Bombardier (BBD-B) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw double-digit year-over-year growth in deliveries, revenues, services, and profitability, with revenues up 32% to $2.2 billion and 39 aircraft delivered, a 34% increase.

• Services revenue grew 18% year-over-year to $507 million, surpassing $500 million for the first time and supporting the $2 billion 2025 target.

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

• The company maintained strong execution and predictability in aircraft deliveries, outperforming peers and achieving record Q2 deliveries.

• Adjusted net income was $111 million ($1.04 EPS), up from $80 million ($0.72 EPS) year-over-year; net income from continuing operations was $19 million.

Financial highlights

• Q2 revenue was $2.2 billion, up 32% year-over-year, driven by 39 aircraft deliveries and strong aftermarket growth.

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

• Adjusted EBIT was $216 million (9.8% margin), and adjusted net income was $111 million ($1.04 EPS).

• Free cash flow usage was $(68) million, a substantial improvement year-over-year, with CapEx at $37 million.

• Available liquidity stood at $1.3 billion, with cash and cash equivalents at $1.0 billion as of June 30, 2024.

Outlook and guidance

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

• CapEx for the year expected below $300 million.

• Free cash flow is trending within the guided range, with a strong Q4 anticipated.

• No change to the long-term plan of delivering around 150–155 aircraft annually.

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