Bombardier Q2 Profit Rises on Defense Orders Amid Revenue Decline

Bombardier reported higher second-quarter profits for 2025 despite an 8% decline in revenue to around $2 billion, with adjusted net income rising slightly to $117 million or $1.11 per share, beating analyst expectations. The company delivered 36 jets during the quarter but secured a significant new defense order for 50 jets, with options for 70 more, boosting its backlog to over $16 billion and signaling strong demand in both defense and business aviation. Service revenues increased by about 16%, reflecting Bombardier's strategic pivot towards after-market services and government contracts to stabilize revenue amid challenging market conditions. CEO Éric Martel highlighted the company's diversified backlog, expanding service infrastructure, and new defense opportunities, underpinning confidence in meeting 2025 guidance despite ongoing market uncertainties. However, rising cash outflows related to inventory buildup and potential US tariffs on Canadian aircraft pose risks to margins, though most operations remain protected under the USMCA trade agreement. Investors reacted positively, with shares rising due to optimism about the company's growth prospects driven by its robust order book and expanding defense segment.