Q2 2026 Bombardier Inc Earnings Call Transcript
Key Points
- Record services revenue of $674 million, up 14% year-over-year, driven by strong fleet utilization and network expansion.
- Backlog expanded to $28.8 billion, up $4.3 billion since year-end, reflecting robust demand for large-cabin aircraft and defense programs.
- Strong free cash flow generation of $228 million in Q2 and $588 million in the first half, supported by customer advances and operational discipline.
- Reduced net debt by $356 million in the quarter, with no debt maturities before November 2030 and a net leverage ratio of 1.6x.
- Growing defense pipeline with key wins like Canada/NATO GlobalEye selection and South Korea order, providing long-term backlog visibility.
- Aircraft deliveries were down by 4 units year-over-year in Q2, partly due to supply chain constraints and timing issues.
- Supply chain challenges persist as an industry-wide issue, causing a drag on cost and delivery profiles despite proactive management.
- Heavy Q4 delivery skew expected, with Q3 metrics likely flat year-over-year, indicating uneven quarterly performance.
- Higher SG&A as a percentage of revenue to support growth activities, partially offsetting margin improvements from services and R&D credits.
- Inventory investment increased by $420 million in Q2 to support future deliveries, tying up working capital and adding near-term cash flow pressure.
Good morning, ladies and gentlemen, and welcome to the Bombardier second quarter 2026 earnings conference call.
Please be advised that this call is being recorded. At this time, I would like to turn the discussion over to Mr. Francis Richer de La Fleche, Vice President, FP&A and Investor Relations for Bombardier. Please go ahead.
Good morning, everyone, and welcome to Bombardier's earnings call for the second quarter of 2026. I wish to remind you that during the course of this call, we may make projections or other forward-looking statements regarding future events or the financial performance of the corporation.
There are risks that actual events or results may differ materially from these statements. For additional information on forward-looking statements and underlying assumptions, please refer to the MD&A. I'm making this cautionary statement on behalf of each speaker on this call.
With me today is our President and Chief
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