Bombardier Inc.

Good morning, ladies and gentlemen, and welcome to the Bombardier second quarter 2025 earnings conference call. Please be advised that this call is being recorded. At this time, I would like to turn the discussion over to Mr. Francis Richer de la Fleche, Vice President, FP&A and Investor Relations for Bombardier. Please go ahead, sir.

Good morning, everyone, and welcome to Bombardier's earnings call for the second quarter 2025. I wish to remind you that during the course of this call, we may make projections or other forward-looking statements regarding future events or the financial performance of the corporation. There is that actual events or results may differ materially from these statements. For additional information on forward-looking statements and underlying assumptions, please refer to the MDNA. I'm making this cautionary statement on behalf of each speaker on this call. With me today is our President and Chief Executive Officer, Eric Martel, and our Executive Vice President and Chief Financial Officer, Bart Tomoski, to review our operations and financial results for the second quarter ended June 30, 2025. I would now like to turn over the discussion to Eric.

Alors, merci, Francis, et bon matin à tous et bienvenue à toutes et à tous. Good morning, everyone, good afternoon, and maybe even good evening for some of you, and thanks for joining us today. Bombardier is in an excellent position. Our results put us on a clear and confident path to meet 2025 guidance. Before Bart and I go into specific details, I want to provide some color on how the last quarter was meaningful in the context of our long-term strategy. Clearly, it's easy to be optimistic in any quarter where we receive a firm order for 50 aircraft in one transaction. This was a big win for the whole Bombardier team. We look forward to welcoming a new customer who will also carry a long-term and very comprehensive service agreement. I'll answer a few questions I've been getting almost every day. Who is it? What planes did they buy? And what makes their maintenance agreement so significant? The answer to all of those is simple. When our new customer is ready to unveil their offering, we will support them in doing so. Until then, no ends. The entire Bombardier team will respect their wish to remain confidential for now. This order does contribute in a significant way to our large backlog jump. Overall, it's really half the story behind our solid unit book-to-bill ratio of 2.3. We are seeing sustained demand and consistent flight utilization for business jets. This is also reflected in the low availability level of preowned Challenger and Global Aircraft. On top of this great activity in the traditional business jet market, Bombardier Defense is putting points on the board. This past quarter, we received a notable order for two global 6500 jets from Saab. This is an important relationship for Bombardier, which we established more than a decade ago. It's a great example of how to succeed in the defense market. You need strong capabilities, you need a very long-term vision, and you need to be flexible with partners and customers. When I look at where Bombardier Defense is today, I see all of those ingredients coming together. In fact, at the Paris Airshow, we also announced an MOU to explore using the Global 6500 for maritime patrol missions with Italy's Leonardo. They are a well-respected aircraft and system manufacturer, and we are thrilled to embark on this project with them. I was also delighted to welcome my Saffran counterpart to our chalet as we signed a strategic pact to begin exploring common defense goals and technologies. These are just two more examples of how Bombardier Defense is creating new pathways to address growing needs in the defense industry around the world. It's important to be present, and that's why we have brought the Bombardier defense flag to many, many more events. Being present is also important for our services team, providing our customer care and convenience to start with being at the right place at the right time. We are progressing very well on active projects. Most recently, we showcased the structure of our new paint facility at the London Veganil Airport. Our next maintenance facility set to be located in Abu Dhabi is under construction in that key region. We have been consistent in executing our international service expansion, delighting our customer and growing our service revenues. We have to continue at this pace, not only for our growth ambition, but to ensure we meet or exceed the high standard our customer expect from the OEM. There are opportunities for us to extend further. Our facilities are full and the fleet is growing. As we evaluate next step, it's clear we will need to focus on geographies like the U.S. as a near return priority. With services growth top of mind, let me return to the Q2 results themselves. Our $2 billion in revenue featured an exceptional contribution from services of $590 million, which is up 16% year over year. We also tracked our fleet's flight hours as a leading indicator for services. They have continued to climb steadily, which reflects how reliable our planes are that our customers are very active. Our 36 deliveries bring our first half of the year to total to 59, the same level as 2024, and exactly our plan for the year. This past quarter, also noteworthy Challenger 3500 deliveries to a strategic customer base in the United Kingdom of Saudi Arabia. It represents an important milestone for us. Their planes are the first Challenger 3500 registered in the kingdom, which, of course, is an important market we are focused on growing and being present in. We also continue to mitigate supply chain impact on our operations proactively. As it stands, we will once again see a more back-loaded delivery profile as we progress through Q3 and Q4. We have built up to $850 million of inventory so far this year to enable our strong delivery schedule in the second half of the year. Our facilities and service network are primed and operating very efficiently. Overall, this puts us in a strong position to generate more than a billion dollars in EBITDA in the second half of the year. I am also happy to confirm that our second-half deliveries will include the first Global 8000 aircraft. It is progressing well through the process towards certification. In the meantime, the Global 7500 continues to set the bar for the industry. It has just achieved its 135th speed record. It's a significant number because it's also a record of records. The Global 7500 now holds the most city pair speed record of any business jet type. Before I turn the floor over to Bart to discuss the detailed numbers, I want to highlight that the major effort to clean up our balance sheet continues to progress very well. This past quarter, we successfully refinanced 500 million of senior notes. This, of course, is in line with our strategy to strengthen our balance sheet and have a very comfortable debt maturity runway. Our efforts also yielded more credits rating upgrade from S&P Global Ratings, as well as from Moody's Ratings. All in all, we are on a very solid track, and the team has performed at a very high level in the first half of the year.