Bombardier 2Q revenue dips on lower large aircraft deliveries

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by Fayaz Hussain

August 1, 2025

Bombardier's Global 7500 set a new Montreal-Paris speed record.

Canadian aerospace manufacturer Bombardier’s 2Q top line declined by 7.9% year-over-year to $2.4bn as manufacturing revenues slumped which the company said was due to “lower large aircraft deliveries.”

Segment-wise breakdown showed revenues from manufacturing segment clocked in at $1.4bn, down from $1.7bn last year as the company delivered 36 business jets, three lower than 39 last year. The company delivered 21 medium jets and 15 large jets in the second quarter.

On the flip side, revenues from services segment were up 16.4%YoY to $590m from $507m in 2Q 2024.

“Our services business delivered another strong quarter with revenue up 16% year-over-year to $590m. When we last spoke, I explained that the work in progress in our service facilities was significantly higher at the end of the first quarter. The double-digit revenue growth in Q2 is a direct result from that higher WIP,” said Bart W. Demosky, Bombardier’s executive vice president and chief financial officer while commenting on the results in Q2 earnings call.

The deliveries mix, coupled with higher supplier costs, lowered the company’s gross profit to $411m – a contraction of 30 basis points in gross margin from last year. However, despite this, the company’s EBIT (earnings before income tax and interest) clocked in at $205m – an improvement of $14m from last year owing to lower research and development expenses.

This subsequently bolstered the net profit to $178m as opposed to $19m in the same period last year as financing expenses remained lower due to company’s steps to strengthen balance sheet. This translated to earnings per share of $1.87.

“We continued to be opportunistic in the debt capital markets in Q2 and further strengthened our balance sheet by completing another $500m debt refinancing transaction, extending maturities into 2033 and reducing the average coupon on our total long-term debt by 11 basis points,” said Domsky.

Bombardier’s unit book-to-bill reached 2.3 with backlog jumping to higher single-quarter in more than a decade to $16.1bn as at June 30, 2025. To note, the company in July revealed a firm order for a mix of 50 Challenger and Global aircraft, combined with a “first-of-a-kind” service agreement. Together, the aircraft and service agreements are valued at $1.7bn with deliveries set to begin in 2027.

Six-month revenues stay flat

While second-quarter revenues were lower, Bombardiers’ revenues in the first half of 2025 stayed flat at $3.5bn compared to $3.5bn in the same period last year owing to deliveries staying unchanged at 59 for both periods.

The company delivered 33 medium jets (32 in 1H 2024) and 26 large jets (27 in 1H 2024) in the first half of 2025. To note, while the 1H manufacturing segment revenues stayed flat at $2.4bn, the services segment crossed $1bn mark. Bombardier expects this growth in services revenue to continue for the remainder of the year.

“With over $1bn in services revenue generated in the first half of the year, the business is well positioned for sustained growth throughout the remainder of the year and beyond,” said Demosky.

Overall, the company reported a net profit of $222m – an improvement of 72% from $129m in the same period last year.

Demosky said the outlook for the rest of the year remains positive. “We are on track to achieve our full year guidance. The first half year results were consistent with our expectations, and we’ve made the inventory investments required to achieve the significant number of planned deliveries in the second half of the year, including a higher mix of large cabin aircraft compared to the first half of the year,” he added.

“In conclusion, the first half of this year has set the stage for a strong finish to 2025 and for continued success well into the future. I look forward to continuing to share our progress with you in a few months’ time.”