Bombardier quarterly profit beats estimates on demand for business jets

MONTREAL (Reuters) -Canada’s Bombardier (OTC:) Inc on Thursday reported a better-than-expected quarterly profit and a higher revenue, helped by demand for pricier business jets despite supply chain pressures.

The Montreal-headquartered business jet maker reported a second-quarter profit of $10 million from continuing operations, compared with a loss of $109 million.

Results of corporate jet makers have been powered by strong demand from the wealthy for private flying over the last few quarters but companies are wrestling with supply chain challenges that make it harder to deliver planes.

Last month, Gulfstream jet maker Textron Inc (NYSE:) raised its full-year profit forecast on strong jet pricing.

However, there are early signs that demand may be flattening. Bombardier said on Thursday backlog at the end of June was up just 0.7% at $14.9 billion compared to the end of March.

On a per share basis, quarterly adjusted profit was 72 cents, compared with a loss of 48 cents a year earlier. Analysts polled by Refinitiv had expected a profit of 28 cents per share.

Revenue rose 8% to $1.68 billion, in line with expectations.

Bombardier reported a cash burn of $222 million compared with a free cash flow of $341 million a year ago, due to capital expenditures and a build up in working capital to support higher jet deliveries in the second half of 2023.