MONTREAL
Bombardier Inc. raised its 2026 free cash flow forecast to more than US$1.3 billion on Thursday after reporting a strong third quarter buoyed by record services revenue and sustained demand for private jets.
Free cash flow, a key measure of financial health, rose 20 per cent from a year earlier to $183 million in the quarter, topping analysts' estimate of $159.5 million, according to LSEG data.
"Bombardier's robust third quarter results reflect a solid team effort that delivered higher profitability and yet another raising of free cash flow guidance, both of which are strong indicators of our foundational strength and resilience," said Éric Martel, president and chief executive officer of Bombardier.
Revenue rose three per cent to $2.37 billion even as the company delivered 33 aircraft, one fewer than a year earlier.
Services revenue jumped 19 per cent to $701 million, a quarterly record for the aftermarket business.
Adjusted earnings were $1.72 per share, compared with analysts' expectations of $1.73 per share.
Martel said the company is assessing whether to increase production rates as its supply chain improves.
"We have some pretty good improvement in some areas," he told analysts. "But you know we also have some (areas) that just come and go."
He also said concerns about U.S. trade tensions have eased.
"We're assessing the (trade) risk being, you know, much lower than probably where we were like two years ago, or a year and a half ago," Martel said.
Bombardier faced pressure from U.S. President Donald Trump's trade war with Canada, including a threat in September to ban the company's aircraft from the U.S. market.
Trump dropped the threat ahead of Tuesday's midterm elections, citing Bombardier's operations in Kansas.
Martel said he expects a growing share of deliveries to go to defence customers and large fleet operators that provide private aviation services.
The company, which makes a special-mission version of its large-cabin Global jets with Swedish partner Saab, has benefited from higher defence spending in Canada and Europe.
Demand for charter flights and shared ownership programs, boosted by cash-rich technology investors, has helped underpin demand for private jets.
Bombardier's backlog reached $22.2 billion as of Sept. 30, up $4.7 billion from the end of 2025.
The unit book-to-bill ratio was 1.7 for the quarter.
Adjusted net income increased 41 per cent to $182 million, while reported net income totaled $81 million, down five per cent from the same quarter last year.
Adjusted earnings before interest, taxes, depreciation and amortization increased seven per cent to $382 million.
The company ended the quarter with approximately $2.4 billion of available liquidity, including $1.6 billion in cash.
It has reduced its debt by $1.1 billion so far this year.
Bombardier reiterated its plan to deliver more than 157 aircraft in 2026 and left its other financial targets unchanged.
The company said it will host an in-person investor day on Feb. 18, 2027.
This story was written by the e2gold.ca newsroom from reporting by BNN Bloomberg, Yahoo News, Euronext Markets: Real-time Stock Market Data | live and Quartz. Quotes are checked word for word against that reporting.