Bombardier brings long-term debt down to 15-year low amid strong demand
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- Bombardier cut long-term debt to US$4.05-billion at end of June — a 15-year low — shaving off US$1.1-billion through the first half of 2025 and pushing its next maturity out to late 2030
- Bombardier reported Q2 net profit of US$191-million (US$1.84 per diluted share) on US$2.15-billion in revenue, with adjusted net income of US$257-million (US$2.50 per share) beating analyst estimates
- Bombardier delivered 32 jets in the quarter, generated US$228-million in free cash flow, and carried a backlog of US$21.8-billion in booked orders
- Bombardier's market capitalization now tops US$36-billion after a year-long stock rally, with investors shifting focus from debt execution to growth prospects
- CEO Eric Martel and CFO Bart Demosky rebuilt the company after selling its train, turboprop, and regional jet divisions and handing the C Series airliner program to Airbus
- National Bank analyst Cameron Doerksen said the stock's strength was surprising and warned valuation looks elevated, while remaining bullish on business jet demand and defence momentum
Why it matters: Bombardier's debt has fallen to less than half its near-collapse peak of US$9-billion, eliminating refinancing pressure until late 2030 and shifting investor focus to growth — but National Bank's Cameron Doerksen said the stock's US$36-billion market cap now looks elevated versus fundamentals.
