Bombardier business jet deliveries in the third quarter softened by one aircraft year over year (YOY) to 33 units, but a record $701 million from its services business pushed up overall revenues by 3%, to $2.4 billion, the Montreal-headquartered manufacturer reported this morning. Through the first nine months, shipments were down by four aircraft to 89. However, Bombardier reaffirmed its guidance to deliver more aircraft this year than the 157 handed over in 2025.
In the third quarter, Bombardier delivered 12 Challengers, one fewer than last year, but matched the 21 Globals from the same period a year ago. Through the first nine months, Challenger deliveries slipped by six units YOY to 40, while Globals were up by two units to 49.
At the same time, the market remained strong, with Bombardier recording a 1.7:1 book-to-bill ratio. This pushed its current backlog to $22.2 billion, up from $21.8 billion at the end of June and $4.7 billion higher since December 31.
Bombardier president and CEO Éric Martel was pleased with the results, saying, “Bombardier delivered another strong quarter as we continue to make progress across key metrics.”
But he also pointed to supply chain as an area the company must still monitor. “It continues to require attention every day and will continue for some time,” he said during the quarterly release analysts’ call, describing the challenges typically as ones that vary; once one issue is addressed, another crops up in a different area.
“We continue to very proactively mitigate disruption and support customer commitments, staying focused on what we can control and making sure we have the right capabilities in the right places to support our customers,” he said.
Bombardier CFO Bart Demosky added: “We remain on track to deliver our guidance…Our teams are managing an active Q4 delivery schedule with a clear focus on aircraft completion, supply-chain coordination, and quality.”
During the analysts’ call, Martel was asked about the possibility of boosting rates in the future, because Gulfstream Aerospace has indicated plans to do so. Martel responded, “There is strong consideration. We are making some investments in infrastructure right now that will allow us to increase our rates.” However, Bombardier is continuing to take a cautious approach. Martel said the main question about that possibility is whether the supply chain could support it.
He cited activities underway that will help create capacity, including the addition of a facility in Montreal that is on schedule for completion at the end of 2027 and that will primarily be used for interior finishings on the Global 6500 and 5500. This would help free up space to boost production of the Challenger 3500. “The rate increase is clearly looked at for the Challenger 3500. That’s where we have years and years of backlog; that’s why we are ramping up,” Martel said during a subsequent call with reporters.
In addition, he pointed to the acquisition of the assets of MHI Canada Aerospace in Mississauga, Ontario, which will bring Challenger 3500, Global 5500, and Global 6500 wing production in-house. That acquisition is set to close by year-end and give Bombardier “full control over wing production across our aircraft portfolio, including our Global 8000 wing plant in Red Oak, Texas,” Martel said. “Ultimately, it gives us greater control over our production processes and positions us to better support our ramp-up over the long term.”
As for services, revenue increased 19% YOY because Bombardier has been in a years-long expansion effort of its facilities worldwide. “We believe there is much more ahead of us as we look to invest in further diversifying our core offering,” Martel said, pointing to the recent announcement of a planned $270 million in infrastructure investments in the U.S.
Along with an increase in revenues, Bombardier’s earnings increased in the third quarter—both with EBIT (up 17% to $266 million) and adjusted EBITDA (up 7% to $382 million). It is also seeing cash flow continue to increase, up 20% in the third quarter to $183 million, and, as such, the company raised its guidance in this area by $300 million to $1.3 billion for the year.
Martel discussed possibilities for capital allocation, including new aircraft. However, he did not specify whether those would be clean-sheet designs or derivative models. The Bombardier Challenger 650 has long been rumored as a potential candidate for an update.
As for the market, Martel saw strength globally, with the exception of the Middle East. He was particularly bullish about the fleet operator segment, where he sees the most growth potential. He explained this is because that is primarily where newcomers are stepping into the market. Fleet business also in turn is helping boost services.
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