Canadian business aircraft manufacturer Bombardier reported a strong third quarter. The company generated $2.37 billion in revenue in the quarter, with deliveries of 33 aircraft. The company raised its full-year free cash flow forecast to more than $1.3 billion. The services segment of the business generated a record $701 million in quarterly revenue.
Earnings and Operational Highlights
Bombardier remained profitable, with adjusted EBITDA increasing 7% to $382 million. Margins increased year over year from 15.4% to 16.1%. Net income, however, fell from $85 million to $81 million, but was $182 million on an adjusted basis. Free cash flow was $183 million during the quarter, bringing the first three quarters total to more than $771 million.
The 33 aircraft delivered during the quarter were one aircraft fewer than last year, but the book-to-bill ratio remained very positive at 1.7 to 1. Order backlog at quarter end was $22.2 billion, up $ 0.4 billion during the quarter.
Cash from operations increased year over year to $259 million, up from $190 million during the same quarter last year. Free cash flow increased from $152 million during the quarter last year to $182 million in 2026.
Strong Year-End Projections
The company maintained its targets to deliver more than 157 aircraft, and has delivered 89 in the first nine months. To meet its target, the company needs to deliver 69 aircraft during the fourth quarter, an increase of five aircraft over 2025. Bombardier has “strong visibility” on all remaining 2026 deliveries, according to CEO Eric Martel. The fourth quarter is traditionally the strongest quarter for business aircraft deliveries.
New Defense Contracts
During 2026, Bombardier agreed with Saab to become a partner on the GlobalEye program. The program uses a modified Bombardier Global 6500 as the platform for aerial surveillance capabilities provided by Saab. NATO selected GlobalEye as its preferred supplier for future aircraft and is in negotiations for 10 aircraft. In a separate transaction, Canada agreed to acquire six aircraft from Saab. This is a lucrative potential market for Bombardier.
Geopolitical and Tariff Issues
United States President Donald Trump threatened to bar Bombardier from selling aircraft in the United States in September, but later backed away after learning the scope of Bombardier’s Wichita operations. Three days later, Bombardier announced plans to expand employment in its Kansas, Texas, Indiana and Connecticut operations, with 300 new jobs and filling 500 vacancies. The company will invest $270 million in infrastructure for its US operations.
While trade-related uncertainty between the US and Canada remains, the imminent threat of a sales ban now appears very unlikely, particularly after the mid-term elections that rebuked the Trump administration.
The Bottom Line
Bombardier continues to move forward profitably, with increasing sales, positive cash flow, and a strong book-to-bill ratio with a growing backlog, which has grown to about three years of aircraft sales revenue.
The flagship Global 8000 remains a best seller in the intercontinental jet market, the Challenger 3500 remains a strong seller in the super mid-size class, new defense initiatives and partnerships are promising, and trade uncertainty is no longer an imminent threat. All in all, things are looking positive for Bombardier after a strong quarter.
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