Bombardier Charts Course for Sustained Growth on Strong Backlog and Services Momentum
TORONTO, January 26, 2026 – Bombardier Inc., the Montreal-based aerospace manufacturer, enters 2026 positioned as a focused, pure-play business aviation company, having completed a multi-year transformation. The firm’s financial health, underscored by a record order backlog and a rapidly growing aftermarket services division, provides a solid foundation for future growth despite global economic uncertainties.
From Turnaround to Growth Trajectory
After divesting its rail and commercial aircraft divisions earlier in the decade, Bombardier has solidified its position as a leading designer and manufacturer of high-performance business jets, notably its Global and Challenger families. The company’s strategic pivot has been marked by significant debt reduction, operational streamlining, and a sharp focus on profitability and cash flow generation. This disciplined execution has restored investor confidence, reflected in a substantial appreciation of its share price over the past five years.
Key Financial Performance & Metrics
| Metric | Recent Highlights & Outlook |
|---|---|
| Order Backlog | Reached approximately $16.1 billion (USD) as of mid-2025, the highest level in over a decade, providing multi-year revenue visibility. |
| Services Revenue | A key growth pillar, contributing nearly one-third of total revenue. The division targets over $2 billion (USD) in annual revenue. |
| 2025 Financial Guidance | Targets include revenue >$9.25B (USD), Adjusted EBITDA >$1.55B (USD), and free cash flow of $500-$800M (USD). |
| Credit Profile | Successfully refinanced debt, extending maturities. Received credit rating outlook upgrades from S&P Global and Moody’s in 2025. |
| Stock Performance (TSX: BBD.B) | Has delivered significant returns for shareholders over a multi-year horizon, though subject to market volatility. |
Strategic Pillars Driving the Business
The company’s current strategy rests on three interconnected pillars. First, backlog strength and production execution are paramount. A unit book-to-bill ratio consistently at or above 1.0 indicates healthy demand, with a landmark 50-aircraft order in 2025 significantly boosting the order book. Management maintains full-year delivery guidance, with production skewed towards the latter half of the year.
Second, the expansion of the high-margin aftermarket services business provides recurring revenue and stabilizes earnings against the cyclicality of new jet sales. With a global network of service centres supporting over 5,000 aircraft, this segment is a primary driver of profitability improvement.
Third, continued balance sheet repair and deleveraging remain a priority. Proactive debt management, including redemptions and refinancings at lower rates, has improved the company’s financial flexibility and reduced interest costs, creating a stronger foundation for future investment.
Market Context and Potential Challenges
The business aviation market has demonstrated resilience post-pandemic, with utilization rates remaining robust. Bombardier has also tapped into the defence aviation sector, where demand for surveillance and special mission aircraft presents a new growth avenue. However, the company navigates persistent supply chain pressures, inflationary costs, and the potential for disruptive trade policies, including tariffs. Management has emphasized operational flexibility and scenario planning to mitigate these risks.
Frequently Asked Questions
What is Bombardier’s main business focus today?
Bombardier is now a focused manufacturer of business jets (Global and Challenger families) and a provider of comprehensive aftermarket services, having exited the rail and commercial aircraft markets.
Why is the services business so important to Bombardier?
The services division generates high-margin, recurring revenue from maintenance, parts, and support for a large global fleet. This provides earnings stability and reduces reliance on the cyclical sale of new aircraft.
What does the record backlog mean for investors?
A backlog of over $16 billion (USD) provides strong visibility into future revenue and production schedules, typically covering 18-24 months of output. This reduces uncertainty and supports cash flow predictability.
Is Bombardier still paying down debt?
Yes, deleveraging remains a core priority. The company has actively redeemed and refinanced debt in recent years, extending maturities and improving its credit profile, as evidenced by positive actions from rating agencies.
What are the main risks facing the company?
Key risks include global economic downturns affecting demand for business jets, persistent supply chain disruptions, inflationary cost pressures, and potential changes in trade or tariff policies, particularly between Canada and the United States.