Bombardier (BBD-B) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues rose 32% to $2.2 billion, with 39 aircraft delivered, marking double-digit year-over-year growth in deliveries, revenues, services, and profitability.

• Services revenue grew 18% year-over-year to $507 million, surpassing $500 million for the first time and supporting the 2025 target.

• Backlog reached $14.9 billion with a book-to-bill ratio of 1.0, reflecting strong geographic diversification and sustained demand.

• Defense business momentum continued with notable wins and increased presence at major industry events.

Financial highlights

• Adjusted EBITDA was $335 million (15.2% margin), up 22% year-over-year.

• Adjusted EBIT rose to $216 million, with a margin of 9.8%.

• Adjusted net income was $111 million ($1.04 per share); net income from continuing operations was $19 million.

• Free cash flow usage was $(68) million, with CapEx down over 50% to $37 million.

• Aftermarket revenues increased 18% to $507 million, representing 23% of total sales.

Outlook and guidance

• Affirmed full-year 2024 guidance, expecting a strong Q4 due to seasonality and delivery timing.

• CapEx for the year expected below $300 million.

• Confident in achieving $900 million or better in free cash flow for the year.

• Services business on track to achieve $2 billion in annual revenues by 2025.

• Defense and services expected to contribute 50% of revenue by 2030.