- Jet maker Bombardier (TSX:BBD.A) ended Q3 with a strong showing, including considerable year-over-year gains in revenue, free cash flow and adjusted net income
- Gains were driven by services growth and US expansion, positioning the company to reach full-year guidance
- Bombardier builds jets for businesses, governments and militaries around the world
- Bombardier stock last traded at C$197.94 and has added 84.13 per cent year-over-year
Jet maker Bombardier (TSX:BBD.A) ended Q3 with a strong showing, including considerable year-over-year (YoY) gains in revenue, free cash flow and adjusted net income, driven by services growth and US expansion, positioning the company to reach full-year guidance.
Revenue came in at US$2.3 billion, up by 11 per cent YoY, supported by a 34-aircraft delivery mix more heavily weighted towards Global over Challenger models. Services revenue reached US$590 million, up by 12 per cent YoY, with leadership expecting further momentum thanks to a multi-phase US expansion initiative inaugurated in October with a new service centre in Fort Wayne, Indiana.
Adjusted EBITDA hit US$356 million, up by 16 per cent YoY, with Bombardier’s adjusted EBITDA margin adding 60 basis points to 15.4 per cent, thanks to 4 incremental aircraft deliveries, a favorable delivery mix and increased defense-related business.
Adjusted net income was US$129 million for the quarter, up by a staggering 59 per cent YoY, with net income coming in at US$85 million.
Free cash flow, for its part, came to US$152 million, achieving a US$279 million improvement YoY, supported by higher customer advances, strong order momentum and lower required investment in inventory.
Looking back, Bombardier has been profitable on a net income basis since 2023 and has grown revenue every year since 2021.
Looking ahead, the company remans flush with demand, as evidenced by a backlog of US$16.6 billion, growing by US$0.5 billion from Q2 and maintaining a five-year high, made flexible by available liquidity of US$1.6 billion, including cash and cash equivalents of US$1.2 billion at quarter end.
Check out a full breakdown of Bombardier’s Q3 results in Thursday’s news release.
Management commentary
“Bombardier’s third quarter performance marked by double-digit growth, or better, across all key indicators is a testament to the entire team’s relentless focus on executing our plan and supporting our customers. We delivered strong year-over-year cash flow improvement, driven by sustained customer demand, efficient operations and strong uptake on parts and service programs. We are entering the final stretch of 2025 with excellent momentum across the board,” Éric Martel, president and chief executive officer of Bombardier, said in a statement. “The Global 8000, certified this week by Transport Canada, is the fastest business jet in the world, establishing new industry benchmarks with a maximum operating speed of Mach 0.95 and a cabin altitude of 2,691 ft. The aircraft is on track to enter service this year. Our service network is consistently full and expanding in the Middle East and the U.S. Finally, our defense team is well positioned to grow its proportion of deliveries in the near term. The Bombardier team is on track for a strong end of year.”
About Bombardier
Bombardier builds jets for businesses, governments and militaries around the world. The company’s customers operate a fleet of more than 5,100 aircraft supported by 10 service facilities across six countries. Manufacturing activities are based in Canada, Mexico and the United States.
Bombardier stock (TSX:BBD.A) last traded at C$197.94 and has added 84.13 per cent year-over-year.
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