Bombardier delivered three fewer aircraft in the second quarter for a total of 36 aircraft, but at the same time brought in a book-to-bill of 2.3:1 thanks to a firm order for 50 aircraft from an unnamed customer, the company reported this morning.
As a result of the softer deliveries, the Montreal-headquartered airframer experienced an 8% decline in revenues to $2 billion. But company officials maintained that the results were in line with expectations, and the company remains on track to deliver at least 150 aircraft this year.
“Bombardier is in an excellent position. Our results put us on a clear and confident path to meet 2025 guidance,” Bombardier president and CEO Éric Martel told analysts.
The company handed over 15 Globals in the second quarter, four fewer than a year earlier, and 21 Challengers, an increase of one aircraft. For the first half, however, Bombardier is on par with 2024, delivering 59 aircraft in both of the six-month periods. During the first half of this year, Bombardier shipped one fewer Global (26) and one more Challenger (33) than last year.
However, company executives expect the mix to reverse in the second half with “a lot more Globals” anticipated, Bombardier executive v-p and CFO Bart Demosky told analysts, noting that the company has amassed $850 million in inventory in preparation. The company is planning for deliveries of at least 91 aircraft during the last six months—a greater than 55% increase. These will include the first Global 8000, Martel confirmed.
While revenue softened, it was offset in part by Bombardier’s continued growth in the services business, bringing in $590 million in the second quarter, a 16% year-over-year increase. Bombardier anticipates this to continue to grow as it plans further expansion in this area.
“I think the next priority for us would be to grow into the U.S. because we’re delivering a lot of airplanes to the U.S., but it’s also [that] the fleet is mature. We have clear visibility on how much maintenance these airplanes will need in three years, five years, seven years down the road,” Martel said, adding that Bombardier needs to be prepared for this. “I’m sure you’re going to hear about either expanding sites in the U.S. or you’re going to hear about potentially new sites.”
Backlog reached $16.1 billion by the end of June as it brought in its highest single-quarter business jet unit order volume in more than a decade. This was anchored by the $1.7 billion order from a single customer for 50 aircraft alongside an extensive services agreement. Martel did not reveal the operator or the mix of aircraft, saying only that Bombardier is awaiting the customer to be ready to announce its new service planned for the aircraft.
However, Martel was encouraged by the market beyond that order, saying, “We are seeing sustained demand and consistent flight utilization for business jets.”
As for Global 8000, Martel reported that the first aircraft to be delivered is ‘assembling extremely well…We’re starting to put the interior in and getting ready for that.” The company is in the certification process. “We finished flying the airplane. It’s more of an all-paperwork exercise that we need to consolidate and go to the authorities.”
As the 8000 progresses, Martel said demand has remained strong for the Global 7500. “The airplane is pretty much sold right now,” he said. While Global 7500 deliveries were down in the quarter, he said that was more a matter of timing and production pacing. “It’s going to be the opposite in the second half,” he said.
Many of the current Global 7500 customers are purchasing service bulletins so they will be able to upgrade to the speedier (Mach 0.94), longer-range (8,000 nm) performance of the Global 8000, he noted.