**Montreal:** Bombardier has revised its 2025 outlook positively after US tariff changes eased trade uncertainties, forecasting increased deliveries and revenue. Despite challenges from increased costs and supply delays, the company shows significant growth in Q1 2025 and expands its global service facilities.
Bombardier, the Canadian aircraft manufacturer, has reported a positive outlook for 2025 following the clarification of US trade policies, which have affected the company’s operations in recent months. CEO Éric Martel expressed optimism during a recent conference call, highlighting an improved environment for forecasting production, deliveries, and earnings. The firm announced its first-quarter results for 2025, showing significant year-over-year growth, attributing this success to the easing of trade uncertainties.
Previously, Bombardier refrained from issuing annual guidance due to the volatility surrounding import tariffs on Canadian goods, set at a steep 25%. The situation shifted considerably when the US government allowed deductions for US content from the value of tariffed imports. This adjustment is particularly advantageous for Bombardier, which relies heavily on over 2,800 US suppliers and operates production facilities in the United States, including wings manufactured in Texas.
In a statement reported by the Montreal Gazette, Martel explained the previous uncertainty: “We were right in the middle of a week where it was 25 percent on everything from Canada, so we didn’t understand exactly how things would work.” However, with recent tariff exemptions for goods compliant with the United States-Mexico-Canada Agreement (USMCA), Bombardier has now redefined its expectations. The company anticipates delivering over 150 aircraft in 2025, an increase from 146 the previous year, and forecasts revenue of $9.25 billion—up from $8.67 billion in 2024. Adjusted EBIT is also projected to rise significantly to $1.55 billion, compared to $915 million last year. Martel remarked, “It’s always a question of risk assessment for us, and there is clearly good probability right now that the rules will be much more stable going forward.”
In line with this optimistic forecast, Bombardier’s Q1 2025 results revealed a 19% increase in revenue, totalling $1.5 billion, due to the delivery of 23 jets. The adjusted EBITDA for the quarter rose by 21% year-over-year to $248 million, although net profit saw a decline to $44 million—down from $110 million the previous year—primarily due to increased supplier costs and shifts in the value of derivatives related to long-term debt.
The company’s Services division continues to show growth as well, generating $495 million in revenue for the first quarter, an increase of $18 million compared to the same period in 2024. Bombardier is actively investing in this segment, recently announcing the establishment of a new service facility at Al Bateen Executive Airport in Abu Dhabi, UAE, aiming to enhance its maintenance, repair, and overhaul capabilities.
Despite broader economic uncertainties, demand for Bombardier’s business jets has remained robust, resulting in a backlog of $14.2 billion as of March 31, 2025, with a strong unit book-to-bill ratio of 0.9. Martel noted that the market for ultra-high-net-worth individuals and corporations is stabilising, having largely returned to normal levels after a brief pause earlier in the year. Additionally, supply chain issues have improved compared to the previous year, although the company continues to face delays from one of its engine suppliers. Nonetheless, overall manufacturing timelines remain on schedule.
Challenges from tariffs have also led to new opportunities for Bombardier’s defence division, particularly within Europe. The company is engaged in advanced discussions with several governments to supply high-speed aircraft for surveillance roles. In March, Bombardier secured an order from Australia for two Challenger 650 aircraft intended for surveillance and reconnaissance, demonstrating its diversified capabilities.
Source: Noah Wire Services