Bombardier quarterly profit beats estimates on demand for business jet

Bombardier Inc., based in Montreal, reported a second-quarter profit of $10 million from continuing operations.

a significant improvement compared to a loss of $109 million in the same period last year.

– The profit beat market estimates, with the company's per share quarterly adjusted profit being 72 cents, while analysts had expected 28 cents per share.

– Revenue rose by 8% to $1.68 billion, meeting expectations.

– The surge in profitability was attributed to the increased demand for high-end business jets, especially from the wealthy, who have shown a preference for private flying.

– However, the company is facing challenges in its supply chain, which are impacting the timely delivery of planes.

– Gulfstream jet maker Textron Inc. also experienced strong jet pricing, leading to a raised full-year profit forecast.

– Despite the positive results, there are concerns about a potential flattening of demand, as the company reported a backlog increase of only 0.7% at $14.9 billion compared to the end of March.

The financial results were affected by a cash burn of $222 million, which is in contrast to a free cash flow of $341 million a year ago,

– primarily due to capital expenditures and working capital build-up to support higher jet deliveries in the latter half of 2023.