Bombardier Inc.

Bombardier reported Q2 2025 revenue of $2 billion, down $175 million or 8% year over year. Services revenue was $590 million, up 16% year over year, and adjusted EBITDA was $297 million versus $335 million last year, with margin of 14.6%. Adjusted EBIT was $205 million, adjusted net income was $117 million, and adjusted EPS was $1.11, up about 7% year over year. Free cash flow usage was $164 million, driven mainly by a $280 million inventory investment, $125 million of cash interest, and $36 million of CapEx. Deliveries were 36 in the quarter and 59 in the first half, matching the prior year; backlog ended at $16.1 billion. For the full year, management reiterated guidance and said second-half deliveries should exceed 91 aircraft, with more than $1 billion of EBITDA expected in H2 and potential to land toward the higher end of the free cash flow range if order activity stays strong.

Eric Martel said Bombardier is in an excellent position and that the quarter reinforces a clear path to 2025 guidance. He highlighted the 50-aircraft order, sustained demand, low preowned aircraft availability, and continued strength in services and defense as evidence of the company’s strategy working. He also emphasized ongoing service-network expansion, the upcoming first Global 8000 delivery in the second half, and a disciplined approach to balancing growth with supply-chain constraints.

Bart Demosky said the quarter was in line with plan and that the company is on track to meet full-year guidance. He pointed to $16.1 billion of backlog, $2 billion of quarterly revenue, $297 million of adjusted EBITDA, a 14.6% margin, and $1.11 of adjusted EPS, while noting free cash flow usage of $164 million was mainly due to inventory build for the back half. He said Bombardier refinanced $500 million of debt, extended maturities to 2033, cut the average coupon on long-term debt by 11 basis points, and ended with $1.2 billion of liquidity; he also said the company expects to retire about $600 million of incremental debt by year-end to move toward its 2.0x to 2.5x leverage target.

Analysts pressed on free cash flow, backlog strength, and whether the strong order environment could push the company toward the high end of guidance. Management said the biggest drivers are greater than 55% higher deliveries in the second half and the cash profile of the new fleet order, and reiterated that guidance stays unchanged for now though the high end is possible if order activity remains strong. Questions also focused on capital allocation, where management said excess cash this year will go to debt retirement, while future deployment should favor services and defense, and on defense opportunities, where management cited AWACS, maritime patrol, and unmanned possibilities.