With Deliveries and Revenues Up, Bombardier Completes Turnaround

Bombardier completed 2025 with an 11-aircraft bump in deliveries to 157 units, $3.1 billion year-over-year (YOY) growth in backlog to $17.5 billion, and 10% increase in revenues to $9.55 billion. And, importantly to the company, last year marked the completion of its five-year turnaround plan, exceeding its goals for $7.5 billion in annual revenues, more than $500 million in free cash flow, $1.5 billion in EBITDA, and a net leverage of about 3:1.

The turnaround plan was laid out in 2021 after Bombardier—then burdened with heavy debt—had sold off all of its non-business aviation businesses and emerged as a pure business jet player.

“2025 was a landmark year for Bombardier. We successfully completed our turnaround plan,” Bombardier president and CEO Éric Martel told analysts in the release of the 2025 results this morning. “In 2021, we set ambitious financial objectives for where we wanted to be in 2025 and further laid out the foundation for our future. I must say, at the time, we were met with some skepticism. Looking at where we are today, I am so proud to say that we’ve delivered top to bottom, even on metrics we reset upward in 2023, halfway through the journey.”

Topping those original revenue goals by more than $2 billion, the company emerged in 2025 with almost $1.1 billion in free cash flow, a $1.559 billion adjusted EBITDA, and net leverage of 1.9:1.

Looking forward, Bombardier continued to remain conservative on delivery estimates, projecting that it would deliver at least as many aircraft this year as in 2025 (157), but sees growth in revenues to $10 billion and adjusted EBITDA of $1.625 billion.

As for deliveries, Bombardier handed over 71 Challengers and 86 Globals last year, compared with 73 apiece in 2024. This met guidance for more than 150 in the year. In the fourth quarter, Bombardier set a record for a combined 64 deliveries (39 Globals and 25 Challengers), up from the 57 logged in the same quarter a year earlier.

While deliveries edged up, the financial performance was also boosted by 13% growth in service revenues to $2.3 billion, the most yet for the OEM and again surpassing original goals. It is further seeing substantial success in the defense business, delivering 16 special-mission aircraft and surpassing $1 billion in business.

The combination of services and defense now represents about 35% of Bombardier’s business, which Bombardier executive v-p and CFO Bart Demosky called “an important step forward in our objective to further diversify our top line.”

At the same time, the business aviation market remains strong for Bombardier, backed by multi-billion-dollar orders announced last year from start-up Bond and just this week with Vista. Bombardier ended the year with a 1.4:1 book-to-bill.

Meanwhile, the free cash flow and improved liquidity are opening up opportunities for selected investments in services and productions such as the recent acquisition of U.S.-based MRO provider Velocity Maintenance Solutions, said Demosky, declaring, “Cash is king. We have several great capital allocation options ahead of us.”

However, the manufacturer did encounter headwinds with its supply base, and one engine supplier in particular, which had to stop delivery, Martel said, not naming the company. The issues caused Bombardier to halt production for “days if not weeks” and then realign to catch up. This cost “millions and millions,” he said. “It’s been brutal for us.”

Bombardier has placed more people supporting the supplier at the sub-tier levels, Martel elaborated. “This one still carries a lot of impact on our assembly line, and I’m telling you we are extremely focused.”