Key Takeaways:
Bombardier reported Q2 free cash flow of $228 million, swinging from a $164 million usage a year earlier, as backlog grew 25%.
"Our impressive quarter demonstrates the power of a team executing its plan at the top of their game with the right strategy," Chief Executive Officer Eric Martel said. "The Global 8000 aircraft continues to perform at the top of its category in the skies and in the order books, reinforcing our leadership in business aviation."
Revenue rose 6 percent to $2.15 billion, driven by a record $674 million in services revenue, up 14 percent from a year ago. Adjusted EBITDA climbed 9 percent to $325 million, with margin expanding 50 basis points to 15.1 percent. Adjusted net income more than doubled to $257 million, or $2.50 per share, from $117 million, or $1.11 per share, in the same period last year. The company delivered 32 aircraft during the quarter.
Backlog reached $21.8 billion as of June 30, increasing by $4.3 billion from year-end 2025, supported by a unit book-to-bill of 1.5x. Demand was concentrated in the Global 8000, Bombardier's flagship ultra-long-range jet. The company's defense business also contributed to the pipeline, with the company on track to meet its raised 2026 guidance across all key metrics.
Bombardier reduced debt by $1.1 billion year-to-date, including the full repayment of $750 million in 7.50 percent Senior Notes due 2029 and $106 million in CAD 7.35 percent debentures. The company issued $500 million in 5.875 percent Senior Notes due 2035 to fund part of the repayment, resulting in a net debt reduction of $356 million. Adjusted net debt to adjusted EBITDA fell to 1.6x, nearing the company's 1.5x target. Bombardier also announced a new $750 million five-year secured revolving credit facility, replacing its existing $450 million facility.
Available liquidity stood at approximately $1.9 billion, with cash and cash equivalents of $1.45 billion. The company's next debt maturity is not until November 2030.
The free cash flow generation and backlog expansion signal that Bombardier's strategy of prioritizing services growth and defense diversification is gaining traction. Investors will watch the company's Q3 performance, with summer production shutdowns expected to weigh on results before a Q4-weighted second half.
This article is for informational purposes only and does not constitute investment advice.
