- Aerospace stock Bombardier (TSX:BBD.B) ended Q2 2024 with double-digit growth year-over-year across deliveries, revenue, services and profitability, and remains on pace to meet full-year 2024 guidance
- The company reported a US$14.9 billion backlog at quarter end
- Bombardier designs, builds, modifies and maintains aircraft for business and defence
- Bombardier stock has added 55.81 per cent year-over-year and 71.75 per cent since 2019
Aerospace stock Bombardier (TSX:BBD.B) ended Q2 2024 with double-digit growth year-over-year across deliveries, revenue, services and profitability, and remains on pace to meet full-year 2024 guidance.
Multi-pronged revenue growth
Revenue in Q2 2024 came to US$2.2 billion, up by 32 per cent year-over-year, thanks to steadily increasing service demand and higher aircraft deliveries. Bombardier delivered 39 aircraft in the quarter, up by 10 units or 34 per cent year-over-year. Services added US$507 million in revenue, up by 18 per cent year-over-year, thanks to a recent network expansion, with management optimistic about reaching US$2 billion by 2025.
Bombardier is seeing sustained demand across multiple regions diversified across business jet, defense and medevac customers, representing a US$14.9 billion backlog at the end of the quarter.
The proof is in the profitability
Bombardier posted adjusted EBITDA of US$335 million in Q2, up by 22 per cent year-over-year, driven by strong deliveries and services. Adjusted EBITDA margin fell to 15.2 per cent, a 1.2 per cent decrease year-over-year. Adjusted EBIT was US$216 million, a 14 per cent increase year-over-year, though adjusted EBIT margin fell by 1.5 per cent.
Adjusted earnings per share for the quarter rose to US$1.04 from US$0.72 in Q2 2023. That works out to US$19 million in net income, making it the fourth quarter out of the past six, and third in a row, that the company has come out profitable under the metric.
Free cash flow usage of US$68 million represents a US$154 million improvement year-over-year. The company views the metric – defined as cash flow from operating activities minus continuing operations minus net additions to PP&E and intangible assets – as insightful into its ability to generate cash for shareholders, debt repayment and acquisitions after investing to support ongoing operations and long-term value creation.
Bombardier had available liquidity of US$1.3 billion at quarter end, including cash and cash equivalents of US$1 billion.
Leadership insights
“The entire Bombardier team is consistently performing at an extremely high level,” Éric Martel, Bombardier’s president and chief executive officer, said in a statement. “As the company enters the fourth year of our journey centred on business aviation, our being able to post double-digit growth year-over-year underscores our focused business model, the strength of our plan and the team’s unwavering ability to execute. We continue to demonstrate our unique expertise and ingenuity when it comes to maintaining the industry’s strongest track record for managing the supply chain. I am proud that we have, time and again, proven our agility, resilience and ability to thrive in all environments we face, which has kept us on track to meet full-year guidance.”
“As the market for business aviation remains strong around the world, we are well-positioned to meet demand with our impressive product lineup and our growing services and defense streams,” Martel added. “The thoughtful diversification of our portfolio has allowed us to make an important step change in how we perform, and by maintaining a strong focus on quality throughout our production processes, we are able to cultivate new opportunities and chart a clear path forward.”
About Bombardier
Bombardier designs, builds, modifies and maintains aircraft for business and defence. Its customers operate a fleet of about 5,000 aircraft across the world with support from 10 service centres across six countries.
Bombardier stock (TSX:BBD.B) last traded at C$94.89 per share. The stock has added 55.81 per cent year-over-year and 71.75 per cent since 2019.
Join the discussion: Find out what everybody’s saying about this aerospace stock’s Q2 2024 financial results on the Bombardier Inc. Bullboard and check out Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo of Bombardier’s Global 8000 jet: Bombardier)