Bombardier (BBD-B) Q2 2026 earnings summary

Executive summary

• Revenues increased 6% year-over-year to $2.15 billion in Q2 2026, with record Services revenue of $674 million, up 14%, and 32 aircraft delivered.

• Adjusted EBITDA rose 9% to $325 million (15.1% margin), and adjusted net income more than doubled to $257 million; reported net income was $191 million.

• Free cash flow was $228 million, a $392 million year-over-year improvement, totaling $588 million for the first half.

• Backlog grew to $21.8 billion as of June 30, 2026, up $4.3 billion from year-end 2025, with a unit book-to-bill of 1.5x and strong Global 8000 demand.

• Net debt was reduced by $356 million in Q2, with no maturities before November 2030 and an adjusted net debt to EBITDA ratio of 1.6x.

Financial highlights

• Services revenue reached a record $674 million, up 14% year-over-year, now over one-third of total revenues.

• Adjusted EBITDA margin expanded by 50 basis points to 15.1%; EBIT margin increased by 40 basis points to 10.5%.

• Adjusted EPS increased 125% to $2.50; diluted EPS was $1.84.

• Cash flows from operating activities were $338 million, up from $(128) million in Q2 2025.

• Net additions to PP&E and intangible assets increased by $74 million year-over-year to $110 million.

Outlook and guidance

• Raised full-year 2026 guidance remains on track, with expectations for a very active Q4 in deliveries, revenues, EBITDA, and free cash flow.

• Free cash flow guidance was increased to greater than $1 billion, with strong confidence in achieving or exceeding this target.

• Q3 is expected to be similar to last year across key metrics, with Q4 skewed for higher activity.

• Expansion of the Singapore Service Centre expected to nearly double capacity by the second half of 2028.

• Management highlighted a strong order backlog and continued demand for products and services.