Canadian plane maker Bombardier reported a Q2 adjusted loss of $38mn, narrowing from a loss of $137mn last year. This was attributed to a 41% YoY increase in its adjusted EBITDA of $201mn driven by continued progress on strategic priorities. Adjusted EBITDA margins improved by 350bp YoY to 12.9%. Revenues were 2.2% YoY higher to $1.6bn, while aircraft deliveries were at 28 vs. 29 in the previous year. Aftermarket revenues increased by 22% to $359mn. Free cash flow from continuing operations rose to $341mn vs. 91mn in Q2 2021. The company continues on its deleveraging path with a debt reduction of $373mn during Q2 and $773mn YTD funded by cash and cash equivalents that currently stand at $1.4bn. As of June, total long-term debt stood at $6.3bn. In July, Moody’s upgraded Bombardier’s corporate family and senior unsecured notes rating to B3 with a stable outlook. Its unit book-to-bill (orderbook-to-deliveries) stood at 1.8x with its backlog rising by 37% YoY to $14.7bn. Based on stronger working capital performance and reduction in financing cost from accelerated deleveraging, the company guided for more than 120 aircraft deliveries, revenues of greater than $6.5bn and revised free cash flows of more than $515mn from $50mn previously for 2022.

Bombardier’s 7.5% 2024s traded 0.68 points higher to 88.73 to yield 8.61%.

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