(Reuters) -Business jet maker Bombardier's reported second-quarter revenue on Thursday that was down slightly, though net income beat analysts' expectations, driven by higher airplane deliveries and orders, and strong demand for parts and repairs.

The Canadian company burned through $164 million of free cash during the quarter, far above the roughly $41 million that analysts had expected.

The cash burn, a figure closely watched by investors, was largely due to stocking inventory ahead of increased production in the second half of the year.

Bombardier capped the second quarter with a $1.7-billion from an unidentified customer for 50 firm orders of its Challenger and Global aircraft, plus a service pact and options for 70 more, taking the value of its backlog to $16.6 billion. 

The planemaker delivered 36 business jets in the quarter, down from 39 in the year-earlier period.

"Demand for our products and services remains strong in traditional business jet markets and continues to garner new opportunities in defense markets," CEO Eric Martel said in a statement. 

At the Paris Airshow in June, he added, "Bombardier Defense deepened existing ties, forged new ones and secured strategic orders."

But the company continues to contend with the economic uncertainty of U.S. President Donald Trump's aggressive use of tariffs. In early July, Trump called for a 35% tariff on imports from Canada, set to begin from Friday. 

Much of Bombardier's supply chain and its aircraft are exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA), but Trump has not made a final decision on the tariffs. 

The Montreal-based company posted quarterly revenue of $2 billion, down from $2.2 billion a year ago.

On an adjusted basis, it earned $1.11 a share in the second quarter, versus $1.04 a year earlier, to beat analysts' average projection of $1.06.