Bombardier ends 2025 on a high as it diversifies revenue base away from US
Canadian aerospace manufacturer Bombardier reported a 10% year-over-year increase in 2025 revenues to $9.5bn despite contribution from US shrinking by 5% during the year.
“We fulfilled the strategic path we set in 2021 and have completed our turnaround plan with poise, discipline and consistent execution,” said Éric Martel, president and CEO, Bombardier, who returned to lead the company in 2020 when it was close to bankruptcy. “We have transformed the business, reinforced our competitive position, and established a clear and disciplined track record for growth – and the future looks bright.”
The company’s sales expanded by $866m during the year which was mainly supported by strong sales growth in the Asia Pacific region. Bombardier’s Asian revenues doubled to $1bn compared to $515m in 2024. The $566m increase from the region made for nearly two-thirds of the total revenue growth for the company in 2025. In North America, both Canada and Mexico saw strong growth. European sales dropped with Germany and Switzerland down significantly.
Aircraft services revenue was up 13% compared with 2024. Bombardier delivered 157 aircraft in 2025, 11 more than in 2024. Manufacturing and other revenues increased by $642m year-over-year mainly due to higher large aircraft deliveries and higher selling prices and services revenues increased by $269m year-over-year.
While sales grew, gross margin as a percentage of revenue declined due to higher supplier related costs.
Adjusted EBITDA rose 15%YoY, reaching $1.6bn, with adjusted EBITDA margin up 60 basis points to 16.3%.
Free cash flow generation for 2025 saw pronounced improvement reaching $1.1bn, up $840 million versus 2024. This was attributable to higher customer advances associated with new orders and aircraft deliveries.
Reported cash flow from operating activities were $1.2bn, up from $405m in 2024.
The company continued to paydown its debt during 2025, with total debt repayments of $400m in 2025. It also announced a partial repayment of $500m of senior notes due 2028, which it plans to repay using cash from its balance sheet.
This improved adjusted net debt to adjusted EBITDA ratio from 2.9x in 2024 to 1.9x at year-end, outperforming its target of 2.0x to 2.5x. Bombardier said it plans to improve this towards about 1.5x over time.
This translated to a 47% year-on-year jump in adjusted net income to $805m leading to adjusted earnings per share of $7.72 and diluted EPS of $9.41.
Backlog at the end of the year reached $17.5bn, an increase of $3.1bn from end of 2024.
Unit book-to-bill of 1.4 for the year highlights healthy demand across company’s product portfolio.
Outlook
“Our 2026 guidance reflects both the sustained momentum we have built over the past five years and the confidence we have in our execution going forward,” said Martel.
“Our ability to operationalize and deliver on our ambition will not waiver as we continue to focus on growth, profitability and sustainable cash flow generation, all while delivering a customer experience that sets a new benchmark for excellence in our industry.”
The company is eyeing to deliver more than 157 jets during 2026 targeting revenue of $10bn and adjusted EBIDTA of $1.6bn.
This outlook faces significant risks from trade policy especially the recent announcement from the US President Donald Trump which specifically targeted Bombardier in his post on Truth Social.
If you want learn more about how these tariffs impact Bombardier you can listen to our Town Hall on threatened tariffs here.
“In addition, protectionist trade policies and changes in the political and regulatory environment … as well as potential changes to free trade arrangements (including the scheduled 2026 joint review of the United States-Mexico-Canada Agreement (USMCA)) could affect our business in several national markets, disrupt our supply chain, impact our sales and profitability and make the repatriation of profits difficult, and may expose us to penalties, sanctions and reputational damage,” the company said in its business environment risk.
