Change: Adjusting for those two amounts came in at $232 million, which is right at the midpoint.

Speaker Change: and it's from a risk management strategy that we deployed throughout the year.

Speaker Change: Our guidance. So we did not underperform on on free cash flow when it comes to working capital.

Speaker Change: where we took a conservative approach to selling our global 8000s to keep a buffer on availability just in case we encountered, you know, any of the other, you know, similar challenges some of our peers have had as they've been bringing aircraft or derivatives into entry into service.

Speaker Change: Frances.

Frances.

Frances: <unk> worked very closely with us on all of the planning we've had a plan for.

Speaker Change: <unk> worked very closely with us on all of the planning we've had a plan for.

Frances: A number of years now to reach a place where our inventories and advances are approximately the same in 2024 at our Investor day.

Speaker Change: A number of years now to reach a place where our inventories and advances are approximately the same in 2024 at our Investor day.

Speaker Change: And so that's really where that came from. So we had and that reduction in customer advances was approximately the same.

Frances: We highlighted that we plan to have fairly steady deliveries in the coming years around 150 aircraft or so and so long as we're able to manage to that our inventories and working inventories and advances should roughly offset and be equal, which means limited amount of working.

Speaker Change: We highlighted that we plan to have fairly steady deliveries in the coming years around 150 aircraft or so and so long as we're able to manage to that our inventories and working inventories and advances should roughly offset and be equal, which means limited amount of working.

Speaker Change: as the dollar value of the higher supplier advances that we received that we talked about earlier with the Honeywell question. So when you think of it in those two, with those two dollar amounts, they really offset. So those are a wash.

Frances: Capital variability overtime.

Speaker Change: Capital variability overtime.

Speaker Change: What that means is that our underlying business performed as we planned and expected and our operating cash flows

Speaker Change: That's great color and just in terms of follow up.

That's great color and just in terms of follow up.

Speaker Change: Yesterday, there was the order, which Jeff just wondering if it was going up.

Speaker Change: Yesterday, there was the order with Flexjet just wondering if it was going up.

adjusting for those two amounts.

Speaker Change: came in at $232 million, which is right at the midpoint.

Speaker Change: MS a fortunate and whether you are there still a potential for them in the large cabin segment as it was highlighted during the <unk>.

Speaker Change: Fortunately and whether you are there still a potential for them in the large cabin segment as it was highlighted during the <unk>.

Speaker Change: of our guides so we did not underperform on free cash flow. When it comes to working capital

Speaker Change: has worked very closely with us on all the planning. We've had a plan for a number of years now to reach a place where our inventories and advances are approximately the same.

Speaker Change: Appeal.

Speaker Change: Yes, I think it's a great question, but we do continue Union flagship is a very a significant and important customer for us. We do continue this year to deliver them airplane, we still have order in the backlog.

Speaker Change: Yes, I think it's a great question, but we do can see union flagship is a very a significant and important customer for us. We do continue this year to deliver them airplane, we still have order in the backlog.

Speaker Change: In 2024, at our Investor Day, we highlighted that we plan to have fairly steady deliveries in the coming years.

Speaker Change: They are still very satisfied with our product.

Speaker Change: They are still very satisfied with our product and yes. There is there is conversation.

Speaker Change: And yes, there is conversation.

Speaker Change: Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host of the Goldstein on Gelt radio show. He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, NFA, SIFMA. Accounts carried by National Financial Services LLC.

Speaker Change: We'll come to you it's like set so we don't see that as a yes.

Speaker Change: We'll come to you with the flagship so don't see that as a.

Speaker Change: Flexjet moving forward moving away from Bombardier, So I think they want to diversify their fleet that's fair.

Speaker Change: Fletcher moving forward moving away from Bombardier, So I think they want to diversify their fleet Thats fair.

Speaker Change: And we are engaged with the other fleet operator also win into conversation. So we're still.

Speaker Change: And we are engaged with with the other fleet operator also win into conversation. So we're still the OEM that delivers most airplane.

Speaker Change: That's great, Caller Bart. And just in terms of follow-up, yesterday there was the order with FlexJet, just wondering if it was kind of a missed opportunity and whether there's still a potential for them in the large cabin segment as it was highlighted during the IPO.

Speaker Change: OEM that delivers most airplane.

Speaker Change: Category of airplanes for the fleet, operator, and our products are performing extremely well. So no reason here to think that.

Speaker Change: I think it would be of airplanes for the fleet, operator, and our products are performing extremely well. So no reason here to think that.

Speaker Change: We're not going to carry on our relationship with either Flexjet net jet or visa or all the others.

Speaker Change: We're not going to carry on their relationship with either Flexjet net general Vista or all the others.

Speaker Change: Many thanks for the time.

Stephen: Yes Stephen.

Speaker Change: Yes Stephen.

Speaker Change: Yeah, I think that's a great question, but we do continue, you know, Flechette is a very significant and important customer for us.

Next question will be from Saudi Shimbun.

Speaker Change: Next question will be from <unk>.

Speaker Change: <unk> capital markets. Please go ahead.

Stephen: <unk> capital markets. Please go ahead.

Speaker Change: We do continue this year to deliver them airplanes, you know, we still have order in the backlog.

Speaker Change: Yes, good morning.

Speaker Change: I just wanted to ask a clarification question on the.

Speaker Change: Just wanted to ask a clarification question on.

You know, they're still very satisfied with our product.

Speaker Change: The comment you made about the kind of a continuation of strong order activity in the first quarter.

Speaker Change: The comment you made about the.

Speaker Change: And yes, there's conversation, you know, that will continue with Flexjet. So, we don't see that as a, you know, Flexjet moving forward, moving away from Bombardier. So, I think they want to diversify their fleet, it's fair.

Speaker Change: The kind of a continuation of strong order activity in the first quarter.

Speaker Change: I think you're effectively saying orders continued to be tracking abnormal so far which is a little bit surprising given the uncertainty.

Speaker Change: You're effectively saying orders continued to be tracking abnormal so far which is a little bit surprising given the uncertainty.

Speaker Change: And, you know, we're engaged with the other fleet operator also in two conversations.

Speaker Change: So can you give us.

Speaker Change: Can you give us.

Speaker Change: And color.

Kind of a color.

Speaker Change: Our customers with exposure to tariffs.

Speaker Change: You know, we're still the OEM that delivers most airplane, you know, in that category of airplane for the fleet operator and our product are performing extremely well. So, no reason here to think that, you know, we're not going to carry on our relationship with either FlexJet, NetJet or Vista or all the others.

Speaker Change: Making decisions.

Speaker Change: Maybe are comfortable with that risk or are the orders coming from non tariff exposure.

Speaker Change: And I'm just trying to understand.

Speaker Change: The comment about the level of older activities.

Speaker Change: The comment about the level of order activities.

Many thanks for the time.

Speaker Change: Yes, it's a fair question.

Speaker Change: So fair question.

Yes, it's a good one.

Speaker Change: And a good question.

Speaker Change: A good question.

Speaker Change: Next question will be from Fadi Shamoun at BMO Capital Markets. Please go ahead.

Speaker Change: Of course, we're having those conversations we cannot ignore this but I think on.

Speaker Change: We're having those conversations we cannot ignore this but I think on on both sides.

Speaker Change: On on both sides.

Fadi Shamoun: Yeah, good morning. I just wanted to ask a clarification question on...

Speaker Change: Comment on understanding of the risk is probably the one thing that.

Speaker Change: Comment on understanding of the risk is probably the one thing that you know.

Speaker Change: No.

Speaker Change: <unk>.

Speaker Change: Makes us being able to to carry on so of course, we're having those conversations with our customer, but I think the risk assessment as I said earlier is in everybody's mind fairly low and Thats why were able to keep going with ourselves.

Speaker Change: Makes us being able to to carry on.

Speaker Change: Of course, we're having those conversations with our customer, but I think the risk assessment as I said earlier is in everybody's mind fairly low.

Speaker Change: And that's why we're able to to keep going with ourselves.

Speaker Change: So can you give us a color like our customers with

Speaker Change: Okay.

Speaker Change: Is.

Speaker Change: Yes.

Speaker Change: Yes go ahead sorry.

Speaker Change: Yeah go ahead sorry.

exposure to tariffs, kind of, you know, making decisions.

Speaker Change: Go ahead Mark.

Speaker Change: The only thing I was just going to add to Eric's.

Mark: The only thing I was just going to add to Eric's.

Speaker Change: Maybe are comfortable with that risk or are the orders coming from non-tariff exposed jurisdictions just trying to understand You know that comment about the level of older activities

Speaker Change: The answer was that when you think about the value of our backlog.

Speaker Change: Answer was that when you think about the value of our backlog.

Mark: To your point that it goes out.

Speaker Change: Then it goes out 18 to 24 months, which is our which is our target on what that means is when we're having discussions today with customers about new aircraft orders those are really back half of 'twenty six even into 'twenty seven.

Mark: <unk> to 24 months, which is our which is our target and what that means is when we're having discussions today with customers about new aircraft orders those are really back half of 'twenty six even into 'twenty seven and so.

Speaker Change: Yeah, it's a fair question, Fadi, and a good question. Of course we're having those conversations, you know, we cannot ignore this.

But I think on both sides, it's a...

Speaker Change: So that's a long time between now and then and when you think about the risk of tariffs being in place I think our customers who as Eric described are quite sophisticated.

Speaker Change: So that's a long time between now and then and when you think about the risk of tariffs being in place I think our customers who as Eric described are quite sophisticated C that has a low probability so that helps with our conversations with them. This is this is a very very important point that <unk>.

Speaker Change: Common understanding of the risk is probably the one thing that

Speaker Change: you know, makes us, you know, being able to carry on. So, of course, we're having those conversations with our customers, but I think the risk assessment, as I said earlier, is in everybody's mind fairly low, and that's why we're able to keep going with our sales.

Speaker Change: See that as a low probability so that helps with our conversations with them. This is this is a very very important point that barks, making and if you read between the lines. Here also is the what we're selling today are mostly airplane that will be delivered post mid terms.

Speaker Change: <unk> is making and if you read between the lines. Here also is the what we're selling today are mostly airplane that will be delivered post midterms.

Yeah, go ahead. Sorry.

Speaker Change: Yes, the U S election midterms.

Speaker Change: Yes.

Speaker Change: Electric meters.

Speaker Change: The only thing I was going to add to Eric's answer was that when you think about the value of our backlog

Speaker Change: Okay.

Speaker Change: And just to be clear.

Speaker Change: Just to be clear.

Speaker Change: Bombardier is not.

Speaker Change: Somebody is not.

Speaker Change: Doing anything to share in that risk in terms of how we contract with these customers.

Speaker Change: that it goes out, you know, 18 to 24 months, which is our target.

Speaker Change: Yes.

Speaker Change: I got to be careful here, if any I don't get I don't comment on the exact contract and contract contents I won't be able to answer that.

Speaker Change: What that means is when we're having discussions today with customers about new aircraft orders,

Speaker Change: I got to be careful here, if any I don't get I don't comment on the exact contract and contract contents I won't be able to answer that.

Speaker Change: Those are really, you know, back half of 26, even into 27.

Speaker Change: Okay, just one follow up last follow up on the.

And so, that's a long time between...

Speaker Change: The deal with Honeywell.

Speaker Change: now and then, and when you think about the risk of tariffs being in place, I think our customers, who as Eric described, are quite sophisticated.

Speaker Change: <unk>.

Speaker Change: Okay.

Speaker Change: Development for.

Development for.

Speaker Change: Being already engender a modernized aircraft.

Speaker Change: see that as a low probability. So that helps with our conversations.

Speaker Change: Is there a timing agreed upon.

Speaker Change: Is there a timing agreed upon of Gwen when bombarded with undertake.

Speaker Change: When when bombarded with undertake.

Speaker Change: This is a very, very important point that Bart's making and if you read between the line here also is what we're selling today are mostly airplanes that will be delivered post midterms.

Speaker Change: Actual development.

Speaker Change: Is it like within two years three years.

Speaker Change: Yes, that's a great question of course, the agreement is confidential again, but there is nothing today, that's been officially launched and we've got time to work with our partners here Honeywell in a sense that we will take the necessary time.

Speaker Change: Yes, that's a great question and of course the agreement is confidential again, but there is nothing today, that's been officially launched and we've got time to work with our partners here Honeywell in a sense that we will take the necessary time.

Yeah, the U.S. election midterms.

Speaker Change: Okay, and just to be clear, Bombardier is not doing anything to share in that risk in terms of how you contract with these customers.

Speaker Change: And we are being very careful about performance and still monitoring what's happening on the market about continuously improving our product, but we're glad that.

Speaker Change: And we are being very careful about performance.

Speaker Change: <unk> monitoring whats happening on the market about continuously improving our product, but we're glad that you know.

Speaker Change: Yeah, you know, I've got to be careful here, Fede. I don't comment on, you know, the exact contract and contract contents. I won't be able to answer that.

Speaker Change: We're going to be teaming up with the only well and and offer our customer improved product in the future.

Speaker Change: We're going to be teaming up with only well and and offer our customer improved product in the future.

Speaker Change: Okay, just one follow-up, last follow-up on the the deal with Honeywell with the

Speaker Change: I appreciate it thank you.

Speaker Change: Thank you. Thank you Patty next question will be from Tim James at TD Cowen. Please go ahead.

Speaker Change: Thank you thank you Patty.

Speaker Change: Our next question will be from Tim James at TD Cowen. Please go ahead.

Speaker Change: Is there a timing agreed upon of when Bombardier would undertake such a development?

Speaker Change: Yes.

Thanks, very much and good morning, everyone.

Tim James: Thanks, very much and good morning, everyone.

Tim James: My first question could you talk about Capex plans for 2025.

Speaker Change: My first question could you talk about Capex plans for 2025.

Tim James: Thank you.

Speaker Change: Thank you.

Tim James: Most of your 25.

Speaker Change: Most of your 25 guidance that you had removed at this point for understandable reasons, but I'm wondering if capex. If that's something you could provide a little bit of color on what your thoughts are on what.

Guidance.

Did it like within a year, three years, or...

Tim James: We have removed at this point for understandable reasons, but I'm wondering if capex. If that's something you can provide a little bit of color on what your thoughts are on when expenditures will be in 2025.

Speaker Change: Yeah, that's a great question. Of course the the agreement is confidential again, but you know, there's nothing today that's being officially launched and we got time

Speaker Change: What expenditures will be in 2025.

Tim James: Yeah, Good morning, Tim.

Speaker Change: Yeah, Good morning, Tim.

Tim James: So capex, obviously was down considerably in 2024 that was that was by design that was our plan and we still have a lot of investment going on in the Pearson facility in in 'twenty three.

Speaker Change: So capex, obviously was down considerably in 2024 that was that was by design that was our plan. We still have a lot of investment going on in the Pearson facility in in 'twenty three.

We'll take the necessary time.

Speaker Change: And we are being very careful about performance and still monitoring, you know, what's happening on the market about continuously improving our product. But we're glad that, you know, we're going to be teaming up with Donnywell and offer our customer improved product in the future.

Tim James: Which came out of the system so.

Speaker Change: Which came out of the system so in.

Speaker Change: In the absence of Capex directed towards.

Tim James: In the absence of Capex directed towards.

Programs or or I'll call. It other organic growth opportunities that we know we have particularly in the services business the run rate.

Tim James: Programs or or I'll call. It other organic growth opportunities that we know we have particularly in the services business the run rate.

I appreciate it. Thank you.

Speaker Change: Thank you. Thank you, Fadi. Next question will be from Tim James at TD Cowen. Please go ahead.

Speaker Change: Is probably higher than the 173 you saw in 2024.

Tim James: Is probably higher than the 173 you saw in 2024.

Tim James: Thanks very much, good morning everyone. My first question Bart, could you talk about CapEx plans for 2025 and I mean I realize you're you know most of your 25 guidance that you have removed at this point for understandable reasons but I'm wondering if you know CapEx if that's something you can provide a little bit of color on what your thoughts are on.

Speaker Change: Because we are not providing guidance I won't give you exact numbers, what I would point back to though too to add some color.

Tim James: Because we are not providing guidance I won't give you exact numbers, what I would point back to though to add some color.

Speaker Change: Is.

Tim James: Is.

Tim James: As what we said at our 2000 and for Investor Day.

Speaker Change: What we said at our 24 Investor day.

Tim James: Typical year for us, we're going to be in that $2 $50 million to $300 million range.

Speaker Change: Typical year for us, we're going to be in that.

Speaker Change: $2 $50 million to $300 million range.

What expenditures will be in 2025?

Speaker Change: Okay, great. Thank you.

Speaker Change: Okay.

Tim James: Hey.

Bart: Yeah, good morning Tim. So CapEx obviously was down considerably in 2024. That was by design. That was our plan. You know, we still had a lot of investment going on in the Pearson facility in 2023.

Speaker Change: Yes.

Tim James: Yes.

Speaker Change: Sure.

Speaker Change: Next question is forgive me if you commented on this because I know it comes up regularly on calls but.

Speaker Change: Next question is for Kevin If you commented on this because I know it comes up regularly on calls but.

Speaker Change: <unk>.

Tim James: <unk>.

Speaker Change: We're looking at sort of the current situation as you think about 25.

Tim James: We're looking at sort of the current situation as you think about 25.

Tim James: And supply chain issues and inflationary costs that you are having to deal with I think it was mentioned it was a 50 basis point headwind in 2004.

Bart: which came out of the system. So, you know, in the absence of CAPEX directed towards, you know, programs or...

Speaker Change: And supply chain issues and inflation in the various costs that you are having to deal with I think it was mentioned it was a 50 basis point headwind in 2004.

Bart: or I'll call it other organic growth opportunities that we know we have, particularly in the services business.

Speaker Change: In 2025 as you look at it currently putting aside anything to do with tariffs.

Tim James: In 2020 fine as you look at it currently putting aside anything to do with tariffs.

Speaker Change: Do you still kind of think.

Tim James: You're still kind of think.

Bart: You know, the run rate is probably higher than the 173 you saw in 2024. Because we're not providing guidance, I won't give you exact numbers. What I would point back to, though, to add some color.

Speaker Change: Pricing on deliveries net.

Tim James: Pricing on deliveries net inflation.

Tim James: Inflation and supply chain challenges that still kind of a net.

Speaker Change: Relation supply chain challenges that still kind of a net net zero.

Tim James: Net zero.

Tim James: The impact next year or this year.

Speaker Change: Impact next year or this year.

Yes, I think over the long term.

Speaker Change: Yes, I think over the long term that Thats, certainly our planning basis, Tim for sure.

Bart: is what we said at our 24 Investor Day, that a typical year for us, we're gonna be in that 250 to 300 million range.

Tim James: Certainly our planning basis.

Tim James: For sure.

Tim James: The one thing I would point out though is that.

Speaker Change: The one thing I would point out though is that.

This.

Tim James: This.

Speaker Change: This headwind.

Okay, great, thank you.

Tim James: This headwind.

Tim James: Headwind that we're facing right now.

Speaker Change: That we're facing right now.

Speaker Change: Everybody is working hard we have been working extremely hard on our supply chain partners are working extremely hard on it.

Tim James: Everybody is working hard we have been working extremely hard on our supply chain partners are working extremely hard on it.

Yeah.

Speaker Change: Next question, forgive me if you commented on this because I know it comes up regularly on calls but

Tim James: Eric mentioned earlier that we don't see any net.

Speaker Change: Eric mentioned earlier that we don't see any net.

Speaker Change: We're looking at sort of the current situation as you think about 25 and supply chain issues and inflation and the various costs that you're having to deal with. I think it was mentioned it was a 50 basis point headwind in 24.

Speaker Change: Degradation deterioration this year in fact, it's probably going to be fairly stable relative to last year, which means at some point once we get through these final hurdles, we've probably got a 50 basis point upside.

Tim James: Degradation deterioration this year in fact, it's probably going to be fairly stable relative to last year, which means at some point once we get through these final hurdles, we've probably got a 50 basis point upside.

Speaker Change: In 2025, as you look at it currently, putting aside anything to do with tariffs, do you still kind of think pricing on deliveries, net of inflation, supply chain challenges is still kind of a net zero impact next year or this year?

Speaker Change: Two our margins that we can work our way up and that's what we're going to be focused on here in 'twenty five 'twenty six but in 'twenty five a reasonable.

Tim James: So our margins that we can work our way up and that's what we're going to be focused on here in 'twenty five 'twenty six but in 'twenty five.

Tim James: A reasonable assumption assuming no other changes in the environment is that we will continue to have to.

Speaker Change: Assumption, assuming no other changes to Cynthia environment is that we will continue to have to.

Tim James: Yeah, I think over the long term that's certainly our planning basis, Tim, for sure. The one thing I would point out, though, is that

Tim James: Bear the brunt of that 50 basis point headwind.

Speaker Change: Bear the brunt of that 50 basis point headwind.

Speaker Change: Great. Thank you very much.

Tim James: Great. Thank you very much.

Tim James: Okay Super Thanks, Dave.

Speaker Change: Okay Super Thanks Les.

Speaker Change: Ladies and gentlemen, this is all the time allotted for questions today, and I would like to turn the conference back to Mr. Malkin.

You know, this, uh, this...

headwind that we're facing right now.

Tim James: Everybody is working hard. We've been working extremely hard on it and our supply chain partners are working extremely hard on it.

Speaker Change: Yes, thanks to all of you for joining US today, we really appreciate adhere to team 2025 2024, sorry. It was another strong growth year from a margin.

Speaker Change: Yes, thanks to all of you for joining US today, we really appreciate it here the team 2025 at <unk> 24, sorry. It was another strong growth year from a margin.

Speaker Change: And again, we broke records with our claims as well as our on our balance sheet.

Tim James: deterioration this year. In fact, it's probably going to be fairly stable relative to last year, which means at some point, once we get through these final hurdles, we've probably got a 50 basis point upside.

Speaker Change: Our people are very engaged and ready to face. The challenges 2025 will bring we are starting a new chapter for Bombardier with passion and pride and have set a strong foundation for <unk> future. Thank you again for following our story and I look forward to speaking with you all throughout the year.

Speaker Change: Our people are very engaged and ready to face. The challenges 2025 will bring we are starting a new chapter for Bombardier with passion and Pride and has set a strong foundation for <unk> future. Thank you again for following our story and I look forward to speaking with you all throughout the year.

to our margins that we can work away on.

Tim James: here in 25 and 26. But in 25, a reasonable assumption, assuming no other changes in the environment, is that we'll continue to have to bear the brunt of that 50 basis point headwind.

Speaker Change: Thank you ladies and.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.

Speaker Change: Gentlemen, this does indeed conclude your conference call for today once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.

Great, thank you very much.

Speaker Change: Okay, super. Thanks, Tim. Ladies and gentlemen, this is all the time allotted for questions today, and I would like to turn the conference back to Mr. Martel.

Speaker Change: Yeah, thanks to all of you for joining us today. We really appreciate it here, the team. 2024 was another strong growth year for Bombardier. And again, we broke records with our planes as well as on our balance sheet.

Speaker Change: Our people are very engaged and ready to face the challenges 2025 will bring.

Speaker Change: We are starting a new chapter for Bombardier with passion and pride and have set a strong foundation for Bombardier's future. Thank you again for following our story and I look forward to speaking with you all throughout the year.

Speaker Change: Thank you. Merci. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time we do ask that you please disconnect your lines.

Full Year 2024 Bombardier Inc Earnings Call

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