Bombardier beats Q2 adjusted EPS estimates, remains on track to meet FY guidance

Overview

• Canada business jet maker's Q2 revenue grew 6% yr/yr to $2.15 bln, driven by record services

• Adjusted EPS for Q2 rose to $2.50, beating analyst expectations

• Backlog rose $4.3 bln from year-end 2025, driven by strong Global 8000 demand

Outlook

• Bombardier says it remains on track to meet raised 2026 guidance across all key metrics

• Company expects continued strong demand for Global 8000 aircraft and Defense business

• Bombardier plans to expand Singapore Service Centre, nearly doubling capacity by second half 2028

Result Drivers

• SERVICES GROWTH - Record revenue from Services business, up 14% yr/yr, was a main contributor to overall revenue growth

• GLOBAL 8000 DEMAND - Strong demand for Global 8000 aircraft drove a unit book-to-bill of 1.5x and boosted backlog

• FREE CASH FLOW IMPROVEMENT - Significant increase in free cash flow was attributed to higher cash flows from operating activities

Company press release: ID:nGNX4Lj15s

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the aerospace defense peer group is "buy"

• Wall Street's median 12-month price target for Bombardier Inc is C$349.50, about 2.5% below its July 29 closing price of C$358.31

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• July 29 - General Dynamics lifts outlook on Gulfstream, shipbuilding strength

• July 28 - Textron tops results estimates, aviation productivity concerns weigh

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)