Bombardier delivered 28 aircraft in the second quarter, one fewer than a year ago, but revenues still edged up slightly on the strength of its services business, the company reported Thursday. At the same time, Bombardier’s backlog continued to swell, reaching $14.7 billion—a 37 percent year-over-year bump and the “healthiest…that we’ve had for a long time,” according to president and CEO Eric Martel.
Keeping its guidance at more than 120 deliveries for the year, Bombardier reported a book-to-bill of 1.8:1 for the second quarter. Importantly, Martel said, the backlog represents a mix of customers and is “pretty well spread across the board. Every single program is contributing.” This underscores the strength of the backlog and gives it better visibility into the planning of production, he said.
However, Martel pointed to the supply chain as a “crosswind” that, he said, “is contributing to keeping delivery ramp up at a conservative and steady pace.” He added that Bombardier has remained “meticulous” in the detailed planning of its ramp-up and taken into account the risks of the supply chain as guidance. Martel cited engines as one area that Bombardier is watching but also noted the issues spread across the tiers of suppliers.
Even so, he said Bombardier is eyeing a 15 to 20 percent increase in production next year and estimated the backlog extends about two years.
Bombardier brought in-house a number of “work packages that were at risk” and that has helped it to better manage supply chain shortages, he said, noting this has resulted in the increase of 500 jobs.
Second quarter deliveries reflected the discontinuation of Learjet production. Three light aircraft had been handed over in the second quarter of last year versus none in the most recent quarter. The company also delivered 16 Globals, down by one unit from the second quarter of 2021, but Challenger deliveries increased by three to 12 in the last three months
On the year, Bombardier shipments are down by six aircraft, including five fewer Globals (for a total of 28) and one less Learjet (three were delivered in the first quarter). Challenger deliveries have remained flat at 18 in the first six months.
Meanwhile, as Bombardier continues to expand its maintenance capacity, service revenues jumped by 22 percent to $359 million. This boosted total revenues to $1.557 billion in the quarter, inching up from $1.524 billion a year ago.
Adjusted EBITDA was up 41 percent to $201 million in the quarter, but with financing costs as it works through its debt, Bombardier posted a net loss of $129 million.