MONTREAL, July 30 (Reuters) – Bombardier on Thursday reported second-quarter profit above analysts’ expectations, helped by robust demand for private jets that also drove a turnaround in free cash flow and expanded the planemaker’s order backlog.
The Montreal-based company said its quarterly revenue grew 6% on an annual basis to $2.15 billion, helped by demand for its aftermarket services, and despite delivering four fewer planes. Analysts estimated the company’s revenue at $2.18 billion, according to data compiled by LSEG.
Business jet makers are benefiting from strong demand, as a surge of wealth from AI startups and SpaceX creates new customers for private aviation. Bombardier has paid down debt and is increasing production to deliver more planes.
Analysts and planemakers say aerospace supply chains have improved since the COVID-19 pandemic with overall deliveries rising this year, but that there are lingering concerns about certain parts.
Bombardier delivered 32 business jets during the quarter, down from 36 planes a year earlier as it faced lingering supply chain constraints and as it expects to hand over more planes in the back half of 2026.
Earlier this week, Bombardier’s U.S. rival Gulfstream Aerospace, a division of General Dynamics Corp, said deliveries rose by three planes to 41, while Textron Inc said they are still dealing with issues from some key components.
Bombardier’s backlog stood at $21.8 billion as of June 30, up by $4.3 billion from December-end.
The company reported $228 million in second-quarter free cash flow, a metric closely watched by investors, compared with a negative $164 million a year earlier, boosted by customers’ firm deposits on new planes orders.
On an adjusted basis, quarterly profits came in at $2.50 per share, compared with analysts’ estimates of $1.41 per share.
(Reporting By Allison Lampert in Montreal and Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo)
Comments