Bombardier’s second-quarter results beat on higher jet deliveries

Bombardier BBD-B-T beat analysts’ estimates for second-quarter results on Thursday, helped by higher plane deliveries and stronger sales in the Canadian business jet maker’s services business.

Robust demand for flying private since the pandemic is helping business jet makers’ order backlogs, but supply chain snags and shortages of skilled workers following a recent wave of retirements have weighed on deliveries.

Bombardier said on Thursday it delivered 39 aircraft in the quarter, up 10 from a year earlier and reported a 5% higher backlog of $14.9 billion. The company expects to deliver between 150 and 155 aircraft in 2024.

The Montreal-based company said it also burned $68 million during the second quarter in free cash, a metric closely watched by investors, compared with free cash usage of $222 million a year earlier.

Bombardier CEO Eric Martel said the company is demonstrating its expertise in “maintaining the industry’s strongest track record for managing the supply chain.”

On Wednesday, Gulfstream jet maker General Dynamics reported a 50% increase in business jet deliveries in the quarter, but shares fell when the company only handed over 11 of its flagship G700 business jets, below a company target of 15.

On an adjusted basis, Bombardier earned $1.04 per share in the second quarter, beating analysts’ estimates of 78 cents, according to LSEG data.

The company posted revenue of $2.2 billion, compared with estimates of $1.86 billion. Bombardier’s revenue from services grew 18% year-over-year.