Bombardier free cash flow swings to $228m as backlog climbs to $21.8bn
Bombardier reduced net debt by $356m in the quarter.
Bombardier second-quarter free cash flow swung to $228m from negative $164m a year earlier. “Revenue grew, EBITDA grew, free cash flow grew, our footprint is growing. Our backlog is lengthening, and we are continuing to add flexibility to our balance sheet,” CEO Éric Martel told analysts on the company’s earnings call. “Put simply, every fundamental measure of our business moved in the right direction.”
Revenue rose 6% year-over-year to $2.15bn with the services segment standing out, posting a record $674m revenue, up 14%, on higher parts, maintenance and technical activity.
Manufacturing and other revenue, covering new and pre-owned aircraft and defense, rose to $1.47bn on higher selling prices and more large-cabin deliveries, though that was partly offset by fewer medium-cabin units.
Deliveries actually fell to 32 aircraft from 36 a year ago. This included 18 large-cabin and 14 medium-cabin, against 15 and 21 respectively, in 2025.
“Aircraft manufacturing and other revenues increased by $38m, largely the result of higher selling prices and a favorable mix of global aircraft, partly offset by 4 fewer deliveries than in the prior year,” added Bart Demosky, CFO, Bombardier, during the earnings call. Demosky said the softer deliveries were attributable to timing rather than any softening in demand.
The company’s book-to-bill ratio was 1.5x for the quarter, and the backlog climbed by $4.3bn in six months to $21.8bn, which the company pinned to sustained demand for the Global 8000.
Reported net income for the quarter was $191m, with diluted earnings per share of $1.84. Adjusted net income was $257m, and adjusted EPS rose 125% year-over-year to $2.50, a $1.39 increase versus last year.
Martel pointed to services as a growth avenue beyond organic expansion, telling analysts there are “possibilities for us to do things that we don’t do today on aeroplane and go have more penetration into the maintenance market.”
Cash and cash equivalents stood at $1.5bn and available liquidity was approximately $1.9bn as at June 30, 2026. “Our Q2 free cash flow was a result of positive working capital, driven by a $610m increase in customer advances as a result of progress payments and strong order intake, partly offset by a $420m investment in inventories and accounts payable. Our CapEx in the quarter reached $110m and net cash interest was $120m,” added Demosky.
Bombardier reduced net debt by $356m in the quarter through the full repayment of its outstanding 7.50% Senior Notes due 2029 and its 7.35% CAD debentures due December 2026, funded through a combination of cash on hand and a new $500m issuance of 5.875% Senior Notes due 2035.
“In Q2, we were very active on further optimising our capital structure. First, we reduced net debt by an additional $356m in the quarter, including the repayment of all outstanding debentures due 2026 and senior notes due 2029. This brought year-end gross debt reduction to $1.1bn,” Demosky added.
“We also lowered the average cost of our remaining debt through a $500m refinancing transaction. The impact of these actions is significant. We’ve reduced our annual run rate interest expense by a further $80m. We now have no debt maturing before November 2030, and we reduced our net leverage ratio by 16% to 1.6x.”
On the revenue mix, services grew to 31% of the quarterly total from 29% a year earlier, while manufacturing and other remained the largest single contributor at 68%.
Looking ahead, Bombardier said it expects the third quarter to look broadly similar to last year on revenue, EBITDA and free cash flow, with deliveries again skewed toward the fourth quarter, a pattern it attributed to seasonality and supply-chain timing.
For the six-month period, revenue reached $3.75bn, up from $3.55bn, with adjusted EBITDA of $571m (margin 15.2%, down from 15.4%) and adjusted net income of $446m, up from $185m.
Free cash flow for the half was $588m, against a $468m usage in the first half of 2025.
