Bombardier in ‘excellent position’ as revenues jump 11%
“Bombardier is in excellent position,” company’s CEO and president Eric Martel started off the earnings call with this statement. The aerospace manufacturer reported a strong finish to the third quarter with revenues jumping 11% year-over-year to $2.3bn.
The company delivered 34 aircraft, four more than in the last year’s third quarter. Some 13 were medium aircraft with 21 being the large. The company had earlier forecasted this shift in deliveries towards more global heavy mix in the second half of this year.
This elevated the company’s manufacturing revenue to $1.7bn – up $173m from last year. The services segment’s performance was also robust as revenues climbed by 12%YoY to $590m.
“We had a double-digit growth for several key metrics, starting with 13% more deliveries, 11% more revenues, including a 12% more revenues from services,” Martel said during the call.
This revenue growth translated to $39 increase in gross margin which reached $464m at the end of third quarter – margin of 20.1% of the revenue.
Adjusted EBITDA for the third quarter reached $356m, marking a 16%YoY increase from last year. The adjusted EBITDA margin increased by 60 basis points to 15.4%. Margin growth was driven by improved aircraft mix and stronger pricing, but was partly offset by transitory supply chain-related costs.
The company is expanding its production footprint in the US with the launch of a new service center in Fort Wayne, Indiana. This facility will strengthen Bombardier’s footprint in the Midwest US, placing it closer to key cities and customers. Once operational in the second half of 2026, the center will offer maintenance, repair and overall capabilities for all of Bombardier’s aircraft.
In August, Bombardier inaugurated a new component manufacturing facility in Moorpark, California, replacing its previous Los Angeles operation. The new 46,000 square foot facility will be tailored to producing components for the Global 7500 and Global 8000 business jets.
The OEM’s backlog as at September 30, 2025, reached $16.6bn – a unit book-to-bill of 1.3 for the quarter. The company signed an agreement with Japan’s Sojitz Corporation for both a Global 6500 and Global 8000 flagship aircraft. These will be used to create a fractional operator run by Phenix Jet.
“Demand remains strong across our entire portfolio, and our backlog remains at a 5-year high levels with a healthy balance between individual and fleet customers,” said Martel.
The company is expecting a strong delivery profile in the fourth quarter of 2025. Martel said the company is monitoring its tight schedule and supply chain to ensure deliveries on time.
Free cash flow at the end of the quarter stood at $152m – an increase of $279m from last year. Bombardier’s available liquidity at the end of third quarter was $1.6bn, including cash and cash equivalents totalling $1.2bn. The company continues to deleverage its balance sheet with repayment of approximately $100m in debt announced in November with a repayment date set for December 3, 2025.
“We continued to strengthen our balance sheet with an additional $250m debt refinancing at a favorable interest rate,” said Bart Demosky, Bombardier’s chief financial officer. “And earlier this week, we announced an at par debt repayment of just under $100m that will be effective on December 3 and will clear the remaining balance of our 2027 notes.” Demosky said their debt retirement plan remains on track and the company will continue making debt repayments in the coming months.
Overall, the company’s third quarter net income came in at $85m (diluted earnings per share of $0.45) versus $117m in the same period of last year.
Bombardier invested $128m in inventory, which was largely funded by a $101 million increase in customer advances. Capital expenditure was $38m for the quarter.
Looking ahead, the company is confident to meet its full year guidance. Bombardier said it is set to deliver fourth quarter with very strong margins resulting from a higher mix of large-cabin aircraft, including Global 7500s and our first Global 8000. Global 80000 received Transport Canada type certification this week.
The company is targeting 150 deliveries by the end of 2025 while revenues above $9.25bn.
2025 – Bombardier Deliveries
Q1 2025
12 Medium
11 Large
Q2 2025
21 Medium
15 Large
Q3 2025
13 Medium
21 Large
First nine months 2025
46 Medium
47 Large
