Bombardier believes it is on track to meet its target of delivering between 150 and 155 aircraft in 2024, posting a quarterly performance that exceeded last year’s and analysts’ expectations.
The Montreal aircraft manufacturer delivered 39 aircraft during the second quarter, ten more than at the same date in 2023.
The company, now specializing in business aviation, reports that its order book stood at US$14.9 billion as of June 30. That’s up from US$14.2 billion as of December 31, 2023.
Reflecting sustained demand, the company said the ratio of orders received to invoiced deliveries was 1.0. This means the company added the same number of orders to its backlog as the number of aircraft delivered.
“We are in line with our production plan and on track to meet our full-year targets,” Bombardier CEO Eric Martel said on a media call Thursday.
The labour dispute that hit its assembly centre in the Greater Toronto Area earlier this summer has no impact on the company’s forecasts, Mr. Martel said.
The strike by 1,350 unionized workers lasted 18 days and ended earlier this month after a new three-year collective agreement was ratified.
“In terms of working days, we lost about 11 days. But what you have to know is that most of the aircraft that are delivered this year were already in Montreal for finishing,” explained the president and CEO of Bombardier.
There were some delays on some devices, but the company has a catch-up plan, he said.
According to analyst Benoit Poirier of Desjardins Securities, “the fact that Bombardier delivered more jets than expected in the first half eliminates certain execution risks for the second half, which further improves the outlook for the year.”
He also believes that the addition of around 30 orders during a season that is usually quieter in terms of bookings demonstrates that demand for private jets “remains robust”.
Financial results up
It was live from the United Kingdom, where the Farnborough International Airshow is being held, that Mr. Martel revealed positive financial results.
Revenues totaled $2.20 billion US, compared to $1.68 billion US a year earlier. Services operations alone generated $507 million in revenues, representing 23% of Bombardier’s total revenues in the second quarter.
Net income was $19 million, compared with a loss of $35 million a year ago. Profit was 12 cents per share, up from a loss of 44 cents per share in the second quarter of 2023.
As for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), it amounted to $335 million, an increase of 22% compared to the same period last year. A growth “which is explained by a healthy mix of aircraft delivered combined with the strength of service activities,” indicates the company.
On an adjusted basis, Bombardier said it earned US$1.04 per share, up from an adjusted profit of 72 cents per share a year earlier. Before the results were released, analysts had expected a profit of US$0.78 per share, according to financial data firm Refinitiv.