Bombardier (BBD-B) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues rose 32% year-over-year to $2.2 billion, with aircraft deliveries up 34% to 39 units and services revenue up 18% to $507 million.

• Adjusted EBITDA increased 22% to $335 million, with adjusted net income at $111 million and adjusted EPS at $1.04.

• Free cash flow usage improved to $(68) million, with available liquidity at $1.3 billion.

• Order backlog reached $14.9 billion, up 5% from year-end 2023, with a book-to-bill ratio of 1.

• The company maintained strong execution, outperforming peers and reaffirming 2025 targets.

Financial highlights

• Q2 2024 revenue was $2.2 billion, up 32% year-over-year, driven by 39 aircraft deliveries and strong aftermarket growth.

• Adjusted EBITDA margin was 15.2%, and adjusted EBIT was $216 million (9.8% margin).

• Net income from continuing operations was $19 million, up from $10 million in Q2 2023.

• Free cash flow usage improved to $(68) million from $(222) million in Q2 2023.

• Available liquidity at June 30, 2024 was $1.3 billion, including $1.0 billion in cash and $300 million undrawn credit facility.

Outlook and guidance

• On track to meet full-year guidance, with a strong Q4 expected due to seasonality and delivery timing.

• 2025 targets reaffirmed: revenues >$9.0 billion, adjusted EBITDA >$1.625 billion, adjusted EBITDA margin ~18%, free cash flow >$900 million, and adjusted net debt to adjusted EBITDA ratio of 2.0x–2.5x.

• Services business is ahead of schedule to reach $2.0 billion revenue by 2025, with continued mid- to high-single-digit annual growth expected through 2030.

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

• CapEx for the year expected below $300 million.