Canadian business jet manufacturer Bombardier has released its financial results for the second quarter of 2021 and on the back of a strong first half year, has raised its full-year guidance. Aircraft deliveries, revenue, profitability, and cash use should all now outperform previously given targets.
Business jet revenues during the second quarter of 2021 climbed to US$1.5 billion, up 50% year over year, fueled by increases in both aircraft deliveries and services. Aircraft deliveries totaled 29 in Q2, up 45% year over year, reflecting strong demand for large-category jets. Worldwide business jet utilization continued to rise, nearly reaching pre-pandemic levels in North America and Europe, buoying revenue contribution from services activities to US$295 million, up 29% year over year.
Aircraft sales equally accelerated, reaching a unit book-to-bill ratio of approximately 1.8 for the quarter, further highlighting strong interest in business aviation. Adjusted EBITDA for the quarter was up US$112 million year over year to US$143 million, reflecting favourable aircraft deliveries and mix, improved cost structure, disciplined implementation of cost-reduction programs and consistent progression through the Global 7500 aircraft’s learning curve. In addition, the increase was boosted by a higher contribution from business aircraft services, mainly due to increased fleet flight hours resulting from easing travel restrictions and progress on vaccinations consistent with the increase in revenues.
Reported EBIT from continuing operations for the quarter was US$36 million. The second quarter notably saw strong free cash flow (FCF) generation. The positive US$91 million from continuing operations FCF total for the quarter represents an improvement of US$841 million year over year and included a negative impact of approximately US$60 million in non-recurring cash items. Pro-forma liquidity at quarter end was ~US$2.1 billion and pro-forma net debt was ~US$5.3 billion.