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Investing.com -- Bombardier Inc (TSX:BBDb). reported a robust second quarter, signaling continued momentum toward its 2025 full-year targets amid a sharp rise in order activity and steady aircraft deliveries. The Montreal-based manufacturer’s stock fell 3% in TSX trade following the results, generating $2.0 billion in revenue, down 8% year-over-year. However, the company showed underlying strength driven by a double-digit increase in services revenue and a record business jet backlog.
The company delivered 36 aircraft during the quarter, consistent with the prior year, and recorded a 16% surge in aftersales services revenue to $590 million as it continues to expand its global support infrastructure. “The Bombardier team has performed at a very high level in the first half of the year, setting our company on the path to meet 2025 guidance and confidently step into the future,” said Éric Martel, president and CEO.
Financially, Bombardier achieved a net income of $193 million, a substantial increase from $19 million the same quarter last year, while adjusted net income reached $117 million. Diluted earnings per share from continuing operations climbed to $1.87, compared to $0.12 a year ago, highlighting strong operational performance and product demand.
Free cash flow usage widened to $164 million from $68 million a year earlier, reflecting planned inventory build-up ahead of increased aircraft output in the second half. Meanwhile, adjusted EBITDA stood at $297 million, down 11%, and reported EBIT rose 7% to $205 million, as margin performance remained resilient.
The unit book-to-bill ratio reached 2.3, marking Bombardier’s highest single-quarter business jet order volume in more than a decade. The order backlog surged to $16.1 billion as of June 30, 2025, a $1.9 billion sequential increase, driven in part by a major order for 50 aircraft and 70 options from a new customer.
Liquidity remained strong with $1.2 billion in available resources and $811 million in cash on hand, underpinned by disciplined financial management. In a sign of improved creditworthiness, Bombardier saw its debt rating upgraded by S&P Global (NYSE:SPGI) Ratings to BB- and noted a positive outlook shift from Moody’s after refinancing $500 million in senior notes due 2027.
“The world’s fastest business jet, the Global 8000, crowning a second-to-none portfolio,” Martel said, with the company citing a growing defense pipeline and service network build-out, including upcoming facilities in Abu Dhabi and the UK. To date, Bombardier’s global service footprint supports over 5,100 aircraft across ten sites in six countries.
Despite the operational progress, shares of Bombardier fell 3% following the earnings release, as investors reacted to the top-line revenue decline and expanded cash flow usage.