Bombardier (BBD.B) Q2 2025 Earnings Report

The earnings call revealed strong achievements in securing significant aircraft orders, growth in services revenue, and improvements in the financial strategy through debt refinancing and credit rating upgrades. However, these positives were somewhat offset by the year-over-year revenue decline, ongoing supply chain challenges, and negative free cash flow. Overall, the positive aspects seem to outweigh the negative ones, but the challenges still present notable concerns.

In the second quarter of 2025, Bombardier reported strong financial performance, with revenues reaching $2 billion, featuring a notable 16% year-over-year increase in service revenues to $590 million. The company achieved a unit book-to-bill ratio of 2.3, thanks in part to a significant order for 50 aircraft, contributing to a backlog of $16.1 billion. Bombardier delivered 36 aircraft in the quarter, maintaining the same level as the previous year, and plans to deliver over 91 aircraft in the second half of the year. Adjusted EBITDA stood at $297 million, with an EBITDA margin of 14.6%. The company successfully refinanced $500 million of senior notes, reducing its average long-term debt coupon by 11 basis points, and received credit rating upgrades from S&P Global Ratings and Moody's. Bombardier anticipates generating more than $1 billion in EBITDA in the second half of the year, supported by a favorable delivery mix and strong demand for its aircraft, including the upcoming first delivery of the Global 8000.