Key facts
- Bombardier's second-quarter profit exceeded analyst expectations.
- Revenue increased by 6% year-over-year to $2.15 billion.
- Free cash flow for the quarter was $228 million.
- Long-term debt decreased to $4.05 billion, the lowest in over 15 years.
- The company delivered 32 jets in the quarter, contributing to a $21.8 billion order backlog.
Bombardier exceeded analyst expectations for its second-quarter financial results, reporting a profit of $191 million ($1.84 per diluted share) on revenue of $2.15 billion. Adjusted net income reached $257 million ($2.50 per share), surpassing estimates. The company benefited from strong demand for its private jets and aftermarket services, which also led to positive free cash flow of $228 million for the quarter.
Amid this robust demand, Bombardier has significantly reduced its long-term debt to $4.05 billion, its lowest level in over 15 years. The company has cut its debt by $1.1 billion in the first six months of the year and has no maturities until late 2030. This strategic shift, focusing on private jets and servicing after divesting other divisions, has stabilized the business and built a multi-year backlog valued at $21.8 billion. Bombardier delivered 32 jets during the quarter and remains on track to meet its annual guidance.
Analysts like Cameron Doerksen of National Bank expressed surprise at the stock's strong performance, remaining bullish on market fundamentals but noting that valuation appears elevated.