Q2 2024 Bombardier Inc Earnings Call Transcript
Key Points
- Bombardier Inc (BDRAF) reported a 32% year-over-year increase in Q2 revenues, driven by strong aircraft deliveries and aftermarket services.
- The company achieved a significant milestone with services revenues crossing the $500 million mark for the first time, putting them on track to meet their 2025 target a year early.
- Adjusted EBITDA grew by 22% year-over-year to $335 million, demonstrating strong operational performance.
- Bombardier Inc (BDRAF) received two credit rating upgrades from Moody's and S&P, reflecting improved financial performance and balance sheet de-risking.
- The company successfully navigated labor negotiations in Toronto, minimizing production disruptions and maintaining their full-year guidance.
- Supply chain issues, particularly with engine suppliers, continue to be a headwind, requiring close management and intervention.
- The recent labor strike in Toronto resulted in the loss of 11 working days, creating schedule pressures for aircraft deliveries in the second half of the year.
- Adjusted EBIT margin was lower year-over-year due to revenue mix and one-time items from the previous year.
- Free cash flow usage in Q2 was $68 million, driven by negative cash flow from operations and continued investments in inventory.
- The company anticipates reduced order and delivery activity in Q3 due to planned manufacturing shutdowns and the summer holiday period.
Good morning, ladies and gentlemen, and welcome to the Bombardier second quarter 2024 earnings conference. Please be advised that this call is being recorded.
At this time, I'd like to turn the discussion over to Mr. Francis De La Fleche, Vice President FP&A, and Investor Relations for Bombardier. Please go ahead. Mr. Francis De La Fleche.
Good morning, everyone, and welcome to Bombardier's earnings call for the second quarter ended June 30, 2024. I wish to remind you that during the course of this call, we may make projections or other forward-looking statements regarding future events or the financial performance of the corporation.
There are risks that actual events and results may materially differ materially from these statements. For additional information on forward-looking statements and underlying assumptions, please refer to the MD&A.
I am making this cautionary statement on behalf of each speaker on this call with me
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