Latest News

Bombardier exceeds its quarterly profit forecasts on the strength of demand for maintenance services

Bombardier, a Canadian jet manufacturer, beat Wall Street's expectations for the first quarter profit. This was due to a robust demand for "repair and maintainance services" as well as an extra?"plane delivery" compared with last year.

The strong demand in the U.S. for parts and maintenance on its growing global jet fleet led to a 25% increase in revenue.

The private aviation industry has generally remained resilient, despite the soaring jet fuel prices due to Middle East conflict.

In a press release, CEO Eric Martel stated that the plane maker had generated $360 in free cash flow during the first quarter. This was its highest level for a quarter in almost two decades. The $360 million in free cash flow was a significant increase from the $304 millions used during the previous quarter.

Bombardier has raised its outlook for free cash flow in 2026 to more than 1 billion dollars, up from an earlier range of $600 to $1 billion. The company has reiterated its plans to deliver over 157 aircraft this year.

Bombardier has received new orders for the Global 8000 ultra long-range business jet, which it recently certified. This is due to the sustained?demand of private flying while it ramped up production.

The Montreal-based company delivered 24 aircraft in the first quarter of this year, an increase of one over the same period the previous year.

According to LSEG, Bombardier's adjusted earnings per share were $1.81 in the first quarter. This compares with an average analyst estimate of 77c.

The company's quarterly revenue was $1.6 billion - a rise of 5% on the previous year, but slightly lower than expected at $1.64 billion. Reporting by Allison Lampert from Montreal and Aatreyee dasgupta from Bengaluru. Editing by Leroy Leo.

(source: Reuters)