Bombardier Inc. (TSX: BBD.B) has released its financial results for the second quarter of 2024, showing robust recovery and promising growth in the business aviation sector.
The Canadian aerospace manufacturer reported significant double-digit growth across key metrics for Q2.
This demonstrates the success of its focused business model and the strategic shift towards business aviation.
Q2 Impressive Financial Performance
The company’s Q2 2024 revenues surged to $2.2 billion, marking a substantial 32% increase year-over-year.
This growth was primarily driven by two factors: a notable rise in aircraft deliveries and a steady increase in services revenue.
Aircraft deliveries reached 39 units in the quarter, representing a remarkable 34% increase from the same period last year.
This strong performance puts Bombardier well on track to achieve its full-year guidance of 150-155 aircraft deliveries.

Services: A Key Growth Driver
Bombardier’s Services business continued its impressive trajectory, contributing $507 million to total revenues – an 18% year-over-year increase.
This sustained growth in the Services segment is particularly noteworthy as it supports the company’s ambitious goal of reaching $2 billion in Services revenues by 2025.
The expansion of Bombardier’s service network has played a crucial role in this growth. This allowed the company to capitalize on the increasing demand for maintenance and support services in the business aviation sector.

Market Demand and Backlog
The company reported sustained demand across multiple key regions, with a healthy mix throughout its portfolio of aircraft.
This demand extends from traditional business jets to include defense and medevac solutions, highlighting Bombardier’s successful diversification strategy.
The company’s order backlog reached an impressive $14.9 billion at the end of Q2 2024. This was fueled by strong order intake that yielded a unit book-to-bill ratio of 1.0.
This robust backlog provides Bombardier with a solid foundation for future growth and financial stability.

Profitability and Operational Efficiency
Bombardier’s profitability metrics showed significant improvement, highlighting the company’s focus on operational efficiency and strategic execution.
The adjusted EBITDA rose to $335 million, a 22% increase year-over-year. A healthy delivery mix and strong performance in the Services business drive the result.
The adjusted EBITDA margin slightly decreased to 15.2% – down 120 basis points year-over-year. This can be attributed to the company’s continued investments in growth initiatives and navigating global supply chain challenges.
The adjusted EBIT for Q2 2024 stood at $216 million, representing a 14% increase from the same quarter last year.

Strategic Focus and Future Outlook
Éric Martel, President and CEO of Bombardier, pointed out the company’s successful transition into its fourth year of focusing on business aviation.
This strategic shift has allowed Bombardier to streamline its operations and capitalize on the growing demand for private and business aircraft.
The company’s ability to post double digit growth year-over-year suggests the strength of its focused business model.
Martel also highlighted Bombardier’s unique expertise in managing supply chain challenges. This has been crucial in achieving production schedules and meeting customer demands.
This agility and strength position the company well to navigate future market uncertainties and potential economic headwinds.
Conclusion
Bombardier’s strong Q2 2024 results demonstrate the company’s successful turnaround and its potential for sustained growth in the business aviation sector.
With a robust order backlog, growing services business, and continued operational improvements, Bombardier appears well positioned to capitalize on the recovering aviation market. It has a confidence in meeting its full year guidance for 2024.

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